The History Of Standard Oil, Ch 05 - The Foundations Of A Trust

Chapter 5, part 1 of The History of Chapter 5, part 1 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. domain. domain. Recording by Tom Weiss. Recording by Tom Weiss. Recording by Tom Weiss. Laying the foundation of a trust. Laying the foundation of a trust. Laying the foundation of a trust. Throughout 1872, Throughout 1872, Throughout 1872, while the producers and refiners were while the producers and refiners were while the producers and refiners were working out associations and alliances working out associations and alliances working out associations and alliances to regulate the output of crude and to regulate the output of crude and to regulate the output of crude and refined oil, the freight rates over the refined oil, the freight rates over the refined oil, the freight rates over the three great oil carrying roads were three great oil carrying roads were three great oil carrying roads were publicly supposed to be those settled by publicly supposed to be those settled by publicly supposed to be those settled by the agreement of March 25. the agreement of March 25. the agreement of March 25. Except by the sophisticated, it was Except by the sophisticated, it was Except by the sophisticated, it was believed that the railroads were keeping believed that the railroads were keeping believed that the railroads were keeping their contracts. their contracts. their contracts. The Lake Shore and Michigan Southern and The Lake Shore and Michigan Southern and The Lake Shore and Michigan Southern and the New York Central had never kept the New York Central had never kept the New York Central had never kept them, as we have seen. them, as we have seen. them, as we have seen. Mr. Flagler's statement that the Mr. Flagler's statement that the Mr. Flagler's statement that the Standard received a rebate of 25 cents a Standard received a rebate of 25 cents a Standard received a rebate of 25 cents a barrel from April 1 to November 15, 1872 barrel from April 1 to November 15, 1872 barrel from April 1 to November 15, 1872 would seem to show that while with one would seem to show that while with one would seem to show that while with one hand Mr. Clark and Mr. Vanderbilt signed hand Mr. Clark and Mr. Vanderbilt signed hand Mr. Clark and Mr. Vanderbilt signed the agreement with the oil men that the agreement with the oil men that the agreement with the oil men that henceforth freight should be on a basis henceforth freight should be on a basis henceforth freight should be on a basis of perfect equality to all shippers, of perfect equality to all shippers, of perfect equality to all shippers, producers and refiners, and that no producers and refiners, and that no producers and refiners, and that no rebates, drawbacks, or other rebates, drawbacks, or other rebates, drawbacks, or other arrangements of any character should be arrangements of any character should be arrangements of any character should be made or allowed that would give any made or allowed that would give any made or allowed that would give any party the slightest difference in rates party the slightest difference in rates party the slightest difference in rates or discriminations of any character or discriminations of any character or discriminations of any character whatever.

whatever. whatever. With the other, they had signed an With the other, they had signed an With the other, they had signed an arrangement to give a 25-cent rebate to arrangement to give a 25-cent rebate to arrangement to give a 25-cent rebate to Mr. Rockefeller. Mr. Rockefeller. Mr. Rockefeller. They certainly had a strong incentive They certainly had a strong incentive They certainly had a strong incentive for ignoring their pledge. for ignoring their pledge. for ignoring their pledge. Consider what Mr. Rockefeller could Consider what Mr. Rockefeller could Consider what Mr. Rockefeller could offer the road. offer the road. offer the road. 60 carloads of oil a day, over 4,000 60 carloads of oil a day, over 4,000 60 carloads of oil a day, over 4,000 barrels. barrels. barrels. General Devereux points out in the General Devereux points out in the General Devereux points out in the affidavit already mentioned what this affidavit already mentioned what this affidavit already mentioned what this meant. meant. meant. It permitted them to make up a solid oil It permitted them to make up a solid oil It permitted them to make up a solid oil train and run it out every day. train and run it out every day. train and run it out every day. By running nothing else, they reduced By running nothing else, they reduced By running nothing else, they reduced the average time of a freight car from the average time of a freight car from the average time of a freight car from Cleveland to New York and return from 30 Cleveland to New York and return from 30 Cleveland to New York and return from 30 days to 10 days. days to 10 days. days to 10 days. The investment for cars to handle their The investment for cars to handle their The investment for cars to handle their freight was reduced by this arrangement freight was reduced by this arrangement freight was reduced by this arrangement to about 1/3 what it would have been if to about 1/3 what it would have been if to about 1/3 what it would have been if several different persons were shipping several different persons were shipping several different persons were shipping the same amount every day. the same amount every day. the same amount every day. Promptness was ensured in forwarding and Promptness was ensured in forwarding and Promptness was ensured in forwarding and returning. A drawback of from $50 to returning. A drawback of from $50 to returning. A drawback of from $50 to $150 a day accrued if it was late, so $150 a day accrued if it was late, so $150 a day accrued if it was late, so that the standard was bound to ship that the standard was bound to ship that the standard was bound to ship promptly.

promptly. promptly. And all the inconvenience of dealing And all the inconvenience of dealing And all the inconvenience of dealing with many shippers, each with his with many shippers, each with his with many shippers, each with his particular whim or demand, was avoided. particular whim or demand, was avoided. particular whim or demand, was avoided. It was certainly worth a rebate to the It was certainly worth a rebate to the It was certainly worth a rebate to the Central. Central. Central. And the Central not having any And the Central not having any And the Central not having any prejudices in favor of keeping prejudices in favor of keeping prejudices in favor of keeping agreements because they were agreements, agreements because they were agreements, agreements because they were agreements, naturally conceded what Mr. Rockefeller naturally conceded what Mr. Rockefeller naturally conceded what Mr. Rockefeller wanted. wanted. wanted. There was another point. If the Central There was another point. If the Central There was another point. If the Central did not concede to Mr. Rockefeller's did not concede to Mr. Rockefeller's did not concede to Mr. Rockefeller's terms, it undoubtedly would lose the terms, it undoubtedly would lose the terms, it undoubtedly would lose the freight. freight. freight. There was the lake and the canal, and There was the lake and the canal, and There was the lake and the canal, and there was the Erie. there was the Erie. there was the Erie. Now, it is not supposable that such an Now, it is not supposable that such an Now, it is not supposable that such an arrangement would go on long without arrangement would go on long without arrangement would go on long without leaking out in the upper oil circles. leaking out in the upper oil circles. leaking out in the upper oil circles. We have evidence that it did not. We have evidence that it did not. We have evidence that it did not. Indeed, there was among certain Indeed, there was among certain Indeed, there was among certain intelligent oil men a conviction when intelligent oil men a conviction when intelligent oil men a conviction when the agreement was signed that the New the agreement was signed that the New the agreement was signed that the New York roads would not regard it. That if York roads would not regard it. That if York roads would not regard it. That if they did, it would ruin the refining they did, it would ruin the refining they did, it would ruin the refining business of Cleveland. business of Cleveland. business of Cleveland. W. Shiedi, a member of the Oil Men's W. Shiedi, a member of the Oil Men's W. Shiedi, a member of the Oil Men's Committee making this contract, the Committee making this contract, the Committee making this contract, the agent of one of the largest oil shippers agent of one of the largest oil shippers agent of one of the largest oil shippers in the country, had non-nay heart in in the country, had non-nay heart in in the country, had non-nay heart in some frank and suggestive testimony some frank and suggestive testimony some frank and suggestive testimony given to the Hepburn Committee in 1879, given to the Hepburn Committee in 1879, given to the Hepburn Committee in 1879, said that at the time the arrangement said that at the time the arrangement said that at the time the arrangement was made, he did not think anybody was made, he did not think anybody was made, he did not think anybody connected with the business expected it connected with the business expected it connected with the business expected it would last.

would last. would last. "My reason for that was that it was an "My reason for that was that it was an "My reason for that was that it was an impossible agreement," said Mr. Shiedi. impossible agreement," said Mr. Shiedi. impossible agreement," said Mr. Shiedi. "The immediate effect of it would have "The immediate effect of it would have "The immediate effect of it would have been to have utterly destroyed 55% of been to have utterly destroyed 55% of been to have utterly destroyed 55% of the refining interest of the country. the refining interest of the country. the refining interest of the country. That is to say, Cleveland and That is to say, Cleveland and That is to say, Cleveland and Pittsburgh, which during the previous 4 Pittsburgh, which during the previous 4 Pittsburgh, which during the previous 4 years had shipped 55% of all the oil out years had shipped 55% of all the oil out years had shipped 55% of all the oil out of the oil regions, of the oil regions, of the oil regions, they, in addition to paying the rates of they, in addition to paying the rates of they, in addition to paying the rates of freights which all other refiners would freights which all other refiners would freights which all other refiners would have had to pay, were required to pay 50 have had to pay, were required to pay 50 have had to pay, were required to pay 50 cents a barrel on their crude oil to cents a barrel on their crude oil to cents a barrel on their crude oil to their works. their works. their works. The refiners in Cleveland and Pittsburgh The refiners in Cleveland and Pittsburgh The refiners in Cleveland and Pittsburgh had, of course, always paid to get crude had, of course, always paid to get crude had, of course, always paid to get crude oil to their works. Even the South oil to their works. Even the South oil to their works. Even the South Improvement Company tariffs provided for Improvement Company tariffs provided for Improvement Company tariffs provided for that. And under that arrangement, that. And under that arrangement, that. And under that arrangement, Cleveland had come to be, in 1871, Cleveland had come to be, in 1871, Cleveland had come to be, in 1871, the chief refining center of the the chief refining center of the the chief refining center of the country. country. country. The chairman of the committee examining The chairman of the committee examining The chairman of the committee examining Mr. Scheide suggested it was a temporary Mr. Scheide suggested it was a temporary Mr. Scheide suggested it was a temporary impossibility which would have adjusted impossibility which would have adjusted impossibility which would have adjusted itself, itself, itself, which Mr. Scheide admitted. Yes, sir, which Mr. Scheide admitted. Yes, sir, which Mr. Scheide admitted. Yes, sir, naturally it would have adjusted itself, naturally it would have adjusted itself, naturally it would have adjusted itself, I suppose, but the effect was very I suppose, but the effect was very I suppose, but the effect was very marked at the time.

marked at the time. marked at the time. So strong was Mr. Scheide's conviction So strong was Mr. Scheide's conviction So strong was Mr. Scheide's conviction that the New York roads would not stand that the New York roads would not stand that the New York roads would not stand the new rates that, on the 10th of the new rates that, on the 10th of the new rates that, on the 10th of October, he went to the Pennsylvania October, he went to the Pennsylvania October, he went to the Pennsylvania Railroad and asked for a rebate on Mr. Railroad and asked for a rebate on Mr. Railroad and asked for a rebate on Mr. Neihardt's crude shipments, and got it. Neihardt's crude shipments, and got it. Neihardt's crude shipments, and got it. What the rebate was, he does not state, What the rebate was, he does not state, What the rebate was, he does not state, but Mr. Flagler tells us in his but Mr. Flagler tells us in his but Mr. Flagler tells us in his testimony that in December he discovered testimony that in December he discovered testimony that in December he discovered that the Pennsylvania was shipping for that the Pennsylvania was shipping for that the Pennsylvania was shipping for as low as a dollar five cents a barrel. as low as a dollar five cents a barrel. as low as a dollar five cents a barrel. And for 1 month he got from Mr. And for 1 month he got from Mr. And for 1 month he got from Mr. Vanderbilt a rate of a dollar five cents Vanderbilt a rate of a dollar five cents Vanderbilt a rate of a dollar five cents on his 4,000 barrels a day. on his 4,000 barrels a day. on his 4,000 barrels a day. Mr. Scheide was also shipping refined Mr. Scheide was also shipping refined Mr. Scheide was also shipping refined oil over the Erie. oil over the Erie. oil over the Erie. George R. Blanchard, who in October 1872 George R. Blanchard, who in October 1872 George R. Blanchard, who in October 1872 became the general freight agent of the became the general freight agent of the became the general freight agent of the Erie, told the Hepburn Committee in 1879 Erie, told the Hepburn Committee in 1879 Erie, told the Hepburn Committee in 1879 that he found, on entering his position, that he found, on entering his position, that he found, on entering his position, that $7,000 in rebate had been paid Mr. that $7,000 in rebate had been paid Mr. that $7,000 in rebate had been paid Mr. Scheide from Mr. Neihardt in the month Scheide from Mr. Neihardt in the month Scheide from Mr. Neihardt in the month of September 1872 on this refined. of September 1872 on this refined. of September 1872 on this refined. He does not say how long this had been He does not say how long this had been He does not say how long this had been going on.

going on. going on. Mr. Blanchard found at the same time the Mr. Blanchard found at the same time the Mr. Blanchard found at the same time the March 25th agreement. He asked why it March 25th agreement. He asked why it March 25th agreement. He asked why it was not observed, and the reply was not observed, and the reply was not observed, and the reply convinced him that it had not been kept convinced him that it had not been kept convinced him that it had not been kept more than two weeks by the Pennsylvania more than two weeks by the Pennsylvania more than two weeks by the Pennsylvania and Central systems. and Central systems. and Central systems. "The representations made to me," says "The representations made to me," says "The representations made to me," says Mr. Blanchard, "also convinced the Mr. Blanchard, "also convinced the Mr. Blanchard, "also convinced the Atlantic and Great Western as to what Atlantic and Great Western as to what Atlantic and Great Western as to what our rivals were doing, and that railway our rivals were doing, and that railway our rivals were doing, and that railway company and our own decided to continue company and our own decided to continue company and our own decided to continue to pay the 24-cent per barrel drawback to pay the 24-cent per barrel drawback to pay the 24-cent per barrel drawback than being paid on the rate of a dollar than being paid on the rate of a dollar than being paid on the rate of a dollar 35 cents provided by the producers 35 cents provided by the producers 35 cents provided by the producers agreement of March 25, 1872." agreement of March 25, 1872." agreement of March 25, 1872." But Mr. Blanchard was shipping only Mr. But Mr. Blanchard was shipping only Mr. But Mr. Blanchard was shipping only Mr. Neihardt's refined, and naturally he Neihardt's refined, and naturally he Neihardt's refined, and naturally he looked for more business and was willing looked for more business and was willing looked for more business and was willing to give a rebate to get it. to give a rebate to get it. to give a rebate to get it. He soon had some from another of the oil He soon had some from another of the oil He soon had some from another of the oil men who had signed the agreement of men who had signed the agreement of men who had signed the agreement of March 25th. March 25th. March 25th. This was Mr. Bennett of Titusville, who This was Mr. Bennett of Titusville, who This was Mr. Bennett of Titusville, who with J. D. Archbold and his other with J. D. Archbold and his other with J. D. Archbold and his other partners entered into a contract with partners entered into a contract with partners entered into a contract with Mr. Blanchard to ship their entire Mr. Blanchard to ship their entire Mr. Blanchard to ship their entire product for a year at a rate product for a year at a rate product for a year at a rate considerably below the one agreed upon considerably below the one agreed upon considerably below the one agreed upon on March 25th.

on March 25th. on March 25th. The contract was a short-lived one, for The contract was a short-lived one, for The contract was a short-lived one, for in November Mr. Bennett and his partners in November Mr. Bennett and his partners in November Mr. Bennett and his partners turned their shipments over to the turned their shipments over to the turned their shipments over to the Pennsylvania. Pennsylvania. Pennsylvania. The Erie had some compensation, however, The Erie had some compensation, however, The Erie had some compensation, however, in the fact that in July 1873, in the fact that in July 1873, in the fact that in July 1873, Mr. Neihardt's crude shipments had all Mr. Neihardt's crude shipments had all Mr. Neihardt's crude shipments had all come to them. come to them. come to them. Mr. Scheidy, Mr. Neihardt's agent, Mr. Scheidy, Mr. Neihardt's agent, Mr. Scheidy, Mr. Neihardt's agent, explained to the Hepburn commission that explained to the Hepburn commission that explained to the Hepburn commission that he left the Pennsylvania because of what he left the Pennsylvania because of what he left the Pennsylvania because of what he considered very bad treatment, "a he considered very bad treatment, "a he considered very bad treatment, "a discrimination against us in furnishing discrimination against us in furnishing discrimination against us in furnishing us cars." us cars." us cars." The Pennsylvania had indeed undertaken The Pennsylvania had indeed undertaken The Pennsylvania had indeed undertaken to carry out the clause in the agreement to carry out the clause in the agreement to carry out the clause in the agreement of March 25th, which stipulated that of March 25th, which stipulated that of March 25th, which stipulated that there should be no discrimination in there should be no discrimination in there should be no discrimination in furnishing cars. furnishing cars. furnishing cars. Mr. Scheidy, considering himself their Mr. Scheidy, considering himself their Mr. Scheidy, considering himself their shipper, that is, shipping larger shipper, that is, shipping larger shipper, that is, shipping larger quantities more regularly than anybody quantities more regularly than anybody quantities more regularly than anybody else and as a consequence having better else and as a consequence having better else and as a consequence having better rates thought it unfair that the car rates thought it unfair that the car rates thought it unfair that the car should be prorated and left the road should be prorated and left the road should be prorated and left the road giving his business to the Erie where giving his business to the Erie where giving his business to the Erie where presumably he got assurances that cars presumably he got assurances that cars presumably he got assurances that cars would be furnished shippers according to would be furnished shippers according to would be furnished shippers according to the quantity and regularity of the quantity and regularity of the quantity and regularity of shipments.

shipments. shipments. Mr. Shinn excellent testimony is good Mr. Shinn excellent testimony is good Mr. Shinn excellent testimony is good evidence of how deep a hold the evidence of how deep a hold the evidence of how deep a hold the principle that the large shippers are to principle that the large shippers are to principle that the large shippers are to have all the advantages had taken hold have all the advantages had taken hold have all the advantages had taken hold of some of the best men in the oil of some of the best men in the oil of some of the best men in the oil country although the oil country as a country although the oil country as a country although the oil country as a whole utterly repudiated the rebate whole utterly repudiated the rebate whole utterly repudiated the rebate business. business. business. These details all drawn from sworn These details all drawn from sworn These details all drawn from sworn testimony show how before a year had testimony show how before a year had testimony show how before a year had passed after the end of the oil war all passed after the end of the oil war all passed after the end of the oil war all the roads were practicing discrimination the roads were practicing discrimination the roads were practicing discrimination how a few shippers were again engaged in how a few shippers were again engaged in how a few shippers were again engaged in a scramble for advantages and how the a scramble for advantages and how the a scramble for advantages and how the big shippers were bent on reestablishing big shippers were bent on reestablishing big shippers were bent on reestablishing the principle supposed to have been the principle supposed to have been the principle supposed to have been overthrown by the oil war that one overthrown by the oil war that one overthrown by the oil war that one shipper is more convenient and shipper is more convenient and shipper is more convenient and profitable for a road than many and this profitable for a road than many and this profitable for a road than many and this being so the matter of a road's duty as being so the matter of a road's duty as being so the matter of a road's duty as a common carrier has nothing to do with a common carrier has nothing to do with a common carrier has nothing to do with the question. the question. the question. This was the situation when in June 1873 This was the situation when in June 1873 This was the situation when in June 1873 General Devereux whom we have met on the General Devereux whom we have met on the General Devereux whom we have met on the Lake Shore Road became president of the Lake Shore Road became president of the Lake Shore Road became president of the Atlantic and Great Western.

