INDEX

[1]. See Appendix, Number 1. Professor Silliman’s report on petroleum.

[2]. An elastic pole of ash or hickory, twelve to twenty feet long, was fastened at one end to work over a fulcrum. To the other end stirrups were attached, or a tilting platform was secured, by which two or three men produced a jerking motion that drew down the pole, its elasticity pulling it back with sufficient force, when the men slackened their hold, to raise the tools a few inches. The principle resembled that of the treadle-board of a sewing machine, operating which moves the needle up and down. The tools were swung in the driving pipe, or the “conductor”—a wooden tube eight or ten inches square, placed endwise in a hole dug to the rock—and fixed by a rope to the spring pole, two or three feet from the workmen. The strokes were rapid, and a sand pump—a spout three inches in diameter, with a hinged bottom opening inward and a valve working on a sliding rod, somewhat in the manner of a syringe—removed the borings mainly by sucking them into the spout as it was drawn out quickly. McLaurin’s “History of Petroleum.”

[3]. In 1871 the petroleum exports were 152,195,167 gallons. The production was 5,795,000 barrels, or 243,390,000 gallons.

[4]. Estimate of J. T. Henry in his “Early and Later History of Petroleum,” 1873. The “Petroleum Monthly” in 1873 estimated the cost to be from $2,725 to $4,416.

[5]. See Appendix, Number 2. First act of incorporation of the Standard Oil Company.

[6]. Testimony of Mr. Alexander before the Committee of Commerce of the United States House of Representatives, April, 1872.

[7]. See Appendix, Number 3. Affidavit of James H. Devereux. At the time General Devereux made this affidavit, 1880, he was president of the New York, Pennsylvania and Ohio Railroad.

[8]. Report for 1871 of the Cleveland Board of Trade.

[9]. See Appendix, Number 4. Testimony of Henry M. Flagler on the South Improvement Company.

[10]. List of stockholders given by W. G. Warden, secretary of the South Improvement Company, to a Congressional Investigating Committee which examined Mr. Warden and Mr. Watson in March and April, 1872.

[11]. Article Fourth: Contract between the South Improvement Company and the Pennsylvania Railroad Company, January 18, 1872.

[12]. See Appendix, Number 5. Contract between the South Improvement Company and the Pennsylvania Railroad Company. Dated January 18, 1872.

[13]. See Appendix, Number 6. Standard Oil Company’s application for increase of capital stock to $2,500,000 in 1872.

[14]. See Appendix, Number 7. Affidavits of George O. Baslington.

[15]. In 1872 the refining capacity of the United States was as follows, according to Henry’s “Early and Later History of Petroleum”:

Barrels
Oil Regions9,231
New York9,790
Cleveland12,732
Pittsburg6,090
Philadelphia2,061
Baltimore1,098
Boston3,500
Erie1,168
Other Points901
Total46,571

[16]. A History of the Rise and Fall of the South Improvement Company. Testimony of W. H. Doane, page 45.

[17]. A History of the Rise and Fall of the South Improvement Company. Testimony of Josiah Lombard, page 57.

[18]. See Appendix, Number 8. Organisation of the Petroleum Producers’ Union of 1872.

[19]. See page [1056].

[20]. See Appendix, Number 9. Charter of the South Improvement Company.

[21]. See Appendix, Number 10. Draft of contract between the South Improvement Company and producers of petroleum in the valley of the Allegheny and its tributaries. Dated January, 1872.

[22]. See Appendix, Number 11. Extracts from the testimony of W. G. Warden.

[23]. See Appendix, Number 12. Extracts from the testimony of Peter H. Watson.

[24]. See Appendix, Number 13. Contract of March 25, 1872.

[25]. See Appendix, Number 14. Testimony of Henry M. Flagler.

[26]. The report of the committee of Congress which investigated the South Improvement Company was not made until May 7, over a month after the organisation was destroyed by the cancelling of the contracts with the railroads.

[27]. See Appendix, Number 15. The Pittsburg Plan.

[28]. Estimate given in the Oil City Derrick for September 10, 1872.

[29]. See Appendix, Number 16. “The Agency.”

[30]. The amount of production was computed from the oil run through the pipe-lines, all of which had their gaugers and were supposed to report their runs at regular intervals.

