The History Of Standard Oil, Ch 04 - An Unholy Alliance

chapter 4 part one of the history of chapter 4 part one of the history of Standard Oil volume 1 by Ida Tarbell Standard Oil volume 1 by Ida Tarbell Standard Oil volume 1 by Ida Tarbell this LibriVox recording is in the public this LibriVox recording is in the public this LibriVox recording is in the public domain recording by Tom domain recording by Tom domain recording by Tom Weiss chapter 4 an Unholy Weiss chapter 4 an Unholy Weiss chapter 4 an Unholy Alliance the feeling of outrage and Alliance the feeling of outrage and Alliance the feeling of outrage and resentment against the Standard Oil resentment against the Standard Oil resentment against the Standard Oil Company general in the oil regions at Company general in the oil regions at Company general in the oil regions at the close of the oil War because of the the close of the oil War because of the the close of the oil War because of the belief that it intended to carry on the belief that it intended to carry on the belief that it intended to carry on the south improvement company in some new south improvement company in some new south improvement company in some new way was intensified in the weeks way was intensified in the weeks way was intensified in the weeks immediately following the outbreak by immediately following the outbreak by immediately following the outbreak by the knowledge that Mr Rockefeller had the knowledge that Mr Rockefeller had the knowledge that Mr Rockefeller had been so enormously benefited by the been so enormously benefited by the been so enormously benefited by the short-lived concern here he was chipping short-lived concern here he was chipping short-lived concern here he was chipping Eastward over one Road between 4,000 and Eastward over one Road between 4,000 and Eastward over one Road between 4,000 and 5,000 barrels of refined oil a day oil 5,000 barrels of refined oil a day oil 5,000 barrels of refined oil a day oil rung from his neighbors by an outrageous rung from his neighbors by an outrageous rung from his neighbors by an outrageous conspiracy men said bitterly this conspiracy men said bitterly this conspiracy men said bitterly this feeling was still Keen with Mr feeling was still Keen with Mr feeling was still Keen with Mr Rockefeller and several of his Rockefeller and several of his Rockefeller and several of his colleagues in the South Improvement colleagues in the South Improvement colleagues in the South Improvement scheme suddenly in May scheme suddenly in May scheme suddenly in May 1873 appeared on the streets of 1873 appeared on the streets of 1873 appeared on the streets of Titusville The Men Who had fought him so Titusville The Men Who had fought him so Titusville The Men Who had fought him so desperately now stared in amazement at desperately now stared in amazement at desperately now stared in amazement at The Smiling unruffled countenance with The Smiling unruffled countenance with The Smiling unruffled countenance with which he greeted them did not the man which he greeted them did not the man which he greeted them did not the man know when he was beaten did he not know when he was beaten did he not know when he was beaten did he not realize the opinion the oil regions held realize the opinion the oil regions held realize the opinion the oil regions held of him his Placid demeanor in the very of him his Placid demeanor in the very of him his Placid demeanor in the very teeth of their violence was disconcern teeth of their violence was disconcern teeth of their violence was disconcern 30 not less of a shock was given the 30 not less of a shock was given the 30 not less of a shock was given the country by the knowledge that Mr country by the knowledge that Mr country by the knowledge that Mr Rockefeller Mr Flagler Mr wearing and

Rockefeller Mr Flagler Mr wearing and Rockefeller Mr Flagler Mr wearing and the other gentlemen in their party were the other gentlemen in their party were the other gentlemen in their party were pressing a new alliance and that they pressing a new alliance and that they pressing a new alliance and that they claimed that their new scheme had none claimed that their new scheme had none claimed that their new scheme had none of the obnoxious features of the defunct of the obnoxious features of the defunct of the obnoxious features of the defunct South improvement company though it was South improvement company though it was South improvement company though it was equally well adapted to work out the equally well adapted to work out the equally well adapted to work out the good of the oil business for several good of the oil business for several good of the oil business for several days the visiting gentleman slipped days the visiting gentleman slipped days the visiting gentleman slipped around Bland and smiling from street around Bland and smiling from street around Bland and smiling from street corner to street corner from office to corner to street corner from office to corner to street corner from office to office explaining expostulating office explaining expostulating office explaining expostulating mollifying you misunderstand Our mollifying you misunderstand Our mollifying you misunderstand Our intention they told the refiners it is intention they told the refiners it is intention they told the refiners it is to save the business not to destroy it to save the business not to destroy it to save the business not to destroy it that we are come you see the disorders that we are come you see the disorders that we are come you see the disorders competition has wrought in the oil competition has wrought in the oil competition has wrought in the oil industry let us see what combination industry let us see what combination industry let us see what combination will do let us make an experiment that will do let us make an experiment that will do let us make an experiment that is all if it does not work then we can is all if it does not work then we can is all if it does not work then we can go back to the old method although Mr go back to the old method although Mr go back to the old method although Mr Rockefeller was everywhere and hurt Rockefeller was everywhere and hurt Rockefeller was everywhere and hurt everything in these days he rarely everything in these days he rarely everything in these days he rarely talked I remember well how little he talked I remember well how little he talked I remember well how little he said one of the most aggressively said one of the most aggressively said one of the most aggressively independent of the Titusville refiners independent of the Titusville refiners independent of the Titusville refiners told the writer one day several of us told the writer one day several of us told the writer one day several of us met at the office of one of the refiners met at the office of one of the refiners met at the office of one of the refiners who I felt pretty sure was being who I felt pretty sure was being who I felt pretty sure was being persuaded to go into the scheme which persuaded to go into the scheme which persuaded to go into the scheme which they were talking up everybody talked they were talking up everybody talked they were talking up everybody talked except Mr Rockefeller he sat in a except Mr Rockefeller he sat in a except Mr Rockefeller he sat in a rocking chair softly swinging back and rocking chair softly swinging back and rocking chair softly swinging back and forth his hands over his face I got forth his hands over his face I got forth his hands over his face I got pretty excited when I saw how those pretty excited when I saw how those pretty excited when I saw how those South Improvement men were pulling the South Improvement men were pulling the South Improvement men were pulling the wool over our men's eyes and making them wool over our men's eyes and making them wool over our men's eyes and making them believe we were all going to the dogs if believe we were all going to the dogs if believe we were all going to the dogs if there wasn't an immediate combination to there wasn't an immediate combination to there wasn't an immediate combination to put up the price and refined and prevent

put up the price and refined and prevent put up the price and refined and prevent new people coming into the business and new people coming into the business and new people coming into the business and I made a speech which I guess was pretty I made a speech which I guess was pretty I made a speech which I guess was pretty warlike well right in the middle of it warlike well right in the middle of it warlike well right in the middle of it John Rockefeller stopped rocking and John Rockefeller stopped rocking and John Rockefeller stopped rocking and took down his hands and looked at me you took down his hands and looked at me you took down his hands and looked at me you never saw such eyes he took me all in never saw such eyes he took me all in never saw such eyes he took me all in Saw just how much fight he could expect Saw just how much fight he could expect Saw just how much fight he could expect from me and I knew it and then up when from me and I knew it and then up when from me and I knew it and then up when his hands and back and forth when his his hands and back and forth when his his hands and back and forth when his chair for fully a week this quiet chair for fully a week this quiet chair for fully a week this quiet circulation among the oil men went on circulation among the oil men went on circulation among the oil men went on and then on May 15 and 16 public and then on May 15 and 16 public and then on May 15 and 16 public meetings were held in Titusville at meetings were held in Titusville at meetings were held in Titusville at which the new scheme which they had been which the new scheme which they had been which the new scheme which they had been advocating was presented publicly this advocating was presented publicly this advocating was presented publicly this new plan called the Pittsburgh plan from new plan called the Pittsburgh plan from new plan called the Pittsburgh plan from the place of its birth had been worked the place of its birth had been worked the place of its birth had been worked out by the visiting gentlemen before out by the visiting gentlemen before out by the visiting gentlemen before they came to the oil regions it was a they came to the oil regions it was a they came to the oil regions it was a most intelligent and comprehensive most intelligent and comprehensive most intelligent and comprehensive proposition proposition proposition as in the case of the South Improvement as in the case of the South Improvement as in the case of the South Improvement scheme a company was to be formed to run scheme a company was to be formed to run scheme a company was to be formed to run the refining business of the whole the refining business of the whole the refining business of the whole country but this company was to be an country but this company was to be an country but this company was to be an open instead of a secret organization open instead of a secret organization open instead of a secret organization and all refiners were to be allowed to and all refiners were to be allowed to and all refiners were to be allowed to become stockholders in it the owners of become stockholders in it the owners of become stockholders in it the owners of the refineries who went into the the refineries who went into the the refineries who went into the combination were then to run them in combination were then to run them in combination were then to run them in certain particulars according to the certain particulars according to the certain particulars according to the direction of the board of the parent direction of the board of the parent direction of the board of the parent company that is they were to refine only company that is they were to refine only company that is they were to refine only such an amount of oil as the board of such an amount of oil as the board of such an amount of oil as the board of allowed and they were to keep up the allowed and they were to keep up the allowed and they were to keep up the price for their output as the board price for their output as the board price for their output as the board indicated the buying of crude oil and indicated the buying of crude oil and indicated the buying of crude oil and the arrangements for transportation were the arrangements for transportation were the arrangements for transportation were also to remain with the directors each

also to remain with the directors each also to remain with the directors each stockholder was to receive dividends stockholder was to receive dividends stockholder was to receive dividends whether his plant operated or not the whether his plant operated or not the whether his plant operated or not the Pittsburgh plan was presented Pittsburgh plan was presented Pittsburgh plan was presented tentatively if anything better could be tentatively if anything better could be tentatively if anything better could be suggested they would gladly accept it suggested they would gladly accept it suggested they would gladly accept it its Advocate said all we want is a its Advocate said all we want is a its Advocate said all we want is a practical combination we are wed to no practical combination we are wed to no practical combination we are wed to no particular form particular form particular form the first revelation of the public the first revelation of the public the first revelation of the public meetings at which the Pittsburgh plan meetings at which the Pittsburgh plan meetings at which the Pittsburgh plan was presented was that in the days Mr was presented was that in the days Mr was presented was that in the days Mr Rockefeller and his friends had been so Rockefeller and his friends had been so Rockefeller and his friends had been so diligently shaking hands with the oilmen diligently shaking hands with the oilmen diligently shaking hands with the oilmen from Titusville to Oil City they had from Titusville to Oil City they had from Titusville to Oil City they had made Converse that they had not entered made Converse that they had not entered made Converse that they had not entered these open meetings until they had these open meetings until they had these open meetings until they had secured the Assurance of cooperation in secured the Assurance of cooperation in secured the Assurance of cooperation in any plan of consolidation which might be any plan of consolidation which might be any plan of consolidation which might be affected from some of the ablest affected from some of the ablest affected from some of the ablest refiners and businessmen of the creek refiners and businessmen of the creek refiners and businessmen of the creek notably from JJ Vandergriff of Oil City notably from JJ Vandergriff of Oil City notably from JJ Vandergriff of Oil City and from certain firm ter of Titusville and from certain firm ter of Titusville and from certain firm ter of Titusville with which John D archal was with which John D archal was with which John D archal was connected all of these persons had connected all of these persons had connected all of these persons had fought the South improvement company and fought the South improvement company and fought the South improvement company and they all now declared that if the they all now declared that if the they all now declared that if the proposed organization copied that proposed organization copied that proposed organization copied that piratical scheme they would have nothing piratical scheme they would have nothing piratical scheme they would have nothing to do with it that their allegiance to to do with it that their allegiance to to do with it that their allegiance to the plan was based on their conviction the plan was based on their conviction the plan was based on their conviction that it was fair to all who went in and that it was fair to all who went in and that it was fair to all who went in and that it was made necessary by over that it was made necessary by over that it was made necessary by over refining underselling and by the refining underselling and by the refining underselling and by the certainty that the railroads could not certainty that the railroads could not certainty that the railroads could not be trusted to keep their contracts it be trusted to keep their contracts it be trusted to keep their contracts it was evident that the possible profits was evident that the possible profits was evident that the possible profits and power to be gained by a successful and power to be gained by a successful and power to be gained by a successful combination had wiped out the resentment combination had wiped out the resentment combination had wiped out the resentment against the leaders of the South against the leaders of the South against the leaders of the South improvement company and that if they had improvement company and that if they had improvement company and that if they had the Assurance as they must have had that