Atlantic and Great Western. Atlantic and Great Western. Now at this time Peter H. Watson the Now at this time Peter H. Watson the Now at this time Peter H. Watson the president of the South Improvement president of the South Improvement president of the South Improvement Company was president of the Erie. Company was president of the Erie. Company was president of the Erie. The two at once looked into the The two at once looked into the The two at once looked into the condition of their joint oil traffic. condition of their joint oil traffic. condition of their joint oil traffic. They found the rebate system abolished a They found the rebate system abolished a They found the rebate system abolished a year before again well entrenched. year before again well entrenched. year before again well entrenched. Nevertheless the Erie was not doing much Nevertheless the Erie was not doing much Nevertheless the Erie was not doing much business. The entire shipments of oil business. The entire shipments of oil business. The entire shipments of oil over the Erie from 1873 were but 762,000 over the Erie from 1873 were but 762,000 over the Erie from 1873 were but 762,000 barrels out of a total of 4,963,000. Naturally they went to work to build up Naturally they went to work to build up a trade. And their relations being what a trade. And their relations being what a trade. And their relations being what they had been with the Standard, the they had been with the Standard, the they had been with the Standard, the company controlling a third of the company controlling a third of the company controlling a third of the country's refining capacity, country's refining capacity, country's refining capacity, they went to them to see if they could they went to them to see if they could they went to them to see if they could not get a percentage of their seaboard not get a percentage of their seaboard not get a percentage of their seaboard shipments from Cleveland. shipments from Cleveland. shipments from Cleveland. Mr. Rockefeller was willing to give them Mr. Rockefeller was willing to give them Mr. Rockefeller was willing to give them shipments if they would make the rates shipments if they would make the rates shipments if they would make the rates as low as were given to any of his as low as were given to any of his as low as were given to any of his competitors on any of the roads, and if competitors on any of the roads, and if competitors on any of the roads, and if they would deliver his oil at Hunter's they would deliver his oil at Hunter's they would deliver his oil at Hunter's Point, Brooklyn, Point, Brooklyn, Point, Brooklyn, where he had oil yards, and where the where he had oil yards, and where the where he had oil yards, and where the Central delivered, or if they would not Central delivered, or if they would not Central delivered, or if they would not do that, if they would lease their own do that, if they would lease their own do that, if they would lease their own oil yards to him.

oil yards to him. oil yards to him. There was an excellent business reason There was an excellent business reason There was an excellent business reason for making the latter demand, which Mr. for making the latter demand, which Mr. for making the latter demand, which Mr. Blanchard explained to the Hepburn Blanchard explained to the Hepburn Blanchard explained to the Hepburn Commission. Commission. Commission. "The Standard," said Mr. Blanchard, "had "The Standard," said Mr. Blanchard, "had "The Standard," said Mr. Blanchard, "had a force of men, real estate, houses, a force of men, real estate, houses, a force of men, real estate, houses, tanks, and other facilities at Hunter's tanks, and other facilities at Hunter's tanks, and other facilities at Hunter's Point for receiving and coopering the Point for receiving and coopering the Point for receiving and coopering the oil, and they had their cooperage oil, and they had their cooperage oil, and they had their cooperage materials delivered over there. materials delivered over there. materials delivered over there. The arrangement prior to that time was The arrangement prior to that time was The arrangement prior to that time was that the Erie Company performed this that the Erie Company performed this that the Erie Company performed this service for its outside refiners at service for its outside refiners at service for its outside refiners at Weehawken, for which the Erie Company Weehawken, for which the Erie Company Weehawken, for which the Erie Company made specific charges and added them to made specific charges and added them to made specific charges and added them to the rates for freight. the rates for freight. the rates for freight. The Standard Company said to us, The Standard Company said to us, The Standard Company said to us, 'We do the business at low cost at 'We do the business at low cost at 'We do the business at low cost at Hunter's Point because we are expert oil Hunter's Point because we are expert oil Hunter's Point because we are expert oil men and know how to handle it. We pay men and know how to handle it. We pay men and know how to handle it. We pay nobody a profit, and cannot and ought nobody a profit, and cannot and ought nobody a profit, and cannot and ought not to pay you a profit for a service not to pay you a profit for a service not to pay you a profit for a service that is not transportation any more than that is not transportation any more than that is not transportation any more than inspecting flour or cotton. inspecting flour or cotton. inspecting flour or cotton. And the New York Central delivers our And the New York Central delivers our And the New York Central delivers our oil at that point. oil at that point. oil at that point. Now, if you will deliver our oil at Now, if you will deliver our oil at Now, if you will deliver our oil at Hunter's Point and permit us to do this Hunter's Point and permit us to do this Hunter's Point and permit us to do this business, you may do so.

business, you may do so. business, you may do so. We want to do that business, and we We want to do that business, and we We want to do that business, and we cannot pay to the Erie Railway Company cannot pay to the Erie Railway Company cannot pay to the Erie Railway Company at Weehawken a profit on all those at Weehawken a profit on all those at Weehawken a profit on all those staves, heads, cooperage, filling, staves, heads, cooperage, filling, staves, heads, cooperage, filling, refilling, and inspection, for we have refilling, and inspection, for we have refilling, and inspection, for we have our own forces of men and our own yards our own forces of men and our own yards our own forces of men and our own yards necessary for this work in another part necessary for this work in another part necessary for this work in another part of the harbor of New York, and it is not of the harbor of New York, and it is not of the harbor of New York, and it is not a part of your business as a carrier a part of your business as a carrier a part of your business as a carrier anyway. anyway. anyway. In lieu thereof and for the profits that In lieu thereof and for the profits that In lieu thereof and for the profits that we could have made from the aggregate of we could have made from the aggregate of we could have made from the aggregate of these charges, we said to them, "If you these charges, we said to them, "If you these charges, we said to them, "If you will pay us a fixed profit upon each one will pay us a fixed profit upon each one will pay us a fixed profit upon each one of these barrels of oil arriving here, of these barrels of oil arriving here, of these barrels of oil arriving here, you may take the yards and run them you may take the yards and run them you may take the yards and run them subject to certain limitations as to subject to certain limitations as to subject to certain limitations as to what you shall do or other people who what you shall do or other people who what you shall do or other people who continue to ship oil to the same yards." continue to ship oil to the same yards." continue to ship oil to the same yards." They were only able to make this They were only able to make this They were only able to make this arrangement with us because of their arrangement with us because of their arrangement with us because of their controlling such a large of shipment and controlling such a large of shipment and controlling such a large of shipment and because of permanent facilities in because of permanent facilities in because of permanent facilities in Brooklyn. Brooklyn. Brooklyn. If the larger percentage of shipments If the larger percentage of shipments If the larger percentage of shipments had belonged to outside parties and they had belonged to outside parties and they had belonged to outside parties and they had no yards of their own, we would had no yards of their own, we would had no yards of their own, we would probably have retained the yards probably have retained the yards probably have retained the yards ourselves. ourselves. ourselves. A contract was signed on April 7, 1874.

A contract was signed on April 7, 1874. A contract was signed on April 7, 1874. By it, the Standard agreed to ship 50% By it, the Standard agreed to ship 50% By it, the Standard agreed to ship 50% of the products of its refineries by the of the products of its refineries by the of the products of its refineries by the Erie at rates no higher than is paid by Erie at rates no higher than is paid by Erie at rates no higher than is paid by the competitors of the Standard Oil the competitors of the Standard Oil the competitors of the Standard Oil Company from competing western Company from competing western Company from competing western refineries to New York by all rail refineries to New York by all rail refineries to New York by all rail lines. And to give all oil patrons of lines. And to give all oil patrons of lines. And to give all oil patrons of the Erie system a uniform price and fair the Erie system a uniform price and fair the Erie system a uniform price and fair and equal facilities at the Weehawken and equal facilities at the Weehawken and equal facilities at the Weehawken yards. yards. yards. It was a very wise business deal for It was a very wise business deal for It was a very wise business deal for both parties. both parties. both parties. It made Mr. Rockefeller the favored It made Mr. Rockefeller the favored It made Mr. Rockefeller the favored shipper of a second trunk line. The shipper of a second trunk line. The shipper of a second trunk line. The Central system was already his. Central system was already his. Central system was already his. And it gave him the control of that And it gave him the control of that And it gave him the control of that road's oil terminal so that he could road's oil terminal so that he could road's oil terminal so that he could know exactly what other oil patrons of know exactly what other oil patrons of know exactly what other oil patrons of the road were doing. the road were doing. the road were doing. One of the advantages the Southern One of the advantages the Southern One of the advantages the Southern Improvement Contract looked out for, it Improvement Contract looked out for, it Improvement Contract looked out for, it will be remembered. will be remembered. will be remembered. As for the Erie, it tied up to them an As for the Erie, it tied up to them an As for the Erie, it tied up to them an important trade and again put them into important trade and again put them into important trade and again put them into a position to have something to say a position to have something to say a position to have something to say about the division of the oil traffic, about the division of the oil traffic, about the division of the oil traffic, the bulk of which outside of the the bulk of which outside of the the bulk of which outside of the Standard Oil Company, the Pennsylvania Standard Oil Company, the Pennsylvania Standard Oil Company, the Pennsylvania was handling. In connection with the was handling. In connection with the was handling. In connection with the Central, the Erie now said to the Central, the Erie now said to the Central, the Erie now said to the Pennsylvania that henceforth they Pennsylvania that henceforth they Pennsylvania that henceforth they proposed to maintain their position as proposed to maintain their position as proposed to maintain their position as oil shippers.

oil shippers. oil shippers. The natural result of the determination The natural result of the determination The natural result of the determination of the Central and Erie to get from the of the Central and Erie to get from the of the Central and Erie to get from the Pennsylvania a percentage of its freight Pennsylvania a percentage of its freight Pennsylvania a percentage of its freight was, of course, increased cutting, and was, of course, increased cutting, and was, of course, increased cutting, and it looked as if a rate war was it looked as if a rate war was it looked as if a rate war was inevitable. inevitable. inevitable. At this juncture, Colonel Potts of the At this juncture, Colonel Potts of the At this juncture, Colonel Potts of the Empire Transportation Company, handling Empire Transportation Company, handling Empire Transportation Company, handling all of the Pennsylvania freight, all of the Pennsylvania freight, all of the Pennsylvania freight, suggested to his rivals that it would be suggested to his rivals that it would be suggested to his rivals that it would be a favorable time for the three trunk a favorable time for the three trunk a favorable time for the three trunk lines to pool their seaboard oil lines to pool their seaboard oil lines to pool their seaboard oil freight. freight. freight. In the discussions of this proposition, In the discussions of this proposition, In the discussions of this proposition, which of course involved a new schedule which of course involved a new schedule which of course involved a new schedule of rates, there being now practically of rates, there being now practically of rates, there being now practically none, it was suggested that henceforth none, it was suggested that henceforth none, it was suggested that henceforth rates be so adjusted that they would be rates be so adjusted that they would be rates be so adjusted that they would be equal to all refiners on crude and equal to all refiners on crude and equal to all refiners on crude and refined from all points. refined from all points. refined from all points. Such an equalization seems at first Such an equalization seems at first Such an equalization seems at first glance an unsolvable puzzle. glance an unsolvable puzzle. glance an unsolvable puzzle. The agents found it intricate enough. The agents found it intricate enough. The agents found it intricate enough. Throughout the summer of 1874, they Throughout the summer of 1874, they Throughout the summer of 1874, they worked on it, holding meetings at Long worked on it, holding meetings at Long worked on it, holding meetings at Long Branch and Saratoga, and calling into Branch and Saratoga, and calling into Branch and Saratoga, and calling into their councils a few of the leading their councils a few of the leading their councils a few of the leading refiners, pipeline men, and producers refiners, pipeline men, and producers refiners, pipeline men, and producers whom they could trust to keep quiet whom they could trust to keep quiet whom they could trust to keep quiet about the project.

about the project. about the project. By the 1st of September, they had an By the 1st of September, they had an By the 1st of September, they had an agreement worked out by which each of agreement worked out by which each of agreement worked out by which each of the three roads was to have a fixed the three roads was to have a fixed the three roads was to have a fixed percentage of eastern shipments. percentage of eastern shipments. percentage of eastern shipments. The rates to the seaboard were to amount The rates to the seaboard were to amount The rates to the seaboard were to amount to the same for all refiners, wherever to the same for all refiners, wherever to the same for all refiners, wherever located. That is, to use one of the located. That is, to use one of the located. That is, to use one of the illustrations employed by Mr. Blanchard illustrations employed by Mr. Blanchard illustrations employed by Mr. Blanchard in explaining the scheme to the Hepburn in explaining the scheme to the Hepburn in explaining the scheme to the Hepburn Commission, Commission, Commission, suppose 100 barrels of refined oil to suppose 100 barrels of refined oil to suppose 100 barrels of refined oil to have been sent from Cleveland to New have been sent from Cleveland to New have been sent from Cleveland to New York by rail. The consignee was required York by rail. The consignee was required York by rail. The consignee was required to first pay freight therefore at New to first pay freight therefore at New to first pay freight therefore at New York upon delivery, $1.90. York upon delivery, $1.90. York upon delivery, $1.90. To make this quantity of refined oil at To make this quantity of refined oil at To make this quantity of refined oil at that time, he had already paid freight that time, he had already paid freight that time, he had already paid freight on, say, 133 and 1/2 barrels of crude on, say, 133 and 1/2 barrels of crude on, say, 133 and 1/2 barrels of crude oil from the pipes to Cleveland at 35¢ oil from the pipes to Cleveland at 35¢ oil from the pipes to Cleveland at 35¢ per barrel, or, say, $46.67. per barrel, or, say, $46.67. per barrel, or, say, $46.67. He had therefore paid out from the pipes He had therefore paid out from the pipes He had therefore paid out from the pipes to the refinery and thence to New York to the refinery and thence to New York to the refinery and thence to New York by transportation only on 100 barrels by transportation only on 100 barrels by transportation only on 100 barrels refined and the quantity of crude oil refined and the quantity of crude oil refined and the quantity of crude oil required to make it, $236.67 required to make it, $236.67 required to make it, $236.67 or $2.37 per barrel.

or $2.37 per barrel. or $2.37 per barrel. Therefore, at the end of the month, we Therefore, at the end of the month, we Therefore, at the end of the month, we refunded the $46.67 refunded the $46.67 refunded the $46.67 already paid on the crude oil, so that already paid on the crude oil, so that already paid on the crude oil, so that the rate paid net was $1.90 to him and the rate paid net was $1.90 to him and the rate paid net was $1.90 to him and all other refiners. all other refiners. all other refiners. In case of the refineries situated at In case of the refineries situated at In case of the refineries situated at the seaboard, the cost of carrying from the seaboard, the cost of carrying from the seaboard, the cost of carrying from the oil regions of 133 and 1/2 barrels the oil regions of 133 and 1/2 barrels the oil regions of 133 and 1/2 barrels of crude oil required to make 100 of crude oil required to make 100 of crude oil required to make 100 barrels of refined was made exactly the barrels of refined was made exactly the barrels of refined was made exactly the same as carrying the 100 barrels of same as carrying the 100 barrels of same as carrying the 100 barrels of refined made in the West and transported refined made in the West and transported refined made in the West and transported east. east. east. This really amounted to charging nothing This really amounted to charging nothing This really amounted to charging nothing for getting the crude oil to a refinery for getting the crude oil to a refinery for getting the crude oil to a refinery wherever it was situated, as the wherever it was situated, as the wherever it was situated, as the following clause in the agreement shows. following clause in the agreement shows. following clause in the agreement shows. The roads transporting the refined oil The roads transporting the refined oil The roads transporting the refined oil shall refund to the refiners as a shall refund to the refiners as a shall refund to the refiners as a drawback the charges paid by them upon drawback the charges paid by them upon drawback the charges paid by them upon the crude oil reaching their refineries the crude oil reaching their refineries the crude oil reaching their refineries by rail. by rail. by rail. This paragraph provided for this crude This paragraph provided for this crude This paragraph provided for this crude rebate contained a second clause which rebate contained a second clause which rebate contained a second clause which read, read, read, "And the roads transporting through "And the roads transporting through "And the roads transporting through crude oil to the eastern seaboard shall crude oil to the eastern seaboard shall crude oil to the eastern seaboard shall refund to the shippers 22 cents per refund to the shippers 22 cents per refund to the shippers 22 cents per barrel." Both of said drawbacks to be barrel." Both of said drawbacks to be barrel." Both of said drawbacks to be paid only on oil reaching the initial paid only on oil reaching the initial paid only on oil reaching the initial points of rail shipment through pipes, points of rail shipment through pipes, points of rail shipment through pipes, the owners of which maintain agreed the owners of which maintain agreed the owners of which maintain agreed rates of pipeage.

rates of pipeage. rates of pipeage. The paragraph announced two new and The paragraph announced two new and The paragraph announced two new and startling intentions on the part of the startling intentions on the part of the startling intentions on the part of the oil carrying roads. oil carrying roads. oil carrying roads. First, that they intended to strip the First, that they intended to strip the First, that they intended to strip the oil regions of the advantage of oil regions of the advantage of oil regions of the advantage of geographical position at the wells by geographical position at the wells by geographical position at the wells by sending oil free to Cleveland and sending oil free to Cleveland and sending oil free to Cleveland and Pittsburgh, New York and Philadelphia. Pittsburgh, New York and Philadelphia. Pittsburgh, New York and Philadelphia. At the same time leaving these cities At the same time leaving these cities At the same time leaving these cities the advantages accruing from their the advantages accruing from their the advantages accruing from their position as manufacturing centers and position as manufacturing centers and position as manufacturing centers and close to domestic markets. close to domestic markets. close to domestic markets. Second, that they had entered into a Second, that they had entered into a Second, that they had entered into a combination with certain pipelines to combination with certain pipelines to combination with certain pipelines to drive certain others out of existence. drive certain others out of existence. drive certain others out of existence. Mr. Blanchard gave the reasons of these Mr. Blanchard gave the reasons of these Mr. Blanchard gave the reasons of these two revolutionary moves to the Hepburn two revolutionary moves to the Hepburn two revolutionary moves to the Hepburn Committee. Committee. Committee. It was urgently represented to the trunk It was urgently represented to the trunk It was urgently represented to the trunk lines, he said, by some refiners at the lines, he said, by some refiners at the lines, he said, by some refiners at the West as well as by others at the West as well as by others at the West as well as by others at the seaboard and also by crude shippers and seaboard and also by crude shippers and seaboard and also by crude shippers and receivers and by owners of pipelines receivers and by owners of pipelines receivers and by owners of pipelines that it was in every way desirable that that it was in every way desirable that that it was in every way desirable that the refiners of Cleveland and Pittsburgh the refiners of Cleveland and Pittsburgh the refiners of Cleveland and Pittsburgh and those at the seaboard be put upon a and those at the seaboard be put upon a and those at the seaboard be put upon a basis of equalization in the gross rates basis of equalization in the gross rates basis of equalization in the gross rates of transportation to and from the of transportation to and from the of transportation to and from the refineries.

refineries. refineries. Now, to do this, the element of distance Now, to do this, the element of distance Now, to do this, the element of distance had to be disregarded. had to be disregarded. had to be disregarded. Cleveland was 150 miles west of the oil Cleveland was 150 miles west of the oil Cleveland was 150 miles west of the oil regions, but she must be treated as if regions, but she must be treated as if regions, but she must be treated as if she were at the same distance from the she were at the same distance from the she were at the same distance from the seaboard. seaboard. seaboard. As soon as the proposition was made, As soon as the proposition was made, As soon as the proposition was made, certain of the refiners and producers certain of the refiners and producers certain of the refiners and producers objected unless the railroads went objected unless the railroads went objected unless the railroads went further and equalize rates on coal, further and equalize rates on coal, further and equalize rates on coal, acids, cooperage, etc. acids, cooperage, etc. acids, cooperage, etc. This, however, the roads declined to do. This, however, the roads declined to do. This, however, the roads declined to do. As for the second clause, the rebate on As for the second clause, the rebate on As for the second clause, the rebate on all oil coming from pipes which kept up all oil coming from pipes which kept up all oil coming from pipes which kept up a fixed pipeage, it came about in this a fixed pipeage, it came about in this a fixed pipeage, it came about in this way. way. way. While the railroad men were in While the railroad men were in While the railroad men were in conference at Long Branch, Henry Harley, conference at Long Branch, Henry Harley, conference at Long Branch, Henry Harley, the president of the Pennsylvania the president of the Pennsylvania the president of the Pennsylvania Transportation Company, came to them and Transportation Company, came to them and Transportation Company, came to them and said that he believed the scheme of said that he believed the scheme of said that he believed the scheme of equalization could not be carried out equalization could not be carried out equalization could not be carried out unless some kind of an alliance was made unless some kind of an alliance was made unless some kind of an alliance was made with the pipelines. with the pipelines. with the pipelines. There had been a large increase in the There had been a large increase in the There had been a large increase in the number of pipes in the four or five number of pipes in the four or five number of pipes in the four or five years preceding, years preceding, years preceding, and a situation had arisen not unlike and a situation had arisen not unlike and a situation had arisen not unlike that in every other branch of the oil that in every other branch of the oil that in every other branch of the oil business.

business. business. There was perhaps twice the pipe There was perhaps twice the pipe There was perhaps twice the pipe capacity needed for gathering all the capacity needed for gathering all the capacity needed for gathering all the oil produced, oil produced, oil produced, and as the pipes were under at least a and as the pipes were under at least a and as the pipes were under at least a dozen different managements, each dozen different managements, each dozen different managements, each fighting for business, the result was, fighting for business, the result was, fighting for business, the result was, of course, just what it had been on the of course, just what it had been on the of course, just what it had been on the railroads and in the markets. railroads and in the markets. railroads and in the markets. Severe cutting of prices, rebates, Severe cutting of prices, rebates, Severe cutting of prices, rebates, special secret arrangements, confusion, special secret arrangements, confusion, special secret arrangements, confusion, and loss. and loss. and loss. It had been only 9 years since the first It had been only 9 years since the first It had been only 9 years since the first pipeline had been a success, and pipeline had been a success, and pipeline had been a success, and considering the phenomenal growth of the considering the phenomenal growth of the considering the phenomenal growth of the business and the important part the pipe business and the important part the pipe business and the important part the pipe played in it, it was, of course, a played in it, it was, of course, a played in it, it was, of course, a situation natural enough. situation natural enough. situation natural enough. Like the overgrowth of refining and of Like the overgrowth of refining and of Like the overgrowth of refining and of production, it was something only time production, it was something only time production, it was something only time and solidification of business could and solidification of business could and solidification of business could remedy. remedy. remedy. Mr. Harley laid the situation before the Mr. Harley laid the situation before the Mr. Harley laid the situation before the railroad men and said to them, "We want railroad men and said to them, "We want railroad men and said to them, "We want you to help us keep up an even and equal you to help us keep up an even and equal you to help us keep up an even and equal pipe each rate. pipe each rate. pipe each rate. Here we are representatives of the nine Here we are representatives of the nine Here we are representatives of the nine most important lines in the oil regions. most important lines in the oil regions. most important lines in the oil regions. We want to put a stop to cutting and We want to put a stop to cutting and We want to put a stop to cutting and keep up a rate of 30 cents. Can't you keep up a rate of 30 cents. Can't you keep up a rate of 30 cents. Can't you help us?"

help us?" help us?" Now, up to this time, the railroad had Now, up to this time, the railroad had Now, up to this time, the railroad had had nothing to do with pipeline charges. had nothing to do with pipeline charges. had nothing to do with pipeline charges. It was and still is the custom for the It was and still is the custom for the It was and still is the custom for the buyer of the oil to pay the pipe each. buyer of the oil to pay the pipe each. buyer of the oil to pay the pipe each. That is, the oil producer, on running That is, the oil producer, on running That is, the oil producer, on running the oil into the pipeline, received a the oil into the pipeline, received a the oil into the pipeline, received a credit certificate for the oil. credit certificate for the oil. credit certificate for the oil. If he held it in the line long, he paid If he held it in the line long, he paid If he held it in the line long, he paid a storage charge. a storage charge. a storage charge. When he sold the oil, the line ran it, When he sold the oil, the line ran it, When he sold the oil, the line ran it, and the buyer paid the charge for and the buyer paid the charge for and the buyer paid the charge for running. running. running. Now, the United Pipelines proposed to Now, the United Pipelines proposed to Now, the United Pipelines proposed to the railroads a through rate from the the railroads a through rate from the the railroads a through rate from the wells to the seaboard as low as they wells to the seaboard as low as they wells to the seaboard as low as they currently made from the receiving points currently made from the receiving points currently made from the receiving points on the railway. The pipes to get 20% of on the railway. The pipes to get 20% of on the railway. The pipes to get 20% of this through rate. this through rate. this through rate. The railroads were to agree not to The railroads were to agree not to The railroads were to agree not to receive oil from buyers except at as receive oil from buyers except at as receive oil from buyers except at as high a rate as the pipes charged, and to high a rate as the pipes charged, and to high a rate as the pipes charged, and to allow no pipeline outside of the allow no pipeline outside of the allow no pipeline outside of the alliance a through rate from the wells. alliance a through rate from the wells. alliance a through rate from the wells. The memorandum said squarely that the The memorandum said squarely that the The memorandum said squarely that the intent and purpose of this was to make intent and purpose of this was to make intent and purpose of this was to make the United Pipes the sole feeders of the the United Pipes the sole feeders of the the United Pipes the sole feeders of the railroads. railroads. railroads. It was a plan not unlike the South It was a plan not unlike the South It was a plan not unlike the South Improvement Company in design to put Improvement Company in design to put Improvement Company in design to put everybody but yourself out of business, everybody but yourself out of business, everybody but yourself out of business, and it had the merit of stating its and it had the merit of stating its and it had the merit of stating its intent and purpose with perfect candor.