[31]. See Appendix, Number 17. Contract between Petroleum Producers’ Association and Petroleum Refiners’ Association.

[32]. The agency was pledged by its constitution to limit the supply of crude, but this stipulation did not appear in the contract signed by the two associations. It was a verbal understanding.

[33]. Testimony of H. M. Flagler before the Ohio State Commission for investigating railroad freight discrimination, March, 1879. See Appendix, Number 14.

[34]. See Appendix, Number 3.

[35]. See Appendix, Number 14.

[36]. See Appendix, Number 18. Testimony of George R. Blanchard on rebates granted by the Erie Railroad.

[37]. See Appendix, Number 19. Testimony of W. T. Scheide.

[38]. See Appendix, Number 20. Statements of amounts paid for overcharges and rebates on oil during the year 1873 by the New York, Lake Erie and Western Railroad.

[39]. See Appendix, Number 21. Agreement of 1874 between the Erie Railroad system and the Standard Oil Company.

[40]. See Appendix, Number 22. Agreement of 1874 between the railroads and pipe-lines.

[41]. See Appendix, Number 23. The Rutter circular.

[42]. These figures are from Henry’s “Early and Later History of Petroleum,” published in 1873.

[43]. The barrels of the Standard Oil Company are painted blue.

[44]. This account of the meeting at Saratoga was given to the writer by Charles Lockhart, of Pittsburg.

[45]. See Appendix, Number 24. Standard Oil Company’s application for increase of capital stock to $3,500,000 in 1875.

[46]. See Appendix, Number 25. Henry M. Flagler’s testimony on the union of the Standard Oil Company with outside refiners in 1874.

[47]. Mr. Rogers is mistaken here. The production in 1874 was 10,926,945 barrels, the shipments 8,821,500, the stocks at the end of the year 3,705,639. In 1875, the year in which he is speaking, more oil was consumed than produced.

[48]. See Appendix, Number 26. George R. Blanchard’s testimony on the breaking up of the Pipe Pool of 1874.

[49]. Condensed from Mr. Tack’s testimony.

[50]. Condensed from Mr. Harkness’s testimony.

[51]. J. T. Henry, in his “Early and Later History of Petroleum,” gives twenty-two; E. G. Patterson, in a list presented in court in 1880, gives the number at the beginning of this combination as thirty.

[52]. Condensed from testimony of Mr. Morehouse before the special committee on railroads, New York Assembly, 1879.

[53]. Proceedings in Relation to Trusts, House of Representatives, 1888. Report Number 3112.

[54]. Report of the Special Committee on Railroads, New York Assembly, 1879.

[55]. The Standard Oil Company were extensive oil transporters at that time, as has been shown.

[56]. See Appendix, Number 27. Mr. Flagler’s explanation of the commission of ten per cent. allowed the Standard Oil Company in 1877.

[57]. See Appendix, Number 28. Correspondence between William Rockefeller and Mr. Scott in October, 1877.

[58]. See Appendix, Number 29. Correspondence between Mr. O’Day and Mr. Cassatt.

[59]. See Appendix, Number 30. Henry M. Flagler’s testimony on the rebate paid to American Transfer Company.

[60]. See Appendix, Number 31. Letter to President Scott of the Pennsylvania Railroad from B. B. Campbell and E. G. Patterson.

[61]. Commonwealth of Pennsylvania vs. Pennsylvania Railroad, United Pipe Lines, etc.

[62]. Testimony of Charles T. Morehouse before the Special Committee on Railroads, New York Assembly, 1879.

[63]. In the case of the Standard Oil Company vs. William C. Scofield, et al., in the Court of Common Pleas, Cuyahoga County, Ohio.

[64]. Coupled with Mrs. B——’s affidavit was one of the company’s bookkeeper’s testifying that the business had been paying an annual net income of $30,000 to $40,000 when the sale to the Standard was made for $79,000, and another from the cashier, who had been present at most of the interviews between Mrs. B—— and the Standard agents, and who corroborates her statements in every particular.

[65]. Mr. Rockefeller’s statements are supported by affidavits from several members of the firm.

[66]. Oil City Derrick, January 5, 1878.

[67]. Derrick Handbook, Vol. II.