the Assurance as they must have had that the Assurance as they must have had that rebates were a part of the game they rebates were a part of the game they rebates were a part of the game they Justified themselves by the reflection Justified themselves by the reflection Justified themselves by the reflection that somebody was sure to get them and that somebody was sure to get them and that somebody was sure to get them and that it might as well be they as that it might as well be they as that it might as well be they as anybody the knowledge that a anybody the knowledge that a anybody the knowledge that a considerable body of the creek refiners considerable body of the creek refiners considerable body of the creek refiners had gone over to Mr Rockefeller awakened had gone over to Mr Rockefeller awakened had gone over to Mr Rockefeller awakened a general bitterness among those who a general bitterness among those who a general bitterness among those who remained independent deserters ringers remained independent deserters ringers remained independent deserters ringers monopolists were the terms applied to monopolists were the terms applied to monopolists were the terms applied to them and The Temper of the public them and The Temper of the public them and The Temper of the public meetings as is evident from the full meetings as is evident from the full meetings as is evident from the full reports of the oil region published reports of the oil region published reports of the oil region published became at once uncertain there were long became at once uncertain there were long became at once uncertain there were long pauses in the proceedings everybody pauses in the proceedings everybody pauses in the proceedings everybody fearing to speak Mr Rockefeller is not fearing to speak Mr Rockefeller is not fearing to speak Mr Rockefeller is not reported as having spoken at all the reported as having spoken at all the reported as having spoken at all the brunt of defense and explanation having brunt of defense and explanation having brunt of defense and explanation having fallen on Mr Flagler Mr FW and Mr fallen on Mr Flagler Mr FW and Mr fallen on Mr Flagler Mr FW and Mr wearing two or three times the wearing two or three times the wearing two or three times the convention wrangled to the point of convention wrangled to the point of convention wrangled to the point of explosion and one important refiner MN explosion and one important refiner MN explosion and one important refiner MN Allen who was also the editor of the Allen who was also the editor of the Allen who was also the editor of the Titusville Courier one of the best Titusville Courier one of the best Titusville Courier one of the best papers in the region took his hat and papers in the region took his hat and papers in the region took his hat and left before the end of the convention left before the end of the convention left before the end of the convention the supporters of combination ought to the supporters of combination ought to the supporters of combination ought to have felt if they did not that they had have felt if they did not that they had have felt if they did not that they had been a little too eager in pressing an been a little too eager in pressing an been a little too eager in pressing an alliance on the oil region so soon after alliance on the oil region so soon after alliance on the oil region so soon after outraging its moral outraging its moral outraging its moral sentiment the press and people were sentiment the press and people were sentiment the press and people were making it plain enough indeed that they making it plain enough indeed that they making it plain enough indeed that they did not trust the persuasive Advocates did not trust the persuasive Advocates did not trust the persuasive Advocates of Reform on every street corner and on of Reform on every street corner and on of Reform on every street corner and on every Railroad train men reckoned the every Railroad train men reckoned the every Railroad train men reckoned the percentage of Interest the stockholders percentage of Interest the stockholders percentage of Interest the stockholders of the South improvement company would of the South improvement company would of the South improvement company would have in the new combination it was too

have in the new combination it was too have in the new combination it was too great but what stirred the oil region great but what stirred the oil region great but what stirred the oil region most deeply was its conviction that the most deeply was its conviction that the most deeply was its conviction that the rebate system was regarded as the rebate system was regarded as the rebate system was regarded as the Keystone of the new plant what are you Keystone of the new plant what are you Keystone of the new plant what are you going to do with the men who prefer to going to do with the men who prefer to going to do with the men who prefer to run their own business asked the run their own business asked the run their own business asked the representative of the Oil City Derek of representative of the Oil City Derek of representative of the Oil City Derek of one of The Advocates of the plan go one of The Advocates of the plan go one of The Advocates of the plan go through them was reported to be his through them was reported to be his through them was reported to be his laconic reply but how by the cooperation laconic reply but how by the cooperation laconic reply but how by the cooperation of transportation that is by of transportation that is by of transportation that is by rebates now the oil region had been too rebates now the oil region had been too rebates now the oil region had been too recently convicted of the sin of the recently convicted of the sin of the recently convicted of the sin of the rebate and had taken too firm a rebate and had taken too firm a rebate and had taken too firm a determination to uproot the iniquitous determination to uproot the iniquitous determination to uproot the iniquitous practice to be willing to Ally itself practice to be willing to Ally itself practice to be willing to Ally itself with any combination which it suspected with any combination which it suspected with any combination which it suspected of accepting privileges which its of accepting privileges which its of accepting privileges which its neighbors could not get or would not neighbors could not get or would not neighbors could not get or would not take at the very time the association of take at the very time the association of take at the very time the association of refiners was under consideration an refiners was under consideration an refiners was under consideration an attempt was made to win over the attempt was made to win over the attempt was made to win over the producers by offering through their producers by offering through their producers by offering through their Union to buy all their oil at $5 a Union to buy all their oil at $5 a Union to buy all their oil at $5 a barrel for 5 years oil was $4 at the barrel for 5 years oil was $4 at the barrel for 5 years oil was $4 at the time the producers refused such an time the producers refused such an time the producers refused such an agreement could only be kept they said agreement could only be kept they said agreement could only be kept they said by an association which was an absolute by an association which was an absolute by an association which was an absolute Monopoly fixing prices of refine to Monopoly fixing prices of refine to Monopoly fixing prices of refine to satisfy its own greed all they wanted of satisfy its own greed all they wanted of satisfy its own greed all they wanted of the producer was to be a party to their the producer was to be a party to their the producer was to be a party to their conspiracy conspiracy conspiracy when they had destroyed his moral force when they had destroyed his moral force when they had destroyed his moral force and completed their Monopoly they would and completed their Monopoly they would and completed their Monopoly they would pay him what they pleased for oil and pay him what they pleased for oil and pay him what they pleased for oil and the price would not be $5 what could he the price would not be $5 what could he the price would not be $5 what could he do then he would be their slave there do then he would be their slave there do then he would be their slave there would be no other buyer could be none

would be no other buyer could be none would be no other buyer could be none since they would control the entire since they would control the entire since they would control the entire transportation system the upshot of the transportation system the upshot of the transportation system the upshot of the negotiations was that again The negotiations was that again The negotiations was that again The Advocates of combination had to retire Advocates of combination had to retire Advocates of combination had to retire from the oil regions defeated seek Sana from the oil regions defeated seek Sana from the oil regions defeated seek Sana seek TR at Gloria South improvement seek TR at Gloria South improvement seek TR at Gloria South improvement company sneered the Oil City Derek which company sneered the Oil City Derek which company sneered the Oil City Derek which was given to sprinkling Latin phrases was given to sprinkling Latin phrases was given to sprinkling Latin phrases into its forceful and picturest English into its forceful and picturest English into its forceful and picturest English but the Derek underrated both the man but the Derek underrated both the man but the Derek underrated both the man and the principal at which it sneered a and the principal at which it sneered a and the principal at which it sneered a great idea was at work in the commercial great idea was at work in the commercial great idea was at work in the commercial World it had come to them settled with World it had come to them settled with World it had come to them settled with crime they now saw nothing in it but the crime they now saw nothing in it but the crime they now saw nothing in it but the crime the man who had brought it to them crime the man who had brought it to them crime the man who had brought it to them was not only endowed with far Vision he was not only endowed with far Vision he was not only endowed with far Vision he was endowed with an indomitable purpose was endowed with an indomitable purpose was endowed with an indomitable purpose he meant to control the Oil Business by he meant to control the Oil Business by he meant to control the Oil Business by one maneuver and that discredited one he one maneuver and that discredited one he one maneuver and that discredited one he had obtained control of fif of the had obtained control of fif of the had obtained control of fif of the entire refining output of the United entire refining output of the United entire refining output of the United States He meant to secure the other four States He meant to secure the other four States He meant to secure the other four fifths he might retire now but the oil fifths he might retire now but the oil fifths he might retire now but the oil region would hear of him again it did 3 region would hear of him again it did 3 region would hear of him again it did 3 months later in August months later in August months later in August 1872 it was learned that the scheme of 1872 it was learned that the scheme of 1872 it was learned that the scheme of consolidation which had been presented consolidation which had been presented consolidation which had been presented in Bay at Titusville in May had been in Bay at Titusville in May had been in Bay at Titusville in May had been quietly carried out that four fifths of quietly carried out that four fifths of quietly carried out that four fifths of the refining interest of the United the refining interest of the United the refining interest of the United States including many of the creek States including many of the creek States including many of the creek refiners had gone into a National refiners had gone into a National refiners had gone into a National refiners Association of which Mr refiners Association of which Mr refiners Association of which Mr Rockefeller was president and one of Rockefeller was president and one of Rockefeller was president and one of their own men JJ Vandergriff was vice

their own men JJ Vandergriff was vice their own men JJ Vandergriff was vice president the news aroused much president the news aroused much president the news aroused much resentment in the oil regions the region resentment in the oil regions the region resentment in the oil regions the region was no longer solid in its free trade was no longer solid in its free trade was no longer solid in its free trade centent no longer undividedly true to centent no longer undividedly true to centent no longer undividedly true to its vow that the rebate system as its vow that the rebate system as its vow that the rebate system as applied to the oil trade must end there applied to the oil trade must end there applied to the oil trade must end there was an enemy at home the hard words was an enemy at home the hard words was an enemy at home the hard words which for months men had heaped on the which for months men had heaped on the which for months men had heaped on the distant heads of Cleveland and distant heads of Cleveland and distant heads of Cleveland and Pittsburgh refiners they began to pour Pittsburgh refiners they began to pour Pittsburgh refiners they began to pour out more discreetly to be sure on the out more discreetly to be sure on the out more discreetly to be sure on the heads of their neighbors it voted ill heads of their neighbors it voted ill heads of their neighbors it voted ill for the interior piece of the oil for the interior piece of the oil for the interior piece of the oil regions the news that the refiners had regions the news that the refiners had regions the news that the refiners had actually Consolidated aroused something actually Consolidated aroused something actually Consolidated aroused something more than resentment The Producers more than resentment The Producers more than resentment The Producers generally were alarmed if the generally were alarmed if the generally were alarmed if the aggregation succeed it they would have aggregation succeed it they would have aggregation succeed it they would have one buyer only for their product and one buyer only for their product and one buyer only for their product and there was not a man of them who believed there was not a man of them who believed there was not a man of them who believed that this buyer would pay them a scent that this buyer would pay them a scent that this buyer would pay them a scent more than necessary from their oil their more than necessary from their oil their more than necessary from their oil their alarm aroused them to energy the alarm aroused them to energy the alarm aroused them to energy the association which had scattered the association which had scattered the association which had scattered the South improvement company was revived South improvement company was revived South improvement company was revived and began at once to consider what it and began at once to consider what it and began at once to consider what it could do to prevent the Consolidated could do to prevent the Consolidated could do to prevent the Consolidated refiners getting the upper hand in the refiners getting the upper hand in the refiners getting the upper hand in the business the association which now business the association which now business the association which now prepared to contest the Mastery of the prepared to contest the Mastery of the prepared to contest the Mastery of the oil business with Mr Rock Feller and oil business with Mr Rock Feller and oil business with Mr Rock Feller and those who had joined him was a curious those who had joined him was a curious those who had joined him was a curious and remarkable body its membership drawn and remarkable body its membership drawn and remarkable body its membership drawn from the length and breadth of the oil from the length and breadth of the oil from the length and breadth of the oil regions included men whose production regions included men whose production regions included men whose production was thousands of barrels a day and men was thousands of barrels a day and men was thousands of barrels a day and men who were pumping scarcely 10 barrels it who were pumping scarcely 10 barrels it who were pumping scarcely 10 barrels it included College breed men who had come

