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
What the Standard’s rebate on Eastern shipments was in 1870 it is
impossible to say. Mr. Alexander says he was never able to get a rate
lower than $1.33 a barrel by rail, and that it was commonly believed in
Cleveland that the Standard had a rate of ninety cents. Mr. Flagler,
however, the only member of the firm who has been examined under oath on
that point, showed, by presenting the contract of the Standard Oil
Company with the Lake Shore road in 1870, that the rates varied during
the year from $1.40 to $1.20 and $1.60, according to the season. When
Mr. Flagler was asked if there was no drawback or rebate on this rate he
answered, “None whatever.”
It would seem from the above as if the one man in the Cleveland oil
trade in 1870 who ought to have been satisfied was Mr. Rockefeller. His
was the largest firm in the largest refining centre of the country; that
is, of the 10,000 to 12,000 daily capacity divided among the twenty-five
or twenty-six refiners of Cleveland he controlled 1,500 barrels. Not
only was Cleveland the largest refining centre in the country, it was
gaining rapidly, for where in 1868 it shipped 776,356 barrels of refined
oil, in 1869 it shipped 923,933, in 1870 1,459,500, and in 1871
1,640,499.[8] Not only did Mr. Rockefeller control the largest firm in
this most prosperous centre of a prosperous business, he controlled one
of amazing efficiency. The combination, in 1870, of the various
companies with which he was connected had brought together a group of
remarkable men. Samuel Andrews, by all accounts, was the ablest
mechanical superintendent in Cleveland. William Rockefeller, the brother
of John D. Rockefeller, was not only an energetic and intelligent
business man, he was a man whom people liked. He was open-hearted,
jolly, a good story-teller, a man who knew and liked a good horse—not
too pious, as some of John’s business associates thought him, not a man
to suspect or fear, as many a man did John. Old oil men will tell you on
the creek to-day how much they liked him in the days when he used to
come to Oil City buying oil for the Cleveland firm. The personal quality
of William Rockefeller was, and always has been, a strong asset of the
Standard Oil Company. Probably the strongest man in the firm after John
D. Rockefeller was Henry M. Flagler. He was, like the others, a young
man, and one who, like the head of the firm, had the passion for money,
and in a hard self-supporting experience, begun when but a boy, had
learned, as well as his chief, some of the principles of making it. He
was untiring in his efforts to increase the business, quick to see an
advantage, as quick to take it. He had no scruples to make him hesitate
over the ethical quality of a contract which was advantageous. Success,
that is, making money, was its own justification. He was not a secretive
man, like John D. Rockefeller, not a dreamer, but he could keep his
mouth shut when necessary and he knew the worth of a financial dream
Public-domain text, read in full here on John Shaqi.
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