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
Mr. Hewitt, the partner who Mr. Alexander says carried on the
negotiations for the sale of the business, appeared before an
investigating committee of the New York State Senate in 1879 and gave
his recollections of what happened. According to his story the entire
oil trade in Cleveland became paralysed when it became known that the
South Improvement Company had “grappled the entire transportation of oil
from the West to the seaboard.” Mr. Hewitt went to see the freight
agents of the various roads; he called on W. H. Vanderbilt, but from no
one did he get any encouragement. Then he saw Peter H. Watson of the
Lake Shore Railroad, the president of the company which was frightening
the trade. “Watson was non-committal,” said Mr. Hewitt. “I got no
satisfaction except, ‘You better sell—you better get clear—better sell
out—no help for it.’” After a little time Mr. Hewitt concluded with his
partners that there was indeed “no help for it,” and he went to see Mr.
Rockefeller, who offered him fifty cents on the dollar on the
constructive account. The offer was accepted. There was nothing else to
do, the firm seems to have concluded. When they came to transfer the
property Mr. Rockefeller urged Mr. Hewitt to take stock in the new
concern. “He told me,” said Mr. Hewitt, “that it would be sufficient to
take care of my family for all time, what I represented there, and
asking for a reason, he made this expression, I remember: ‘_I have ways
of making money that you know nothing of_.’”
A few of the refiners contested before surrendering. Among these was
Robert Hanna, an uncle of Mark Hanna, of the firm of Hanna, Baslington
and Company. Mr. Hanna had been refining since July, 1869. According to
his own sworn statement he had made money, fully sixty per cent. on his
investment the first year, and after that thirty per cent. Some time in
February, 1872, the Standard Oil Company asked an interview with him and
his associates. They wanted to buy his works, they said. “But we don’t
want to sell,” objected Mr. Hanna. “You can never make any more money,
in my judgment,” said Mr. Rockefeller. “You can’t compete with the
Standard. We have all the large refineries now. If you refuse to sell,
it will end in your being crushed.” Hanna and Baslington were not
satisfied. They went to see Mr. Watson, president of the South
Improvement Company and an officer of the Lake Shore, and General
Devereux, manager of the Lake Shore road. They were told that the
Standard had special rates; that it was useless to try to compete with
them. General Devereux explained to the gentlemen that the privileges
granted the Standard were the legitimate and necessary advantage of the
larger shipper over the smaller, and that if Hanna, Baslington and
Company could give the road as large a quantity of oil as the Standard
did, with the same regularity, they could have the same rate. General
Devereux says they “recognised the propriety” of his excuse. They
certainly recognised its authority.
Public-domain text, read in full here on John Shaqi.
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