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
Shore road on oil brought from the field.
Another Cleveland man, W. H. Doane, engaged in shipping crude oil, began
to suspect about the same time as Mr. Alexander that the Standard was
receiving rebates. Now Mr. Doane had always been opposed to the
“drawback business,” but it was impossible for him to supply his
customers with crude oil at as low a rate as the Standard paid if it
received a rebate and he did not, and when it was first generally
rumoured in Cleveland that the railroads were favouring Mr. Rockefeller
he went to see the agent of the road. “I told him I did not want any
drawback, unless others were getting it; I wanted it if they were
getting it, and he gave me at that time ten cents drawback.” This
arrangement Mr. Doane said had lasted but a short time. At the date he
was speaking—the spring of 1872—he had had no drawback for two years.
A still more important bit of testimony as to the time when rebates
first began to be given to the Cleveland refiners and as to who first
got them and why, is contained in an affidavit made in 1880 by the very
man who made the discrimination.[7] This man was General J. H. Devereux,
who in 1868 succeeded Amasa Stone as vice-president of the Lake Shore
Railroad. General Devereux said that his experience with the oil traffic
had begun with his connection with the Lake Shore; that the only written
memoranda concerning oil which he found in his office on entering his
new position was a book in which it was stated that the representatives
of the twenty-five oil-refining firms in Cleveland had agreed to pay a
cent a gallon on crude oil removed from the Oil Regions. General
Devereux says that he soon found there was a deal of trouble in store
for him over oil freight. The competition between the twenty-five firms
was close, the Pennsylvania was “claiming a patent right” on the
transportation of oil and was putting forth every effort to make
Pittsburg and Philadelphia the chief refining centres. Oil Creek was
boasting that it was going to be the future refining point for the
world. All of this looked bad for what General Devereux speaks of as the
“then very limited refining capacity of Cleveland.” This remark shows
how new he was to the business, for, as we have already seen, Cleveland
in 1868 had anything but a limited refining capacity. Between three and
four million dollars were invested in oil refineries, and the town was
receiving within 35,000 barrels of as much oil as New York City, and
within 300,000 as much as Pittsburg, and it was boasting that the next
year it would outstrip these competitors, which, as a matter of fact, it
did.
Public-domain text, read in full here on John Shaqi.
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