Mineral Point tribune. (Mineral Point, Wis.) 1869-1938, 1882-07-06
PUBLIC GRIEVANCES.
The Monopoly in Petroleum.
New York Star.


In resuming the discussion of the
growth of monopolies, it becomes
necessary to depart somewhat from the
field Of food products, so as to show
that not alone in the necessaries which
sustain life itself are combinations in
control, but in every other commodity
absolutely essential to the poor mans
existence. Prices in one necessity have
been cornered to such an extent as the
oil which forms the light for the mil
lions. 1t is comparatively a few years
ago that q man, while digging in the
soil Of Pennsylvania, was driven back
from his work by thick stream which
drove out his drills and the fluid
spurted up in such volume that he
thought he had struck an artesian well.
The peculiar odor which followed this
stream dissipated the idea that it was
water that had been reached, and
further examination revealed the fact
that thick, gummy, resinous sub
stance which was flowing In an appar-
emily inexhaustible volume surely was
oil. The excitement attendant upon
this discovery was intense. Specula-
tors from the east flocked to the fields
which hitherto possessed little value.
bought them up at fabulous prices and
in short time shafts were being sunk
on hundreds of farms. The cheerful
fact was announced to the world that
on American soil there had been de-
veloped great industry, the product
of which mad solved the problem of
cheap light. Homes which had hith-
erto been lighted by the tallow dip, by
the still less satisfactory and much
more filthy sperm oil, or by the more
dangerous combustible known as cam
phene, were promised light that
should be as cheap almost as the
air we breathe, and yet possess
ing sufficient illuminating power to fur
nish satisfactory substitute for gas.
Managers of gas companies, which at
that time had created monopoly in
light, instantly took the alarm, and
great reduction in the price of gas was
made in advance of the introduction of
petroleum, which took the name of
kerosene oil. Two or three young men,
among whom were John A. Rocka-
Teller, Samuel Andrews anu another
named Evans, conceived the idea of
creating corner in kerosene by which
the entire product should be monop-
olized and the price advanced so as to
realize fabulous profit. These young
men were either clerks or book keepers
in on oil house in Cleveland, Ohio.
Rockefeller was noted even in his youth
as cold, calculating, scheming person,
with speculative turn OF mind, and
utterly oblivious to the condition of his
associates. He was ambitious, and his
ambition took that sordid cast which
cared not for whose body he walked
upon, so that be should reach the
top round Of the ladder. Consult
ing with a number of capitiists
among whom was H. B. Payne
Of Cleveland, company was organ
lied, and Rockefeller was deputed
to visit the oil regions, buy up the
product, or resort to suGh means as he
might deem expedjent to create a
monopoly in kerosene. Backed by an
abundance of money he started on his
mission. He found very many poor
people who owned small farms, beneath
the surface of which the great oil vein
ran, and, although they were the NOM
inal owners of undeveloped wealth,
they possessed no means with which to
reach 1t. He loaned them monay, took
mortgages upon this property in some
instances, and IN others he advanced
the necessary means to enable them to
work their land, first securing a written
contract that his company should
have entire control of the pro-
duct. Every available acre Of land
which bordered upon the great oil belt
of Pennsylvania was thus purchased,
until this company, then without a
name, became absolute owner of near
ly one.third of the oil producing region,
and had either a contract for the con-
Sol of the product or mortgage upon
the product itself to fully an ther third.
The company was then organized and
was given the name OF the Standard
Oil Company. It's operations were ex-
tended and enlarged until the Standard