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 sudden uprising of the Oil Regions against the South Improvement
Company did not alarm its members at first. The excitement would die
out, they told one another. All that they needed to do was to keep quiet
and stay out of the oil country. But the excitement did not die out.
Indeed, with every day it became more intense and more wide-spread. When
Mr. Watson’s tanks were tapped he began to protest in letters to a
friend, F. W. Mitchell, a prominent banker and oil man of Franklin. The
company was misunderstood, he complained. “Have a committee of leading
producers appointed,” he wrote, “and we will show that the contracts
with the railroads are as favourable to the producing as to other
interests; that the much-denounced rebate will enhance the price of oil
at the wells, and that our entire plan in operation and effect will
promote every legitimate American interest in the oil trade.” Mr.
Mitchell urged Mr. Watson to come openly to the Oil Regions and meet the
producers as a body. A mass-meeting was never a “deliberative body,” Mr.
Watson replied, but if a few of the leading oil men would go to Albany
or New York, or any place favourable to calm investigation and
deliberation, and therefore outside of the atmosphere of excitement
which enveloped the oil country, he would see them. These letters were
read to the producers, and a motion to appoint a committee was made. It
was received with protests and jeers. Mr. Watson was afraid to come to
the Oil Regions, they said. The letters were not addressed to the
association, they were private—an insult to the body. “We are lowering
our dignity to treat with this man Watson,” declared one man. “He is
free to come to these meetings if he wants to.” “What is there to
negotiate about?” asked another. “To open a negotiation is to concede
that we are wrong. Can we go halves with these middlemen in their
swindle?” “He has set a trap for us,” declared another. “We cannot treat
with him without guilt,” and the motion was voted down.
The stopping of the oil supply finally forced the South Improvement
Company to recognise the Producers’ Union officially by asking that a
committee of the body be appointed to confer with them on a compromise.
The producers sent back a pertinent answer. They believed the South
Improvement Company meant to monopolise the oil business. If that was so
they could not consider a compromise with it. If they were wrong, they
would be glad to be enlightened, and they asked for information. First:
the charter under which the South Improvement Company was organised.
Second: the articles of association. Third: the officers’ names. Fourth:
the contracts with the railroads which signed them. Fifth: the general
plan of management. Until we know these things, the oil men declared, we
can no more negotiate with you than we could sit down to negotiate with
a burglar as to his privileges in our house.
Public-domain text, read in full here on John Shaqi.
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