intent and purpose with perfect candor. intent and purpose with perfect candor. The railroad men seemed not to have The railroad men seemed not to have The railroad men seemed not to have objected to the purpose, only to the objected to the purpose, only to the objected to the purpose, only to the terms of the proposed arrangement. terms of the proposed arrangement. terms of the proposed arrangement. Mr. Blanchard told the pipe committee Mr. Blanchard told the pipe committee Mr. Blanchard told the pipe committee that he regarded it as the most violent that he regarded it as the most violent that he regarded it as the most violent attempt on the part of the tail to wag attempt on the part of the tail to wag attempt on the part of the tail to wag the dog that he had ever seen, the dog that he had ever seen, the dog that he had ever seen, and the representatives of the other and the representatives of the other and the representatives of the other roads agreed. roads agreed. roads agreed. They saw at once, however, how much more They saw at once, however, how much more They saw at once, however, how much more solid their own position would be if solid their own position would be if solid their own position would be if they could be sure that no pipeline they could be sure that no pipeline they could be sure that no pipeline delivering to them would cut its rate, delivering to them would cut its rate, delivering to them would cut its rate, if there could be in effect a crew rate if there could be in effect a crew rate if there could be in effect a crew rate from the wells. And after some from the wells. And after some from the wells. And after some discussion, they proposed to the discussion, they proposed to the discussion, they proposed to the pipelines to add 22 cents a barrel to pipelines to add 22 cents a barrel to pipelines to add 22 cents a barrel to the rail charges. the rail charges. the rail charges. That is, if the rate to the seaboard was That is, if the rate to the seaboard was That is, if the rate to the seaboard was $1.25, $1.25, $1.25, to collect from the shipper $1.47. to collect from the shipper $1.47. to collect from the shipper $1.47. And in case he would show that he had And in case he would show that he had And in case he would show that he had taken his oil from one of the United taken his oil from one of the United taken his oil from one of the United pipes, to give him a rebate of 22 cents. pipes, to give him a rebate of 22 cents. pipes, to give him a rebate of 22 cents. Mr. Blanchard said that they proposed to Mr. Blanchard said that they proposed to Mr. Blanchard said that they proposed to do this until proof was had that the do this until proof was had that the do this until proof was had that the associated pipelines were acting in good associated pipelines were acting in good associated pipelines were acting in good faith.

faith. faith. Of course, this arrangement did not Of course, this arrangement did not Of course, this arrangement did not change the pipelines' method of change the pipelines' method of change the pipelines' method of collecting in the least. collecting in the least. collecting in the least. It simply forced a uniform charge, and It simply forced a uniform charge, and It simply forced a uniform charge, and this charge was to be, it should be this charge was to be, it should be this charge was to be, it should be noticed, regardless of distance. noticed, regardless of distance. noticed, regardless of distance. The charge for collecting and delivering The charge for collecting and delivering The charge for collecting and delivering oil was to be 30 cents a barrel, whether oil was to be 30 cents a barrel, whether oil was to be 30 cents a barrel, whether it was carried 1 or 10 miles, a practice it was carried 1 or 10 miles, a practice it was carried 1 or 10 miles, a practice which prevails today. which prevails today. which prevails today. While these negotiations were going on, While these negotiations were going on, While these negotiations were going on, the oil regions as a whole was troubled the oil regions as a whole was troubled the oil regions as a whole was troubled by a vague rumor that freight rates were by a vague rumor that freight rates were by a vague rumor that freight rates were to be advanced. to be advanced. to be advanced. In the two years since the oil war, the In the two years since the oil war, the In the two years since the oil war, the region as a whole had adjusted itself to region as a whole had adjusted itself to region as a whole had adjusted itself to the tariff schedule of March 25, 1872, the tariff schedule of March 25, 1872, the tariff schedule of March 25, 1872, and was doing very well, though working and was doing very well, though working and was doing very well, though working on a very much smaller margin of profits on a very much smaller margin of profits on a very much smaller margin of profits than ever before. than ever before. than ever before. The margin was sufficient, however, to The margin was sufficient, however, to The margin was sufficient, however, to keep the refineries in the valley keep the refineries in the valley keep the refineries in the valley running most of the time, and several of running most of the time, and several of running most of the time, and several of the large ones were increasing their the large ones were increasing their the large ones were increasing their plants. plants. plants. Detailed accounts of the condition of Detailed accounts of the condition of Detailed accounts of the condition of the works are to be had in the the works are to be had in the the works are to be had in the newspapers of the day.

newspapers of the day. newspapers of the day. Thus, in the summer of 1874, Thus, in the summer of 1874, Thus, in the summer of 1874, an editor of the Oil City Derrick made a an editor of the Oil City Derrick made a an editor of the Oil City Derrick made a tour of the Creek refineries and tour of the Creek refineries and tour of the Creek refineries and reported all of the larger ones in reported all of the larger ones in reported all of the larger ones in Titusville and Oil City as prosperous Titusville and Oil City as prosperous Titusville and Oil City as prosperous and growing, and growing, and growing, and the small ones in the little towns and the small ones in the little towns and the small ones in the little towns between these two points as jogging between these two points as jogging between these two points as jogging along pleasantly. along pleasantly. along pleasantly. The keen competition between the The keen competition between the The keen competition between the different refining points made it different refining points made it different refining points made it necessary to do business with economy, necessary to do business with economy, necessary to do business with economy, and a rumor of a raise of freight rates and a rumor of a raise of freight rates and a rumor of a raise of freight rates naturally was looked on with dread. naturally was looked on with dread. naturally was looked on with dread. It was not until September 12, however, It was not until September 12, however, It was not until September 12, however, that the new arrangements were made that the new arrangements were made that the new arrangements were made known, and this was sometime earlier known, and this was sometime earlier known, and this was sometime earlier than was intended. The slip came about than was intended. The slip came about than was intended. The slip came about in this way. The general freight agent in this way. The general freight agent in this way. The general freight agent of the New York Central Road, James H. of the New York Central Road, James H. of the New York Central Road, James H. Rutter, sent out on September 9 a Rutter, sent out on September 9 a Rutter, sent out on September 9 a private circular announcing the new private circular announcing the new private circular announcing the new arrangement. An advance of 50 cents a arrangement. An advance of 50 cents a arrangement. An advance of 50 cents a barrel on refined oil shipped to the barrel on refined oil shipped to the barrel on refined oil shipped to the seaboard, no corresponding advance for seaboard, no corresponding advance for seaboard, no corresponding advance for Cleveland and Pittsburgh, a rebate of Cleveland and Pittsburgh, a rebate of Cleveland and Pittsburgh, a rebate of the cost of getting oil to the the cost of getting oil to the the cost of getting oil to the refineries, and a rebate of 22 cents to refineries, and a rebate of 22 cents to refineries, and a rebate of 22 cents to those who patronized certain pipelines.

those who patronized certain pipelines. those who patronized certain pipelines. And to this new schedule was appended And to this new schedule was appended And to this new schedule was appended this consoling paragraph. this consoling paragraph. this consoling paragraph. You will observe under this system the You will observe under this system the You will observe under this system the rate is even and fair to all parties, rate is even and fair to all parties, rate is even and fair to all parties, preventing one locality taking advantage preventing one locality taking advantage preventing one locality taking advantage of its neighbor by reason of some of its neighbor by reason of some of its neighbor by reason of some alleged or real facility it may possess. alleged or real facility it may possess. alleged or real facility it may possess. Oil refiners and shippers have asked the Oil refiners and shippers have asked the Oil refiners and shippers have asked the roads from time to time to make all roads from time to time to make all roads from time to time to make all rates even, and they would be satisfied. rates even, and they would be satisfied. rates even, and they would be satisfied. This scheme does it, and we trust will This scheme does it, and we trust will This scheme does it, and we trust will work satisfactorily to all. work satisfactorily to all. work satisfactorily to all. Among the refiners to whom the circular Among the refiners to whom the circular Among the refiners to whom the circular went was M. N. Allen of Titusville. went was M. N. Allen of Titusville. went was M. N. Allen of Titusville. Now, Mr. Allen was the editor of an Now, Mr. Allen was the editor of an Now, Mr. Allen was the editor of an aggressive and lively newspaper, the aggressive and lively newspaper, the aggressive and lively newspaper, the Courier. Courier. Courier. He had fought rings and deals from the He had fought rings and deals from the He had fought rings and deals from the beginning of his career as a refiner and beginning of his career as a refiner and beginning of his career as a refiner and as an editor. as an editor. as an editor. He had been one of the strong opponents He had been one of the strong opponents He had been one of the strong opponents of the South Improvement Company and of of the South Improvement Company and of of the South Improvement Company and of the Refiners Association which followed. the Refiners Association which followed. the Refiners Association which followed. And he saw at once the cloven foot in And he saw at once the cloven foot in And he saw at once the cloven foot in the rudder circular and hastened to the rudder circular and hastened to the rudder circular and hastened to denounce it in a strong editorial. denounce it in a strong editorial. denounce it in a strong editorial. If by an agreement of the New York If by an agreement of the New York If by an agreement of the New York Central, the Erie, and the Pennsylvania Central, the Erie, and the Pennsylvania Central, the Erie, and the Pennsylvania Railroad companies, crude oil delivered Railroad companies, crude oil delivered Railroad companies, crude oil delivered from the Titusville pipe should be from the Titusville pipe should be from the Titusville pipe should be hauled from Titusville to Chicago and hauled from Titusville to Chicago and hauled from Titusville to Chicago and there refined there refined there refined and the refined product then hauled to and the refined product then hauled to and the refined product then hauled to New York, all at $2 a barrel for the New York, all at $2 a barrel for the New York, all at $2 a barrel for the refined thus carried, refined thus carried, refined thus carried, it would be placing by the railroad it would be placing by the railroad it would be placing by the railroad companies Chicago refiners upon the same companies Chicago refiners upon the same companies Chicago refiners upon the same level with the Titusville refiners, who level with the Titusville refiners, who level with the Titusville refiners, who on or after October 1 shall ship to New on or after October 1 shall ship to New on or after October 1 shall ship to New York refined made from crude oil taken York refined made from crude oil taken York refined made from crude oil taken from the Titusville pipe.

from the Titusville pipe. from the Titusville pipe. The new freight arrangement does not The new freight arrangement does not The new freight arrangement does not make such provision for refiners at make such provision for refiners at make such provision for refiners at Chicago, but a Cleveland refiner may Chicago, but a Cleveland refiner may Chicago, but a Cleveland refiner may come to Titusville and buy oil for come to Titusville and buy oil for come to Titusville and buy oil for delivery from the Titusville, the delivery from the Titusville, the delivery from the Titusville, the Pennsylvania, the Church Run, or the Pennsylvania, the Church Run, or the Pennsylvania, the Church Run, or the Acme pipes. At this point, take it to Acme pipes. At this point, take it to Acme pipes. At this point, take it to Cleveland and after refining carry the Cleveland and after refining carry the Cleveland and after refining carry the product to the seaboard at the same product to the seaboard at the same product to the seaboard at the same expense of freight all told at a refiner expense of freight all told at a refiner expense of freight all told at a refiner here taking his crude oil directly from here taking his crude oil directly from here taking his crude oil directly from the above pipes would have in placing the above pipes would have in placing the above pipes would have in placing his refined oil at the seaboard. his refined oil at the seaboard. his refined oil at the seaboard. This is stating the matter exactly, and This is stating the matter exactly, and This is stating the matter exactly, and we see no necessity for comment we see no necessity for comment we see no necessity for comment hereupon. hereupon. hereupon. Again, 1,000 barrels of crude oil are to Again, 1,000 barrels of crude oil are to Again, 1,000 barrels of crude oil are to be carried to the seaboard for the same be carried to the seaboard for the same be carried to the seaboard for the same amount of money that will be required amount of money that will be required amount of money that will be required for carrying there 715 barrels of for carrying there 715 barrels of for carrying there 715 barrels of refined, refined, refined, not withstanding that crude oil is a not withstanding that crude oil is a not withstanding that crude oil is a much more hazardous article of freight much more hazardous article of freight much more hazardous article of freight from fire than refined. from fire than refined. from fire than refined. If this is not a very large If this is not a very large If this is not a very large discrimination in favor of seaboard discrimination in favor of seaboard discrimination in favor of seaboard refiners for which there is no refiners for which there is no refiners for which there is no compensation given to refiners in the compensation given to refiners in the compensation given to refiners in the oil regions, our perceptions are utterly oil regions, our perceptions are utterly oil regions, our perceptions are utterly weak.

weak. weak. Now, before putting into effect this new Now, before putting into effect this new Now, before putting into effect this new freight arrangement, it may be well for freight arrangement, it may be well for freight arrangement, it may be well for the railway officials having the matter the railway officials having the matter the railway officials having the matter in charge to take into consideration a in charge to take into consideration a in charge to take into consideration a certain little article of agreement certain little article of agreement certain little article of agreement which the people of Pennsylvania on the which the people of Pennsylvania on the which the people of Pennsylvania on the 16th day of December last entered into 16th day of December last entered into 16th day of December last entered into among themselves respecting railroads in among themselves respecting railroads in among themselves respecting railroads in this state. this state. this state. In Article 17, Section 7 of our new In Article 17, Section 7 of our new In Article 17, Section 7 of our new Constitution, is the following decree of Constitution, is the following decree of Constitution, is the following decree of the sovereign people of this the sovereign people of this the sovereign people of this Commonwealth. Commonwealth. Commonwealth. No discrimination in charges or No discrimination in charges or No discrimination in charges or facilities for transportation shall be facilities for transportation shall be facilities for transportation shall be made between transportation companies made between transportation companies made between transportation companies and individuals or in favor of either by and individuals or in favor of either by and individuals or in favor of either by abatement, drawback, or otherwise. abatement, drawback, or otherwise. abatement, drawback, or otherwise. Petroleum is a product of this state and Petroleum is a product of this state and Petroleum is a product of this state and transportation companies in taking it transportation companies in taking it transportation companies in taking it away must respect the fundamental law of away must respect the fundamental law of away must respect the fundamental law of the state. the state. the state. And while we ask for no favors, also And while we ask for no favors, also And while we ask for no favors, also supporting free trade from principle, supporting free trade from principle, supporting free trade from principle, speaking in behalf of the refining speaking in behalf of the refining speaking in behalf of the refining interests of the oil region, we do not interests of the oil region, we do not interests of the oil region, we do not propose quietly to submit to any propose quietly to submit to any propose quietly to submit to any discrimination by transportation discrimination by transportation discrimination by transportation companies doing business in this state companies doing business in this state companies doing business in this state against our interests. If by some reason against our interests. If by some reason against our interests. If by some reason of our position we possess advantages of our position we possess advantages of our position we possess advantages for refining oil here over refineries for refining oil here over refineries for refining oil here over refineries outside, we have strong objections outside, we have strong objections outside, we have strong objections against the action of the railway against the action of the railway against the action of the railway companies in taking from us such companies in taking from us such companies in taking from us such advantages by requiring us to pay for advantages by requiring us to pay for advantages by requiring us to pay for hauling a given quantity of oil as much hauling a given quantity of oil as much hauling a given quantity of oil as much as they require of Cleveland refiners as they require of Cleveland refiners as they require of Cleveland refiners for hauling the same amount of oil 300 for hauling the same amount of oil 300 for hauling the same amount of oil 300 miles greater distance or for requiring miles greater distance or for requiring miles greater distance or for requiring us to pay as much for hauling 715

us to pay as much for hauling 715 us to pay as much for hauling 715 barrels of refined oil as they require barrels of refined oil as they require barrels of refined oil as they require for hauling 1,000 barrels of crude oil for hauling 1,000 barrels of crude oil for hauling 1,000 barrels of crude oil the same distance. If the railroad the same distance. If the railroad the same distance. If the railroad companies will make all expenses of companies will make all expenses of companies will make all expenses of refining oil equal to all points, we refining oil equal to all points, we refining oil equal to all points, we shall be satisfied. shall be satisfied. shall be satisfied. If they will make the price of sulfuric If they will make the price of sulfuric If they will make the price of sulfuric acid 1 and 1/2 cents a pound, the same acid 1 and 1/2 cents a pound, the same acid 1 and 1/2 cents a pound, the same as it is in New York, instead of 2 and as it is in New York, instead of 2 and as it is in New York, instead of 2 and 1/2 cents. If they will deliver caustic 1/2 cents. If they will deliver caustic 1/2 cents. If they will deliver caustic soda here, free of freight from New soda here, free of freight from New soda here, free of freight from New York. If they will put paints and glues York. If they will put paints and glues York. If they will put paints and glues here at the same prices as those here at the same prices as those here at the same prices as those articles sell for in New York. If they articles sell for in New York. If they articles sell for in New York. If they will put staves and heading and hoops will put staves and heading and hoops will put staves and heading and hoops for barrels here at the same figures for barrels here at the same figures for barrels here at the same figures those articles cost in Cleveland, those articles cost in Cleveland, those articles cost in Cleveland, whether they do all these by giving us whether they do all these by giving us whether they do all these by giving us rebate sufficient to cover all rebate sufficient to cover all rebate sufficient to cover all differences now against us, or in any differences now against us, or in any differences now against us, or in any other way that will bring the same other way that will bring the same other way that will bring the same results. We will accept the new results. We will accept the new results. We will accept the new arrangement without complaint. arrangement without complaint. arrangement without complaint. Until this is done, we shall ask the Until this is done, we shall ask the Until this is done, we shall ask the railway companies at hauling oil to railway companies at hauling oil to railway companies at hauling oil to confine themselves to legitimate confine themselves to legitimate confine themselves to legitimate business and to obey the new business and to obey the new business and to obey the new constitution in letter and spirit.

constitution in letter and spirit. constitution in letter and spirit. It will behoove our citizens to see that It will behoove our citizens to see that It will behoove our citizens to see that their new constitution is carefully their new constitution is carefully their new constitution is carefully respected. respected. respected. We are opposed to the new arrangement We are opposed to the new arrangement We are opposed to the new arrangement for the large advance in the price of for the large advance in the price of for the large advance in the price of freight upon oil. freight upon oil. freight upon oil. If the railroad companies have lost If the railroad companies have lost If the railroad companies have lost money in carrying oil for the Cleveland money in carrying oil for the Cleveland money in carrying oil for the Cleveland refineries during several years past. refineries during several years past. refineries during several years past. Let not the whole petroleum interest, in Let not the whole petroleum interest, in Let not the whole petroleum interest, in its depressed condition, be required to its depressed condition, be required to its depressed condition, be required to sustain the penalty. sustain the penalty. sustain the penalty. We submit to the railway managers We submit to the railway managers We submit to the railway managers whether it is not right to charge for whether it is not right to charge for whether it is not right to charge for hauling goods in proportion to the hauling goods in proportion to the hauling goods in proportion to the distance hauled. Allowing a small distance hauled. Allowing a small distance hauled. Allowing a small discount perhaps upon the rate per mile discount perhaps upon the rate per mile discount perhaps upon the rate per mile for the greater distance. for the greater distance. for the greater distance. Our remarks upon this subject may have Our remarks upon this subject may have Our remarks upon this subject may have the color of assurance, but from the the color of assurance, but from the the color of assurance, but from the large majority given last winter in large majority given last winter in large majority given last winter in favor of the new constitution of this favor of the new constitution of this favor of the new constitution of this state. We have great confidence that the state. We have great confidence that the state. We have great confidence that the people will not part with their people will not part with their people will not part with their sovereign rights, nor allow themselves sovereign rights, nor allow themselves sovereign rights, nor allow themselves to be ruled by King Pool. At first, the to be ruled by King Pool. At first, the to be ruled by King Pool. At first, the oil region was puzzled by the Rutter oil region was puzzled by the Rutter oil region was puzzled by the Rutter circular. It certainly was possible. Was circular. It certainly was possible. Was circular. It certainly was possible. Was it not true that every man shared it not true that every man shared it not true that every man shared equally under it? As the days passed, equally under it? As the days passed, equally under it? As the days passed, the days mental condition into which it the days mental condition into which it the days mental condition into which it had thrown the oil men cleared up.

had thrown the oil men cleared up. had thrown the oil men cleared up. Mr. Allen's editorials began to take Mr. Allen's editorials began to take Mr. Allen's editorials began to take effect. effect. effect. The pipelines left out of the pool began The pipelines left out of the pool began The pipelines left out of the pool began to ask how it could be legal that the to ask how it could be legal that the to ask how it could be legal that the railroads should enter into an railroads should enter into an railroads should enter into an arrangement which obviously would drive arrangement which obviously would drive arrangement which obviously would drive them out of business. them out of business. them out of business. The Creek refiners began to ask by what The Creek refiners began to ask by what The Creek refiners began to ask by what right the advantage of geographical right the advantage of geographical right the advantage of geographical position at the well should be taken position at the well should be taken position at the well should be taken from them from them from them and Cleveland be allowed to retain the and Cleveland be allowed to retain the and Cleveland be allowed to retain the advantages of her proximity to the advantages of her proximity to the advantages of her proximity to the western market. Pittsburgh, her position western market. Pittsburgh, her position western market. Pittsburgh, her position on the Ohio River and the market it on the Ohio River and the market it on the Ohio River and the market it commanded. commanded. commanded. All of the cities, the advantage of All of the cities, the advantage of All of the cities, the advantage of their proximity to great local markets their proximity to great local markets their proximity to great local markets and to such necessary supplies as and to such necessary supplies as and to such necessary supplies as barrels and acids. barrels and acids. barrels and acids. Besides, was it constitutional for the Besides, was it constitutional for the Besides, was it constitutional for the railroads thus to regulate interstate railroads thus to regulate interstate railroads thus to regulate interstate commerce? commerce? commerce? Was not the arrangement as far as the Was not the arrangement as far as the Was not the arrangement as far as the Pennsylvania was concerned plainly Pennsylvania was concerned plainly Pennsylvania was concerned plainly prohibited by the new constitution of prohibited by the new constitution of prohibited by the new constitution of the state of Pennsylvania? the state of Pennsylvania? the state of Pennsylvania? The producers slowly began to realize, The producers slowly began to realize, The producers slowly began to realize, too, that the Rutter circular, like the too, that the Rutter circular, like the too, that the Rutter circular, like the Southern Improvement charter and Southern Improvement charter and Southern Improvement charter and contracts, contracts, contracts, did not recognize them as a body.

