Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1878-10-30
The Great Oil Bonanza,
New York Graphic.

The Great Oil Bonanza.
New York Graphic
One of the most interesting and i'm
portant phases Of our society is to be
seen in the growth of the business and
OF the power Of our great corporations.
The express companies, not content
with their virtutl monopoly of the
transportation Of butter, eggs and other
perlshable products, are now seeking
to be vendors Of the articles-to the
horror and dismav of the traders al
ready in business. The great telegraph
companies, having monopoly of the
transmission Of news, have become also
the sellers of news. The. Anthracite
railroad companies having obtained
exclusive control of the TRANSPORTATION
of anthracite coal to the seaboard,
have become also the owners of the
coal mines, the miners, the merchants
who supply the wants of the men en-
ployed in the pits and the sellers Of the
coal IN the market. In theory all this
concentration of different service in the
hands Of a single interest is designed to
benefit the public by relieving it from
the payment Of taxes to middlemen:
in practice, the public finds that it is in
no wise benefited by the concentration,
but decidedly. injured Another great
monopoly is that of the Standard Oil
Company in petroleum, and the history
of this corporation is not unlike page
from the Arabian Nights. =
Prior to 1871 a number Of oil refners
had established themselves in Cleveland.
the proximity of that place to the oil re-
glons and its natural advantages MAX
ing it a good shipping point. The COM
petition was so great that the refiners
made little money. In 1872. John D.
Rockefeller formed the Standard Oil
Company, with a capital of $5OOOOO-
afterwards Increased to $3,OOO,O OO-and
the company went Systematically to
work to absorb the lesser concerns.
Sometimes by threats, sometimes by
money inducements, they got posses
sion of nearly all the refinery property
in Cleveland. Mr.. Rockefeller was the
brains of the new company. His sue
cess was so great that he conceived the
idea OF the South Improvement Com
pany, and obtained contracts from lead
ing railroads, by, the terms of which the
entire oil carrying trade was to be
thrown into TIE control Of the South I'M
provement Company, and a charter Of
the broadest scope was obtained from
the Pennsylvania legislature to enable
the company to carry on operations.
The scheme was discovered, however.
before it was contaminated, land the out
ragged producers got up such a senti-
ment OF Indignation as caused its des-
truction. The railroad companies en-
tered into compact, binding them
selves. to transport, oil for all persons at
the same price, allowing rebates to no
one. The compact was "more honor
ed in the breach than in the obser-
vance, "sand in a short time the entire
oil trade discovered that the contract
was being broken. In October, 1874.
a freight tariff was adopted, which
made the charges of tranporting re-
fined oil SO much higher than for crude
that the Cleveland and other western
stills were compelled to close, but the
Standard suffered no, loss. All things
being equal, it cannot manufacture Or
refine oil cheaper than any other con-
Germ, and yet it has succeeded i n crush
ing out nearly all competition,
and has placed every lesser establish
ment at its mercy,until it has either been
closed entirely or has set the price it
can be bought for. The power Of the
Standard Oil Company is enormous
In the oil regions its influence is most
-keenly felt. It, has, it's hundreds of
agencies, its army of servants and fol-
lowers, and it holds on it's rolls names
that are synonymous of wealth and IN
fuence. Its henchmen are stationed at
every point where there is possibility
Of extending its power, and neither
labor nor. expense q is spared. With
So, OOO, 900 worth of oil annually, raising
and lowering the market at its pleasure,
but always to turn a stream of wealth
into its own Golfers gas'f
Mr.. Rockefeller twenty years ago was
keeping set of books in Cleveland; he
has now a. fortune estimated from five
millions upwards. . Mr.. Sam Andrews,
who has recently withdrawn from the
company is worth 100000; twenty
years ago he was working as laborer
In a refinery. H.. NJ. Flagler is worth
81, 100000; III. v. Hardness is worth
100000; William Rockefeller, 81 ,OOO,-
900; William H.. Bostwick, 100000;
Oliver II. Payne, 100000. These
are the fortunes which the principal
stockholders Of the Standard Oil Com
pany have accumulated by their mo-
nopoly within the last seven years. The
whole profits of the concern are esti-
mated to have amounted to ST, OOO,O 600.
The original investm ent was only $780,
600. This is better than bonanza.
+ OVER the grave Of Tom Morris, the
champion golfer, in the Cathedral bury
ing ground, ST. Andrews, Scotland,
monum emit has been erected. The adj