The History of the Standard Oil CompanyTarbell, Ida M. (Ida Minerva)
History
The History of the Standard Oil Company
Tarbell, Ida M. (Ida Minerva)
Petroleum industry and trade -- United States -- History; Standard Oil Company -- History
The chief refining competitor of Oil Creek in 1872 was Cleveland, Ohio.
Since 1869 that city had done annually more refining than any other
place in the country. Strung along the banks of Walworth and Kingsbury
Runs, the creeks to which the city frequently banishes her heavy and
evil-smelling burdens, there had been since the early sixties from
twenty to thirty oil refineries. Why they were there, more than 200
miles from the spot where the oil was taken from the earth, a glance at
a map of the railroads of the time will show: By rail and water
Cleveland commanded the entire Western market. It had two trunk lines
running to New York, both eager for oil traffic, and by Lake Erie and
the canal it had for a large part of the year a splendid cheap waterway.
Thus, at the opening of the oil business, Cleveland was destined by
geographical position to be a refining center.
Men saw it, and hastened to take advantage of the opportunity. There was
grave risk. The oil supply might not hold out. As yet there was no
certain market for refined oil. But a sure result was not what drew
people into the oil business in the early sixties. Fortune was running
fleet-footed across the country, and at her garment men clutched. They
loved the chase almost as they did success, and so many a man in
Cleveland tried his luck in an oil refinery, as hundreds on Oil Creek
were trying it in an oil lease. By 1865 there were thirty refineries in
the town, with a capital of about a million and a half dollars and a
daily capacity of some 2,000 barrels. The works multiplied rapidly. The
report of the Cleveland Board of Trade for 1866 gives the number of
plants at the end of that year as fifty, and it dilates eloquently on
the advantages of Cleveland as a refining point over even Pittsburg, to
that time supposed to be the natural centre for the business. If the
railroad and lake transportation men would but adopt as liberal a policy
toward the oil freights of Cleveland as the Pennsylvania Railroad was
adopting toward that of Pittsburg, aided by her natural advantages the
town was bound to become the greatest oil refining centre in the United
States. By 1868 the Board of Trade reported joyfully that Cleveland was
receiving within 300,000 barrels as much oil as Pittsburg. In 1869 she
surpassed all competitors. “Cleveland now claims the leading position
among the manufacturers of petroleum with a very reasonable prospect of
holding that rank for some time to come,” commented the Board of Trade
report. “Each year has seen greater consolidation of capital, greater
energy and success in prosecuting the business, and, notwithstanding
some disastrous fires, a stronger determination to establish an
immovable reputation for the quantity and quality of this most important
product. The total capital invested in this business is not less than
four millions of dollars and the total product of the year would not
fall short of fifteen millions.”
Public-domain text, read in full here on John Shaqi.
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