The people's journal. (Pickens, S.C.) 1891-1903, 1897-11-04
THE HISTORY OF A GREAT TRUST,
THE STANDARD OIL COMPANY

| @"" SIhNDhND Oil COMPANY u
How Men of Small Means Became
Multi--N1illiOnaires-- Richest
Corporation In tho World.
The richest and best managed cor
poratiOn in the world is the Standard
OH company, the stock of which
amounts to $3.50, 600, 900, and during the
last 80 years has made its holders all
fabulously rich men. In view OF the
recent operations of these men to con-
solldate all the gas companies across
the East river, New York, as they
have already done those in Brooklyn,
movement which has driven up New
YORK gas stock all the way from 40
points to 200 in three mOnths-a study
OF the means by which this corpora.
tion has grown into its enormous power
and wealth is timely and Interesting.
Such a study Is given below.
The history OF the origin and growth
OF the Standard furnishes material for
one OF the rarest rOmances of the CEN
tury. At the close Of the civil war
Samuel Andrews, q recently arrived
! immigrant, was porter for small pro-
duce house in Cleveland, o. Andrews
was OF an inventive turn OF mind, and
In his leisure hours devised plan for
the refinement OF petroleum much
more economical and elective than
the ones then in vogue. One Of the
partners in the firm which employed
Andrews as porter was John d. Rookie
Teller, then 26 years OF age. Rookie
felle" kept the books and looked after
the sales Of the house. When An
drews told him about his invention the
bookkeeper looked into it, and conclud-
ing it promised we'll, invested what
money he had been able to save in
pushing it.
AS a result Of the combined efforts of
the two young mon, and with the aid
OF borrowed capital, small refinery
was built and put Into operation. The
refinery made money from the first,
and in year or so Rockefeller sold out
his interest in the produce house and
gave his entire time to the new ven
ture. He induced his brother, William,
to start q refinery, which was soon con
solldatod with the one owned by him
and Andrews. Then a warehouse was
opened in New York city for the sales
of the manufactured product Of the
two rofneries.
| The Rockefellers and Andrews saw
millions within their grasp. All that
was needed was q little ready money,
and this kindly fortune at the right
moment threw in their way. Young
Henry Nj. Flagler b Id married g rich
mans daughter, and his father-in-law
had started him in the lumber bust
ness in Michigan. Fagler, though q
bright fellow, was not Intended for a
lumber man. In some way Rockefeller
got the ear Of Flagler's father-in law
and told him his plans, which even
then contemplated the control of the
entire old production OF the country.
TheB oil man gave the matter careful
consideration. His son-in-law WAS not
making money rs a lumber man and
Rocke1eller's plan seemed on the face
a good one. q the end he gave Flag.
Ter S0O, OUO and told him ito go in with
the Sockefellers and Andrews.
Thus the Standard Oil company was
formed with capital stock OF $I00 600
and with John D. Rockefeller as its
president. 1t at once began to buy out
and crush out rival refineries, and now
It's pipe line system is something pro-
dlglous-a monster spiders web cover
ing thousands Of miles. One line 300
miles long runs from Olean to Saddle
river, N. j within easy distance of
the metropolis. Another line, 275
miles in length, runs from Colegrove,
Mexican county, Pa, to Philadelphia.
A third line runs from Midway, on the
Pennsylvania, to Baltimore, 70 miles.
a fourth line, 100 miles long, rurs
fifth line, 60 mile, in length, CONNECTS
Carbon Centre, Butler county, Pa,
with Plttsburg, ana another line oi
about the same length runs from -Four
Mile, Cottaraugus county, N. Y, to
Buffalo. More recently a line has
been laid between Lima, O., and
Chicago, 200 miles.
All these lines are owned and con-
trolled by the National Trust company.
another namo for the Standard Oil
company, which thus connects the
sources of production with its man.
moth retneries in the great cities. Be-
side these main lines it owns thous-
| ands OF miles of smaller lines, run
ming from its tanking stations to the
| wells Of individual operators. Some
idea Of the magnitude of this branch
OF It's business can be obtained from
the recent statement a Standard mag
nate that $40, 900 would not cover
the cost OF the lines and tankage rem
| dered useless during the last five years
by the failure of the fields in which
they are located.
The Standard takes the oil of the
producer as it comes from the ground,
measures and pays for it, transports
1T to It's refineries, refines it, pipes it to
market, and sells it. Until recently it
has never figured as producer, but
its complete and perfect system gives
1T absolute control Of the oil trade. All
this has grown since 1866 from an
original investment Of. less than $75,.
600, made by four young mon, who saw
q grand opportunity for money making,
and were brainful enough and shrewG
enough to take advantage Of 1T. .
The railroad companies were at the
mercy OF the great monopoly. The
late President Scott of the Pcnnsyi.
vania road acknowledged on the Wit
ness stand that his company dare trans
port only the oil of the Standard, and
| Commodore Vanderbilt said a wear or
two before he died that there was only'
one man he would allow to dictate to
him, and that man was John d. Rookie.
| feller.
| Absolute in it's command OF the re.
lining trade, the Standard forced the
railroads to do its bidding until 1880.
Then they rebellcd and the Standard
reduced their revenue and rendered it.
| impossible for them to figure as a
factor In the control OF the oil trade bv