did not recognize them as a body. did not recognize them as a body. The contract of March 25, 1872, The contract of March 25, 1872, The contract of March 25, 1872, provided that the rates fixed should not provided that the rates fixed should not provided that the rates fixed should not be liable to any change either for be liable to any change either for be liable to any change either for increase or decrease without first increase or decrease without first increase or decrease without first giving to William Hasson, president of giving to William Hasson, president of giving to William Hasson, president of the Producers Union at Oil City, the Producers Union at Oil City, the Producers Union at Oil City, at least 90 days notice in writing of at least 90 days notice in writing of at least 90 days notice in writing of such contemplated change. such contemplated change. such contemplated change. This agreement was totally ignored. This agreement was totally ignored. This agreement was totally ignored. It was an insolent equalization, the oil It was an insolent equalization, the oil It was an insolent equalization, the oil men concluded, and the sum total of men concluded, and the sum total of men concluded, and the sum total of their dissatisfaction finally found their dissatisfaction finally found their dissatisfaction finally found expression at a mass meeting at Parker's expression at a mass meeting at Parker's expression at a mass meeting at Parker's Landing on October 2nd. Landing on October 2nd. Landing on October 2nd. Directly after this meeting, a committee Directly after this meeting, a committee Directly after this meeting, a committee appointed sent to Messrs. Scott, appointed sent to Messrs. Scott, appointed sent to Messrs. Scott, Vanderbilt, and Jewett, the new Vanderbilt, and Jewett, the new Vanderbilt, and Jewett, the new president of the Erie, letters calling president of the Erie, letters calling president of the Erie, letters calling their attention to the Rutter circular their attention to the Rutter circular their attention to the Rutter circular and stating the objections of the and stating the objections of the and stating the objections of the producers to it. producers to it. producers to it. These letters sent on October 6th These letters sent on October 6th These letters sent on October 6th received no attention from any of the received no attention from any of the received no attention from any of the railroad presidents addressed for over 3 railroad presidents addressed for over 3 railroad presidents addressed for over 3 weeks when following was received from weeks when following was received from weeks when following was received from the Pennsylvania. the Pennsylvania. the Pennsylvania. Gentlemen, your communication on 6th to Gentlemen, your communication on 6th to Gentlemen, your communication on 6th to Thomas A. Scott, president, was received Thomas A. Scott, president, was received Thomas A. Scott, president, was received and has been referred to me.

and has been referred to me. and has been referred to me. In establishing the recent rates and In establishing the recent rates and In establishing the recent rates and arrangements for the transportation of arrangements for the transportation of arrangements for the transportation of oil, oil, oil, the object which was at all times kept the object which was at all times kept the object which was at all times kept in view was to place all interest on an in view was to place all interest on an in view was to place all interest on an equality given to no one an undue equality given to no one an undue equality given to no one an undue advantage over another. advantage over another. advantage over another. We believe this object has been We believe this object has been We believe this object has been accomplished and that by adhering to our accomplished and that by adhering to our accomplished and that by adhering to our present rates, the interest both of the present rates, the interest both of the present rates, the interest both of the producers, refiners, and transporters producers, refiners, and transporters producers, refiners, and transporters will be promoted. will be promoted. will be promoted. Very truly yours, A. J. Cassatt. Very truly yours, A. J. Cassatt. Very truly yours, A. J. Cassatt. Brief, tardy, Brief, tardy, Brief, tardy, and unsatisfactory was the Derrick's and unsatisfactory was the Derrick's and unsatisfactory was the Derrick's characterization of Mr. Cassatt's characterization of Mr. Cassatt's characterization of Mr. Cassatt's letter. letter. letter. It was evidence to the oil men that if It was evidence to the oil men that if It was evidence to the oil men that if anything was to be done to break the new anything was to be done to break the new anything was to be done to break the new tariff, tariff, tariff, it would have to be done in court for it would have to be done in court for it would have to be done in court for the railroads meant to stand by their the railroads meant to stand by their the railroads meant to stand by their creation. creation. creation. In this discussion of the Rudder In this discussion of the Rudder In this discussion of the Rudder circular, Mr. Rockefeller's name circular, Mr. Rockefeller's name circular, Mr. Rockefeller's name scarcely appeared. scarcely appeared. scarcely appeared. It was known that he had been admitted It was known that he had been admitted It was known that he had been admitted to the conferences at which the tariff to the conferences at which the tariff to the conferences at which the tariff was arranged. This was taken as a matter was arranged. This was taken as a matter was arranged. This was taken as a matter of course. of course. of course. There was nothing which concerned the There was nothing which concerned the There was nothing which concerned the oil business which John Rockefeller was oil business which John Rockefeller was oil business which John Rockefeller was not on the inside of.

not on the inside of. not on the inside of. Mr. Blanchard later stated that the Mr. Blanchard later stated that the Mr. Blanchard later stated that the crude equivalent scheme was suggested by crude equivalent scheme was suggested by crude equivalent scheme was suggested by certain western refiners. The tremendous certain western refiners. The tremendous certain western refiners. The tremendous advantage Cleveland secured by the new advantage Cleveland secured by the new advantage Cleveland secured by the new arrangement, practically 300 miles of arrangement, practically 300 miles of arrangement, practically 300 miles of free transportation, seemed to prove too free transportation, seemed to prove too free transportation, seemed to prove too that Mr. Rockefeller had not been that Mr. Rockefeller had not been that Mr. Rockefeller had not been inactive during the conference. inactive during the conference. inactive during the conference. Whether he had or had not suggested the Whether he had or had not suggested the Whether he had or had not suggested the points in the Rudder circular so points in the Rudder circular so points in the Rudder circular so advantageous to his interest, he used advantageous to his interest, he used advantageous to his interest, he used them now to aid him in accomplishing one them now to aid him in accomplishing one them now to aid him in accomplishing one of the shrewdest and most far-reaching of the shrewdest and most far-reaching of the shrewdest and most far-reaching moves of his life. moves of his life. moves of his life. The move which was to lead at last to The move which was to lead at last to The move which was to lead at last to the realization of his great purpose, the realization of his great purpose, the realization of his great purpose, the concentration of the oil business in the concentration of the oil business in the concentration of the oil business in his own hands. his own hands. his own hands. For Mr. Rockefeller, quiet as he had For Mr. Rockefeller, quiet as he had For Mr. Rockefeller, quiet as he had been since the breaking up of the been since the breaking up of the been since the breaking up of the Refiners Association in the summer of Refiners Association in the summer of Refiners Association in the summer of 1873, 1873, 1873, had by no means given up the idea of had by no means given up the idea of had by no means given up the idea of doing for the refining interest of the doing for the refining interest of the doing for the refining interest of the whole country what he had done for that whole country what he had done for that whole country what he had done for that of Cleveland through the South of Cleveland through the South of Cleveland through the South Improvement Company.

Improvement Company. Improvement Company. Mr. Rockefeller has shown repeatedly in Mr. Rockefeller has shown repeatedly in Mr. Rockefeller has shown repeatedly in his conquering business career his conquering business career his conquering business career remarkable ability to learn from remarkable ability to learn from remarkable ability to learn from experience. experience. experience. The breaking up of the Refiners The breaking up of the Refiners The breaking up of the Refiners Association may have seemed a disaster Association may have seemed a disaster Association may have seemed a disaster to him. to him. to him. He did not allow it to be a profitless He did not allow it to be a profitless He did not allow it to be a profitless disaster. disaster. disaster. He extracted useful lessons from the He extracted useful lessons from the He extracted useful lessons from the experience, and armed with this new experience, and armed with this new experience, and armed with this new wisdom, bent his whole mind to working wisdom, bent his whole mind to working wisdom, bent his whole mind to working out a third plan of campaign. out a third plan of campaign. out a third plan of campaign. He now knew that he could not hope to He now knew that he could not hope to He now knew that he could not hope to make a gain so rich all as he had made make a gain so rich all as he had made make a gain so rich all as he had made through the defunct South Improvement through the defunct South Improvement through the defunct South Improvement scheme. scheme. scheme. The experience of the past year with the The experience of the past year with the The experience of the past year with the refiners convinced him that it would refiners convinced him that it would refiners convinced him that it would take time to educate them to his idea of take time to educate them to his idea of take time to educate them to his idea of combination. combination. combination. But he had learned who of them were But he had learned who of them were But he had learned who of them were capable of this education. capable of this education. capable of this education. As far as the producers, the alliance As far as the producers, the alliance As far as the producers, the alliance attempted with them was enough to attempted with them was enough to attempted with them was enough to demonstrate that they would never endure demonstrate that they would never endure demonstrate that they would never endure long the restraints of any association. long the restraints of any association. long the restraints of any association. Besides, the bulk of them still held to Besides, the bulk of them still held to Besides, the bulk of them still held to him on practical belief that rebates him on practical belief that rebates him on practical belief that rebates were wrong.

were wrong. were wrong. Mr. Rockefeller had also relearned in Mr. Rockefeller had also relearned in Mr. Rockefeller had also relearned in those 18 months what he knew pretty well those 18 months what he knew pretty well those 18 months what he knew pretty well before, before, before, that the promise to give or take away a that the promise to give or take away a that the promise to give or take away a heavy freight traffic was enough to heavy freight traffic was enough to heavy freight traffic was enough to persuade any railroad king of the day to persuade any railroad king of the day to persuade any railroad king of the day to break the most solemn compact. With all break the most solemn compact. With all break the most solemn compact. With all these reflections fresh in mind, Mr. these reflections fresh in mind, Mr. these reflections fresh in mind, Mr. Rockefeller again bent over a map of the Rockefeller again bent over a map of the Rockefeller again bent over a map of the refining interests of the United States. refining interests of the United States. refining interests of the United States. Here was the world he sought to conquer. Here was the world he sought to conquer. Here was the world he sought to conquer. If we may suppose him to have begun his If we may suppose him to have begun his If we may suppose him to have begun his campaign as a great general with whom he campaign as a great general with whom he campaign as a great general with whom he has many traits in common, has many traits in common, has many traits in common, the first Napoleon, the first Napoleon, the first Napoleon, used to begin his by studying a map with used to begin his by studying a map with used to begin his by studying a map with red-hearted pegs marking the points he red-hearted pegs marking the points he red-hearted pegs marking the points he must capture. must capture. must capture. Mr. Rockefeller's chart would have shown Mr. Rockefeller's chart would have shown Mr. Rockefeller's chart would have shown in and around Boston perhaps three pegs in and around Boston perhaps three pegs in and around Boston perhaps three pegs representing a crude capacity of 3,500 representing a crude capacity of 3,500 representing a crude capacity of 3,500 barrels. barrels. barrels. In and around New York, 15 pegs, a In and around New York, 15 pegs, a In and around New York, 15 pegs, a capacity of 9,790 capacity of 9,790 capacity of 9,790 barrels. barrels. barrels. In and around Philadelphia, 12 pegs, a In and around Philadelphia, 12 pegs, a In and around Philadelphia, 12 pegs, a capacity of 2,061 barrels.

capacity of 2,061 barrels. capacity of 2,061 barrels. In Pittsburgh, 22 pegs, a capacity of In Pittsburgh, 22 pegs, a capacity of In Pittsburgh, 22 pegs, a capacity of 6,090 barrels. 6,090 barrels. 6,090 barrels. On the creek, 27 pegs, a capacity of On the creek, 27 pegs, a capacity of On the creek, 27 pegs, a capacity of 9,231 9,231 9,231 barrels. barrels. barrels. His work was to get control of this His work was to get control of this His work was to get control of this multitude of red pegs and to fly above multitude of red pegs and to fly above multitude of red pegs and to fly above them the flag of what the irreverent them the flag of what the irreverent them the flag of what the irreverent call the holy blue barrel. call the holy blue barrel. call the holy blue barrel. Sometime in the summer of 1874, Sometime in the summer of 1874, Sometime in the summer of 1874, after it had become certain that Colonel after it had become certain that Colonel after it had become certain that Colonel Potts's plan for an equalization of oil Potts's plan for an equalization of oil Potts's plan for an equalization of oil freights would be carried out, Mr. freights would be carried out, Mr. freights would be carried out, Mr. Rockefeller wrote to his former Rockefeller wrote to his former Rockefeller wrote to his former colleague in the South Improvement colleague in the South Improvement colleague in the South Improvement Company, W. G. Warden of Philadelphia, Company, W. G. Warden of Philadelphia, Company, W. G. Warden of Philadelphia, telling him he wanted to talk over the telling him he wanted to talk over the telling him he wanted to talk over the condition of the oil business with him condition of the oil business with him condition of the oil business with him and inviting him to bring Charles and inviting him to bring Charles and inviting him to bring Charles Lockhart of Pittsburgh, to that Mecca of Lockhart of Pittsburgh, to that Mecca of Lockhart of Pittsburgh, to that Mecca of American schemers, Saratoga, for a American schemers, Saratoga, for a American schemers, Saratoga, for a conference with him and Mr. Flagler. conference with him and Mr. Flagler. conference with him and Mr. Flagler. Mr. Warden hesitated. He had been much Mr. Warden hesitated. He had been much Mr. Warden hesitated. He had been much abused for his relation with the South abused for his relation with the South abused for his relation with the South Improvement Company. Improvement Company. Improvement Company. He had seen the National Refiners He had seen the National Refiners He had seen the National Refiners Association fail.

Association fail. Association fail. He had begun to feel a distaste for He had begun to feel a distaste for He had begun to feel a distaste for combination. combination. combination. Besides, he was doing very well in Besides, he was doing very well in Besides, he was doing very well in Philadelphia. Philadelphia. Philadelphia. However, after some hesitation, he and However, after some hesitation, he and However, after some hesitation, he and Mr. Lockhart went to Saratoga. Mr. Lockhart went to Saratoga. Mr. Lockhart went to Saratoga. The four gentlemen breakfasted together The four gentlemen breakfasted together The four gentlemen breakfasted together and later strolled out to a pavilion. and later strolled out to a pavilion. and later strolled out to a pavilion. Here they discussed again, as they had Here they discussed again, as they had Here they discussed again, as they had nearly 3 years before when they prepared nearly 3 years before when they prepared nearly 3 years before when they prepared the Southern Improvement Assault, the the Southern Improvement Assault, the the Southern Improvement Assault, the condition of the oil business. condition of the oil business. condition of the oil business. End of chapter 5, part 1. Recording by End of chapter 5, part 1. Recording by End of chapter 5, part 1. Recording by Tom Weiss. TomsAudioBooks.com Chapter 5, part 2 of The History of Chapter 5, part 2 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. Recording by Tom Weiss. Recording by Tom Weiss. Recording by Tom Weiss. Laying the foundations of a trust. Laying the foundations of a trust. Laying the foundations of a trust. Mr. Rockefeller now had something Mr. Rockefeller now had something Mr. Rockefeller now had something besides his theory to present to the besides his theory to present to the besides his theory to present to the gentlemen he wished to go into his third gentlemen he wished to go into his third gentlemen he wished to go into his third scheme.

scheme. scheme. He had the most persuasive of all He had the most persuasive of all He had the most persuasive of all arguments, an actual achievement. arguments, an actual achievement. arguments, an actual achievement. "3 years ago," he could tell them, "I "3 years ago," he could tell them, "I "3 years ago," he could tell them, "I took over the Cleveland refineries. took over the Cleveland refineries. took over the Cleveland refineries. I have managed them so that today I pay I have managed them so that today I pay I have managed them so that today I pay a profit to nobody. I do my own buying, a profit to nobody. I do my own buying, a profit to nobody. I do my own buying, I make my own acid and barrels. I I make my own acid and barrels. I I make my own acid and barrels. I control the New York terminals of both control the New York terminals of both control the New York terminals of both the Erie and Central roads, and ship the Erie and Central roads, and ship the Erie and Central roads, and ship such quantities that the railroads give such quantities that the railroads give such quantities that the railroads give me better rates than they do any other me better rates than they do any other me better rates than they do any other shipper. shipper. shipper. In 1873, In 1873, In 1873, I shipped over 700,000 barrels by the I shipped over 700,000 barrels by the I shipped over 700,000 barrels by the Central, and my profit on my Central, and my profit on my Central, and my profit on my capitalization, $2,500,000, capitalization, $2,500,000, capitalization, $2,500,000, was over $1,000,000. was over $1,000,000. was over $1,000,000. This is the result of combination in one This is the result of combination in one This is the result of combination in one city. city. city. The railroads now have arranged a new The railroads now have arranged a new The railroads now have arranged a new tariff by which they mean to put us all tariff by which they mean to put us all tariff by which they mean to put us all on an equal footing. on an equal footing. on an equal footing. They say they will give no rebates to They say they will give no rebates to They say they will give no rebates to anyone, but if we can join with anyone, but if we can join with anyone, but if we can join with Cleveland, the strongest forces in other Cleveland, the strongest forces in other Cleveland, the strongest forces in other great shipping points, and apply to them great shipping points, and apply to them great shipping points, and apply to them the same tactics I have employed, we the same tactics I have employed, we the same tactics I have employed, we shall become the largest shipper, and shall become the largest shipper, and shall become the largest shipper, and can demand a rebate in return for an can demand a rebate in return for an can demand a rebate in return for an equal division of our freight.

equal division of our freight. equal division of our freight. We proved in 1872 and 1873 We proved in 1872 and 1873 We proved in 1872 and 1873 that we could not do anything by an open that we could not do anything by an open that we could not do anything by an open association. Let us who see what a association. Let us who see what a association. Let us who see what a combination strictly carried out will combination strictly carried out will combination strictly carried out will affect, unite secretly to accomplish it. affect, unite secretly to accomplish it. affect, unite secretly to accomplish it. Let us become the nucleus of a private Let us become the nucleus of a private Let us become the nucleus of a private company which gradually shall acquire company which gradually shall acquire company which gradually shall acquire control of all refineries everywhere, control of all refineries everywhere, control of all refineries everywhere, become the only shippers, and become the only shippers, and become the only shippers, and consequently the master of the railroads consequently the master of the railroads consequently the master of the railroads in the matter of freight rates. in the matter of freight rates. in the matter of freight rates. It was 6 hours before the gentlemen in It was 6 hours before the gentlemen in It was 6 hours before the gentlemen in conference left the pavilion. conference left the pavilion. conference left the pavilion. And when they came out, Mr. Warren and And when they came out, Mr. Warren and And when they came out, Mr. Warren and Mr. Lockhart had agreed to transfer Mr. Lockhart had agreed to transfer Mr. Lockhart had agreed to transfer their refineries in Philadelphia and their refineries in Philadelphia and their refineries in Philadelphia and Pittsburgh to the Standard Oil Company Pittsburgh to the Standard Oil Company Pittsburgh to the Standard Oil Company of Cleveland, taking stock in exchange. of Cleveland, taking stock in exchange. of Cleveland, taking stock in exchange. They had also agreed to absorb, as They had also agreed to absorb, as They had also agreed to absorb, as rapidly as persuasion or other means rapidly as persuasion or other means rapidly as persuasion or other means could bring it about, the refineries in could bring it about, the refineries in could bring it about, the refineries in their neighborhood. their neighborhood. their neighborhood. Their union with the Standard was to Their union with the Standard was to Their union with the Standard was to remain an absolute secret, the concerns remain an absolute secret, the concerns remain an absolute secret, the concerns operating under their respective names.

operating under their respective names. operating under their respective names. On October 15, 1874, On October 15, 1874, On October 15, 1874, Mr. Rockefeller consummated another Mr. Rockefeller consummated another Mr. Rockefeller consummated another purchase of as great importance. purchase of as great importance. purchase of as great importance. He bought the works of Charles Pratt and He bought the works of Charles Pratt and He bought the works of Charles Pratt and Company of New York City. Company of New York City. Company of New York City. As before, the purchase was secret. As before, the purchase was secret. As before, the purchase was secret. The strategic importance of these The strategic importance of these The strategic importance of these purchases for one holding Mr. purchases for one holding Mr. purchases for one holding Mr. Rockefeller's vast ambition was Rockefeller's vast ambition was Rockefeller's vast ambition was enormous. enormous. enormous. It gave him as allies men who were among It gave him as allies men who were among It gave him as allies men who were among the most successful refiners, without the most successful refiners, without the most successful refiners, without doubt, in each of the three great doubt, in each of the three great doubt, in each of the three great refining centers of the country, outside refining centers of the country, outside refining centers of the country, outside of Cleveland, where he ruled, and of the of Cleveland, where he ruled, and of the of Cleveland, where he ruled, and of the Creek, where he had learned that neither Creek, where he had learned that neither Creek, where he had learned that neither he nor any member of the South he nor any member of the South he nor any member of the South Improvement Company could do business Improvement Company could do business Improvement Company could do business with facility. with facility. with facility. To meet these purchases, the stock of To meet these purchases, the stock of To meet these purchases, the stock of the Standard Oil Company was increased the Standard Oil Company was increased the Standard Oil Company was increased on March 10, 1875 on March 10, 1875 on March 10, 1875 to $3,500,000. to $3,500,000. to $3,500,000. The value of the concern as a money The value of the concern as a money The value of the concern as a money earner at this early date, 1874, earner at this early date, 1874, earner at this early date, 1874, is shown by the fact that Pratt and is shown by the fact that Pratt and is shown by the fact that Pratt and Company paid not less than 265 for the Company paid not less than 265 for the Company paid not less than 265 for the Standard stock they received in exchange Standard stock they received in exchange Standard stock they received in exchange for their works.