included College breed men who had come included College breed men who had come from the East with comfortable sums to from the East with comfortable sums to from the East with comfortable sums to invest and men who signed their names invest and men who signed their names invest and men who signed their names with an effort had never read a book in with an effort had never read a book in with an effort had never read a book in their lives and whose first Wells they their lives and whose first Wells they their lives and whose first Wells they had themselves kicked down there were had themselves kicked down there were had themselves kicked down there were producers in it who had made and lost a producers in it who had made and lost a producers in it who had made and lost a half dozen fortunes and who were half dozen fortunes and who were half dozen fortunes and who were apparently just as buoyant and helpful apparently just as buoyant and helpful apparently just as buoyant and helpful as when they began there were those who as when they began there were those who as when they began there were those who had never put down a dry well and were had never put down a dry well and were had never put down a dry well and were still still still unsatisfied however diverse their unsatisfied however diverse their unsatisfied however diverse their fortunes their breeding and their luck fortunes their breeding and their luck fortunes their breeding and their luck there was no difference in the spirit there was no difference in the spirit there was no difference in the spirit which animated them now the president of which animated them now the president of which animated them now the president of the association was Captain William the association was Captain William the association was Captain William Hassen a young man both by his knowledge Hassen a young man both by his knowledge Hassen a young man both by his knowledge of the oil regions and the oil business of the oil regions and the oil business of the oil regions and the oil business well fitted for the position well fitted for the position well fitted for the position Captain Hassen was one of the few men in Captain Hassen was one of the few men in Captain Hassen was one of the few men in the association who had been in the the association who had been in the the association who had been in the country before the discovery of oil his country before the discovery of oil his country before the discovery of oil his father had bought in the 50s part of the father had bought in the 50s part of the father had bought in the 50s part of the grant of land at the mouth of oil Creek grant of land at the mouth of oil Creek grant of land at the mouth of oil Creek made in 1796 to the Indian chief corn made in 1796 to the Indian chief corn made in 1796 to the Indian chief corn planter and had moved on it with his planter and had moved on it with his planter and had moved on it with his family four years after the discovery of family four years after the discovery of family four years after the discovery of oil he and his partner disposed of 300 oil he and his partner disposed of 300 oil he and his partner disposed of 300 acres of the track they owned for acres of the track they owned for acres of the track they owned for $750,000 young Hassen had seen corn $750,000 young Hassen had seen corn $750,000 young Hassen had seen corn platter as the site of his father's Farm platter as the site of his father's Farm platter as the site of his father's Farm was called become Oil City he had seen was called become Oil City he had seen was called become Oil City he had seen the mill blacksmith shop and Country the mill blacksmith shop and Country the mill blacksmith shop and Country Tavern give way to a thriving town of Tavern give way to a thriving town of Tavern give way to a thriving town of several thousand inhabitants all of his several thousand inhabitants all of his several thousand inhabitants all of his interest and his pride were wrapped up interest and his pride were wrapped up interest and his pride were wrapped up in the industry which had grown up about in the industry which had grown up about in the industry which had grown up about him independent in spirit vigorous in

him independent in spirit vigorous in him independent in spirit vigorous in speech generous and just in character speech generous and just in character speech generous and just in character William Hassen had been thoroughly William Hassen had been thoroughly William Hassen had been thoroughly aroused by The Assault of the South aroused by The Assault of the South aroused by The Assault of the South improvement company and under his improvement company and under his improvement company and under his president y The Producers had conducted president y The Producers had conducted president y The Producers had conducted their successful campaign the knowledge their successful campaign the knowledge their successful campaign the knowledge that the same man who had been active in that the same man who had been active in that the same man who had been active in that scheme had now organized a National that scheme had now organized a National that scheme had now organized a National Association had convinced captain hasson Association had convinced captain hasson Association had convinced captain hasson of the necessity of a counter move and of the necessity of a counter move and of the necessity of a counter move and he threw himself energetically into an he threw himself energetically into an he threw himself energetically into an effort to persuade the oil producers to effort to persuade the oil producers to effort to persuade the oil producers to devise an intelligent and practical plan devise an intelligent and practical plan devise an intelligent and practical plan for controlling their end of the for controlling their end of the for controlling their end of the business and then stand by what they had business and then stand by what they had business and then stand by what they had decided decided decided on Captain Hassen and those who were on Captain Hassen and those who were on Captain Hassen and those who were working with him would have had a much working with him would have had a much working with him would have had a much more difficult task in arousing The more difficult task in arousing The more difficult task in arousing The Producers to action if it had not been Producers to action if it had not been Producers to action if it had not been for the general disatisfaction over the for the general disatisfaction over the for the general disatisfaction over the price of oil the average price of crude price of oil the average price of crude price of oil the average price of crude in the month of August in the month of August in the month of August 1872 was $347 1.5 the year before it had 1872 was $347 1.5 the year before it had 1872 was $347 1.5 the year before it had been $442 1.5 and that was considered a been $442 1.5 and that was considered a been $442 1.5 and that was considered a poverty price it was pretty certain that poverty price it was pretty certain that poverty price it was pretty certain that the prices would fall still lower that the prices would fall still lower that the prices would fall still lower that $3 oil was near at hand everybody $3 oil was near at hand everybody $3 oil was near at hand everybody declared $3 was not a living price for declared $3 was not a living price for declared $3 was not a living price for oil that it cost more than that to oil that it cost more than that to oil that it cost more than that to produce it the average yield of the produce it the average yield of the produce it the average yield of the wells in the oil region in 1872 was Five wells in the oil region in 1872 was Five wells in the oil region in 1872 was Five Barrels a day now a well cost at that Barrels a day now a well cost at that Barrels a day now a well cost at that time from time from time from $2500 to $2500 to $2500 to $8,000 exclusive of the price of the

$8,000 exclusive of the price of the $8,000 exclusive of the price of the lease it cost $8 to $10 a day to pump a lease it cost $8 to $10 a day to pump a lease it cost $8 to $10 a day to pump a well exclusive of the royalty interest well exclusive of the royalty interest well exclusive of the royalty interest that is the proportion of the production that is the proportion of the production that is the proportion of the production turned over to the landowner usually one turned over to the landowner usually one turned over to the landowner usually one four if a man had big Wells and many of four if a man had big Wells and many of four if a man had big Wells and many of them he made big profits on $3 oil but them he made big profits on $3 oil but them he made big profits on $3 oil but there were comparatively few big there were comparatively few big there were comparatively few big producers the majority of those in the producers the majority of those in the producers the majority of those in the business had but few Wells and these business had but few Wells and these business had but few Wells and these yielded only small amounts if he had yielded only small amounts if he had yielded only small amounts if he had been contented to economize and to been contented to economize and to been contented to economize and to accept smaller gains even the small accept smaller gains even the small accept smaller gains even the small producer could live on a much lower producer could live on a much lower producer could live on a much lower price than price than price than $3 but nobody in the oil regions in $3 but nobody in the oil regions in $3 but nobody in the oil regions in 1872 looked with favor on economy and 1872 looked with favor on economy and 1872 looked with favor on economy and everybody despised Small Things the oil everybody despised Small Things the oil everybody despised Small Things the oil men as a class had been brought up to men as a class had been brought up to men as a class had been brought up to enormous profits and held an entirely enormous profits and held an entirely enormous profits and held an entirely false standard of values as Derek told false standard of values as Derek told false standard of values as Derek told them once in a sensible editorial their them once in a sensible editorial their them once in a sensible editorial their business was born in a balloon going up business was born in a balloon going up business was born in a balloon going up and spent all its early years in the sky and spent all its early years in the sky and spent all its early years in the sky they had seen nothing but the extreme of they had seen nothing but the extreme of they had seen nothing but the extreme of Fortune 100% perom on an investment was Fortune 100% perom on an investment was Fortune 100% perom on an investment was in their judgment only a fair profit if in their judgment only a fair profit if in their judgment only a fair profit if their oil property had not paid for their oil property had not paid for their oil property had not paid for itself entirely in 6 months and begun to itself entirely in 6 months and begun to itself entirely in 6 months and begun to yield a good percentage they were yield a good percentage they were yield a good percentage they were inclined to think it a failure now inclined to think it a failure now inclined to think it a failure now nothing but $5 oil would do this so nothing but $5 oil would do this so nothing but $5 oil would do this so great were the risks in business and so great were the risks in business and so great were the risks in business and so it was for $5 oil regardless of the laws it was for $5 oil regardless of the laws it was for $5 oil regardless of the laws of supply and demand that they struggled

of supply and demand that they struggled of supply and demand that they struggled they were notoriously extravagant in the they were notoriously extravagant in the they were notoriously extravagant in the management of their business rarely did management of their business rarely did management of their business rarely did an oil man write a letter if he could an oil man write a letter if he could an oil man write a letter if he could help it he used the telegraph instead help it he used the telegraph instead help it he used the telegraph instead whole sets of drilling tools were whole sets of drilling tools were whole sets of drilling tools were sometimes sent by express it was no sometimes sent by express it was no sometimes sent by express it was no uncommon thing to see nearad Derk broken uncommon thing to see nearad Derk broken uncommon thing to see nearad Derk broken tools which could easily have been tools which could easily have been tools which could easily have been mended but which the owner had replaced mended but which the owner had replaced mended but which the owner had replaced by new ones it was anything to save by new ones it was anything to save by new ones it was anything to save bother with him frequently Wells were bother with him frequently Wells were bother with him frequently Wells were abandoned which might have been pumped abandoned which might have been pumped abandoned which might have been pumped on a small but sure profit in those days on a small but sure profit in those days on a small but sure profit in those days there were men who looked on a 10 Barrel there were men who looked on a 10 Barrel there were men who looked on a 10 Barrel net well as hardly worth taking care of net well as hardly worth taking care of net well as hardly worth taking care of and yet even at 50 cents a barrel such a and yet even at 50 cents a barrel such a and yet even at 50 cents a barrel such a well would have paid the owner $1,800 a well would have paid the owner $1,800 a well would have paid the owner $1,800 a year the simple fact was that the year the simple fact was that the year the simple fact was that the profits which men in trades all over the profits which men in trades all over the profits which men in trades all over the country are glad enough to get the oil country are glad enough to get the oil country are glad enough to get the oil producer despised the one great thing producer despised the one great thing producer despised the one great thing which the oil regions did not understand which the oil regions did not understand which the oil regions did not understand in in in 1872 was economy as a matter of fact the 1872 was economy as a matter of fact the 1872 was economy as a matter of fact the oil producing business was going through oil producing business was going through oil producing business was going through a stage in its natural development a stage in its natural development a stage in its natural development similar to oil similar to oil similar to oil refining both under the stimulus of the refining both under the stimulus of the refining both under the stimulus of the enormous profits in the Years enormous profits in the Years enormous profits in the Years immediately following the discovery of immediately following the discovery of immediately following the discovery of oil had been pushed until they had oil had been pushed until they had oil had been pushed until they had outstripped outstripped outstripped consumption the competition resulting consumption the competition resulting consumption the competition resulting from the inrush of producers and from the inrush of producers and from the inrush of producers and refiners and the economies which had refiners and the economies which had refiners and the economies which had been worked out were bringing down been worked out were bringing down been worked out were bringing down profits the combinations attempted by profits the combinations attempted by profits the combinations attempted by both refiners and producers in these both refiners and producers in these both refiners and producers in these years were really efforts to keep up

years were really efforts to keep up years were really efforts to keep up prices to the extravagant point of the prices to the extravagant point of the prices to the extravagant point of the early speculative years now the drop in early speculative years now the drop in early speculative years now the drop in the price of oil everybody recognized to the price of oil everybody recognized to the price of oil everybody recognized to be due to a natural cause where a year be due to a natural cause where a year be due to a natural cause where a year before the production had been 12,000 before the production had been 12,000 before the production had been 12,000 barrels a day it was now barrels a day it was now barrels a day it was now 16,000 the demand for refined had not 16,000 the demand for refined had not 16,000 the demand for refined had not increased in proportion to this increased in proportion to this increased in proportion to this production approved and oil stocks had production approved and oil stocks had production approved and oil stocks had accumulated until the tanks of the accumulated until the tanks of the accumulated until the tanks of the region were threatening to overflow and region were threatening to overflow and region were threatening to overflow and there was no sign of falling off under there was no sign of falling off under there was no sign of falling off under these circumstances it needed little these circumstances it needed little these circumstances it needed little argument to convince the oil man that if argument to convince the oil man that if argument to convince the oil man that if they were to get a better price they they were to get a better price they they were to get a better price they must produce no more than the world must produce no more than the world must produce no more than the world would use there was but one way to would use there was but one way to would use there was but one way to affect this to put down no new wells affect this to put down no new wells affect this to put down no new wells until the stocks on hand were reduced until the stocks on hand were reduced until the stocks on hand were reduced and the daily production was brought and the daily production was brought and the daily production was brought down to a marketable down to a marketable down to a marketable Level under the direction of The Level under the direction of The Level under the direction of The Producers Association an agitation at Producers Association an agitation at Producers Association an agitation at once began in favor of stopping the once began in favor of stopping the once began in favor of stopping the drill for six months it was a drastic drill for six months it was a drastic drill for six months it was a drastic measure there was hardly an oil operator measure there was hardly an oil operator measure there was hardly an oil operator in the entire region agent who had not in the entire region agent who had not in the entire region agent who had not on hand some piece of territory on which on hand some piece of territory on which on hand some piece of territory on which he was planning to drill or on which he he was planning to drill or on which he he was planning to drill or on which he had not Wells underway stopping the had not Wells underway stopping the had not Wells underway stopping the drill meant that all of the aggressive drill meant that all of the aggressive drill meant that all of the aggressive work of his business should cease for 6 work of his business should cease for 6 work of his business should cease for 6 months it meant that his production

