Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1878-12-06
NO. 40.


Twenty years ago the man most familiar
with the resources Of the United States would
have looked upon the person who should have
been rash enough 10 assert that petroleum IN
the year 1873 would rank third among the
great staples of the country, as a hopeless
visionary. Such, however, has come to pass,
since after cotton and grain, petroleum stands
both in quantity and value the next in the list
of our exports. And inconcevable as it may
seem, this immense trade is now practically
controlled by one corporation, the Standard
Oil Company.
As rule there is very little Of romance
about trade, but in the history of the rise,
progress and gigantic proportions which the
corporation referred to has attained, there is
an element of the wonderful which reminds
one of the story of Jack and the Bean
Stalk"
About the time that the first oil craze was
receiving its check because Of the difficulties
which the questions of consumption and trans
portation involved those who never thought
of the matter until acres were covered with
oil tanks full Of crude petroleum which could
not be put upon the market, young English
man named Andrews appeared at Cleveland,
having what he claimed TO be q more econom-
cal process for refining oil. He was so very
poor that his wife took in sewing to help sup
port the family. Andrews got little still
and put his method in practice. In six months
he made $500 He borrowed a little money
and put up more stills and began TO make
money quite fast At that time he made the
acquaintance of a young man of thirty named
Rockefeller, who had made little money as
bookeeper and had set up a flour store. This
man Andrews interested in the enterprise,
and the firm of Andrews, Rockefeller Il Co.,
! began business, and in it the Standard OIL
| Company had its origin. The firm pushed its
business. 1t made profits where others failed.
| Prudent management kept the Standard on
| its feet while refneries generally were going
| to pieces. In the course of year or Two II
turned its competition into a new channel
and adopted the policy of driving out all com.
! petitors by underselling. In 1871 1t had
''squeezed out" all competing establishments
in Cleveland and had begun to carry the war
| into other cities About that time the COM
pany was reorganized with a capital of $780,
900. To this time the company had devoted
its attention to manufacture. Now third
party Joined the corporation, Peter ii. Wat
son, once President of the Erie Railroad ana
an expert railway man, and the combination
undertook to control the transportation Of oil.
| The South Improvement Company was organ
lied and under that guise the parties named
contracted with all the trunk lines to carry
their oil for 81 per barrel below regular rates
and to pay the Standard that amount per bar
rel shipped by other parties. Production thus
fell into the hands of these men who did not
produce but refined OIL and thereby millions
of capital became the slave of the combina-
ton between the Standard and the trunk lines.
The carrying trade alone gave the Standard
81 900. 900 annually and thus enabled it to
crush out competition.
This combination finally drove the produc-
ers to unite for self-protection. They secured
the passage of bill to enable them to con
struct a free pipe line" by the Pennsylvania
Legislature and brought about Congression-
al investigation, which showed the illegality
| of the South Improvement Company, and
made contracts of their own with the railroad.
But while all this was going on the Standard
with $40, 600, 600 capital at its control and
monthly profit of 81 600, GOO, was quietly al
work and succeeded again in getting hold o.
the railroads. 1t also adopted the policy Of
underselling all the opposition refneries, ever
on the seaboard, and completed its seconS
victory by building and running all the tanl
cars in which petroleum reached the sea
board
Again the producers appealed to the au
, thorities of Pennsylvania for relief, and Al
: Investigation was ordered Of the methods o.
. the Standard The Secretary of Interna
Affairs conducted the investigation, and IL
due time reported that there was no groun'
, of action against the Standard. The prOduc
ers were very indignant at this announcement
Z | and even went so far as to threaten to selz
: the railways and run them in their own inter
, est. At present the excitement has cooled an'
! the producers have appealed to the court
= and will make efforts to again secure Congres
q sional action. few weeks since Andrew
sold out his interest for 81 1,0O0,OO0 and hA
9 retired. Rockefeller is reported to be wort
e 81, 200, 900
4 The Standard is to-day the most powerful
n monopoly in the country, and 1t tremains TO
A seen if in the fight for existence it can defen
. the united assaults of the army interested i
a the production of crude petroleum.