[68]. The stocks on hand at the end of this month were 4,221,769 barrels. On November 25, 1878, the Derrick published tables showing 4,576,500 barrels of tankage up and building in the Bradford field. Connected with the United Lines were 1,774,500 barrels already in use and 1,347,000 building.

[69]. Investigation ordered by the secretary of internal affairs of the Commonwealth of Pennsylvania, 1878.

[70]. Abridged from Mr. Campbell’s testimony.

[71]. See Appendix, Number 32. Producers’ Appeal of 1878 to Governor John F. Hartranft of Pennsylvania.

[72]. The story of the Empire Transportation Company, told in the last chapter, was brought out in this testimony of Mr. Cassatt’s.

[73]. The testimony taken before the Hepburn Committee has never been printed in the series of Assembly documents. An edition of 100 copies was printed during the session for the use of the committee. It is usually bound in five volumes, and is, of course, very rare.

[74]. 300 copies of the report of the testimony taken were printed. No copy is to be found in any library of the state of Ohio. The writer has never seen but one copy of this report.

[75]. In the case of the Standard Oil Company vs. William C. Scofield et al., in the Court of Common Pleas, Cuyahoga County, Ohio, 1880.

[76]. Ohio State Investigation of freight discrimination, 1879.

[77]. See Appendix, Number 33. Statement of crude oil shipments by Green Line during the months of February and March, 1878, to New York, Philadelphia and Baltimore: showing drawbacks allowed to American Transfer Company.

[78]. See Appendix, Number 34. Bill of particulars of evidence to be offered by the commonwealth.

[79]. “A History of the Organisation, Purposes and Transactions of the General Council of the Petroleum Producers’ Unions,” 1880.

[80]. See Appendix, Number 35. Contract of Petroleum Producers’ Union with Standard Combination.

[81]. See Appendix, Number 36. Agreement between B. B. Campbell and the Pennsylvania Railroad Company.

[82]. Fractional distillation is a process intended to separate various products in mixture, and having unlike boiling points, by keeping the mixture contained in an alembic at regulated successive stages of temperature as long as there is any distillate at a given point, and then raising the heat to another degree, etc.

[83]. This must have been in 1872, not 1870. Up to 1872 the capacity of the Standard was but 1,500 barrels of crude a day.

[84]. This draft was presented to the committee in lead pencil. It was never presented to the producers. See P. H. Watson’s testimony, Appendix, Number 12.

[85]. It was 1874.

[86]. See Appendix, Number 37. Articles of incorporation of the Tidewater Pipe Line.

[87]. See Appendix, Number 38. Testimony of Henry M. Flagler in regard to the Tidewater contest.

[88]. Court of Common Pleas, Crawford County, Pennsylvania. Patterson vs. Tidewater Pipe Company, Limited. Testimony of E. G. Patterson, December, 1882.

[89]. See Appendix, Number 39 A. Agreement between Standard and Tidewater refineries.

See Appendix, Number 39 B. Agreement between Standard and Tidewater Pipe Lines.

[90]. See Appendix, Number 40. Two agreements of even date, August 22, 1884, between the Pennsylvania Railroad Company and the National Transit Company.

[91]. The Eighth Section of Article Second of this contract, defining the duties of the railroads reads: “To make manifests or way-bills of all petroleum or its products transported over any portion of the railroads of the party of the second part or its connections, which manifests shall state the name of the consignor, the place of shipment, the kind and actual quantity of the article shipped, the name of the consignee, and the place of destination, with the rate and gross amount of freight and charges, and to send daily to the principal office of the party of the first part duplicates of all such manifests or way-bills.”—Proceedings in Relation to Trusts, House of Representatives, 1888. Report Number 3,112, page 360.

[92]. Record of pleadings and testimony in Standard Oil Trust quo warranto cases in the Supreme Court of Ohio, 1899, page 681.

[93]. Trust Investigation of Ohio Senate, 1898, page 370.

[94]. Trust Investigation of Ohio Senate, 1898, page 370.

[95]. Trust Investigation of Ohio Senate, 1898, page 371.

[96]. See Appendix, Number 41. Table showing prices of oil at competitive and non-competitive points in 1892.

[97]. See Chapter V, page 165.