to join the movement and who by to join the movement and who by continuing to drill would drain his continuing to drill would drain his continuing to drill would drain his territory it seemed to him the only way territory it seemed to him the only way territory it seemed to him the only way of obtaining a manageable output of crud of obtaining a manageable output of crud of obtaining a manageable output of crud however and accordingly when late in the however and accordingly when late in the however and accordingly when late in the month of August the following pledge to month of August the following pledge to month of August the following pledge to stop the drill was circulated the great stop the drill was circulated the great stop the drill was circulated the great majority of the producers signed it majority of the producers signed it majority of the producers signed it whereas the extreme low price of oil whereas the extreme low price of oil whereas the extreme low price of oil requires of producers that operations requires of producers that operations requires of producers that operations therefore shall cease for the present therefore shall cease for the present therefore shall cease for the present now we The Producers land owners and now we The Producers land owners and now we The Producers land owners and others residents of the Pennsylvania Oil others residents of the Pennsylvania Oil others residents of the Pennsylvania Oil region do hereby bind ourselves to each region do hereby bind ourselves to each region do hereby bind ourselves to each other not to commence the drilling of other not to commence the drilling of other not to commence the drilling of any more Wells for the period of 6 any more Wells for the period of 6 any more Wells for the period of 6 months from the first day of September months from the first day of September months from the first day of September next not to lease any lands owned or next not to lease any lands owned or next not to lease any lands owned or controlled by us for the purpose of controlled by us for the purpose of controlled by us for the purpose of operations during the same period and we operations during the same period and we operations during the same period and we also agree to use all honorable means to also agree to use all honorable means to also agree to use all honorable means to prevent others from boring this we agree prevent others from boring this we agree prevent others from boring this we agree to and bind ourselves to each other to and bind ourselves to each other to and bind ourselves to each other under a forfeiture of $2,000 for each under a forfeiture of $2,000 for each under a forfeiture of $2,000 for each well commenced by either of us within well commenced by either of us within well commenced by either of us within the period above limited the same to be the period above limited the same to be the period above limited the same to be collected as any other debt it is collected as any other debt it is collected as any other debt it is however understood by the UND sign that however understood by the UND sign that however understood by the UND sign that this teture is not to apply to any Wells this teture is not to apply to any Wells this teture is not to apply to any Wells where the erection of rigs is completed where the erection of rigs is completed where the erection of rigs is completed or underway or that may be commenced or underway or that may be commenced or underway or that may be commenced before the first day of September of 4 before the first day of September of 4 before the first day of September of 4 said the chief objection to this pledge said the chief objection to this pledge said the chief objection to this pledge came from land owners in Clarion County came from land owners in Clarion County came from land owners in Clarion County they were the original settlers plotting they were the original settlers plotting they were the original settlers plotting Dutch Farmers whose lives had always Dutch Farmers whose lives had always Dutch Farmers whose lives had always been poor and hard and sh in the finding been poor and hard and sh in the finding been poor and hard and sh in the finding of oil had made them rich and greedy

of oil had made them rich and greedy of oil had made them rich and greedy they were so ignorant that it was they were so ignorant that it was they were so ignorant that it was difficult to transact business of any difficult to transact business of any difficult to transact business of any nature with them it was not unusual for nature with them it was not unusual for nature with them it was not unusual for a Clarion County farmer if offered an a Clarion County farmer if offered an a Clarion County farmer if offered an eighth royalty to refuse it on the eighth royalty to refuse it on the eighth royalty to refuse it on the ground that it was too little and to ask ground that it was too little and to ask ground that it was too little and to ask a 10 a story used to be current in the a 10 a story used to be current in the a 10 a story used to be current in the oil regions of a producer who returning oil regions of a producer who returning oil regions of a producer who returning from an unsuccessful land hunt in from an unsuccessful land hunt in from an unsuccessful land hunt in Clarion County was asked why he had not Clarion County was asked why he had not Clarion County was asked why he had not secured a certain lease well he said secured a certain lease well he said secured a certain lease well he said Farmers wanted 7/8 of the oil as a Farmers wanted 7/8 of the oil as a Farmers wanted 7/8 of the oil as a royalty wanted me to furnish barrels and royalty wanted me to furnish barrels and royalty wanted me to furnish barrels and to paint both heads I agreed to to paint both heads I agreed to to paint both heads I agreed to everything but the last I could afford everything but the last I could afford everything but the last I could afford to paint but one head so he wouldn't to paint but one head so he wouldn't to paint but one head so he wouldn't sign the lease when the proposition to sign the lease when the proposition to sign the lease when the proposition to stop the drill for 6 months was brought stop the drill for 6 months was brought stop the drill for 6 months was brought to these men who at the time owned the to these men who at the time owned the to these men who at the time owned the richest territory in the oil field no richest territory in the oil field no richest territory in the oil field no amount of explanation could make them amount of explanation could make them amount of explanation could make them understand it they regarded it simply as understand it they regarded it simply as understand it they regarded it simply as a scheme to Rob them and would not sign a scheme to Rob them and would not sign a scheme to Rob them and would not sign outside of this District however the outside of this District however the outside of this District however the drill stopped over nearly all the field drill stopped over nearly all the field drill stopped over nearly all the field on the 1st of September there was on the 1st of September there was on the 1st of September there was nothing but public opinion to hold the nothing but public opinion to hold the nothing but public opinion to hold the producers to their pledge but public producers to their pledge but public producers to their pledge but public opinion in those days in the oil regions opinion in those days in the oil regions opinion in those days in the oil regions was fearless and active and asserted was fearless and active and asserted was fearless and active and asserted itself in the daily newspapers in in itself in the daily newspapers in in itself in the daily newspapers in in every meeting of the every meeting of the every meeting of the association the whole body of oil men association the whole body of oil men association the whole body of oil men became a vigilance committee intent on became a vigilance committee intent on became a vigilance committee intent on keeping one another loyal to the pledge keeping one another loyal to the pledge keeping one another loyal to the pledge men who appeared at church on Sunday and men who appeared at church on Sunday and men who appeared at church on Sunday and cats carrying gold-headed canes these cats carrying gold-headed canes these cats carrying gold-headed canes these were such in the oil region in

were such in the oil region in were such in the oil region in 1872 now stld out at night to remote 1872 now stld out at night to remote 1872 now stld out at night to remote localities to hunt down rumors of localities to hunt down rumors of localities to hunt down rumors of drilling Wells if they found them to be drilling Wells if they found them to be drilling Wells if they found them to be true their dignity did not prevent their true their dignity did not prevent their true their dignity did not prevent their cutting the tools loose or carrying off cutting the tools loose or carrying off cutting the tools loose or carrying off a band wheel stopping the drill afforded a band wheel stopping the drill afforded a band wheel stopping the drill afforded no immediate relief to the producers it no immediate relief to the producers it no immediate relief to the producers it was for the future and as soon as the was for the future and as soon as the was for the future and as soon as the petroleum producers Association had the petroleum producers Association had the petroleum producers Association had the movement well way it proposed another movement well way it proposed another movement well way it proposed another drastic measure a 30- days shutdown by drastic measure a 30- days shutdown by drastic measure a 30- days shutdown by which it meant that all well should which it meant that all well should which it meant that all well should cease pumping for a cease pumping for a cease pumping for a month nothing shows better the compact month nothing shows better the compact month nothing shows better the compact organization and the determination of organization and the determination of organization and the determination of the oil producers at this time than the the oil producers at this time than the the oil producers at this time than the immediate response they gave to this immediate response they gave to this immediate response they gave to this suggestion in 10 days scarcely a barrel suggestion in 10 days scarcely a barrel suggestion in 10 days scarcely a barrel of oil was being pumped from end to end of oil was being pumped from end to end of oil was being pumped from end to end of the oil regions that a business of the oil regions that a business of the oil regions that a business producing $3 million a month in producing $3 million a month in producing $3 million a month in employing 10,000 laboring men and $50 employing 10,000 laboring men and $50 employing 10,000 laboring men and $50 million of capital should be entirely million of capital should be entirely million of capital should be entirely suspended dried up stop still his death suspended dried up stop still his death suspended dried up stop still his death by a mutual voluntary agreement made and by a mutual voluntary agreement made and by a mutual voluntary agreement made and perfected by all parties interrested perfected by all parties interrested perfected by all parties interrested within a space of 10 days this is a within a space of 10 days this is a within a space of 10 days this is a statement that staggers belief a statement that staggers belief a statement that staggers belief a spectacle that takes one breath away spectacle that takes one breath away spectacle that takes one breath away cried the Derek which was using all its cried the Derek which was using all its cried the Derek which was using all its wits to persuade The Producers to limit wits to persuade The Producers to limit wits to persuade The Producers to limit their production it was certainly a their production it was certainly a their production it was certainly a spectacle which saddened the heart spectacle which saddened the heart spectacle which saddened the heart however much one might applaud the Grim however much one might applaud the Grim however much one might applaud the Grim resolution of the men who were carrying resolution of the men who were carrying resolution of the men who were carrying it out the crowded oil Farms were

it out the crowded oil Farms were it out the crowded oil Farms were creaking walking beans sawed the air creaking walking beans sawed the air creaking walking beans sawed the air from morning until night where engines from morning until night where engines from morning until night where engines puffed whistles screamed great gas jets puffed whistles screamed great gas jets puffed whistles screamed great gas jets flared teenss came and went and Men flared teenss came and went and Men flared teenss came and went and Men hurried to and fro became suddenly hurried to and fro became suddenly hurried to and fro became suddenly silent and desolate and this desolation silent and desolate and this desolation silent and desolate and this desolation had an ugliness all its own something had an ugliness all its own something had an ugliness all its own something unparalleled in any other industry of unparalleled in any other industry of unparalleled in any other industry of this country the awkward dercks staring this country the awkward dercks staring this country the awkward dercks staring cheap shandies big tanks with Miles and cheap shandies big tanks with Miles and cheap shandies big tanks with Miles and Miles of pipe running hither and thither Miles of pipe running hither and thither Miles of pipe running hither and thither the oil soaked ground blackened in the oil soaked ground blackened in the oil soaked ground blackened in ruined trees terrible roads all of the ruined trees terrible roads all of the ruined trees terrible roads all of the common features of the oil Farm to which common features of the oil Farm to which common features of the oil Farm to which activity gave meaning and dignity now activity gave meaning and dignity now activity gave meaning and dignity now became hideous in became hideous in became hideous in inactivity oil seemed a curse to many a inactivity oil seemed a curse to many a inactivity oil seemed a curse to many a man in those days as he stood by his man in those days as he stood by his man in those days as he stood by his silent Wells and wondered what was to silent Wells and wondered what was to silent Wells and wondered what was to become of his business of his family in become of his business of his family in become of his business of his family in this Clash of this Clash of this Clash of interests while the producers were interests while the producers were interests while the producers were inaugurating these movements Captain inaugurating these movements Captain inaugurating these movements Captain Hassen and a committee were busy making Hassen and a committee were busy making Hassen and a committee were busy making out the plan of the permanent out the plan of the permanent out the plan of the permanent Association which was to control the Association which was to control the Association which was to control the business of oil producing and prevent business of oil producing and prevent business of oil producing and prevent its becoming the slave of the refining its becoming the slave of the refining its becoming the slave of the refining interest the knowledge that such an interest the knowledge that such an interest the knowledge that such an organization was being worked out kept organization was being worked out kept organization was being worked out kept the oil country in a firmament in every the oil country in a firmament in every the oil country in a firmament in every District suggestions practical and District suggestions practical and District suggestions practical and impractical wise and foolish occupied impractical wise and foolish occupied impractical wise and foolish occupied every producers meeting and kept the every producers meeting and kept the every producers meeting and kept the idle oil men discussing from morning idle oil men discussing from morning idle oil men discussing from morning until night at one Mass meeting the until night at one Mass meeting the until night at one Mass meeting the following resolution was actually passed following resolution was actually passed following resolution was actually passed by a body of revengeful producers

