The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-11-13

ard Oil Company was begun. To-day John ID.
Rockefeller. the same young man then thought
dull. is worth five million dollars. and few
weeks ago the English laborcr Andrews sold
his interest in the Standard for n million dol
mrs. nnd during the summer subsrrlh,d Ior
half million Of the u. \. per cent. bonds,
paying for them with a portion OF tho income
he had previously received.
In those early DAYS. however the Standard
was bnnt ling. and older roiners and business
men were inclined to smile at the presumption
OF this grocer and lahorer. The Standard held
It's own. however. Rcfncrics started up l;ast
while the Standard in wear ortwo got the repu-
tation OF making rs much money As the b,st OF
them. In the years 6s, 69, and 20 there were
too many rcnucrics for the business 80 much
money had been made that capital had been
attracted TO i. and the cQmpctition was ruin;
ous. But Andrcws's practical management and
hockefcller's patient attention to the most tri;
fling details OF tho business kept the Standard
ii must have been about this time TINT Rocke-
fcllcr saw the chance there was, Some vision
airy capitalists had conceived tho iden OF buy
ing up all the oil lands in Pennsylvania. Spec
ulntOrs i'm Tiusvllc and Oil City bought land
right and left. liockefellcr's idea WINS, not to
believed he could do that without penny direct
outlay. He saw that nature favored such
world was confined to q comparatively re-
strictcd space in Pennsyl vania. II wasn't like
cotton growing. or grain harvests, spread over
effort and plans could be concentrated
Then Rockefeller saw that the men who we're
right and left. were. M the Boston Rcntlomen
had said some years before. acting on no sort
oi business prinfiples and HeGordin&Ey & thley ls
for the control OF their business.
His agents made INQUIRIES IN New YORK. Sci-
entihc men told them that the bowels OF the
earth in western Pennsylvania were vast tanks
containing oil enough for ages; Europe had
learned that American oil burned like gas. and
was cheaper than tallow dips. and the peasants
were demanding II. Already II gavo signs OF
becoming one OF the chief staples Of export OF
:" Here is tho chance" was. in effect what
| Rockefeller said to his business associates.
" The business Ia all chaos. II is bound TO be
| immense. III we step In now quietly before the
public knows what we are doing. and work
quietly. we can control the petroleum business
Meanwhile the Producers were selling all the
oil they could pump and living n Gloyer Tth i,lo
cloud. then no bigger than mans hand was
Just appearing over tho Cleveland bluns that
The first line Of attack that the Standard ap-
| pears TO have adopted was the capture OF the
n systematic and busnesslike way. Some they
| bought out: some II is said, they sdueezed out,
whether IN the manner sphselnentiy, oi adopted
| after, In not known. for this was from eight to
ten years ago. But in few months time the
| Standard had greatly strengthened itself 10y this
| policy. and was able in year or two to teel con-
fdcnt Of its control Of all Cleveland reineries.
| and to make attacks on strong concerns outside.
| The leading house Of Warden. Frew Co. OF
Pittsburgh capitulated and its members were
| hrNiny enough Tor the standard 10 want tnelf
aid; 80 they became part OF that company.
and outside reilners, especially Fast. began TO
realize that i3rmidable rival was looming up
began to appear in every grocery store OF the
In 1871 tho Standard was strong enough to
make holder move than 1t had yet done. All
OF It's previous work had been carried out 20
quietly, that hardly any one realized It's strength
until the organization OF the new company
which was TO carry out the final step In the
great scheme OF controlling the petroleum trade
Tho new standard OIL Company wa, organ
tied with about $500 900 Of capital >, John D.