[98]. See Appendix, Number 42. Standard Oil Company’s petition for relief and injunction.

[99]. See Appendix, Number 43. Answer of William C. Scofield et al.

[100]. See Appendix, Number 44. Affidavit of John D. Rockefeller.

[101]. See Appendix, Number 45, Findings of Fact.

[102]. See Appendix, Number 45.

[103]. Number 20, Findings of Facts. See Appendix, Number 45.

[104]. Ohio State Reports, 43, pages 571–623.

[105]. Proceedings in Relation to Trusts, House of Representatives, 1888. Report Number 3,112, pages 575–576.

[106]. See Appendix, Number 46. Letter of Edward S. Rapallo to General Phineas Pease, receiver Cleveland and Marietta Railroad Company.

[107]. Proceedings in Relation to Trusts, House of Representatives, 1880. Report Number 3,112, pages 577–578.

[108]. See Appendix, Number 47. Testimony of F. G. Carrel, freight agent of the Cleveland and Marietta Railroad Company.

[109]. See Appendix, Number 48. Report of the Special Master Commissioner George K. Nash to the Circuit Court.

[110]. The documents from which the statements are drawn are all on file in the office of the Clerk of the United States Circuit Court for the Southern District of Ohio, Eastern Division.

[111]. Proceedings in Relation to Trusts, House of Representatives, 1888. Report Number 3,112, page 864.

[112]. Proceedings in Relation to Trusts, House of Representatives, 1888. Report Number 3,112, page 864.

[113]. The Derrick published in a four-page supplement to the issue of April 23, 1904, the full text of both statements under the title “More of Tarbell’s Tergiversations.”

[114]. Congressional Globe, September 12, 1888, pages 8520–8604.

[115]. Report Number 1490, United States Senate, Forty-ninth Congress. This report, and Miscellaneous Documents Number 106, United States Senate, Forty-ninth Congress, 1886, contain the evidence of bribery collected by the Ohio Legislature and the majority and minority reports of the committee.

[116]. Congressional Globe, July, 1886.

[117]. Congressional Globe, September, 1886, pages 8520–8604.

[118]. See Appendix, Number 49. A statement from an oil-producer’s stand-point for 1886.

[119]. See Appendix, Number 50. The Billingsley Bill.

[120]. See Appendix, Number 44.

[121]. See Appendix, Number 51. Extracts from testimony of H. H. Rogers.

[122]. See Appendix, Number 48.

[123]. Report on Investigation Relative to Trusts, New York Senate, 1888 pages 419–420.

[124]. Report on Investigation Relative to Trusts, New York Senate, 1888, pages 420–421.

[125]. See Appendix, Number 52. The Trust Agreement of 1882.

[126]. Report on Investigation Relative to Trusts, New York Senate, 1888, pages 9–10.

[127]. Affidavit of Henry M. Flagler in the case of the Standard Oil Company vs. William C. Scofield et al., in the Court of Common Pleas, Cuyahoga County, Ohio, 1880.

[128]. Proceedings in Relation to Trusts, House of Representatives, 1888. Report Number 3,112, page 770.

[129]. The full style of the case was: The State of Ohio on the Relation of David K. Watson, Attorney-general, Plaintiff, against the Standard Oil Company, Defendant.

[130]. See annual report of the attorney-general to the governor of the state of Ohio, 1899.

[131]. History of Standard Oil Case in the Supreme Court of Ohio, 1897–1898. Part I, pages 27–28. Original opinion of the court.

[132]. Proceedings of meeting dissolving trust. History of Standard Oil Case in the Supreme Court of Ohio, 1897–1898. Part 1, pages 80–81.

[133]. See Appendix, Number 53. List of constituent companies of the Standard Oil Trust, with assets and capitalisation in 1892.

[134]. See Appendix, Number 54. Forms of Mr. Rockefeller’s certificate of holdings in the Standard Oil Trust, with assignment of legal title which took its place in 1892.

[135]. Report on Investigation Relative to Trusts, New York Senate, 1888, page 445.

[136]. See Appendix, Number 55. Agreement of 1887 between the Standard Oil Company and producers.

[137]. Report on Investigation Relative to Trusts, New York Senate, 1888, page 449.