by a body of revengeful producers by a body of revengeful producers resolved that to give a wider Market resolved that to give a wider Market resolved that to give a wider Market throughout the world petroleum to throughout the world petroleum to throughout the world petroleum to enhance its price and to protect enhance its price and to protect enhance its price and to protect producers from unjust combinations of producers from unjust combinations of producers from unjust combinations of home refiners a committee be appointed home refiners a committee be appointed home refiners a committee be appointed to ask the representatives of foreign to ask the representatives of foreign to ask the representatives of foreign governments at Washington to request governments at Washington to request governments at Washington to request their respective governments to put a their respective governments to put a their respective governments to put a proper tariff on refined oil and to proper tariff on refined oil and to proper tariff on refined oil and to admit crude oil free into the ports of admit crude oil free into the ports of admit crude oil free into the ports of the respective governments toward the the respective governments toward the the respective governments toward the end of October Captain Hassen presented end of October Captain Hassen presented end of October Captain Hassen presented the scheme which he and the committee the scheme which he and the committee the scheme which he and the committee had prepared it proposed that there had prepared it proposed that there had prepared it proposed that there should be established what was called a should be established what was called a should be established what was called a petroleum producers agency this agency petroleum producers agency this agency petroleum producers agency this agency was really an incorporated company with was really an incorporated company with was really an incorporated company with a capital of $1 million the stock of a capital of $1 million the stock of a capital of $1 million the stock of which was to be subscribed to only by which was to be subscribed to only by which was to be subscribed to only by The Producers or their friends this The Producers or their friends this The Producers or their friends this agency was to purchase all the oil of agency was to purchase all the oil of agency was to purchase all the oil of the members of the association at at the members of the association at at the members of the association at at least $5 a barrel if stocks could be least $5 a barrel if stocks could be least $5 a barrel if stocks could be kept down so so that the market took all kept down so so that the market took all kept down so so that the market took all the oil at once the full price was to be the oil at once the full price was to be the oil at once the full price was to be paid at once in cash if not the agency paid at once in cash if not the agency paid at once in cash if not the agency was to store the oil in tanks it was to was to store the oil in tanks it was to was to store the oil in tanks it was to build and a portion of the price was to build and a portion of the price was to build and a portion of the price was to be paid in tank be paid in tank be paid in tank certificates by thus controlling all the certificates by thus controlling all the certificates by thus controlling all the oil the agency expected to protect the oil the agency expected to protect the oil the agency expected to protect the weakest as well as the strongest weakest as well as the strongest weakest as well as the strongest producer to equalize the interest of producer to equalize the interest of producer to equalize the interest of different localities to prevent refiners different localities to prevent refiners different localities to prevent refiners and exporters from accumulating stocks and exporters from accumulating stocks and exporters from accumulating stocks and to prevent gambling in oil the and to prevent gambling in oil the and to prevent gambling in oil the agency was to take active means to agency was to take active means to agency was to take active means to collect reliable information about the collect reliable information about the collect reliable information about the oil business the number of Wells oil business the number of Wells oil business the number of Wells drilling the actual production the

drilling the actual production the drilling the actual production the stocks on hand things which had never stocks on hand things which had never stocks on hand things which had never been done to anybody's been done to anybody's been done to anybody's satisfaction indeed one of the standing satisfaction indeed one of the standing satisfaction indeed one of the standing causes for quarrels between the various causes for quarrels between the various causes for quarrels between the various newspapers of the region was their newspapers of the region was their newspapers of the region was their conflicting statistics about production conflicting statistics about production conflicting statistics about production and stocks it was to make a study of the and stocks it was to make a study of the and stocks it was to make a study of the market and to see what could be done to market and to see what could be done to market and to see what could be done to increase consumption it was to oppose increase consumption it was to oppose increase consumption it was to oppose monopolies and encourage competition and monopolies and encourage competition and monopolies and encourage competition and if necessary it was to provide if necessary it was to provide if necessary it was to provide Cooperative refineries which The Cooperative refineries which The Cooperative refineries which The Producers should own Producers should own Producers should own control the spirit of the agency as control the spirit of the agency as control the spirit of the agency as explained by Captain Hassen was most explained by Captain Hassen was most explained by Captain Hassen was most liberal considering the interests of liberal considering the interests of liberal considering the interests of even the Drillers and Pumpers advise even the Drillers and Pumpers advise even the Drillers and Pumpers advise every employee to take at least one every employee to take at least one every employee to take at least one share of stock for himself he said in share of stock for himself he said in share of stock for himself he said in his address and one for his wife and his address and one for his wife and his address and one for his wife and each of his children and encourage him each of his children and encourage him each of his children and encourage him to pay for it out of his saved earnings to pay for it out of his saved earnings to pay for it out of his saved earnings or out of his monthly pay if he is not or out of his monthly pay if he is not or out of his monthly pay if he is not able to keep up his installments assure able to keep up his installments assure able to keep up his installments assure him that you will help him and then take him that you will help him and then take him that you will help him and then take care to do it you will thus do him a care to do it you will thus do him a care to do it you will thus do him a double kindness and benefit his family double kindness and benefit his family double kindness and benefit his family by encouraging habits of thrift and by encouraging habits of thrift and by encouraging habits of thrift and economy you owe this much to him who so economy you owe this much to him who so economy you owe this much to him who so noly seconded your efforts to gain noly seconded your efforts to gain noly seconded your efforts to gain control of the market by stopping work control of the market by stopping work control of the market by stopping work you had all to gain and he had nothing you had all to gain and he had nothing you had all to gain and he had nothing to hope for but your benefit now show to hope for but your benefit now show to hope for but your benefit now show your appreciation of his act by this your appreciation of his act by this your appreciation of his act by this evidence of your regard for his welfare evidence of your regard for his welfare evidence of your regard for his welfare the plan was received with General the plan was received with General the plan was received with General enthusiasm and when it came up for enthusiasm and when it came up for enthusiasm and when it came up for adoption it went through with a adoption it went through with a adoption it went through with a veritable whoop indeed with a few

veritable whoop indeed with a few veritable whoop indeed with a few moments after its official acceptance moments after its official acceptance moments after its official acceptance which took place in Oil City on October which took place in Oil City on October which took place in Oil City on October 24 $200,000 worth of stock was taken and 24 $200,000 worth of stock was taken and 24 $200,000 worth of stock was taken and less than two weeks later it was less than two weeks later it was less than two weeks later it was announced that more than the desired announced that more than the desired announced that more than the desired million dollars had been subscribed that million dollars had been subscribed that million dollars had been subscribed that the trustees and officers had been the trustees and officers had been the trustees and officers had been elected and that the agency was ready elected and that the agency was ready elected and that the agency was ready for work for the first time of the for work for the first time of the for work for the first time of the history of the oil business The history of the oil business The history of the oil business The Producers were United in an organization Producers were United in an organization Producers were United in an organization which if carried out would regulate the which if carried out would regulate the which if carried out would regulate the production of oil to something like the production of oil to something like the production of oil to something like the demand for it would prevent stocks from demand for it would prevent stocks from demand for it would prevent stocks from falling into the hands of speculators falling into the hands of speculators falling into the hands of speculators and would provide a strong front to any and would provide a strong front to any and would provide a strong front to any combination with monopolistic combination with monopolistic combination with monopolistic Tendencies only one thing was necessary Tendencies only one thing was necessary Tendencies only one thing was necessary now to make the producer A fitting now to make the producer A fitting now to make the producer A fitting opponent to his natural enemy the opponent to his natural enemy the opponent to his natural enemy the refiner that thing was loyalty to the refiner that thing was loyalty to the refiner that thing was loyalty to the agency it had established agency it had established agency it had established the future of the producer at that the future of the producer at that the future of the producer at that moment was in his own hand would he moment was in his own hand would he moment was in his own hand would he stick by every sign he would he thought stick by every sign he would he thought stick by every sign he would he thought so himself he had acted so resolutely so himself he had acted so resolutely so himself he had acted so resolutely and intelligently up to this point that and intelligently up to this point that and intelligently up to this point that even Mr Rockefeller seems to have even Mr Rockefeller seems to have even Mr Rockefeller seems to have thought so during the entire three thought so during the entire three thought so during the entire three months that the producers had been months that the producers had been months that the producers had been organizing the refiners had been making organizing the refiners had been making organizing the refiners had been making divers overtures to them in August divers overtures to them in August divers overtures to them in August several of the refiners sought certain several of the refiners sought certain several of the refiners sought certain of the big producers and privately of the big producers and privately of the big producers and privately proposed a two-headed combination which proposed a two-headed combination which proposed a two-headed combination which should handle the whole business from should handle the whole business from should handle the whole business from drilling to drilling to drilling to exportation the proposition they made exportation the proposition they made exportation the proposition they made was most alluring to men suffering from

was most alluring to men suffering from was most alluring to men suffering from low prices carry out your plans to limit low prices carry out your plans to limit low prices carry out your plans to limit your production and guarantee to sell your production and guarantee to sell your production and guarantee to sell only to us said Mr rockefeller's only to us said Mr rockefeller's only to us said Mr rockefeller's representative and we will give you $4 a representative and we will give you $4 a representative and we will give you $4 a barrel for your oil we will also barrel for your oil we will also barrel for your oil we will also establish a sliding scale and for every establish a sliding scale and for every establish a sliding scale and for every cent a gallon that refined oil advances cent a gallon that refined oil advances cent a gallon that refined oil advances we will give you 25 cents more on your we will give you 25 cents more on your we will give you 25 cents more on your barrel of crude the market price of barrel of crude the market price of barrel of crude the market price of crude oil when this offer was made was crude oil when this offer was made was crude oil when this offer was made was hovering around hovering around hovering around $3 how asked the producer can you do $3 how asked the producer can you do $3 how asked the producer can you do this we expect by means of our this we expect by means of our this we expect by means of our combination to get a rebate of 75 cents combination to get a rebate of 75 cents combination to get a rebate of 75 cents a barrel was the answer but the a barrel was the answer but the a barrel was the answer but the railroads have signed an agreement to railroads have signed an agreement to railroads have signed an agreement to give no rebates objected the producers give no rebates objected the producers give no rebates objected the producers as if the railroads ever kept an as if the railroads ever kept an as if the railroads ever kept an agreement answered the worldly wise agreement answered the worldly wise agreement answered the worldly wise refiners somebody will get the rebates refiners somebody will get the rebates refiners somebody will get the rebates it is the way the railroads do business it is the way the railroads do business it is the way the railroads do business if it is to be anybody we propose it if it is to be anybody we propose it if it is to be anybody we propose it shall be our shall be our shall be our combination now it was clear enough to combination now it was clear enough to combination now it was clear enough to the men approach that the great body of the men approach that the great body of the men approach that the great body of their Association would never go into their Association would never go into their Association would never go into any scheme based on rebates and they any scheme based on rebates and they any scheme based on rebates and they said so the refiners saw no disadvantage said so the refiners saw no disadvantage said so the refiners saw no disadvantage in that fact we don't want all the in that fact we don't want all the in that fact we don't want all the producers we only want the big ones the producers we only want the big ones the producers we only want the big ones the small producer under our Arrangement small producer under our Arrangement small producer under our Arrangement must die as the small refiner must the must die as the small refiner must the must die as the small refiner must the proposition never got beyond the proposition never got beyond the proposition never got beyond the conference chamber it was too cynical conference chamber it was too cynical conference chamber it was too cynical several conferences of the same nature several conferences of the same nature several conferences of the same nature took place later between representatives took place later between representatives took place later between representatives of the two interests but nothing came of of the two interests but nothing came of of the two interests but nothing came of them the two associations were kept