for their works. for their works. The first intimation that the oil region The first intimation that the oil region The first intimation that the oil region had that Mr. Rockefeller was pushing had that Mr. Rockefeller was pushing had that Mr. Rockefeller was pushing another combination was in March of 1875 another combination was in March of 1875 another combination was in March of 1875 when it was announced that an when it was announced that an when it was announced that an organization of refiners called the organization of refiners called the organization of refiners called the Central Association, of which he was Central Association, of which he was Central Association, of which he was president, had been formed. president, had been formed. president, had been formed. Its main points were that if a refiner Its main points were that if a refiner Its main points were that if a refiner would lease to the association his plant would lease to the association his plant would lease to the association his plant for a term of months, he would be for a term of months, he would be for a term of months, he would be allowed to subscribe for stock of the allowed to subscribe for stock of the allowed to subscribe for stock of the new company. new company. new company. The lease allowed the owner to do his The lease allowed the owner to do his The lease allowed the owner to do his own manufacturing, but gave Mr. own manufacturing, but gave Mr. own manufacturing, but gave Mr. Rockefeller's company irrevocable Rockefeller's company irrevocable Rockefeller's company irrevocable authority to make all purchases of crude authority to make all purchases of crude authority to make all purchases of crude oil and sales of refined, to decide how oil and sales of refined, to decide how oil and sales of refined, to decide how much each refinery should manufacture, much each refinery should manufacture, much each refinery should manufacture, and to negotiate for all freight and and to negotiate for all freight and and to negotiate for all freight and pipeline expenses. pipeline expenses. pipeline expenses. The Central Association was a most The Central Association was a most The Central Association was a most clever device. It furnished the secret clever device. It furnished the secret clever device. It furnished the secret partners of Mr. Rockefeller a plausible partners of Mr. Rockefeller a plausible partners of Mr. Rockefeller a plausible proposition with which to approach the proposition with which to approach the proposition with which to approach the firms of which they wished to obtain firms of which they wished to obtain firms of which they wished to obtain control. control. control. Little as the oil regions knew of the Little as the oil regions knew of the Little as the oil regions knew of the real meaning of the Central Association, real meaning of the Central Association, real meaning of the Central Association, the news of its organization raised a the news of its organization raised a the news of its organization raised a cry of monopoly, and the advocates of cry of monopoly, and the advocates of cry of monopoly, and the advocates of the new scheme felt called upon to the new scheme felt called upon to the new scheme felt called upon to defend it.

defend it. defend it. The defense took the line that the The defense took the line that the The defense took the line that the condition of the trade made such a condition of the trade made such a condition of the trade made such a combination of refineries necessary. combination of refineries necessary. combination of refineries necessary. Altogether, the ablest explanation was Altogether, the ablest explanation was Altogether, the ablest explanation was that of H. H. Rogers of Charles Pratt that of H. H. Rogers of Charles Pratt that of H. H. Rogers of Charles Pratt and Company to a reporter of the New and Company to a reporter of the New and Company to a reporter of the New York Tribune. York Tribune. York Tribune. "There are five refining points in the "There are five refining points in the "There are five refining points in the country," said Mr. Rogers. "Pittsburgh, country," said Mr. Rogers. "Pittsburgh, country," said Mr. Rogers. "Pittsburgh, Philadelphia, Cleveland, the oil Philadelphia, Cleveland, the oil Philadelphia, Cleveland, the oil regions, and New York City. regions, and New York City. regions, and New York City. Each of these has certain local Each of these has certain local Each of these has certain local advantages which may be briefly stated advantages which may be briefly stated advantages which may be briefly stated as follows. Pittsburgh, cheap oil. as follows. Pittsburgh, cheap oil. as follows. Pittsburgh, cheap oil. Philadelphia, the seaboard. Cleveland, Philadelphia, the seaboard. Cleveland, Philadelphia, the seaboard. Cleveland, cheap barrels and canal as well as cheap barrels and canal as well as cheap barrels and canal as well as railroad transportation. The oil railroad transportation. The oil railroad transportation. The oil regions, crude oil at the lowest figure. regions, crude oil at the lowest figure. regions, crude oil at the lowest figure. And all the products of petroleum have And all the products of petroleum have And all the products of petroleum have the best market in New York City. the best market in New York City. the best market in New York City. The supply of oil is three or four times The supply of oil is three or four times The supply of oil is three or four times greater than the demand. greater than the demand. greater than the demand. If the oil refineries were run to their If the oil refineries were run to their If the oil refineries were run to their full capacity, the market would be full capacity, the market would be full capacity, the market would be overstocked. The business is not overstocked. The business is not overstocked. The business is not regular, but spasmodic. regular, but spasmodic. regular, but spasmodic. When the market is brisk and oil is in When the market is brisk and oil is in When the market is brisk and oil is in demand, all the oil interests are busy demand, all the oil interests are busy demand, all the oil interests are busy and enjoy a fair share of prosperity.

and enjoy a fair share of prosperity. and enjoy a fair share of prosperity. At other times, the whole trade is At other times, the whole trade is At other times, the whole trade is affected by the dullness. It has been affected by the dullness. It has been affected by the dullness. It has been estimated that not less than 20 millions estimated that not less than 20 millions estimated that not less than 20 millions of dollars are invested in the oil of dollars are invested in the oil of dollars are invested in the oil business. It is therefore to the business. It is therefore to the business. It is therefore to the interest of every man who has put a interest of every man who has put a interest of every man who has put a dollar in it to have the trade protected dollar in it to have the trade protected dollar in it to have the trade protected and established on a permanent footing. and established on a permanent footing. and established on a permanent footing. Speculators have ruined the market. The Speculators have ruined the market. The Speculators have ruined the market. The brokers heretofore have been speculating brokers heretofore have been speculating brokers heretofore have been speculating upon the market with disastrous effects upon the market with disastrous effects upon the market with disastrous effects upon the trade. And this new order of upon the trade. And this new order of upon the trade. And this new order of things will force them to pursue their things will force them to pursue their things will force them to pursue their legitimate calling and realize their legitimate calling and realize their legitimate calling and realize their profits from their industry and profits from their industry and profits from their industry and perseverance. perseverance. perseverance. Two years ago, an attempt was made to Two years ago, an attempt was made to Two years ago, an attempt was made to organize an oil refiners association, organize an oil refiners association, organize an oil refiners association, but it was subsequently abandoned. but it was subsequently abandoned. but it was subsequently abandoned. There was no cohesion of interest and There was no cohesion of interest and There was no cohesion of interest and agreements were not kept. The movement agreements were not kept. The movement agreements were not kept. The movement at the present time is a revival of the at the present time is a revival of the at the present time is a revival of the former idea. And it is believed has former idea. And it is believed has former idea. And it is believed has already fully secured 9/10 of the oil already fully secured 9/10 of the oil already fully secured 9/10 of the oil refiners in the country in its favor. refiners in the country in its favor. refiners in the country in its favor. I do not believe there is any intention I do not believe there is any intention I do not believe there is any intention among the oil men to pull the market.

among the oil men to pull the market. among the oil men to pull the market. The endeavor is to equalize all around The endeavor is to equalize all around The endeavor is to equalize all around and protect the capital invested. If by and protect the capital invested. If by and protect the capital invested. If by common consent in good faith, the common consent in good faith, the common consent in good faith, the refiners agree to reduce the quantities refiners agree to reduce the quantities refiners agree to reduce the quantities to an allotment for each made in view of to an allotment for each made in view of to an allotment for each made in view of the supply and demand and the capacity the supply and demand and the capacity the supply and demand and the capacity for production, the market can be for production, the market can be for production, the market can be regulated with a reasonable profit for regulated with a reasonable profit for regulated with a reasonable profit for all. all. all. The price of oil today is 15 cents per The price of oil today is 15 cents per The price of oil today is 15 cents per gallon. gallon. gallon. The proposed allotment of business would The proposed allotment of business would The proposed allotment of business would probably advance the price to 20 cents. probably advance the price to 20 cents. probably advance the price to 20 cents. To make an artificial increase with To make an artificial increase with To make an artificial increase with immense profits would be recognized as immense profits would be recognized as immense profits would be recognized as speculative instead of legitimate and speculative instead of legitimate and speculative instead of legitimate and the oil interest would suffer the oil interest would suffer the oil interest would suffer accordingly. accordingly. accordingly. Temporary capital would compete with Temporary capital would compete with Temporary capital would compete with permanent investment and ruin permanent investment and ruin permanent investment and ruin everything. everything. everything. The oil producers today are bankrupt. The oil producers today are bankrupt. The oil producers today are bankrupt. There have been more failures during the There have been more failures during the There have been more failures during the last five months than in five years last five months than in five years last five months than in five years previously. previously. previously. An organization to protect the oil An organization to protect the oil An organization to protect the oil capital is imperatively needed. capital is imperatively needed. capital is imperatively needed. Oil to yield a fair profit should be Oil to yield a fair profit should be Oil to yield a fair profit should be sold for 25 cents per gallon.

sold for 25 cents per gallon. sold for 25 cents per gallon. That price would protect every interest That price would protect every interest That price would protect every interest and cover every outlay for getting out and cover every outlay for getting out and cover every outlay for getting out the crude petroleum, transporting by the crude petroleum, transporting by the crude petroleum, transporting by railroad, refining, and the incidental railroad, refining, and the incidental railroad, refining, and the incidental charges of handling, etc. charges of handling, etc. charges of handling, etc. The foreign markets will regulate the The foreign markets will regulate the The foreign markets will regulate the price to a great extent because they are price to a great extent because they are price to a great extent because they are the greatest consumers. the greatest consumers. the greatest consumers. The people of China, Germany, and other The people of China, Germany, and other The people of China, Germany, and other foreign countries cannot afford to pay foreign countries cannot afford to pay foreign countries cannot afford to pay high prices. Kerosene oil is a luxury to high prices. Kerosene oil is a luxury to high prices. Kerosene oil is a luxury to them and they do not receive sufficient them and they do not receive sufficient them and they do not receive sufficient compensation for their labor to enable compensation for their labor to enable compensation for their labor to enable them to use this oil at an extravagant them to use this oil at an extravagant them to use this oil at an extravagant price. price. price. The price therefore must be kept within The price therefore must be kept within The price therefore must be kept within reasonable limits. reasonable limits. reasonable limits. The oil regions refused flatly to accept The oil regions refused flatly to accept The oil regions refused flatly to accept this view of the situation. The world this view of the situation. The world this view of the situation. The world would not buy refined at 25 cents, they would not buy refined at 25 cents, they would not buy refined at 25 cents, they argued. You injured the foreign market argued. You injured the foreign market argued. You injured the foreign market in 1872 by putting up the price. Our in 1872 by putting up the price. Our in 1872 by putting up the price. Our only hope is in increasing consumption. only hope is in increasing consumption. only hope is in increasing consumption. The world is buying more oil today than The world is buying more oil today than The world is buying more oil today than ever before because it is cheap. We must ever before because it is cheap. We must ever before because it is cheap. We must learn to accept small profits as other learn to accept small profits as other learn to accept small profits as other industries do.

industries do. industries do. The formation of the refiners The formation of the refiners The formation of the refiners association has thrust upon the trade an association has thrust upon the trade an association has thrust upon the trade an element of uncertainty that has element of uncertainty that has element of uncertainty that has unsettled all sound views as to the unsettled all sound views as to the unsettled all sound views as to the general outlook, said the Derrick. general outlook, said the Derrick. general outlook, said the Derrick. The scope of the Association, wrote a The scope of the Association, wrote a The scope of the Association, wrote a Pittsburgh critic, is an attempt to Pittsburgh critic, is an attempt to Pittsburgh critic, is an attempt to control the refining of oil with the control the refining of oil with the control the refining of oil with the ultimate purpose of advancing its price ultimate purpose of advancing its price ultimate purpose of advancing its price and reaping a rich harvest in profits. and reaping a rich harvest in profits. and reaping a rich harvest in profits. This can only be done by reducing the This can only be done by reducing the This can only be done by reducing the production of refined oil, and this will production of refined oil, and this will production of refined oil, and this will in turn act on crude oil, making the in turn act on crude oil, making the in turn act on crude oil, making the stock so far in excess of the demand as stock so far in excess of the demand as stock so far in excess of the demand as to send it down to a lower figure than to send it down to a lower figure than to send it down to a lower figure than it has yet touched. it has yet touched. it has yet touched. The most important feature of this The most important feature of this The most important feature of this contract, said a veteran refiner, is contract, said a veteran refiner, is contract, said a veteran refiner, is perhaps that part which provides that perhaps that part which provides that perhaps that part which provides that the executive committee of the Central the executive committee of the Central the executive committee of the Central Association are to have the exclusive Association are to have the exclusive Association are to have the exclusive power to arrange with the railroads for power to arrange with the railroads for power to arrange with the railroads for the carrying of the crude and refined the carrying of the crude and refined the carrying of the crude and refined oil. oil. oil. It is intended by this provision to It is intended by this provision to It is intended by this provision to enable the executive committee to speak enable the executive committee to speak enable the executive committee to speak for the whole trade in securing special for the whole trade in securing special for the whole trade in securing special rates of freight, whereby independent rates of freight, whereby independent rates of freight, whereby independent shippers of crude oil and such refiners shippers of crude oil and such refiners shippers of crude oil and such refiners as refuse to join the combination and as refuse to join the combination and as refuse to join the combination and any new refining interest that may be any new refining interest that may be any new refining interest that may be started may be driven out of the trade.

started may be driven out of the trade. started may be driven out of the trade. The whole general purpose of the The whole general purpose of the The whole general purpose of the combination is to reap a large margin by combination is to reap a large margin by combination is to reap a large margin by depressing crude and raising the price depressing crude and raising the price depressing crude and raising the price of refined oil, and the chief means of refined oil, and the chief means of refined oil, and the chief means employed is the system of discrimination employed is the system of discrimination employed is the system of discrimination in railroad freights to the seaboard. in railroad freights to the seaboard. in railroad freights to the seaboard. The veteran refiner was right in his The veteran refiner was right in his The veteran refiner was right in his supposition that Mr. Rockefeller supposition that Mr. Rockefeller supposition that Mr. Rockefeller intended to use the enormous power his intended to use the enormous power his intended to use the enormous power his combination gave him to get a special combination gave him to get a special combination gave him to get a special rate. rate. rate. As a matter of fact, he had seen to that As a matter of fact, he had seen to that As a matter of fact, he had seen to that before the veteran refiner expressed his before the veteran refiner expressed his before the veteran refiner expressed his mind. mind. mind. It will be remembered that in April It will be remembered that in April It will be remembered that in April 1874, 1874, 1874, Mr. Rockefeller had made a contract with Mr. Rockefeller had made a contract with Mr. Rockefeller had made a contract with the Erie by which he was to ship 50% of the Erie by which he was to ship 50% of the Erie by which he was to ship 50% of his refined oil over that road at a rate his refined oil over that road at a rate his refined oil over that road at a rate as low as any competing line gave any as low as any competing line gave any as low as any competing line gave any shipper, shipper, shipper, and he was to have a lease on the and he was to have a lease on the and he was to have a lease on the Weehawken oil terminal. Weehawken oil terminal. Weehawken oil terminal. Now, this contract remained in force Now, this contract remained in force Now, this contract remained in force until the 1st of March, 1875, until the 1st of March, 1875, until the 1st of March, 1875, when a new one was made with the Erie, when a new one was made with the Erie, when a new one was made with the Erie, guaranteeing the road the same guaranteeing the road the same guaranteeing the road the same percentage of freight, and giving the percentage of freight, and giving the percentage of freight, and giving the Standard a 10% rebate on whatever open Standard a 10% rebate on whatever open Standard a 10% rebate on whatever open tariff should be fixed.

tariff should be fixed. tariff should be fixed. This rebate, Mr. Blanchard says, was This rebate, Mr. Blanchard says, was This rebate, Mr. Blanchard says, was quite independent of what the Central quite independent of what the Central quite independent of what the Central might be giving the Standard. He says might be giving the Standard. He says might be giving the Standard. He says that one reason the Standard was given that one reason the Standard was given that one reason the Standard was given the rebate was that it was suspected the the rebate was that it was suspected the the rebate was that it was suspected the Pennsylvania was allowing the Empire Pennsylvania was allowing the Empire Pennsylvania was allowing the Empire Transportation Company an even larger Transportation Company an even larger Transportation Company an even larger one. one. one. If true, this would not affect any If true, this would not affect any If true, this would not affect any refiner necessarily, as the Empire was refiner necessarily, as the Empire was refiner necessarily, as the Empire was not a refiner in March 1875. not a refiner in March 1875. not a refiner in March 1875. The real reason, of course, was what Mr. The real reason, of course, was what Mr. The real reason, of course, was what Mr. Blanchard gives later. That by this Blanchard gives later. That by this Blanchard gives later. That by this rebate, they kept the Standard trade, rebate, they kept the Standard trade, rebate, they kept the Standard trade, now greatly increased by the purchase of now greatly increased by the purchase of now greatly increased by the purchase of the outside works already mentioned. the outside works already mentioned. the outside works already mentioned. Although it should be noticed the Erie Although it should be noticed the Erie Although it should be noticed the Erie officials knew nothing of the Standard officials knew nothing of the Standard officials knew nothing of the Standard having control of any refinery than that having control of any refinery than that having control of any refinery than that of Charles Pratt and Company. of Charles Pratt and Company. of Charles Pratt and Company. The announcement of the Central The announcement of the Central The announcement of the Central Association put an altogether new Association put an altogether new Association put an altogether new feature on oil transportation. feature on oil transportation. feature on oil transportation. If this organization succeeded, and the If this organization succeeded, and the If this organization succeeded, and the refiners in it claimed 9/10 of the refiners in it claimed 9/10 of the refiners in it claimed 9/10 of the capacity of the country, it gave Mr. capacity of the country, it gave Mr. capacity of the country, it gave Mr. Rockefeller irrevocable authority to Rockefeller irrevocable authority to Rockefeller irrevocable authority to negotiate freights.

negotiate freights. negotiate freights. The Pennsylvania road immediately felt The Pennsylvania road immediately felt The Pennsylvania road immediately felt the pressure. the pressure. the pressure. The oil they had carried for big firms The oil they had carried for big firms The oil they had carried for big firms like those of Charles Lockhart in like those of Charles Lockhart in like those of Charles Lockhart in Pittsburgh, Pittsburgh, Pittsburgh, and of Warden Flu and Company in and of Warden Flu and Company in and of Warden Flu and Company in Philadelphia, was in the hands of the Philadelphia, was in the hands of the Philadelphia, was in the hands of the Standard Oil Company. And Mr. Standard Oil Company. And Mr. Standard Oil Company. And Mr. Rockefeller asked a rebate of 10% on Rockefeller asked a rebate of 10% on Rockefeller asked a rebate of 10% on open rates. open rates. open rates. The road demurred. Colonel Potts The road demurred. Colonel Potts The road demurred. Colonel Potts objected strenuously. objected strenuously. objected strenuously. Three years later in a paper discussing Three years later in a paper discussing Three years later in a paper discussing this rebate and its consequences, he this rebate and its consequences, he this rebate and its consequences, he said, said, said, "The rebate was a modest one, as was its "The rebate was a modest one, as was its "The rebate was a modest one, as was its recipient. Yet the railway Cassandras recipient. Yet the railway Cassandras recipient. Yet the railway Cassandras prophesied from it a multitude of evils, prophesied from it a multitude of evils, prophesied from it a multitude of evils, a gradual destruction of all other a gradual destruction of all other a gradual destruction of all other refiners, and a gradual absorption of refiners, and a gradual absorption of refiners, and a gradual absorption of their property by the favored, who, with their property by the favored, who, with their property by the favored, who, with this additional armament, would rapidly this additional armament, would rapidly this additional armament, would rapidly progress towards the control of all progress towards the control of all progress towards the control of all cars, all pipes, all production, and cars, all pipes, all production, and cars, all pipes, all production, and finally, of the roads themselves. finally, of the roads themselves. finally, of the roads themselves. Their prophecies met but little faith or Their prophecies met but little faith or Their prophecies met but little faith or consideration. consideration. consideration. The Standard leaders themselves were The Standard leaders themselves were The Standard leaders themselves were especially active in discouraging any especially active in discouraging any especially active in discouraging any such radical purpose.

such radical purpose. such radical purpose. Their little rebate was enough for them. Their little rebate was enough for them. Their little rebate was enough for them. Everybody else should prosper, as would Everybody else should prosper, as would Everybody else should prosper, as would be shortly seen. be shortly seen. be shortly seen. They needed no more refineries. They had They needed no more refineries. They had They needed no more refineries. They had already more than they could employ. Why already more than they could employ. Why already more than they could employ. Why should they hunger after greater should they hunger after greater should they hunger after greater burdens? burdens? burdens? It was the railroads they chiefly cared It was the railroads they chiefly cared It was the railroads they chiefly cared for, and next in their affections stood for, and next in their affections stood for, and next in their affections stood the 100 rival refineries. the 100 rival refineries. the 100 rival refineries. Such beneficent longings as still Such beneficent longings as still Such beneficent longings as still remained, and their bosoms overflowed remained, and their bosoms overflowed remained, and their bosoms overflowed with them, spread out their steady waves with them, spread out their steady waves with them, spread out their steady waves toward the poor producers, whom, not to toward the poor producers, whom, not to toward the poor producers, whom, not to the emptiest, they had always been ready the emptiest, they had always been ready the emptiest, they had always been ready to gather under their wings. Yet, they to gather under their wings. Yet, they to gather under their wings. Yet, they would not. would not. would not. This unselfish language soothed all This unselfish language soothed all This unselfish language soothed all alarm into quiet slumbering. alarm into quiet slumbering. alarm into quiet slumbering. It resembles the gentle fanning of the It resembles the gentle fanning of the It resembles the gentle fanning of the vampire's wings, and it had the same end vampire's wings, and it had the same end vampire's wings, and it had the same end in view, in view, in view, the undisturbed abstraction of the the undisturbed abstraction of the the undisturbed abstraction of the victim's blood. victim's blood. victim's blood. Colonel Potts' argument against the Colonel Potts' argument against the Colonel Potts' argument against the rebate, doubtless clothed in much less rebate, doubtless clothed in much less rebate, doubtless clothed in much less picturesque language in 1875 than his picturesque language in 1875 than his picturesque language in 1875 than his feelings stirred him to in 1878, for a feelings stirred him to in 1878, for a feelings stirred him to in 1878, for a good enough reason, too, as we shall good enough reason, too, as we shall good enough reason, too, as we shall see, failed to convince the Pennsylvania see, failed to convince the Pennsylvania see, failed to convince the Pennsylvania officials.

