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
He got a rebate. Seven years later Mr. Rockefeller’s partner, H. M.
Flagler, was called before a commission of the Ohio State Legislature
appointed to investigate railroads. He was asked for the former
contracts between his company and the railroads, and among others he
presented one showing that from “the first of April until the middle of
November, 1872,” their East-bound rate was $1.25, twenty-five cents less
than that set by the agreement of March 25th, between the oil men and
the railroads.[25] The discrepancy between the date Mr. Flagler gives
for this contract and that of Mr. Vanderbilt’s telegram to Mr. Hasson
stating that his road had no contract with the Standard Oil Company,
April 6, and of Mr. Rockefeller’s own telegram stating he had no
contracts with the railroads, April 8, the writer is unable to explain.
How had Mr. Rockefeller been able to get this rebate? Simply as he had
always done—by virtue of the quantity he shipped. He was able to say to
Mr. Vanderbilt, I can make a contract to ship sixty car-loads of oil a
day over your road—nearly 4,800 barrels; I cannot give this to you
regularly unless you will make me a concession; and Mr. Vanderbilt made
the concession while he was signing the contract with the oil men. Of
course the rate was secret, and Mr. Rockefeller probably understood now,
as he had not two months before, how essential it was that he keep it
secret. His task was more difficult now, for he had an enemy active,
clamorous, contemptuous, whose suspicions had reached that acute point
where they could believe nothing but evil of him—the producers and
independent refiners of the Oil Regions. It was utterly impossible that
he should ever silence this enemy, for their points of view were
diametrically opposed.
They believed in independent effort—every man for himself and fair play
for all. They wanted competition, loved open fight. They considered that
all business should be done openly; that the railways were bound as
public carriers to give equal rates; that any combination which favoured
one firm or one locality at the expense of another was unjust and
illegal. This belief long held by many of the oil men had been
crystallised by the uprising into a common sentiment. It had become the
moral code of the region.
Public-domain text, read in full here on John Shaqi.
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