them the two associations were kept them the two associations were kept apart by the natural antagonism of their apart by the natural antagonism of their apart by the natural antagonism of their ideals and their policy Captain Hassen ideals and their policy Captain Hassen ideals and their policy Captain Hassen and his followers were working on an and his followers were working on an and his followers were working on an organization which aimed to protect the organization which aimed to protect the organization which aimed to protect the weakest as well as the strongest which weakest as well as the strongest which weakest as well as the strongest which welcomed everybody who cared to come welcomed everybody who cared to come welcomed everybody who cared to come into the business which encouraged into the business which encouraged into the business which encouraged competition and discountenanced any sort competition and discountenanced any sort competition and discountenanced any sort a special privilege Mr Rockefeller and a special privilege Mr Rockefeller and a special privilege Mr Rockefeller and his associates proposed to save the his associates proposed to save the his associates proposed to save the strong and eliminate the weak to limit strong and eliminate the weak to limit strong and eliminate the weak to limit the membership to those who came in now the membership to those who came in now the membership to those who came in now to prevent competition by securing to prevent competition by securing to prevent competition by securing exclusive privileges their program was exclusive privileges their program was exclusive privileges their program was coldblooded but it must be confessed coldblooded but it must be confessed coldblooded but it must be confessed that it showed a much firmer grasp on that it showed a much firmer grasp on that it showed a much firmer grasp on the commercial practices of the day and the commercial practices of the day and the commercial practices of the day and a much deeper knowledge of human nature a much deeper knowledge of human nature a much deeper knowledge of human nature as it operates in business than that of as it operates in business than that of as it operates in business than that of The Producers the formation of the The The Producers the formation of the The The Producers the formation of the The Producers agency brought the refiners Producers agency brought the refiners Producers agency brought the refiners back to the oil regions in Greater back to the oil regions in Greater back to the oil regions in Greater Earnest than ever the success of that Earnest than ever the success of that Earnest than ever the success of that organization gave them an active organization gave them an active organization gave them an active antagonist one which as it held the raw antagonist one which as it held the raw antagonist one which as it held the raw material could at any time actually shut material could at any time actually shut material could at any time actually shut up the refineries by withholding oil the up the refineries by withholding oil the up the refineries by withholding oil the Vigor the ability the determination the Vigor the ability the determination the Vigor the ability the determination the new organization had displayed made it a new organization had displayed made it a new organization had displayed made it a serious threat to the domination Mr serious threat to the domination Mr serious threat to the domination Mr Rockefeller and his associates had Rockefeller and his associates had Rockefeller and his associates had dreamed it must be dreamed it must be dreamed it must be plated on November 8th immediately after plated on November 8th immediately after plated on November 8th immediately after it was announced that the entire million it was announced that the entire million it was announced that the entire million dollars worth of stock was taken an dollars worth of stock was taken an dollars worth of stock was taken an agent of the Standard Oil Company in Oil agent of the Standard Oil Company in Oil agent of the Standard Oil Company in Oil City was ordered to buy oil from the City was ordered to buy oil from the City was ordered to buy oil from the agency 6,000 barrels of oil at

agency 6,000 barrels of oil at agency 6,000 barrels of oil at $4.75 a barrel and the order was $4.75 a barrel and the order was $4.75 a barrel and the order was followed by this telegram from Mr followed by this telegram from Mr followed by this telegram from Mr Rockefeller it has been represented to Rockefeller it has been represented to Rockefeller it has been represented to us that if we would buy of The Producers us that if we would buy of The Producers us that if we would buy of The Producers agent at Oil City and pay agent at Oil City and pay agent at Oil City and pay $4.75 per barrel they would maintain the $4.75 per barrel they would maintain the $4.75 per barrel they would maintain the price price price we are willing to go farther and buy we are willing to go farther and buy we are willing to go farther and buy only of The Producers agent hence the only of The Producers agent hence the only of The Producers agent hence the order we have given you see Hassen and order we have given you see Hassen and order we have given you see Hassen and others and let there be a fair others and let there be a fair others and let there be a fair understanding on this point we will do understanding on this point we will do understanding on this point we will do all in our power to maintain prices and all in our power to maintain prices and all in our power to maintain prices and continue to buy provided our position is continue to buy provided our position is continue to buy provided our position is fully understood we do this to convince fully understood we do this to convince fully understood we do this to convince producers of our sincerity and to assist producers of our sincerity and to assist producers of our sincerity and to assist in establishing the in establishing the in establishing the market a more Adroid move could not have market a more Adroid move could not have market a more Adroid move could not have been made at this moment this purchase been made at this moment this purchase been made at this moment this purchase was a demon demonstration that the was a demon demonstration that the was a demon demonstration that the refiners association could and would pay refiners association could and would pay refiners association could and would pay the price the producers asked that they the price the producers asked that they the price the producers asked that they asked nothing better in fact than to asked nothing better in fact than to asked nothing better in fact than to Ally themselves with the agency the Ally themselves with the agency the Ally themselves with the agency the events of the next three weeks on the events of the next three weeks on the events of the next three weeks on the contrary showed the agency that it would contrary showed the agency that it would contrary showed the agency that it would be some time before anybody else would be some time before anybody else would be some time before anybody else would pay them any such price as that Mr pay them any such price as that Mr pay them any such price as that Mr Rockefeller promised the reason was Rockefeller promised the reason was Rockefeller promised the reason was evident enough in spite of the stopping evident enough in spite of the stopping evident enough in spite of the stopping of the drill in spite of the 30-day of the drill in spite of the 30-day of the drill in spite of the 30-day shutdown produ was increasing indeed the shutdown produ was increasing indeed the shutdown produ was increasing indeed the runs for November were greater than they runs for November were greater than they runs for November were greater than they had ever been in any single month since had ever been in any single month since had ever been in any single month since the beginning of the oil business a the beginning of the oil business a the beginning of the oil business a large number of Wells underway when the large number of Wells underway when the large number of Wells underway when the drill was stopped had come in big new drill was stopped had come in big new drill was stopped had come in big new territory had been opened up by

territory had been opened up by territory had been opened up by unexpected Wild Cats the shutdown had unexpected Wild Cats the shutdown had unexpected Wild Cats the shutdown had done less than was expected to decrease done less than was expected to decrease done less than was expected to decrease stocks it was evident that the producers stocks it was evident that the producers stocks it was evident that the producers Association had a long and severe task Association had a long and severe task Association had a long and severe task before it to bring the crude output down before it to bring the crude output down before it to bring the crude output down to anything like the demand could the to anything like the demand could the to anything like the demand could the great body of producers be dependent great body of producers be dependent great body of producers be dependent upon to take still further measures to upon to take still further measures to upon to take still further measures to lessen their production and at the same lessen their production and at the same lessen their production and at the same time would they hold their oil until the time would they hold their oil until the time would they hold their oil until the agency had the Mastery of the situation agency had the Mastery of the situation agency had the Mastery of the situation their tanks were overflowing many of their tanks were overflowing many of their tanks were overflowing many of them were in debt and depending on their them were in debt and depending on their them were in debt and depending on their sales to meet their obligations even to sales to meet their obligations even to sales to meet their obligations even to meet their daily personal expenses it meet their daily personal expenses it meet their daily personal expenses it was little wonder that they grew rested was little wonder that they grew rested was little wonder that they grew rested as they began to realize that the agency as they began to realize that the agency as they began to realize that the agency in which they had seen immediate in which they had seen immediate in which they had seen immediate salvation from all their ills could only salvation from all their ills could only salvation from all their ills could only be made effective by months more of be made effective by months more of be made effective by months more of self-sacrifice of agitation a persistent self-sacrifice of agitation a persistent self-sacrifice of agitation a persistent effort from every man of them with every effort from every man of them with every effort from every man of them with every day they became more impatient of the day they became more impatient of the day they became more impatient of the bonds the agency had set for them and bonds the agency had set for them and bonds the agency had set for them and the leaders soon realized that some the leaders soon realized that some the leaders soon realized that some immediate tangible results must be given immediate tangible results must be given immediate tangible results must be given the mass of oilmen or there was danger the mass of oilmen or there was danger the mass of oilmen or there was danger of a of a of a stampede this is the end of chapter 4 stampede this is the end of chapter 4 stampede this is the end of chapter 4 part one recording by Tom Weiss Tom's part one recording by Tom Weiss Tom's part one recording by Tom Weiss Tom's Audi book chapter 4 part two of the history of chapter 4 part two of the history of Standard Oil volume 1 by Ida Tarbell

Standard Oil volume 1 by Ida Tarbell Standard Oil volume 1 by Ida Tarbell this LibriVox recording is in the public this LibriVox recording is in the public this LibriVox recording is in the public domain recording by Tom Weiss chapter 4 domain recording by Tom Weiss chapter 4 domain recording by Tom Weiss chapter 4 an Unholy an Unholy an Unholy Alliance a strong feature of the genius Alliance a strong feature of the genius Alliance a strong feature of the genius of John D Rockefeller has always been of John D Rockefeller has always been of John D Rockefeller has always been his recognition of the critical moment his recognition of the critical moment his recognition of the critical moment for Action in complicated for Action in complicated for Action in complicated situations he saw it now and his situations he saw it now and his situations he saw it now and his Representatives again came to the creek Representatives again came to the creek Representatives again came to the creek seeking an seeking an seeking an alliance their arguments as they found alliance their arguments as they found alliance their arguments as they found their way from the private meetings into their way from the private meetings into their way from the private meetings into the press in the street ran something the press in the street ran something the press in the street ran something like this our combination is the only like this our combination is the only like this our combination is the only big buyer we are in the thing to stay big buyer we are in the thing to stay big buyer we are in the thing to stay and shall remain the only big buyer you and shall remain the only big buyer you and shall remain the only big buyer you might direct ref fineries and oppose us might direct ref fineries and oppose us might direct ref fineries and oppose us but it would take months and while you but it would take months and while you but it would take months and while you are waiting how are you going to hold are waiting how are you going to hold are waiting how are you going to hold the producers you cannot do it we can the producers you cannot do it we can the producers you cannot do it we can easily get all the oil we want today at easily get all the oil we want today at easily get all the oil we want today at our own price from the men who sell from our own price from the men who sell from our own price from the men who sell from necessity and yet your agency is in the necessity and yet your agency is in the necessity and yet your agency is in the first flush of enthusiasm sell only to first flush of enthusiasm sell only to first flush of enthusiasm sell only to us and we will buy 15,000 barrels a day us and we will buy 15,000 barrels a day us and we will buy 15,000 barrels a day from you refuse an alliance with us and from you refuse an alliance with us and from you refuse an alliance with us and you will you will you will fail overwhelmed by the length and fail overwhelmed by the length and fail overwhelmed by the length and severity of the struggle before them if severity of the struggle before them if severity of the struggle before them if they insisted on Independence fearful they insisted on Independence fearful they insisted on Independence fearful lest the scattered and Restless lest the scattered and Restless lest the scattered and Restless producers could not be held much longer producers could not be held much longer producers could not be held much longer convinced by their confident arguments convinced by their confident arguments convinced by their confident arguments that the refiners could keep their that the refiners could keep their that the refiners could keep their promise the council finally agreed to a promise the council finally agreed to a promise the council finally agreed to a plan of Union which the Derek dubbed the plan of Union which the Derek dubbed the plan of Union which the Derek dubbed the Treaty of