officials. officials. They decided to yield to the Standard. They decided to yield to the Standard. They decided to yield to the Standard. Mr. Cassatt, then third vice president Mr. Cassatt, then third vice president Mr. Cassatt, then third vice president of the road, in charge of of the road, in charge of of the road, in charge of transportation, said in 1879 transportation, said in 1879 transportation, said in 1879 that the rebate was given because they that the rebate was given because they that the rebate was given because they found the Standard was getting very found the Standard was getting very found the Standard was getting very strong, that they had the backing of the strong, that they had the backing of the strong, that they had the backing of the other roads, and that if the other roads, and that if the other roads, and that if the Pennsylvania wanted to retain its full Pennsylvania wanted to retain its full Pennsylvania wanted to retain its full share of business and at fair rates, share of business and at fair rates, share of business and at fair rates, they must make arrangements to protect they must make arrangements to protect they must make arrangements to protect themselves. themselves. themselves. No one of the roads knew certainly what No one of the roads knew certainly what No one of the roads knew certainly what the others were doing for the standard the others were doing for the standard the others were doing for the standard until October 1, 1875. until October 1, 1875. until October 1, 1875. The freight agents then met to discuss The freight agents then met to discuss The freight agents then met to discuss again the freight pool they had formed again the freight pool they had formed again the freight pool they had formed in 1874. in 1874. in 1874. It had not been working with perfect It had not been working with perfect It had not been working with perfect satisfaction. satisfaction. satisfaction. The clause granting the rebate of 22 The clause granting the rebate of 22 The clause granting the rebate of 22 cents to the pipelines, which sustained cents to the pipelines, which sustained cents to the pipelines, which sustained an agreed rate of pipe each had been an agreed rate of pipe each had been an agreed rate of pipe each had been abandoned after about 5 months abandoned after about 5 months abandoned after about 5 months experiment. experiment. experiment. It was thought to stimulate new pipes. It was thought to stimulate new pipes. It was thought to stimulate new pipes. The roads in making a new adjustment The roads in making a new adjustment The roads in making a new adjustment made no effort to regulate pipeline made no effort to regulate pipeline made no effort to regulate pipeline tariffs.

tariffs. tariffs. The crude rebate, as it was called, The crude rebate, as it was called, The crude rebate, as it was called, carrying oil to a refinery for nothing, carrying oil to a refinery for nothing, carrying oil to a refinery for nothing, was left in force. was left in force. was left in force. At this meeting, Mr. Blanchard found At this meeting, Mr. Blanchard found At this meeting, Mr. Blanchard found that both of the Erie's big rivals were that both of the Erie's big rivals were that both of the Erie's big rivals were granting the Standard a 10% rebate. He granting the Standard a 10% rebate. He granting the Standard a 10% rebate. He also found that he was not getting 50% also found that he was not getting 50% also found that he was not getting 50% of the Standard's business as the of the Standard's business as the of the Standard's business as the contract called for. That the Standard contract called for. That the Standard contract called for. That the Standard controlled not only for the Cleveland controlled not only for the Cleveland controlled not only for the Cleveland and New York works of which he knew, but and New York works of which he knew, but and New York works of which he knew, but large works in Pittsburgh and large works in Pittsburgh and large works in Pittsburgh and Philadelphia. Philadelphia. Philadelphia. Mr. Rockefeller was certainly now in an Mr. Rockefeller was certainly now in an Mr. Rockefeller was certainly now in an excellent condition to work out his plan excellent condition to work out his plan excellent condition to work out his plan of bringing under his own control all of bringing under his own control all of bringing under his own control all the refineries of the country. the refineries of the country. the refineries of the country. The Standard Oil owned at each of the The Standard Oil owned at each of the The Standard Oil owned at each of the great refining centers, New York, great refining centers, New York, great refining centers, New York, Pittsburgh, and Philadelphia, a large Pittsburgh, and Philadelphia, a large Pittsburgh, and Philadelphia, a large and aggressive plant run by the men who and aggressive plant run by the men who and aggressive plant run by the men who had built it up. had built it up. had built it up. These works were, so far as the public These works were, so far as the public These works were, so far as the public knew, still independent, and their only knew, still independent, and their only knew, still independent, and their only relation that of the Central relation that of the Central relation that of the Central Association. Association. Association. As a matter of fact, they were the As a matter of fact, they were the As a matter of fact, they were the Central Association. Not only had Mr.

Central Association. Not only had Mr. Central Association. Not only had Mr. Rockefeller brought these powerful Rockefeller brought these powerful Rockefeller brought these powerful interests into his concern, he had interests into his concern, he had interests into his concern, he had secured for them a rebate of 10% on a secured for them a rebate of 10% on a secured for them a rebate of 10% on a rate which should always be as low as rate which should always be as low as rate which should always be as low as any one of the roads gave any of his any one of the roads gave any of his any one of the roads gave any of his competitors. He had done away with competitors. He had done away with competitors. He had done away with middlemen, that is, he was paying nobody middlemen, that is, he was paying nobody middlemen, that is, he was paying nobody a profit. a profit. a profit. He was undeniably a force wonderfully He was undeniably a force wonderfully He was undeniably a force wonderfully constructed for what he wanted to do, constructed for what he wanted to do, constructed for what he wanted to do, and one made practically impregnable as and one made practically impregnable as and one made practically impregnable as things were in the oil business then, by things were in the oil business then, by things were in the oil business then, by virtue of its special transportation virtue of its special transportation virtue of its special transportation rate. rate. rate. As soon as his new line was complete, As soon as his new line was complete, As soon as his new line was complete, the work of acquiring all outside the work of acquiring all outside the work of acquiring all outside refineries began at each of the oil refineries began at each of the oil refineries began at each of the oil centers. centers. centers. Unquestionably, the acquisitions were Unquestionably, the acquisitions were Unquestionably, the acquisitions were made through persuasion when this was made through persuasion when this was made through persuasion when this was possible. possible. possible. If a party approached refused to lease If a party approached refused to lease If a party approached refused to lease or sell, he was told firmly what Mr. or sell, he was told firmly what Mr. or sell, he was told firmly what Mr. Rockefeller had told the Cleveland Rockefeller had told the Cleveland Rockefeller had told the Cleveland refiners when he went to them in 1872 refiners when he went to them in 1872 refiners when he went to them in 1872 with the self-improvement contracts, with the self-improvement contracts, with the self-improvement contracts, that there was no hope for him, that a that there was no hope for him, that a that there was no hope for him, that a combination was in progress which was combination was in progress which was combination was in progress which was bound to work, and that those who stayed bound to work, and that those who stayed bound to work, and that those who stayed out would inevitably go to the wall.

out would inevitably go to the wall. out would inevitably go to the wall. Naturally, the first fruits to fall into Naturally, the first fruits to fall into Naturally, the first fruits to fall into the hands of the new alliance were those the hands of the new alliance were those the hands of the new alliance were those refineries which were embarrassed or refineries which were embarrassed or refineries which were embarrassed or discouraged by the conditions which Mr. discouraged by the conditions which Mr. discouraged by the conditions which Mr. Rogers explains above. Rogers explains above. Rogers explains above. Take as an example the case of Citizens Take as an example the case of Citizens Take as an example the case of Citizens Oil Refining Company of Pittsburgh, as Oil Refining Company of Pittsburgh, as Oil Refining Company of Pittsburgh, as it was explained in 1888 to the House it was explained in 1888 to the House it was explained in 1888 to the House Committee on Manufacturers in its trust Committee on Manufacturers in its trust Committee on Manufacturers in its trust investigation. investigation. investigation. A. H. Tack, a partner in the company, A. H. Tack, a partner in the company, A. H. Tack, a partner in the company, told the story. told the story. told the story. We began in 1869 with a capacity of We began in 1869 with a capacity of We began in 1869 with a capacity of 1,000 barrels a day. 1,000 barrels a day. 1,000 barrels a day. At the start, everything was couleur de At the start, everything was couleur de At the start, everything was couleur de rose, so much so that we put our works rose, so much so that we put our works rose, so much so that we put our works in splendid shape. We manufactured all in splendid shape. We manufactured all in splendid shape. We manufactured all the products. the products. the products. We even got it down to making wax and We even got it down to making wax and We even got it down to making wax and using the very last residuum in the using the very last residuum in the using the very last residuum in the boilers. boilers. boilers. We got the works in magnificent order We got the works in magnificent order We got the works in magnificent order and used up everything. and used up everything. and used up everything. We began to feel the squeeze in 1872. We began to feel the squeeze in 1872. We began to feel the squeeze in 1872. We did not know what was the matter. Of We did not know what was the matter. Of We did not know what was the matter. Of course, we were all affected the same course, we were all affected the same course, we were all affected the same way in Pennsylvania, and of course we way in Pennsylvania, and of course we way in Pennsylvania, and of course we commenced shifting about and meeting commenced shifting about and meeting commenced shifting about and meeting together and forming delegations, and together and forming delegations, and together and forming delegations, and going down to Philadelphia to see the going down to Philadelphia to see the going down to Philadelphia to see the Pennsylvania Railroad. Meeting after Pennsylvania Railroad. Meeting after Pennsylvania Railroad. Meeting after meeting and delegation after delegation.

meeting and delegation after delegation. meeting and delegation after delegation. We suspected there was something wrong We suspected there was something wrong We suspected there was something wrong and told those men there there was and told those men there there was and told those men there there was something wrong somewhere. That we felt something wrong somewhere. That we felt something wrong somewhere. That we felt so far as our position was concerned, we so far as our position was concerned, we so far as our position was concerned, we had the cheapest barrels, the cheapest had the cheapest barrels, the cheapest had the cheapest barrels, the cheapest labor, and the cheapest coal, and the labor, and the cheapest coal, and the labor, and the cheapest coal, and the route from the crude district was route from the crude district was route from the crude district was altogether in our favor. altogether in our favor. altogether in our favor. We had a railroad and a river to bring We had a railroad and a river to bring We had a railroad and a river to bring us a raw material. We had made our us a raw material. We had made our us a raw material. We had made our investment based on the seaboard routes, investment based on the seaboard routes, investment based on the seaboard routes, and we wanted the Pennsylvania Railroad and we wanted the Pennsylvania Railroad and we wanted the Pennsylvania Railroad to protect us. to protect us. to protect us. But none of our meetings or delegations But none of our meetings or delegations But none of our meetings or delegations ever amounted to anything. They were ever amounted to anything. They were ever amounted to anything. They were always repulsed in some way, put off, always repulsed in some way, put off, always repulsed in some way, put off, and we never got any satisfaction. and we never got any satisfaction. and we never got any satisfaction. The consequence was that in two or three The consequence was that in two or three The consequence was that in two or three years, there was no margin or profit. years, there was no margin or profit. years, there was no margin or profit. In order to overcome that, we commenced In order to overcome that, we commenced In order to overcome that, we commenced speculating in the hope that there would speculating in the hope that there would speculating in the hope that there would be a change sometime or other for the be a change sometime or other for the be a change sometime or other for the better. better. better. We did not like the idea of giving up We did not like the idea of giving up We did not like the idea of giving up the ship. the ship. the ship. Now, during these times, the Standard Now, during these times, the Standard Now, during these times, the Standard Oil Company increased so perceptibly and Oil Company increased so perceptibly and Oil Company increased so perceptibly and so strong that we at once recognized it so strong that we at once recognized it so strong that we at once recognized it as the element. Instead of looking to as the element. Instead of looking to as the element. Instead of looking to the railroad, I always looked to the the railroad, I always looked to the the railroad, I always looked to the Standard Oil Company.

Standard Oil Company. Standard Oil Company. In 1874, I went to see Rockefeller to In 1874, I went to see Rockefeller to In 1874, I went to see Rockefeller to find if we could make arrangements with find if we could make arrangements with find if we could make arrangements with him by which we could run a portion of him by which we could run a portion of him by which we could run a portion of our works. our works. our works. It was a very brief interview. It was a very brief interview. It was a very brief interview. He said there was no hope for us at all. He said there was no hope for us at all. He said there was no hope for us at all. He remarked this, I cannot get the exact He remarked this, I cannot get the exact He remarked this, I cannot get the exact quotation. There is no hope for us, and quotation. There is no hope for us, and quotation. There is no hope for us, and probably he said, there is no hope for probably he said, there is no hope for probably he said, there is no hope for any of us. But he says, the weakest must any of us. But he says, the weakest must any of us. But he says, the weakest must go first. go first. go first. And we went. And we went. And we went. All over the country, the refineries in All over the country, the refineries in All over the country, the refineries in the same condition as Mr. Tack's firm the same condition as Mr. Tack's firm the same condition as Mr. Tack's firm sold or leased. sold or leased. sold or leased. Those who felt the hard times and had Those who felt the hard times and had Those who felt the hard times and had any hope of weathering them resisted at any hope of weathering them resisted at any hope of weathering them resisted at first. first. first. With many of them, the resistance was With many of them, the resistance was With many of them, the resistance was due simply to their love of their due simply to their love of their due simply to their love of their business and their unwillingness to business and their unwillingness to business and their unwillingness to share its control with outsiders. share its control with outsiders. share its control with outsiders. The thing which a man has begun, cared The thing which a man has begun, cared The thing which a man has begun, cared for, led to a healthy life from which he for, led to a healthy life from which he for, led to a healthy life from which he has begun to gather fruit, which he has begun to gather fruit, which he has begun to gather fruit, which he knows he can make greater and richer, he knows he can make greater and richer, he knows he can make greater and richer, he loves as he does his life. loves as he does his life. loves as he does his life. It is one of the fruits of his life. He It is one of the fruits of his life. He It is one of the fruits of his life. He is jealous of it, wishes the honor of is jealous of it, wishes the honor of is jealous of it, wishes the honor of it, will not divide it with another.

it, will not divide it with another. it, will not divide it with another. He can suffer heavily his own mistakes, He can suffer heavily his own mistakes, He can suffer heavily his own mistakes, learn from them, correct them. learn from them, correct them. learn from them, correct them. He can fight opposition, bear all, so He can fight opposition, bear all, so He can fight opposition, bear all, so long as the work is his. long as the work is his. long as the work is his. There were refiners in 1875 There were refiners in 1875 There were refiners in 1875 who loved their business in this way. who loved their business in this way. who loved their business in this way. Why one should love an oil refinery the Why one should love an oil refinery the Why one should love an oil refinery the outsider may not see. outsider may not see. outsider may not see. But to the man who had begun with one But to the man who had begun with one But to the man who had begun with one still and had seen it grow by his own still and had seen it grow by his own still and had seen it grow by his own energy and intelligence to 10, who now energy and intelligence to 10, who now energy and intelligence to 10, who now sold 500 barrels a day where he once sold 500 barrels a day where he once sold 500 barrels a day where he once sold five, the refinery was the dearest sold five, the refinery was the dearest sold five, the refinery was the dearest spot on earth save his home. spot on earth save his home. spot on earth save his home. He walked with pride among its He walked with pride among its He walked with pride among its evil-smelling places, watched the evil-smelling places, watched the evil-smelling places, watched the processes with eagerness, experimented processes with eagerness, experimented processes with eagerness, experimented with joy, and recounted triumphantly with joy, and recounted triumphantly with joy, and recounted triumphantly every improvement. every improvement. every improvement. To ask such a man to give up his To ask such a man to give up his To ask such a man to give up his refinery was to ask him to give up the refinery was to ask him to give up the refinery was to ask him to give up the thing which, after his family, meant thing which, after his family, meant thing which, after his family, meant most in life to him. most in life to him. most in life to him. To Mr. Rockefeller, this feeling was a To Mr. Rockefeller, this feeling was a To Mr. Rockefeller, this feeling was a weak sentiment. weak sentiment. weak sentiment. To place love of independent work above To place love of independent work above To place love of independent work above love of profits was as incomprehensible love of profits was as incomprehensible love of profits was as incomprehensible to him as a refusal to accept a rebate to him as a refusal to accept a rebate to him as a refusal to accept a rebate because it was wrong.

because it was wrong. because it was wrong. Where persuasion failed them, it was Where persuasion failed them, it was Where persuasion failed them, it was necessary, in his judgment, that necessary, in his judgment, that necessary, in his judgment, that pressure be applied. pressure be applied. pressure be applied. Simply a pressure sufficient to Simply a pressure sufficient to Simply a pressure sufficient to demonstrate to these blind or demonstrate to these blind or demonstrate to these blind or recalcitrant individuals the recalcitrant individuals the recalcitrant individuals the impossibility of their long being able impossibility of their long being able impossibility of their long being able to do business independently. to do business independently. to do business independently. It was a pressure varied according to It was a pressure varied according to It was a pressure varied according to locality. locality. locality. Usually it took the form of cutting Usually it took the form of cutting Usually it took the form of cutting their market. their market. their market. The system of predatory competition was The system of predatory competition was The system of predatory competition was no invention of the Standard Oil no invention of the Standard Oil no invention of the Standard Oil Company. Company. Company. It had prevailed in the oil business It had prevailed in the oil business It had prevailed in the oil business from the start. from the start. from the start. Indeed, it was one of the evils Mr. Indeed, it was one of the evils Mr. Indeed, it was one of the evils Mr. Rockefeller claimed his combination Rockefeller claimed his combination Rockefeller claimed his combination would cure. But until now, it had been would cure. But until now, it had been would cure. But until now, it had been used spasmodically. used spasmodically. used spasmodically. Mr. Rockefeller never did anything Mr. Rockefeller never did anything Mr. Rockefeller never did anything spasmodically. spasmodically. spasmodically. He applied underselling for destroying He applied underselling for destroying He applied underselling for destroying his rivals market with the same his rivals market with the same his rivals market with the same deliberation and persistence that that deliberation and persistence that that deliberation and persistence that that characterized all his efforts. And in characterized all his efforts. And in characterized all his efforts. And in the long run, he always won. the long run, he always won. the long run, he always won. There were other forms of pressure. There were other forms of pressure. There were other forms of pressure. Sometimes, the independents found it Sometimes, the independents found it Sometimes, the independents found it impossible to get oil. Again, they were impossible to get oil. Again, they were impossible to get oil. Again, they were obliged to wait days for cars to ship obliged to wait days for cars to ship obliged to wait days for cars to ship in. There seemed to be no end to the in. There seemed to be no end to the in. There seemed to be no end to the ways of making it hard for men to do ways of making it hard for men to do ways of making it hard for men to do business, of discouraging them until business, of discouraging them until business, of discouraging them until they would sell or lease, and always at they would sell or lease, and always at they would sell or lease, and always at the psychological moment, a purchaser the psychological moment, a purchaser the psychological moment, a purchaser was at their side.

was at their side. was at their side. Take as an example the case of the Take as an example the case of the Take as an example the case of the Harkness Refinery in Philadelphia. A Harkness Refinery in Philadelphia. A Harkness Refinery in Philadelphia. A story told to the same committee as that story told to the same committee as that story told to the same committee as that of Mr. Tack. of Mr. Tack. of Mr. Tack. "I was the originator of the "I was the originator of the "I was the originator of the enterprise," said William W. Harkness, enterprise," said William W. Harkness, enterprise," said William W. Harkness, "believing that there was no better "believing that there was no better "believing that there was no better place than Philadelphia to refine oil, place than Philadelphia to refine oil, place than Philadelphia to refine oil, particularly for export. particularly for export. particularly for export. We commenced then, as near as I can now We commenced then, as near as I can now We commenced then, as near as I can now recollect, about 1870, and we made money recollect, about 1870, and we made money recollect, about 1870, and we made money up to probably 1874. up to probably 1874. up to probably 1874. We managed our business very close and We managed our business very close and We managed our business very close and did not speculate in oil. did not speculate in oil. did not speculate in oil. We bought and we sold, and we paid a We bought and we sold, and we paid a We bought and we sold, and we paid a great deal of attention to the great deal of attention to the great deal of attention to the statistical part of our business so as statistical part of our business so as statistical part of our business so as to save waste, and we did a nice to save waste, and we did a nice to save waste, and we did a nice business. business. business. But we found in some years that probably But we found in some years that probably But we found in some years that probably 5 months out of a year, we could not 5 months out of a year, we could not 5 months out of a year, we could not sell our oil unless it would be at a sell our oil unless it would be at a sell our oil unless it would be at a positive loss, and then we stopped. positive loss, and then we stopped. positive loss, and then we stopped. Then, when we could sell our oil, we Then, when we could sell our oil, we Then, when we could sell our oil, we found a difficulty about getting cars. found a difficulty about getting cars. found a difficulty about getting cars. My brother would complain of it, but I My brother would complain of it, but I My brother would complain of it, but I believed that the time would come when believed that the time would come when believed that the time would come when that would be equalized.

