The United States Since the Civil WarLingley, Charles Ramsdell
History
The United States Since the Civil War
Lingley, Charles Ramsdell
United States -- History -- 1865-1921
The wonderful success of the Standard Oil Company, however, was not due
solely to the alliance with the railroads, although this advantage came
at a strategic time when it was fighting for supremacy. Its marketing
department gave it an unenviable reputation, but achieved amazing
success. The department was organized to cover the country, find out
everything possible about competitors, and then kill them off by
price-cutting or other means. The great resources of the Company enabled
it to undersell rivals, going below cost if necessary, and thus wearing
out opposition. Continuity of control, also, contributed to Standard
success; the narrow limits of the area in which the crude oil was
produced before 1890 rendered the problem of securing a monopoly
somewhat easier; the organization was extremely efficient and the
constituent companies were stimulated to a high degree of productivity
by encouraging the spirit of emulation; men of ability were called to
its high positions; the policy of gaining the mastery over the trade in
petroleum and its products was kept definitely and persistently to the
front; and then there was John D. Rockefeller.
Rockefeller was what used to be called a "self-made" man. He began his
business life in Cleveland as a clerk at an extremely modest salary.
Capacity for details and for shrewd bargaining, patience, frugality,
seriousness, secretiveness, caution, an instinctive sense for business
openings, self-control--all these were characteristic both of the
Cleveland clerk and the later oil-refiner. In the bigger field he
developed a daring caution, a quick understanding of the value of new
inventions, a capacity for organization, quick grasp of essentials and a
resourcefulness that dominated the entire Standard combination. He built
his own barrels, owned the pipe-lines, tank-cars, tank-wagons and
warehouses. Consolidation, magnitude and financial returns were his
aims, and in achieving these he and his associates were so successful as
to make the Standard a leader in all branches of business, except the
ethics of industry. Litigation has been the constant accompaniment of
Standard progress.
Following the Standard Oil Company, other combinations found the trust
form of organization a convenient one. The cotton trust, the whiskey
trust, and the sugar, cotton bagging, copper and salt trusts made the
public familiar with the term. Moreover, popular suspicion and hostility
became aroused, and the word "trust" began to acquire something of the
unpleasant connotation which it later possessed.
Public-domain text, read in full here on John Shaqi.
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