Treaty of Treaty of Titusville a terrible hubub followed the Titusville a terrible hubub followed the Titusville a terrible hubub followed the announcement that a treaty was proposed announcement that a treaty was proposed announcement that a treaty was proposed and would probably be adopted by the and would probably be adopted by the and would probably be adopted by the Association the same old arguments which Association the same old arguments which Association the same old arguments which had each Overture from the refiners were had each Overture from the refiners were had each Overture from the refiners were gone over again it would be a monopoly gone over again it would be a monopoly gone over again it would be a monopoly the price they offer for crude dependent the price they offer for crude dependent the price they offer for crude dependent upon their getting an unnaturally high upon their getting an unnaturally high upon their getting an unnaturally high price for refine the markets of the price for refine the markets of the price for refine the markets of the world would refuse to pay this price world would refuse to pay this price world would refuse to pay this price when it was discovered that it was kept when it was discovered that it was kept when it was discovered that it was kept up by an agreement which was contrary to up by an agreement which was contrary to up by an agreement which was contrary to the laws of supply and the laws of supply and the laws of supply and demand and besides the parties could not demand and besides the parties could not demand and besides the parties could not trust each other Timmy odano Jose Dona trust each other Timmy odano Jose Dona trust each other Timmy odano Jose Dona FES liberal translation mind your eye FES liberal translation mind your eye FES liberal translation mind your eye when the Cleveland refiners get generous when the Cleveland refiners get generous when the Cleveland refiners get generous cautioned theere as always the ghost of cautioned theere as always the ghost of cautioned theere as always the ghost of the South improvement company was the South improvement company was the South improvement company was between them on the other hand it was between them on the other hand it was between them on the other hand it was argued that it was hopson's Choice argued that it was hopson's Choice argued that it was hopson's Choice combiner bust there is no other Market combiner bust there is no other Market combiner bust there is no other Market we cannot wait for one we have a million we cannot wait for one we have a million we cannot wait for one we have a million barrels of oil on hand the refiners will barrels of oil on hand the refiners will barrels of oil on hand the refiners will take 15,000 barrels a day for spot take 15,000 barrels a day for spot take 15,000 barrels a day for spot cash and after after all concluded the cash and after after all concluded the cash and after after all concluded the philosophical if you can't do as well as philosophical if you can't do as well as philosophical if you can't do as well as you want to do the best you can on you want to do the best you can on you want to do the best you can on December 12th the proposed treaty was December 12th the proposed treaty was December 12th the proposed treaty was laid before the producers at Oil City it laid before the producers at Oil City it laid before the producers at Oil City it aroused a debate so acrimonious that aroused a debate so acrimonious that aroused a debate so acrimonious that even the Derek suppressed it Captain even the Derek suppressed it Captain even the Derek suppressed it Captain Hansen led the opposition in his

Hansen led the opposition in his Hansen led the opposition in his judgment there was but one course for judgment there was but one course for judgment there was but one course for the producers to keep themselves free the producers to keep themselves free the producers to keep themselves free from all entanglements and give from all entanglements and give from all entanglements and give themselves time to build up solidly the themselves time to build up solidly the themselves time to build up solidly the structure they had planned if they had structure they had planned if they had structure they had planned if they had followed his advice the whole history of followed his advice the whole history of followed his advice the whole history of the oil regions would have been the oil regions would have been the oil regions would have been different but they did not follow it the different but they did not follow it the different but they did not follow it the treaty was ratified by a vote of treaty was ratified by a vote of treaty was ratified by a vote of 27-7 the excitement and the 27-7 the excitement and the 27-7 the excitement and the personalities the association indulged personalities the association indulged personalities the association indulged in at their meeting ordered ill for its in at their meeting ordered ill for its in at their meeting ordered ill for its future but when a week later a committee future but when a week later a committee future but when a week later a committee to see the refiners came back from New to see the refiners came back from New to see the refiners came back from New York with a contract signed by Mr York with a contract signed by Mr York with a contract signed by Mr Rockefeller the president and bearing Rockefeller the president and bearing Rockefeller the president and bearing with them an order for 200,000 barrels with them an order for 200,000 barrels with them an order for 200,000 barrels of oil at of oil at of oil at $325 there was a general feeling that $325 there was a general feeling that $325 there was a general feeling that after all an alliance might not be so after all an alliance might not be so after all an alliance might not be so bad a thing 200,000 barrels was a big bad a thing 200,000 barrels was a big bad a thing 200,000 barrels was a big order and would do much to relieve their order and would do much to relieve their order and would do much to relieve their distress their formal sense was quieted distress their formal sense was quieted distress their formal sense was quieted too by the assurance that the producers too by the assurance that the producers too by the assurance that the producers before signing the contract had insisted before signing the contract had insisted before signing the contract had insisted that the refiner combination enter into that the refiner combination enter into that the refiner combination enter into an agreement to take no rebates as long an agreement to take no rebates as long an agreement to take no rebates as long as the alliance as the alliance as the alliance lasted the main points of the agreement lasted the main points of the agreement lasted the main points of the agreement decided upon were that the refiners decided upon were that the refiners decided upon were that the refiners association should admit all existing association should admit all existing association should admit all existing refiners to its society and the refiners to its society and the refiners to its society and the producers Association all producers producers Association all producers producers Association all producers present and to come that the former present and to come that the former present and to come that the former company should buy only from the latter company should buy only from the latter company should buy only from the latter the latter sell only to the former and

the latter sell only to the former and the latter sell only to the former and that the agency should bind all that the agency should bind all that the agency should bind all producers enjoying its privileges to producers enjoying its privileges to producers enjoying its privileges to handle their oil through it the refiners handle their oil through it the refiners handle their oil through it the refiners were to buy such daily quantities as the were to buy such daily quantities as the were to buy such daily quantities as the markets of the world would take and at a markets of the world would take and at a markets of the world would take and at a price governed by the price of refined price governed by the price of refined price governed by the price of refined $5 per barrel when refined was selling $5 per barrel when refined was selling $5 per barrel when refined was selling at 26 Cents a gallon either Association at 26 Cents a gallon either Association at 26 Cents a gallon either Association could discontinue the agreement on 10 could discontinue the agreement on 10 could discontinue the agreement on 10 days notice the producers before signing days notice the producers before signing days notice the producers before signing the contract insisted that the refiners the contract insisted that the refiners the contract insisted that the refiners combination sign an agreement to take no combination sign an agreement to take no combination sign an agreement to take no rebates as long as the alliance lasted rebates as long as the alliance lasted rebates as long as the alliance lasted this agreement in regard to rebates read this agreement in regard to rebates read this agreement in regard to rebates read as follows where whereas it is deemed as follows where whereas it is deemed as follows where whereas it is deemed desirable to execute a contract of even desirable to execute a contract of even desirable to execute a contract of even date herewith between the petroleum date herewith between the petroleum date herewith between the petroleum producers Association and the petroleum producers Association and the petroleum producers Association and the petroleum refiners Association for the purpose of refiners Association for the purpose of refiners Association for the purpose of securing a cooperation for Mutual securing a cooperation for Mutual securing a cooperation for Mutual protection it is agreed by the refiners protection it is agreed by the refiners protection it is agreed by the refiners Association that sections 1 and three of Association that sections 1 and three of Association that sections 1 and three of a contract made the 25th of March a contract made the 25th of March a contract made the 25th of March 1872 between certain trunk lines of 1872 between certain trunk lines of 1872 between certain trunk lines of railroads and a committee of producers railroads and a committee of producers railroads and a committee of producers and refiners shall be and remain in full and refiners shall be and remain in full and refiners shall be and remain in full form course petroleum refiners form course petroleum refiners form course petroleum refiners Association John D Rockefeller president Association John D Rockefeller president Association John D Rockefeller president the sections of the contract of the 25th the sections of the contract of the 25th the sections of the contract of the 25th of March referred to agreed that no of March referred to agreed that no of March referred to agreed that no rebates or contracts or other rebates or contracts or other rebates or contracts or other arrangements should be made which would arrangements should be made which would arrangements should be made which would give any party the slightest difference give any party the slightest difference give any party the slightest difference in rates and that the rates should not in rates and that the rates should not in rates and that the rates should not be changed either for increase or be changed either for increase or be changed either for increase or decrease without first giving Mr Hassen

decrease without first giving Mr Hassen decrease without first giving Mr Hassen the president of The Producers Union at the president of The Producers Union at the president of The Producers Union at least 90 days notice in writing as we least 90 days notice in writing as we least 90 days notice in writing as we now know Mr Rockefeller himself was now know Mr Rockefeller himself was now know Mr Rockefeller himself was receiving rebates when he signed this receiving rebates when he signed this receiving rebates when he signed this agreement and now at last after 5 months agreement and now at last after 5 months agreement and now at last after 5 months of incessant work the agency was ready of incessant work the agency was ready of incessant work the agency was ready to begin disposing of oil they set to to begin disposing of oil they set to to begin disposing of oil they set to work diligently at once to a porion the work diligently at once to a porion the work diligently at once to a porion the 200,000 barrels the refiners had bought 200,000 barrels the refiners had bought 200,000 barrels the refiners had bought among the different districts it was a among the different districts it was a among the different districts it was a slow and irritating task for a method of slow and irritating task for a method of slow and irritating task for a method of appointment and of gathering had to be appointment and of gathering had to be appointment and of gathering had to be devised and as was to be expected it devised and as was to be expected it devised and as was to be expected it ared CED more or less dissatisfaction ared CED more or less dissatisfaction ared CED more or less dissatisfaction and many charges of favoritism the and many charges of favoritism the and many charges of favoritism the agency had the work well underway agency had the work well underway agency had the work well underway however and it shipped about 50,000 however and it shipped about 50,000 however and it shipped about 50,000 barrels went on January 14 it was barrels went on January 14 it was barrels went on January 14 it was suddenly announced that the refiners had suddenly announced that the refiners had suddenly announced that the refiners had refused to take any more of the contract refused to take any more of the contract refused to take any more of the contract oil there was a hurri call of The oil there was a hurri call of The oil there was a hurri call of The Producers Council and a demand for an Producers Council and a demand for an Producers Council and a demand for an explanation a plausible one was ready explanation a plausible one was ready explanation a plausible one was ready for Mr Rockefeller you have not kept for Mr Rockefeller you have not kept for Mr Rockefeller you have not kept your part of the contract you have not your part of the contract you have not your part of the contract you have not limited the supply of oil there is more limited the supply of oil there is more limited the supply of oil there is more being pumped today than ever before in being pumped today than ever before in being pumped today than ever before in the history of the region we can buy all the history of the region we can buy all the history of the region we can buy all we one at we one at we one at $2.50 and oil has sold within the week $2.50 and oil has sold within the week $2.50 and oil has sold within the week at at at $2 if you will not or cannot stop over $2 if you will not or cannot stop over $2 if you will not or cannot stop over production can you expect us to pay your production can you expect us to pay your production can you expect us to pay your price we keep down the output of refined price we keep down the output of refined price we keep down the output of refined and so keep up the price if you will not and so keep up the price if you will not and so keep up the price if you will not do the same you must not expect high

do the same you must not expect high do the same you must not expect high prices what could The Producers reply in prices what could The Producers reply in prices what could The Producers reply in spite of their heroic Measures they had spite of their heroic Measures they had spite of their heroic Measures they had not been able to curtail their output it not been able to curtail their output it not been able to curtail their output it seemed as if nature outraged that her seemed as if nature outraged that her seemed as if nature outraged that her generosity should be so manipulated as generosity should be so manipulated as generosity should be so manipulated as to benefit only the few had opened her to benefit only the few had opened her to benefit only the few had opened her veins to flood the Earth with oil so veins to flood the Earth with oil so veins to flood the Earth with oil so that all men might know that here was a that all men might know that here was a that all men might know that here was a light cheap enough for the poorest of light cheap enough for the poorest of light cheap enough for the poorest of them her lavish outpouring now swept them her lavish outpouring now swept them her lavish outpouring now swept away all of the artificial restraints away all of the artificial restraints away all of the artificial restraints the producers and refiners had been the producers and refiners had been the producers and refiners had been trying to build the producers trying to build the producers trying to build the producers Association seemed suddenly to Association seemed suddenly to Association seemed suddenly to comprehend their Folly in supposing that comprehend their Folly in supposing that comprehend their Folly in supposing that when 5,000 barrels more of oil was when 5,000 barrels more of oil was when 5,000 barrels more of oil was produced each day than the market produced each day than the market produced each day than the market demanded any combination could long keep demanded any combination could long keep demanded any combination could long keep the contract the refiners had made with the contract the refiners had made with the contract the refiners had made with them and their unhappy session made more them and their unhappy session made more them and their unhappy session made more unhappy by the reading of bitter and unhappy by the reading of bitter and unhappy by the reading of bitter and accusing letters from all over the accusing letters from all over the accusing letters from all over the discontented region and it in a complete discontented region and it in a complete discontented region and it in a complete Stampede from the refiners the vote for Stampede from the refiners the vote for Stampede from the refiners the vote for dissolving the alliance having but one dissolving the alliance having but one dissolving the alliance having but one descending vote there were few tears descending vote there were few tears descending vote there were few tears shed in the oil regions over the rupture shed in the oil regions over the rupture shed in the oil regions over the rupture of the contract the greater part of the of the contract the greater part of the of the contract the greater part of the oil men had called it from the beginning oil men had called it from the beginning oil men had called it from the beginning an Unholy Alliance and rejoice that it an Unholy Alliance and rejoice that it an Unholy Alliance and rejoice that it was a was a was a fiasco if the alliance had been all that fiasco if the alliance had been all that fiasco if the alliance had been all that came to an end the case would not have came to an end the case would not have came to an end the case would not have been so serious but it was not the been so serious but it was not the been so serious but it was not the breaking of the alliance proved the dep breaking of the alliance proved the dep breaking of the alliance proved the dep of the agency and the association the of the agency and the association the of the agency and the association the leaders who had disapproved of the leaders who had disapproved of the leaders who had disapproved of the treaty withdrew from active work the