that would be equalized. that would be equalized. I had no idea of the iniquity that was I had no idea of the iniquity that was I had no idea of the iniquity that was going on. I could not conceive it. going on. I could not conceive it. going on. I could not conceive it. I went on in good faith until about I went on in good faith until about I went on in good faith until about 1874, 1874, 1874, and then the trouble commenced. and then the trouble commenced. and then the trouble commenced. We could not get our oil and were We could not get our oil and were We could not get our oil and were compelled to sell at a loss. compelled to sell at a loss. compelled to sell at a loss. Then Warden, Fruen & Company formed some Then Warden, Fruen & Company formed some Then Warden, Fruen & Company formed some kind of running arrangement where they kind of running arrangement where they kind of running arrangement where they supplied the crude, and we seemed to get supplied the crude, and we seemed to get supplied the crude, and we seemed to get along a little better. along a little better. along a little better. After a while the business got After a while the business got After a while the business got complicated, and I got tired and handed complicated, and I got tired and handed complicated, and I got tired and handed it over to my brother. I backed out. it over to my brother. I backed out. it over to my brother. I backed out. That was about 1875. That was about 1875. That was about 1875. I was dissatisfied and wanted to do an I was dissatisfied and wanted to do an I was dissatisfied and wanted to do an independent business, or else I wanted independent business, or else I wanted independent business, or else I wanted to give it up. In 1876, to give it up. In 1876, to give it up. In 1876, I recollect that very well because it I recollect that very well because it I recollect that very well because it was the year of the Centennial was the year of the Centennial was the year of the Centennial Exposition. We were at the Centennial Exposition. We were at the Centennial Exposition. We were at the Centennial Exposition. Exposition. Exposition. I was sitting in front of the great I was sitting in front of the great I was sitting in front of the great Corliss engine, admiring it, and he told Corliss engine, admiring it, and he told Corliss engine, admiring it, and he told me there was a good opportunity to get me there was a good opportunity to get me there was a good opportunity to get out. out. out. Warden, Fruen & Company, he said, were Warden, Fruen & Company, he said, were Warden, Fruen & Company, he said, were prepared to buy us out. prepared to buy us out. prepared to buy us out. And I asked him whether he considered And I asked him whether he considered And I asked him whether he considered that as the best thing to do, whether we that as the best thing to do, whether we that as the best thing to do, whether we had not better hold on and fight it had not better hold on and fight it had not better hold on and fight it through, or I believed that these through, or I believed that these through, or I believed that these difficulties would not continue, that we difficulties would not continue, that we difficulties would not continue, that we would get our oil.

would get our oil. would get our oil. I knew he was a competent refiner, and I I knew he was a competent refiner, and I I knew he was a competent refiner, and I wanted to continue business, but he said wanted to continue business, but he said wanted to continue business, but he said he thought he had better make this he thought he had better make this he thought he had better make this arrangement, and I consented, and we arrangement, and I consented, and we arrangement, and I consented, and we sold out. We got our investment back. sold out. We got our investment back. sold out. We got our investment back. Here we have a refiner discouraged by Here we have a refiner discouraged by Here we have a refiner discouraged by the conditions which Mr. claims his the conditions which Mr. claims his the conditions which Mr. claims his aggregation will cure. aggregation will cure. aggregation will cure. Under the Rudders circular and the Under the Rudders circular and the Under the Rudders circular and the discrimination in freight to the discrimination in freight to the discrimination in freight to the Standard which followed, his difficulty Standard which followed, his difficulty Standard which followed, his difficulty in getting oil increases, and he in getting oil increases, and he in getting oil increases, and he consents to a running arrangement with consents to a running arrangement with consents to a running arrangement with Mr. Rockefeller's partner in Mr. Rockefeller's partner in Mr. Rockefeller's partner in Philadelphia, but he wants to do an Philadelphia, but he wants to do an Philadelphia, but he wants to do an independent business. independent business. independent business. Impossible. Impossible. Impossible. As he sits watching the smooth and As he sits watching the smooth and As he sits watching the smooth and terrible power of that famous Corliss terrible power of that famous Corliss terrible power of that famous Corliss engine of 1876, engine of 1876, engine of 1876, an engine which showed the thousands for an engine which showed the thousands for an engine which showed the thousands for the first time what great power properly the first time what great power properly the first time what great power properly directed means. directed means. directed means. He realized that something very like it He realized that something very like it He realized that something very like it was at work in the oil business, was at work in the oil business, was at work in the oil business, something resistless, silent, perfect in something resistless, silent, perfect in something resistless, silent, perfect in its might. its might. its might. And he sold out to that something. And he sold out to that something. And he sold out to that something. Everywhere men did the same.

Everywhere men did the same. Everywhere men did the same. The history of oil refining at Oil Creek The history of oil refining at Oil Creek The history of oil refining at Oil Creek from 1875 to 1879 from 1875 to 1879 from 1875 to 1879 is almost uncanny. is almost uncanny. is almost uncanny. There were at the beginning of that There were at the beginning of that There were at the beginning of that period 27 plants in the region, most of period 27 plants in the region, most of period 27 plants in the region, most of which were in a fair condition which were in a fair condition which were in a fair condition considering the difficulties in the considering the difficulties in the considering the difficulties in the business. business. business. During 1873, During 1873, During 1873, the demand for refined oil had greatly the demand for refined oil had greatly the demand for refined oil had greatly increased, the exports nearly doubling increased, the exports nearly doubling increased, the exports nearly doubling over those of 1872. over those of 1872. over those of 1872. The average profit on refined that year The average profit on refined that year The average profit on refined that year in a well-managed refinery was not less in a well-managed refinery was not less in a well-managed refinery was not less than 3 cents a gallon. than 3 cents a gallon. than 3 cents a gallon. During the first half of 1874, During the first half of 1874, During the first half of 1874, the oil business had been depressed, but the oil business had been depressed, but the oil business had been depressed, but the oil refiners were looking for better the oil refiners were looking for better the oil refiners were looking for better times when the Rudders Circular times when the Rudders Circular times when the Rudders Circular completely demoralized them by putting completely demoralized them by putting completely demoralized them by putting 50 cents extra freight charges on their 50 cents extra freight charges on their 50 cents extra freight charges on their shipments without an equivalent raise on shipments without an equivalent raise on shipments without an equivalent raise on competitive points. competitive points. competitive points. It was not only this extra charge, It was not only this extra charge, It was not only this extra charge, enough to cut off their profits as enough to cut off their profits as enough to cut off their profits as business then stood, but it was that the business then stood, but it was that the business then stood, but it was that the same set of men who had thrown their same set of men who had thrown their same set of men who had thrown their business into confusion in 1872 business into confusion in 1872 business into confusion in 1872 was again at work.

was again at work. was again at work. The announcement of the Central The announcement of the Central The announcement of the Central Association with Mr. Rockefeller's name Association with Mr. Rockefeller's name Association with Mr. Rockefeller's name at its head confirmed their fears. at its head confirmed their fears. at its head confirmed their fears. Nevertheless, at first none of the small Nevertheless, at first none of the small Nevertheless, at first none of the small refiners would listen to the proposition refiners would listen to the proposition refiners would listen to the proposition to sell or lease made them in the spring to sell or lease made them in the spring to sell or lease made them in the spring of 1875 by the representative first sent of 1875 by the representative first sent of 1875 by the representative first sent out by the Central Association. They out by the Central Association. They out by the Central Association. They would have nothing to do, they said would have nothing to do, they said would have nothing to do, they said bluntly, with any combination engineered bluntly, with any combination engineered bluntly, with any combination engineered by John D. Rockefeller. by John D. Rockefeller. by John D. Rockefeller. The representative withdrew and the case The representative withdrew and the case The representative withdrew and the case was considered. was considered. was considered. In the meantime, conditions on the creek In the meantime, conditions on the creek In the meantime, conditions on the creek grew harder. grew harder. grew harder. All sorts of difficulties began to be All sorts of difficulties began to be All sorts of difficulties began to be strewn in their way. Cars were hard to strewn in their way. Cars were hard to strewn in their way. Cars were hard to get. The markets they had built up were get. The markets they had built up were get. The markets they had built up were cut under them. A demoralizing cut under them. A demoralizing cut under them. A demoralizing conviction was abroad in the trade that conviction was abroad in the trade that conviction was abroad in the trade that this new and mysterious combination was this new and mysterious combination was this new and mysterious combination was going to succeed. going to succeed. going to succeed. That it was doing rapidly what its That it was doing rapidly what its That it was doing rapidly what its members were reported to be saying members were reported to be saying members were reported to be saying daily. daily. daily. We mean to secure the entire refining We mean to secure the entire refining We mean to secure the entire refining business of the world. Such was the business of the world. Such was the business of the world. Such was the state of things on the creek when an state of things on the creek when an state of things on the creek when an early fall of 1875 early fall of 1875 early fall of 1875 an energetic young refiner and oil an energetic young refiner and oil an energetic young refiner and oil buyer, well known in the oil regions, J.

buyer, well known in the oil regions, J. buyer, well known in the oil regions, J. D. Archbold, appeared in Titusville as D. Archbold, appeared in Titusville as D. Archbold, appeared in Titusville as the representative of a new company, the the representative of a new company, the the representative of a new company, the Acme Oil Company. Acme Oil Company. Acme Oil Company. A concern which everybody believed to be A concern which everybody believed to be A concern which everybody believed to be an offshoot of the Standard Oil Company an offshoot of the Standard Oil Company an offshoot of the Standard Oil Company of Cleveland, though nobody could prove of Cleveland, though nobody could prove of Cleveland, though nobody could prove it. it. it. As a matter of fact, the Acme was As a matter of fact, the Acme was As a matter of fact, the Acme was capitalized and controlled entirely by capitalized and controlled entirely by capitalized and controlled entirely by Standard men. Its stockholders being, in Standard men. Its stockholders being, in Standard men. Its stockholders being, in addition to Mr. Archbold, William addition to Mr. Archbold, William addition to Mr. Archbold, William Rockefeller, William G. Warden, Frank Q. Rockefeller, William G. Warden, Frank Q. Rockefeller, William G. Warden, Frank Q. Barstow, and Charles Pratt. Barstow, and Charles Pratt. Barstow, and Charles Pratt. It was evident at once that the Acme Oil It was evident at once that the Acme Oil It was evident at once that the Acme Oil Company had come into the oil regions Company had come into the oil regions Company had come into the oil regions for the purpose of absorbing the for the purpose of absorbing the for the purpose of absorbing the independent interest as Mr. Rockefeller independent interest as Mr. Rockefeller independent interest as Mr. Rockefeller and his colleagues were absorbing them and his colleagues were absorbing them and his colleagues were absorbing them elsewhere. elsewhere. elsewhere. The work was done with a promptness and The work was done with a promptness and The work was done with a promptness and dispatch which do great credit to the dispatch which do great credit to the dispatch which do great credit to the energy and resourcefulness of the energy and resourcefulness of the energy and resourcefulness of the engineer of the enterprise. engineer of the enterprise. engineer of the enterprise. In 3 years, by 1878, In 3 years, by 1878, In 3 years, by 1878, all but two of the refineries of all but two of the refineries of all but two of the refineries of Titusville had retired from the business Titusville had retired from the business Titusville had retired from the business gloriously, as Mr. Archbold, flushed gloriously, as Mr. Archbold, flushed gloriously, as Mr. Archbold, flushed with victory, told the Council of the with victory, told the Council of the with victory, told the Council of the Commonwealth of Pennsylvania in 1879 Commonwealth of Pennsylvania in 1879 Commonwealth of Pennsylvania in 1879 when the state authorities were trying when the state authorities were trying when the state authorities were trying to find what was at work in the oil to find what was at work in the oil to find what was at work in the oil interest to cause such a general interest to cause such a general interest to cause such a general collapse.

collapse. collapse. Most of the concerns were bought Most of the concerns were bought Most of the concerns were bought outright, the owners being convinced outright, the owners being convinced outright, the owners being convinced that it was impossible for them to do an that it was impossible for them to do an that it was impossible for them to do an independent business and being unwilling independent business and being unwilling independent business and being unwilling to try combination. to try combination. to try combination. All down the creek, the little All down the creek, the little All down the creek, the little refineries which were years had faced refineries which were years had faced refineries which were years had faced every difficulty with stout hearts every difficulty with stout hearts every difficulty with stout hearts collapsed, sold out, dismantled, shut collapsed, sold out, dismantled, shut collapsed, sold out, dismantled, shut down is the melancholy record of the down is the melancholy record of the down is the melancholy record of the industry during those four years. industry during those four years. industry during those four years. At the end, practically nothing was left At the end, practically nothing was left At the end, practically nothing was left in the oil regions but the Acme of in the oil regions but the Acme of in the oil regions but the Acme of Titusville and the Imperial of Oil City, Titusville and the Imperial of Oil City, Titusville and the Imperial of Oil City, both of them now under Standard both of them now under Standard both of them now under Standard management. management. management. To the oil men, this sudden wiping out To the oil men, this sudden wiping out To the oil men, this sudden wiping out of the score of plants with which they of the score of plants with which they of the score of plants with which they had been familiar for years seemed a had been familiar for years seemed a had been familiar for years seemed a crime which nothing could justify. crime which nothing could justify. crime which nothing could justify. Their bitterness of heart was only Their bitterness of heart was only Their bitterness of heart was only intensified by the sight of the idle intensified by the sight of the idle intensified by the sight of the idle refineries thrown out of business by the refineries thrown out of business by the refineries thrown out of business by the sale of their factories. sale of their factories. sale of their factories. These men had, many of them, handsome These men had, many of them, handsome These men had, many of them, handsome sums to invest, but what were they to sums to invest, but what were they to sums to invest, but what were they to put them in? put them in? put them in? They were refiners and they carried a They were refiners and they carried a They were refiners and they carried a pledge in their pockets not to go into pledge in their pockets not to go into pledge in their pockets not to go into that business for a period of 10 years.

that business for a period of 10 years. that business for a period of 10 years. Some of them tried to discourage oil Some of them tried to discourage oil Some of them tried to discourage oil men's fatal resource, the market, and as men's fatal resource, the market, and as men's fatal resource, the market, and as a rule left their money there. a rule left their money there. a rule left their money there. One refiner who had, according to One refiner who had, according to One refiner who had, according to popular report, received $200,000 for popular report, received $200,000 for popular report, received $200,000 for his business, speculated the entire sum his business, speculated the entire sum his business, speculated the entire sum away in less than a year. away in less than a year. away in less than a year. Others tried new enterprises, but men of Others tried new enterprises, but men of Others tried new enterprises, but men of 40 learn new trades with difficulty and 40 learn new trades with difficulty and 40 learn new trades with difficulty and failure followed many of them. failure followed many of them. failure followed many of them. The scars left in the oil regions by the The scars left in the oil regions by the The scars left in the oil regions by the Standard combination of 1875 to 1879 Standard combination of 1875 to 1879 Standard combination of 1875 to 1879 are too deep and ugly for men and women are too deep and ugly for men and women are too deep and ugly for men and women of this generation to forget them. of this generation to forget them. of this generation to forget them. In Pittsburgh, the same thing was In Pittsburgh, the same thing was In Pittsburgh, the same thing was happening. happening. happening. At the beginning of the work of At the beginning of the work of At the beginning of the work of absorption, 1874, absorption, 1874, absorption, 1874, there were between 22 and 30 refineries there were between 22 and 30 refineries there were between 22 and 30 refineries in the town. in the town. in the town. As we have seen, Lockhart and Prou sold As we have seen, Lockhart and Prou sold As we have seen, Lockhart and Prou sold to the Standard Oil Company of Cleveland to the Standard Oil Company of Cleveland to the Standard Oil Company of Cleveland sometime in 1874. sometime in 1874. sometime in 1874. In the fall of that year, a new company In the fall of that year, a new company In the fall of that year, a new company was formed in Pittsburgh called the was formed in Pittsburgh called the was formed in Pittsburgh called the Standard Oil Company of Pittsburgh.

Standard Oil Company of Pittsburgh. Standard Oil Company of Pittsburgh. Its president was Charles Lockhart. Its Its president was Charles Lockhart. Its Its president was Charles Lockhart. Its directors, William Frew, David Bushnell, directors, William Frew, David Bushnell, directors, William Frew, David Bushnell, H. M. Flagler, and W. G. Warden, all H. M. Flagler, and W. G. Warden, all H. M. Flagler, and W. G. Warden, all members of the Standard Oil Company, and members of the Standard Oil Company, and members of the Standard Oil Company, and four of them stockholders in the South four of them stockholders in the South four of them stockholders in the South Improvement Company. Improvement Company. Improvement Company. This company at once began to lease or This company at once began to lease or This company at once began to lease or buy refineries. buy refineries. buy refineries. Many of the Pittsburgh refiners made a Many of the Pittsburgh refiners made a Many of the Pittsburgh refiners made a valiant fight to get rates on their oil valiant fight to get rates on their oil valiant fight to get rates on their oil which would enable them to run which would enable them to run which would enable them to run independently. independently. independently. To save expense, they tried to bring oil To save expense, they tried to bring oil To save expense, they tried to bring oil from the oil fields by barge. The from the oil fields by barge. The from the oil fields by barge. The pipelines in the pool refused to run oil pipelines in the pool refused to run oil pipelines in the pool refused to run oil to barges, the railroad to accept oil to barges, the railroad to accept oil to barges, the railroad to accept oil brought down by barge. brought down by barge. brought down by barge. An independent pipeline attempted to An independent pipeline attempted to An independent pipeline attempted to bring it down to Pittsburgh, but to bring it down to Pittsburgh, but to bring it down to Pittsburgh, but to reach the works, the pipeline must run reach the works, the pipeline must run reach the works, the pipeline must run under a branch of the Pennsylvania under a branch of the Pennsylvania under a branch of the Pennsylvania Railroad. Railroad. Railroad. It refused to permit this, and for It refused to permit this, and for It refused to permit this, and for months the oil from the line was hauled months the oil from the line was hauled months the oil from the line was hauled in wagons from the point where it had in wagons from the point where it had in wagons from the point where it had been held up over the railroad track, been held up over the railroad track, been held up over the railroad track, and there re-piped and carried to and there re-piped and carried to and there re-piped and carried to Pittsburgh. Pittsburgh. Pittsburgh. At every point they met interference At every point they met interference At every point they met interference until finally, one by one, until finally, one by one, until finally, one by one, they gave in.

they gave in. they gave in. According to Mr. Frew, who in 1879 was According to Mr. Frew, who in 1879 was According to Mr. Frew, who in 1879 was examined as to the condition of things examined as to the condition of things examined as to the condition of things in Pittsburgh, the company began to in Pittsburgh, the company began to in Pittsburgh, the company began to acquire refiners in 1875. acquire refiners in 1875. acquire refiners in 1875. In 1877, In 1877, In 1877, they bought their last one. And at the they bought their last one. And at the they bought their last one. And at the time Mr. Frew was under examination, he time Mr. Frew was under examination, he time Mr. Frew was under examination, he could not remember but one refinery in could not remember but one refinery in could not remember but one refinery in operation in Pittsburgh not controlled operation in Pittsburgh not controlled operation in Pittsburgh not controlled by his company. Nor was it refiners only by his company. Nor was it refiners only by his company. Nor was it refiners only who sold out. who sold out. who sold out. All departments of the trade began to All departments of the trade began to All departments of the trade began to yield to the pressure. yield to the pressure. yield to the pressure. There was in the oil business a class of There was in the oil business a class of There was in the oil business a class of men known as shippers. They bought crude men known as shippers. They bought crude men known as shippers. They bought crude oil, sent it east, and sold it to oil, sent it east, and sold it to oil, sent it east, and sold it to refineries there. Among the largest of refineries there. Among the largest of refineries there. Among the largest of these was Adnah Neyhart, whose active these was Adnah Neyhart, whose active these was Adnah Neyhart, whose active representative was W. T. Scheide. Now, representative was W. T. Scheide. Now, representative was W. T. Scheide. Now, to Mr. Rockefeller, the independent to Mr. Rockefeller, the independent to Mr. Rockefeller, the independent shipper was an incubus. He did a shipper was an incubus. He did a shipper was an incubus. He did a business which, in his judgment, a firm business which, in his judgment, a firm business which, in his judgment, a firm ought to do for itself, and reap a ought to do for itself, and reap a ought to do for itself, and reap a profit which might go direct into the profit which might go direct into the profit which might go direct into the business. business. business. Besides, so long as there were shippers Besides, so long as there were shippers Besides, so long as there were shippers to supply crude to the eastern to supply crude to the eastern to supply crude to the eastern refineries at living prices, so long refineries at living prices, so long refineries at living prices, so long these concerns might resist offers to these concerns might resist offers to these concerns might resist offers to sell or lease.

sell or lease. sell or lease. Sometime in the fall of 1872, Sometime in the fall of 1872, Sometime in the fall of 1872, Mr. Scheide began to lose his customers Mr. Scheide began to lose his customers Mr. Scheide began to lose his customers in New York. He found that they were in New York. He found that they were in New York. He found that they were making some kind of a working making some kind of a working making some kind of a working arrangement with the Standard Oil arrangement with the Standard Oil arrangement with the Standard Oil Company. Just what, he did not know. Company. Just what, he did not know. Company. Just what, he did not know. But, in all events, they no longer But, in all events, they no longer But, in all events, they no longer bought from him, but from the Standard bought from him, but from the Standard bought from him, but from the Standard buyer, J. A. Bostwick & Company. buyer, J. A. Bostwick & Company. buyer, J. A. Bostwick & Company. At the same time, he became convinced At the same time, he became convinced At the same time, he became convinced that Mr. Rockefeller was after his that Mr. Rockefeller was after his that Mr. Rockefeller was after his business. business. business. "I knew that they were making some "I knew that they were making some "I knew that they were making some strenuous efforts to get our business," strenuous efforts to get our business," strenuous efforts to get our business," he told the Hepburn commission in 1879, he told the Hepburn commission in 1879, he told the Hepburn commission in 1879, "because I used to meet Mr. Rockefeller "because I used to meet Mr. Rockefeller "because I used to meet Mr. Rockefeller in the Erie office." in the Erie office." in the Erie office." At the same time that he was facing the At the same time that he was facing the At the same time that he was facing the loss of customers and the demoralizing loss of customers and the demoralizing loss of customers and the demoralizing conviction that the Standard Oil wanted conviction that the Standard Oil wanted conviction that the Standard Oil wanted his business, he was experiencing more his business, he was experiencing more his business, he was experiencing more or less disgust over business conditions or less disgust over business conditions or less disgust over business conditions in New York. in New York. in New York. "I did not like the character of my "I did not like the character of my "I did not like the character of my customers there," Mr. Scheide told the customers there," Mr. Scheide told the customers there," Mr. Scheide told the committee. committee. committee. "I did not think they were treating us "I did not think they were treating us "I did not think they were treating us fairly and squarely. There was a strong fairly and squarely. There was a strong fairly and squarely. There was a strong competition in handling oil.