Rockefeller had 100000 II. ". Harkness
tiOO.OOO; II. NJ. Flagler. t25,0Q0; Samuel An.
drews. $4,000; wm. Householder; $4,000; W
II. Bostwick. s50.OO0; and o. II, Payne. son OF
ex-Congressman Payne $4,000 There were
other stockholders who had smaller amounts
The company was In grand shape Tor me las
step, as IL hoped, before its scheme was realized
that step being the control Of tho famous South
lppp!IoygI%GISt Company 9i fs9nsyyyanS; yanIS;. ~
War and for n time President OF tho Erie Rail
way, gave John ID. Rockefeller, President q
the Standard Oil Company. the hint. by which
the absolute control OF thepetroleum trade Of tbs
world was to be secured. These two men got theii
heads together some time in 1871. Watson wa.
had made himself feared by every oil refncr II
the country, and had brought Ihe line @ sLsnh n
years To pos tion whore IL could dictate to th'
trade. He had arranged all OF his preliminhrl
plans well and carried them out thoroughly
He snid. in fact. to the great reilners OF Clevc
) land and Pittsburgh: Gentlemen. we propos'
. / To tlkt your nutlntHS We lThphSt ~ uu1 lpl
out. and will pay you cash OF stock in th'
standard
ii tho business gentlemen thus addressed re
sentcd this dictatorial manner. the STANDARD
oil Company took no offence; Il simply said
t Sell out; Join US. or be crushed out;' and
got hold Of enough OF the big refining Interest,"
In this way to squeeze the others.
But with tho smaller concerns few, words .wer
spent. They were offered so much for their es
tablishmcnts. and there are men now in othc
business who got very ugly when they speal
\ | Of NJ
pny you so much for your business. II you don
5 choose to take It you must take the conse
: 1t was at this time that Q prominent counsel
g lor OF Ohio said Of it.; Tho Standard has bee
o become dictators and possessors Of princel
fortunes by the ruin OF all compositions.
= res in Cleveland, with a crude oil capacity {
n is 900 barrels. The Standard whipped all thes
a into line. soldated some. let the works {
$ others stand still, and at last they were in ur
i disputed possess ion OF the field.
Now the method Of crushing out rival wa
tSh@Sis the case Of GaiesbuFS ill.,. said gchti,
n man. Rival rehneries. wore selling. o
at the market raIs As agent Of thG sSI
a cent, one cent. two cents-any price below q
market rate. OF course. tho Standard got III
trade and the business OF tho other retlneT
: was crushed"
:. SO in one way and another the Standard WI
l. a strong team in 1872. doing an immense bus
ness and was ready for its strike, for the, col
. troll OF the export trade. New York rennel
. had allowed IL To get ltS Rrehl strength DecAus
,r they did not see how II would be possible Il
\, renners at Cleveland l5O miles west OF the O
, regions, to come into any rulnOuS cOmpetltC
d with them for the export trade.
IS RoCKEFELLER AND WATSON COMBINE FORCES
i. Watson knew how II could be done. How /
l. and Rock cfeer came together is not know
IN hut his scheme led TO n good deal OF actlvlt
~ Between them both they discovered how the
10 could lay down refined oil in New York III
10 Philadelphia, and sell II even at an appare
90 loss and yet be getting profits to the extent
y millions, and at the same time controlling Il
ls trade. There were numerous conference
Rockefeller met Watson in Cleveland, and Wa
son met Rockefeller in New York. Hints Of VIII
wore coming reached Cleveland and a prom
G, nent newspaper man called upon Rockeiele
"A He found thai although he and the President
the Standard had grown up lads together,
u, now had met u grayen image. So far as talk WI
I'd concerned. Then he said that unless he Ia
A. an explanation. he should b9 obliged to publis
: the rumors that came, and then he was to
T. that the scheme was ono that would DO bene
l. clal to all. 1t would help the Producers. Il
In rehners and the consumers, because II wou
~ steady trade, and stop over-production at u
~ wells and oyer-produdlon at the refnerle
I'd Early in February, 1872. q little rumor start'
is In the OIL Exchange at OH City. and befo
o night had spread TO every part OF the oil r
Ut gion. The rumor was that the railroads III
tx reached either by main line or feeder into Il