treaty withdrew from active work the treaty withdrew from active work the supporters of the alliance demor supporters of the alliance demor supporters of the alliance demor paralized by its failure were glad to paralized by its failure were glad to paralized by its failure were glad to keep quiet a few spazmatic efforts to keep quiet a few spazmatic efforts to keep quiet a few spazmatic efforts to stop the drill to inaugurate another stop the drill to inaugurate another stop the drill to inaugurate another shutdown were made but failed most of shutdown were made but failed most of shutdown were made but failed most of the producers felt that as oil was so the producers felt that as oil was so the producers felt that as oil was so low their only safety was in getting as low their only safety was in getting as low their only safety was in getting as large a production as they could and a large a production as they could and a large a production as they could and a perfect fever of development followed perfect fever of development followed perfect fever of development followed the producers Association after 10 the producers Association after 10 the producers Association after 10 months of as exciting and strenuous months of as exciting and strenuous months of as exciting and strenuous effort as an organization has ever put effort as an organization has ever put effort as an organization has ever put in was snuffed down out almost in a day in was snuffed down out almost in a day in was snuffed down out almost in a day it was to be 5 years before the oil men it was to be 5 years before the oil men it was to be 5 years before the oil men recovered sufficiently from the shock of recovered sufficiently from the shock of recovered sufficiently from the shock of this collapse to make another United this collapse to make another United this collapse to make another United effort if Mr Rockefeller felt in the effort if Mr Rockefeller felt in the effort if Mr Rockefeller felt in the Fall Of Fall Of Fall Of 1872 that the good of the oil business 1872 that the good of the oil business 1872 that the good of the oil business required the disillusion of The required the disillusion of The required the disillusion of The Producers agency he could not have acted Producers agency he could not have acted Producers agency he could not have acted with more Acumen than he did in leading with more Acumen than he did in leading with more Acumen than he did in leading them into an alliance and at the them into an alliance and at the them into an alliance and at the psychological moment throwing up his psychological moment throwing up his psychological moment throwing up his contract humiliated as the prod contract humiliated as the prod contract humiliated as the prod producers were by their failure they producers were by their failure they producers were by their failure they soon found consolidation in the soon found consolidation in the soon found consolidation in the knowledge that the refiners association knowledge that the refiners association knowledge that the refiners association was in trouble a serious thing in fact was in trouble a serious thing in fact was in trouble a serious thing in fact had happened when the official report of had happened when the official report of had happened when the official report of the year's exports and imports came out the year's exports and imports came out the year's exports and imports came out it was shown that the exports of refined it was shown that the exports of refined it was shown that the exports of refined oil had fallen off for the first time in oil had fallen off for the first time in oil had fallen off for the first time in the history of the business in the history of the business in the history of the business in 1871 132 1871 132 1871 132 m178 843 gallons had been exported in

m178 843 gallons had been exported in m178 843 gallons had been exported in 1872 only 1118 1872 only 1118 1872 only 1118 m259 832 were exported just as alarming m259 832 were exported just as alarming m259 832 were exported just as alarming was the proof that the Shale and coal was the proof that the Shale and coal was the proof that the Shale and coal oil refineries of Europe had taken a oil refineries of Europe had taken a oil refineries of Europe had taken a fresh start that they were selling their fresh start that they were selling their fresh start that they were selling their products more cheaply than kerosene products more cheaply than kerosene products more cheaply than kerosene could be imported and sold there was a could be imported and sold there was a could be imported and sold there was a general outcry from all over the country general outcry from all over the country general outcry from all over the country that Mr Rockefeller and his associates that Mr Rockefeller and his associates that Mr Rockefeller and his associates were running the Oil Business by keeping were running the Oil Business by keeping were running the Oil Business by keeping up the price of refined oil beyond what up the price of refined oil beyond what up the price of refined oil beyond what the price PR of crude Justified The the price PR of crude Justified The the price PR of crude Justified The Producers eager for a scapegoat argued Producers eager for a scapegoat argued Producers eager for a scapegoat argued that the low price of crude was due to that the low price of crude was due to that the low price of crude was due to decreased consumption as well as over decreased consumption as well as over decreased consumption as well as over production and their ill will against Mr production and their ill will against Mr production and their ill will against Mr Rockefeller flared up a new in the Rockefeller flared up a new in the Rockefeller flared up a new in the meantime the refiners association was meantime the refiners association was meantime the refiners association was having troubles of its own the members having troubles of its own the members having troubles of its own the members were not limiting their output as they were not limiting their output as they were not limiting their output as they had agreed that is it was discovered had agreed that is it was discovered had agreed that is it was discovered every now and then that a Refinery was every now and then that a Refinery was every now and then that a Refinery was making more oil than Mr Rockefeller had making more oil than Mr Rockefeller had making more oil than Mr Rockefeller had directed again what was more fatal to directed again what was more fatal to directed again what was more fatal to the success of the Association members the success of the Association members the success of the Association members sometimes sold at a lower price than sometimes sold at a lower price than sometimes sold at a lower price than that set by Mr that set by Mr that set by Mr Rockefeller these restrictions were Rockefeller these restrictions were Rockefeller these restrictions were fundamental to the success of the fundamental to the success of the fundamental to the success of the combination and the members were called combination and the members were called combination and the members were called together at Saratoga in June together at Saratoga in June together at Saratoga in June 1873 and after a long session the 1873 and after a long session the 1873 and after a long session the association was dissolved there was loud association was dissolved there was loud association was dissolved there was loud exultation in the unthinking part of the exultation in the unthinking part of the exultation in the unthinking part of the oil regions over the disillusion of the oil regions over the disillusion of the oil regions over the disillusion of the refiners the junior Anaconda was dead

refiners the junior Anaconda was dead refiners the junior Anaconda was dead the wiser part of the region did not the wiser part of the region did not the wiser part of the region did not exalt they knew that though the exalt they knew that though the exalt they knew that though the combination might dissolve the Standard combination might dissolve the Standard combination might dissolve the Standard Oil Company of Cleveland still Oil Company of Cleveland still Oil Company of Cleveland still controlled its one5 of the capacity of controlled its one5 of the capacity of controlled its one5 of the capacity of the country that not only had Mr the country that not only had Mr the country that not only had Mr Rockefeller been able to hold the 20 Rockefeller been able to hold the 20 Rockefeller been able to hold the 20 refineries he had bolded so summarily at refineries he had bolded so summarily at refineries he had bolded so summarily at the opening Of the opening Of the opening Of 1872 but he had assimilated them so 1872 but he had assimilated them so 1872 but he had assimilated them so thoroughly that he was making enormous thoroughly that he was making enormous thoroughly that he was making enormous profits profits profits Mr rockefeller's contracts with the Mr rockefeller's contracts with the Mr rockefeller's contracts with the Central Railroad alone in 1873 and Central Railroad alone in 1873 and Central Railroad alone in 1873 and 1874 obliged him for 7 months of the 1874 obliged him for 7 months of the 1874 obliged him for 7 months of the year to ship at least 100,000 barrels of year to ship at least 100,000 barrels of year to ship at least 100,000 barrels of refined oil a month to the Seaboard as a refined oil a month to the Seaboard as a refined oil a month to the Seaboard as a matter of fact he never shipped less matter of fact he never shipped less matter of fact he never shipped less than 108,000 barrels and in one month of than 108,000 barrels and in one month of than 108,000 barrels and in one month of the period it Rose to the period it Rose to the period it Rose to 180,000 now in 1873 he made at the very 180,000 now in 1873 he made at the very 180,000 now in 1873 he made at the very lowest figure 3 cents a gallon on his lowest figure 3 cents a gallon on his lowest figure 3 cents a gallon on his oil estimating his shipments simply at oil estimating his shipments simply at oil estimating his shipments simply at 700,000 barrels a year and they were 700,000 barrels a year and they were 700,000 barrels a year and they were much more his profits for that year were much more his profits for that year were much more his profits for that year were $1 1,50,000 and this accounts for no $1 1,50,000 and this accounts for no $1 1,50,000 and this accounts for no profits on about 35% of the standard profits on about 35% of the standard profits on about 35% of the standard output which was sold locally or shipped output which was sold locally or shipped output which was sold locally or shipped Westward Little Wonder that the Westward Little Wonder that the Westward Little Wonder that the Cleveland refiners who had been snuffed Cleveland refiners who had been snuffed Cleveland refiners who had been snuffed out the year before and who saw their out the year before and who saw their out the year before and who saw their plants run at such Advantage grew bitter plants run at such Advantage grew bitter plants run at such Advantage grew bitter or that gos said the Daily Mail of the or that gos said the Daily Mail of the or that gos said the Daily Mail of the president of the Standard Oil company

president of the Standard Oil company president of the Standard Oil company was enlivened by so many threats of was enlivened by so many threats of was enlivened by so many threats of Revenge that he took extraordinary Revenge that he took extraordinary Revenge that he took extraordinary precautions about appearing unguarded in precautions about appearing unguarded in precautions about appearing unguarded in public it is worth noticing that these public it is worth noticing that these public it is worth noticing that these great profits were not being used for great profits were not being used for great profits were not being used for private purposes in 1872 the Standard private purposes in 1872 the Standard private purposes in 1872 the Standard Oil paid a dividend of Oil paid a dividend of Oil paid a dividend of 37% but in 1873 they cut it to 37% but in 1873 they cut it to 37% but in 1873 they cut it to 15% the profits were going almost 15% the profits were going almost 15% the profits were going almost solidly into the extension and solidly into the extension and solidly into the extension and solidification of the business Mr solidification of the business Mr solidification of the business Mr Rockefeller was building great Barrel Rockefeller was building great Barrel Rockefeller was building great Barrel factories thus cutting down to the factories thus cutting down to the factories thus cutting down to the minimum one of a refiner heaviest minimum one of a refiner heaviest minimum one of a refiner heaviest expenses he was buying tank cars that expenses he was buying tank cars that expenses he was buying tank cars that might be independent of the vagaries of might be independent of the vagaries of might be independent of the vagaries of the railroads in allotting cars he was the railroads in allotting cars he was the railroads in allotting cars he was gaining control of terminal facilities gaining control of terminal facilities gaining control of terminal facilities in New York he was putting his plants in New York he was putting his plants in New York he was putting his plants into the most perfect condition into the most perfect condition into the most perfect condition introducing every improved process which introducing every improved process which introducing every improved process which would cheapen his manufacturing by the would cheapen his manufacturing by the would cheapen his manufacturing by the smallest fraction of a scent smallest fraction of a scent smallest fraction of a scent he was diligently hunting methods to get he was diligently hunting methods to get he was diligently hunting methods to get a larger percentage of profit from crude a larger percentage of profit from crude a larger percentage of profit from crude oil there was perhaps 10% of waste at oil there was perhaps 10% of waste at oil there was perhaps 10% of waste at that period in crude oil it hurt him to that period in crude oil it hurt him to that period in crude oil it hurt him to see it unused and no man had a heartier see it unused and no man had a heartier see it unused and no man had a heartier welcome from the president of the welcome from the president of the welcome from the president of the Standard Oil Company than he who would Standard Oil Company than he who would Standard Oil Company than he who would show him how to utilize any portion of show him how to utilize any portion of show him how to utilize any portion of his his his residuum in short Mr Rockefeller was residuum in short Mr Rockefeller was residuum in short Mr Rockefeller was strengthening his line at every point strengthening his line at every point strengthening his line at every point and to no part of it was he giving and to no part of it was he giving and to no part of it was he giving closer attention than to closer attention than to closer attention than to Transportation end of chapter 4

Transportation end of chapter 4 Transportation end of chapter 4 recording by Tom Weiss Tom's recording by Tom Weiss Tom's recording by Tom Weiss Tom's audiobooks.com