competition in handling oil. competition in handling oil. The competition had got to be so strong The competition had got to be so strong The competition had got to be so strong that outside refiners, as they called that outside refiners, as they called that outside refiners, as they called themselves then, used to go around themselves then, used to go around themselves then, used to go around bidding up the price of their works on bidding up the price of their works on bidding up the price of their works on the Standard Oil Company, and they were the Standard Oil Company, and they were the Standard Oil Company, and they were using me to sell the refineries to the using me to sell the refineries to the using me to sell the refineries to the Standard. They would say to refiners, Standard. They would say to refiners, Standard. They would say to refiners, 'Neyhart will do so and so, and we are 'Neyhart will do so and so, and we are 'Neyhart will do so and so, and we are going to continue running.' going to continue running.' going to continue running.' And they would say to us that the And they would say to us that the And they would say to us that the Standard was offering lower prices. Standard was offering lower prices. Standard was offering lower prices. I recollect one instance in which they, I recollect one instance in which they, I recollect one instance in which they, after having made a contract to buy oil after having made a contract to buy oil after having made a contract to buy oil from me, if I would bring it over the from me, if I would bring it over the from me, if I would bring it over the Erie Railway, broke that contract for 1 Erie Railway, broke that contract for 1 Erie Railway, broke that contract for 1 128 part of a cent of a gallon. 128 part of a cent of a gallon. 128 part of a cent of a gallon. I sold out the next week. I sold out the next week. I sold out the next week. When Mr. Scheide went to the freight When Mr. Scheide went to the freight When Mr. Scheide went to the freight agent of the Erie Road, Mr. Blanchard, agent of the Erie Road, Mr. Blanchard, agent of the Erie Road, Mr. Blanchard, and told him of his decision to sell, and told him of his decision to sell, and told him of his decision to sell, Mr. Blanchard tried to dissuade him. Mr. Blanchard tried to dissuade him. Mr. Blanchard tried to dissuade him. During the conversation, he let out a During the conversation, he let out a During the conversation, he let out a fact which must have convinced Mr. fact which must have convinced Mr. fact which must have convinced Mr. Scheide more fully than ever that he had Scheide more fully than ever that he had Scheide more fully than ever that he had been wise in determining to give up his been wise in determining to give up his been wise in determining to give up his business. business. business. Mr. Blanchard told him as a reason for Mr. Blanchard told him as a reason for Mr. Blanchard told him as a reason for his staying and trusting to the Erie his staying and trusting to the Erie his staying and trusting to the Erie Road to keep its contracts with him that Road to keep its contracts with him that Road to keep its contracts with him that the Standard Oil had been offering him 5 the Standard Oil had been offering him 5 the Standard Oil had been offering him 5 cents more barrel than Mr. Scheide was cents more barrel than Mr. Scheide was cents more barrel than Mr. Scheide was paying them, and would take all their paying them, and would take all their paying them, and would take all their cars and load them all regularly if they cars and load them all regularly if they cars and load them all regularly if they would throw him over and give them the would throw him over and give them the would throw him over and give them the business.

business. business. It is interesting to note that when Mr. It is interesting to note that when Mr. It is interesting to note that when Mr. Scheide sold in the spring of 1875, Scheide sold in the spring of 1875, Scheide sold in the spring of 1875, it was, as he supposed, to Charles Pratt it was, as he supposed, to Charles Pratt it was, as he supposed, to Charles Pratt and Company. and Company. and Company. Well informed as he was in all the Well informed as he was in all the Well informed as he was in all the intricacies of the business, and there intricacies of the business, and there intricacies of the business, and there were few abler or more energetic men in were few abler or more energetic men in were few abler or more energetic men in trade at the time, he did not know that trade at the time, he did not know that trade at the time, he did not know that Charles Pratt and Company had been part Charles Pratt and Company had been part Charles Pratt and Company had been part and parcel of the Standard Oil Company and parcel of the Standard Oil Company and parcel of the Standard Oil Company since October 1874. since October 1874. since October 1874. Of course, securing a large crude Of course, securing a large crude Of course, securing a large crude shipping business like Mr. Neuhart's was shipping business like Mr. Neuhart's was shipping business like Mr. Neuhart's was a valuable point for the Standard. a valuable point for the Standard. a valuable point for the Standard. It threw all of the refiners whom he had It threw all of the refiners whom he had It threw all of the refiners whom he had supplied out of crude oil, and forced supplied out of crude oil, and forced supplied out of crude oil, and forced several of them to come to the Standard several of them to come to the Standard several of them to come to the Standard buyer, a first step, of course, toward a buyer, a first step, of course, toward a buyer, a first step, of course, toward a lease or sale. lease or sale. lease or sale. At every point, indeed, making it At every point, indeed, making it At every point, indeed, making it difficult for the refiner to get his raw difficult for the refiner to get his raw difficult for the refiner to get his raw product was one of the favorite product was one of the favorite product was one of the favorite maneuvers of the combination. It was not maneuvers of the combination. It was not maneuvers of the combination. It was not only the crude oil it was applied. only the crude oil it was applied. only the crude oil it was applied. Factories which worked up the residuum Factories which worked up the residuum Factories which worked up the residuum or tar into lubricating oil, and or tar into lubricating oil, and or tar into lubricating oil, and depended on Standard plants for their depended on Standard plants for their depended on Standard plants for their supply, were cut off.

supply, were cut off. supply, were cut off. There was one such in Cleveland, the There was one such in Cleveland, the There was one such in Cleveland, the firm of Morehouse and Freeman. firm of Morehouse and Freeman. firm of Morehouse and Freeman. Mr. Morehouse had begun to experiment Mr. Morehouse had begun to experiment Mr. Morehouse had begun to experiment with lubricating oils in 1861, with lubricating oils in 1861, with lubricating oils in 1861, and in 1871, the report of the Cleveland and in 1871, the report of the Cleveland and in 1871, the report of the Cleveland Board of Trade devoted several of its Board of Trade devoted several of its Board of Trade devoted several of its pages to a description of his business. pages to a description of his business. pages to a description of his business. According to this account, he was then According to this account, he was then According to this account, he was then making oils adapted to lubricating all making oils adapted to lubricating all making oils adapted to lubricating all kinds of machinery. He held patents for kinds of machinery. He held patents for kinds of machinery. He held patents for several brands and trademarks, and had several brands and trademarks, and had several brands and trademarks, and had produced that year over 25,000 barrels produced that year over 25,000 barrels produced that year over 25,000 barrels of different lubricants besides 120,000 of different lubricants besides 120,000 of different lubricants besides 120,000 boxes of axle grease. boxes of axle grease. boxes of axle grease. At this time, he was buying his stock or At this time, he was buying his stock or At this time, he was buying his stock or residuum from one or another of the 25 residuum from one or another of the 25 residuum from one or another of the 25 Cleveland refiners. Cleveland refiners. Cleveland refiners. Then came the South Improvement Company Then came the South Improvement Company Then came the South Improvement Company and the concentration of the town's and the concentration of the town's and the concentration of the town's refining interest in Mr. Rockefeller's refining interest in Mr. Rockefeller's refining interest in Mr. Rockefeller's hands. hands. hands. Mr. Morehouse, according to the Mr. Morehouse, according to the Mr. Morehouse, according to the testimony he gave the Hepburn Commission testimony he gave the Hepburn Commission testimony he gave the Hepburn Commission in 1879, in 1879, in 1879, went to Mr. Rockefeller after the went to Mr. Rockefeller after the went to Mr. Rockefeller after the consolidation to arrange for supplies.

consolidation to arrange for supplies. consolidation to arrange for supplies. He was welcomed. The Standard Oil He was welcomed. The Standard Oil He was welcomed. The Standard Oil Company had not at that time begun to Company had not at that time begun to Company had not at that time begun to deal in lubricating oils, and encouraged deal in lubricating oils, and encouraged deal in lubricating oils, and encouraged to build a new plant. to build a new plant. to build a new plant. This was done at a cost of $41,000, This was done at a cost of $41,000, This was done at a cost of $41,000, and a contract was made with the and a contract was made with the and a contract was made with the Standard Oil Company for a daily supply Standard Oil Company for a daily supply Standard Oil Company for a daily supply of 85 barrels of residuum. of 85 barrels of residuum. of 85 barrels of residuum. Sometime in 1874, Sometime in 1874, Sometime in 1874, this supply was cut down to 12 barrels. this supply was cut down to 12 barrels. this supply was cut down to 12 barrels. The price was put up, too, and contracts The price was put up, too, and contracts The price was put up, too, and contracts for several months were demanded so that for several months were demanded so that for several months were demanded so that Mr. Morehouse got no advantage from the Mr. Morehouse got no advantage from the Mr. Morehouse got no advantage from the variation in crude prices. variation in crude prices. variation in crude prices. Then the freights went up on the Then the freights went up on the Then the freights went up on the railroads. railroads. railroads. He paid $1.50 He paid $1.50 He paid $1.50 and $2 for what he says he felt sure his and $2 for what he says he felt sure his and $2 for what he says he felt sure his big neighbor was paying but 70 or 75 big neighbor was paying but 70 or 75 big neighbor was paying but 70 or 75 cents. cents. cents. There is no evidence of any such low There is no evidence of any such low There is no evidence of any such low rate to the Standard from Cleveland to rate to the Standard from Cleveland to rate to the Standard from Cleveland to New York by rail. New York by rail. New York by rail. Now, it was impossible for Mr. Morehouse Now, it was impossible for Mr. Morehouse Now, it was impossible for Mr. Morehouse to supply his trade on 12 barrels of to supply his trade on 12 barrels of to supply his trade on 12 barrels of stock. stock. stock. He begged Mr. Rockefeller for more. He begged Mr. Rockefeller for more. He begged Mr. Rockefeller for more. It was there in the Standard Oil Works.

It was there in the Standard Oil Works. It was there in the Standard Oil Works. Why could he not have it? He could pay Why could he not have it? He could pay Why could he not have it? He could pay for it. He and his partner offered to for it. He and his partner offered to for it. He and his partner offered to buy 5,000 barrels and store it. buy 5,000 barrels and store it. buy 5,000 barrels and store it. But Mr. Rockefeller was firm. But Mr. Rockefeller was firm. But Mr. Rockefeller was firm. All he could give Mr. Morehouse was 12 All he could give Mr. Morehouse was 12 All he could give Mr. Morehouse was 12 barrels a day. barrels a day. barrels a day. "I saw readily what that meant." said "I saw readily what that meant." said "I saw readily what that meant." said Mr. Morehouse. "That meant squeeze you Mr. Morehouse. "That meant squeeze you Mr. Morehouse. "That meant squeeze you out by your works. out by your works. out by your works. They have got the works and are running They have got the works and are running They have got the works and are running them. I am without any them. I am without any them. I am without any They paid about $15,000 They paid about $15,000 They paid about $15,000 for what cost me $41,000. for what cost me $41,000. for what cost me $41,000. He said that he had facilities for He said that he had facilities for He said that he had facilities for freighting and that the coal oil freighting and that the coal oil freighting and that the coal oil business belonged to them. And any business belonged to them. And any business belonged to them. And any concern that would start in that concern that would start in that concern that would start in that business, they had sufficient money to business, they had sufficient money to business, they had sufficient money to lay aside a fund to wipe them out. These lay aside a fund to wipe them out. These lay aside a fund to wipe them out. These are his words. are his words. are his words. At every refining center in the country, At every refining center in the country, At every refining center in the country, this process of consolidation through this process of consolidation through this process of consolidation through persuasion, intimidation, or force went persuasion, intimidation, or force went persuasion, intimidation, or force went on. As fast as a refinery was brought in on. As fast as a refinery was brought in on. As fast as a refinery was brought in line, its work was assigned to it. line, its work was assigned to it. line, its work was assigned to it. If it was an old and poorly equipped If it was an old and poorly equipped If it was an old and poorly equipped plant, it was usually dismantled or shut plant, it was usually dismantled or shut plant, it was usually dismantled or shut down.

down. down. If it was badly placed, that is, if it If it was badly placed, that is, if it If it was badly placed, that is, if it was not economically placed in regard to was not economically placed in regard to was not economically placed in regard to a pipeline and railroad, it was a pipeline and railroad, it was a pipeline and railroad, it was dismantled even though in excellent dismantled even though in excellent dismantled even though in excellent condition. condition. condition. If it was a large and well-equipped If it was a large and well-equipped If it was a large and well-equipped plant advantageously located, it was plant advantageously located, it was plant advantageously located, it was assigned a certain quota to manufacture assigned a certain quota to manufacture assigned a certain quota to manufacture and it did nothing but manufacture. and it did nothing but manufacture. and it did nothing but manufacture. The buying of crude, the making of The buying of crude, the making of The buying of crude, the making of freight rates, the selling of the output freight rates, the selling of the output freight rates, the selling of the output remained with Mr. Rockefeller. The remained with Mr. Rockefeller. The remained with Mr. Rockefeller. The contracts under which all the refineries contracts under which all the refineries contracts under which all the refineries brought into line were run were of the brought into line were run were of the brought into line were run were of the most detailed and rigid description. And most detailed and rigid description. And most detailed and rigid description. And they were executed as a rule with a they were executed as a rule with a they were executed as a rule with a secrecy which battles description. secrecy which battles description. secrecy which battles description. Take for example a running arrangement Take for example a running arrangement Take for example a running arrangement made by Rockefeller in 1876 with the made by Rockefeller in 1876 with the made by Rockefeller in 1876 with the Cleveland refiner, that of Scofield, Cleveland refiner, that of Scofield, Cleveland refiner, that of Scofield, Sherwin, and Teagle. The members of this Sherwin, and Teagle. The members of this Sherwin, and Teagle. The members of this concern had all been in the refining concern had all been in the refining concern had all been in the refining business in Cleveland in 1872 business in Cleveland in 1872 business in Cleveland in 1872 and had all handed over their works to and had all handed over their works to and had all handed over their works to Mr. Rockefeller when he notified them of Mr. Rockefeller when he notified them of Mr. Rockefeller when he notified them of the South Improvement Company's the South Improvement Company's the South Improvement Company's contracts.

contracts. contracts. Mr. Sherwin declared once in an Mr. Sherwin declared once in an Mr. Sherwin declared once in an affidavit that he alone lost $20,000 by affidavit that he alone lost $20,000 by affidavit that he alone lost $20,000 by that maneuver. The members of the firm that maneuver. The members of the firm that maneuver. The members of the firm had not stayed out of business, however. had not stayed out of business, however. had not stayed out of business, however. Recovering from the panic caused by the Recovering from the panic caused by the Recovering from the panic caused by the South Improvement Company, they had South Improvement Company, they had South Improvement Company, they had united in 1875 united in 1875 united in 1875 building a refinery worth $65,000 building a refinery worth $65,000 building a refinery worth $65,000 with a yearly capacity of 180,000 with a yearly capacity of 180,000 with a yearly capacity of 180,000 barrels of crude. barrels of crude. barrels of crude. On the first year's business, they made On the first year's business, they made On the first year's business, they made $40,000. $40,000. $40,000. Although this was doing well, they were Although this was doing well, they were Although this was doing well, they were convinced they might do better if they convinced they might do better if they convinced they might do better if they could get as good freight rates as the could get as good freight rates as the could get as good freight rates as the Standard Oil Company. And in the spring Standard Oil Company. And in the spring Standard Oil Company. And in the spring of 1876, of 1876, of 1876, they brought suit against the Lake Shore they brought suit against the Lake Shore they brought suit against the Lake Shore and Michigan Southern and the New York and Michigan Southern and the New York and Michigan Southern and the New York Central and Hudson River Railroads for Central and Hudson River Railroads for Central and Hudson River Railroads for unlawful and unjust discrimination, unlawful and unjust discrimination, unlawful and unjust discrimination, partialities, and preferences made and partialities, and preferences made and partialities, and preferences made and practiced in favor of the Standard Oil practiced in favor of the Standard Oil practiced in favor of the Standard Oil Company enabling the said Standard Oil Company enabling the said Standard Oil Company enabling the said Standard Oil Company to obtain to a great extent the Company to obtain to a great extent the Company to obtain to a great extent the monopoly of the oil and naphtha trade of monopoly of the oil and naphtha trade of monopoly of the oil and naphtha trade of Cleveland. Cleveland. Cleveland. The suit was not carried through at the The suit was not carried through at the The suit was not carried through at the time.

time. time. Mr. Rockefeller seems to have suggested Mr. Rockefeller seems to have suggested Mr. Rockefeller seems to have suggested a sure way to the firm of getting the a sure way to the firm of getting the a sure way to the firm of getting the rates they wanted. This was to make a rates they wanted. This was to make a rates they wanted. This was to make a running arrangement with them. running arrangement with them. running arrangement with them. He seems to have demonstrated to them He seems to have demonstrated to them He seems to have demonstrated to them that they could make more money under that they could make more money under that they could make more money under his plan than outside, and they signed a his plan than outside, and they signed a his plan than outside, and they signed a contract for a remarkable joint contract for a remarkable joint contract for a remarkable joint adventure. adventure. adventure. According to this document, Scofield, According to this document, Scofield, According to this document, Scofield, Sherwin, and Teagle put into the Sherwin, and Teagle put into the Sherwin, and Teagle put into the business a plant worth at that time business a plant worth at that time business a plant worth at that time about $73,000 about $73,000 about $73,000 and their entire time. and their entire time. and their entire time. Mr. Rockefeller put in $10,000 and his Mr. Rockefeller put in $10,000 and his Mr. Rockefeller put in $10,000 and his rebates. That is, he secured for the rebates. That is, he secured for the rebates. That is, he secured for the firm the same preferential rates on firm the same preferential rates on firm the same preferential rates on their shipments that the Standard Oil their shipments that the Standard Oil their shipments that the Standard Oil Company enjoyed. Company enjoyed. Company enjoyed. The firm bound itself not to refine over The firm bound itself not to refine over The firm bound itself not to refine over 85,000 barrels a year, and neither 85,000 barrels a year, and neither 85,000 barrels a year, and neither jointly nor separately to engage in any jointly nor separately to engage in any jointly nor separately to engage in any other form of oil business for 10 years, other form of oil business for 10 years, other form of oil business for 10 years, the life of the contract. Scofield, the life of the contract. Scofield, the life of the contract. Scofield, Sherwin, and Teagle were guaranteed a Sherwin, and Teagle were guaranteed a Sherwin, and Teagle were guaranteed a profit of $35,000 a year. profit of $35,000 a year. profit of $35,000 a year. Profits over $35,000 Profits over $35,000 Profits over $35,000 went to Mr. Rockefeller up to $70,000.

went to Mr. Rockefeller up to $70,000. went to Mr. Rockefeller up to $70,000. Any further profits were divided. Any further profits were divided. Any further profits were divided. The making of this contract and its The making of this contract and its The making of this contract and its execution were attended by all the execution were attended by all the execution were attended by all the secret rites peculiar to Mr. secret rites peculiar to Mr. secret rites peculiar to Mr. Rockefeller's business ventures. Rockefeller's business ventures. Rockefeller's business ventures. According to the testimony of one of the According to the testimony of one of the According to the testimony of one of the firm given a few years later on the firm given a few years later on the firm given a few years later on the witness stand in Cleveland, the contract witness stand in Cleveland, the contract witness stand in Cleveland, the contract was signed at night at Mr. Rockefeller's was signed at night at Mr. Rockefeller's was signed at night at Mr. Rockefeller's house on Euclid Avenue in Cleveland, house on Euclid Avenue in Cleveland, house on Euclid Avenue in Cleveland, where he told the gentlemen that they where he told the gentlemen that they where he told the gentlemen that they must not tell even their wives about the must not tell even their wives about the must not tell even their wives about the new arrangement. That if they made new arrangement. That if they made new arrangement. That if they made money, they must conceal it. They were money, they must conceal it. They were money, they must conceal it. They were not to drive fast horses, put on style, not to drive fast horses, put on style, not to drive fast horses, put on style, or do anything to let people suspect or do anything to let people suspect or do anything to let people suspect there were unusual profits in oil there were unusual profits in oil there were unusual profits in oil refining. refining. refining. That would invite competition. That would invite competition. That would invite competition. They were told that all accounts were to They were told that all accounts were to They were told that all accounts were to be kept secret. Fictitious names were to be kept secret. Fictitious names were to be kept secret. Fictitious names were to be used in corresponding, and a special be used in corresponding, and a special be used in corresponding, and a special box at the post office was employed for box at the post office was employed for box at the post office was employed for these fictitious characters. these fictitious characters. these fictitious characters. In fact, smugglers and housebreakers In fact, smugglers and housebreakers In fact, smugglers and housebreakers never surrounded their operations with never surrounded their operations with never surrounded their operations with more mystery. more mystery. more mystery. But make his operations as thickly as he But make his operations as thickly as he But make his operations as thickly as he might in secrecy, the effect of Mr.

might in secrecy, the effect of Mr. might in secrecy, the effect of Mr. Rockefeller's steady and united attack Rockefeller's steady and united attack Rockefeller's steady and united attack on the refining business was daily on the refining business was daily on the refining business was daily becoming more apparent. becoming more apparent. becoming more apparent. Before the end of 1876, Before the end of 1876, Before the end of 1876, the alarm among oil producers, the few the alarm among oil producers, the few the alarm among oil producers, the few independent refineries still in independent refineries still in independent refineries still in business, and even in certain railroad business, and even in certain railroad business, and even in certain railroad circles was serious. circles was serious. circles was serious. On all sides talk of a united effort to On all sides talk of a united effort to On all sides talk of a united effort to meet the consolidation was heard. End of meet the consolidation was heard. End of meet the consolidation was heard. End of chapter five, part two. Recording by Tom chapter five, part two. Recording by Tom chapter five, part two. Recording by Tom Weiss, tomsaudiobooks.com.