[138]. See Chapter IX.

[139]. Plaintiff’s Exhibit Number 52 in the case of James Corrigan vs. John D. Rockefeller in the Court of Common Pleas, Cuyahoga County, Ohio, 1897.

[140]. The following table shows the variation from 1890 to 1897 in price of crude oil per barrel of 42 gallons, and the price of refined oil per gallon in barrels in New York:

CrudeRefined
1890
Jan1.05⅛7½
Dec67½7¼
1891
Jan74⅛7.42
Dec59¼6.44
1892
Jan62½6.45
Dec53¼5.45
1893
Jan53½5.33
Dec78⅜5.15
1894
Jan805.15
Dec91⅜5.61
1895
Jan98⅝5.87
Dec1.43⅝7.77
1896
Jan1.45¾7.85
Dec97⅞6.35
1897
Jan88⅛6.13
Dec655.40

[141]. See Appendix, Number 56. John D. Archbold’s statement to the Industrial Commission concerning the Standard’s opposition to the building of the United States Pipe Line.

[142]. Adapted from chart printed in Volume I of Report of Industrial Commission, and brought up to date.

[143]. See Appendix, Number 57. Tables of yearly average prices of crude and refined.

[144]. Figures used in computing this profit are from the Oil City Derrick of the period, and from practical oil refiners of that day.

[145]. See Chapter IV.

[146]. See Chapter V.

[147]. In 1871 there was something over 132,000,000 gallons of illuminating oil exported. In 1872 it fell to about 118,000,000 gallons.

[148]. According to the statement of the Standard Oil Company, made in a suit for taxes brought by the state of Pennsylvania in 1881, it declared dividends as follows: In 1873, year ending the first Monday in November, $347,610; in 1874, $358,605; in 1875 (the capital stock was raised from $2,500,000 to $3,500,000 in 1875), $514,230; in 1876, $501,285; in 1877, $3,248,650.01; in 1878, $875,000; in 1879, $3,150,000; in 1880, $1,050,000.

[149]. See Chapter VII.

[150]. Report of the Special Committee on Railroads, New York Assembly, 1879. Volume IV, page 3680.

[151]. Plaintiff’s Exhibit, Number 51, in the case of James Corrigan vs. John D. Rockefeller in the Court of Common Pleas, Cuyahoga County, Ohio, 1897.

[152]. It costs the Cleveland refiner .64 of a cent a gallon to bring oil in bulk from the Oil Regions to his refinery, and 1.44 cents per gallon to send it refined in bulk to New York.

[153]. Trustworthy and regular quotations are not to be obtained earlier than 1881.

[154]. Report of the Industrial Commission, 1900. Volume 1, page 365.

[155]. See Appendix, Number 58. John D. Archbold’s statement on the prices the Standard receives for refined oil.

[156]. Report on Investigation Relative to Trusts, New York Senate, 1888, pages 434–435 and 396–398.

[157]. See Chapter V.

[158]. In 1872 there were exported as follows:

Crude16,363,975 gallons.
Naphtha, benzine, gasoline, etc.8,688,257 gallons.
Lubricating, heavy paraffine, etc.438,425 gallons.
Residuum, pitch and tar568,218 gallons.
Illuminating118,259,832 gallons.

—Derrick Handbook.

[159]. The “Standard-whites” are as follows:

[160]. The “water-whites” are as follows:

[161]. See Appendix, Number 59. W. H. Vanderbilt’s characterisation of Standard Oil men.

[162]. Ohio Circuit Court Reports, Volume VII, 1893, page 508.

[163]. See Appendix, Number 60. Facsimile of one of Mr. Kemper’s shares.

[164]. History of Standard Oil Case in Supreme Court of Ohio, 1897–1898. Part II, page 39.

[165]. History of Standard Oil Case in Supreme Court of Ohio, 1897–1898. Part II, page 248.

[166]. See Appendix, Number 53.

[167]. See Appendix, Number 61. General balance sheet, Standard Oil interests, December 31, 1896.

[168]. The present directors are John D. Rockefeller, William Rockefeller, Henry M. Flagler, John D. Archbold, Henry H. Rogers, W. H. Tilford, Frank Q. Barstow, Charles M. Pratt, E. T. Bedford, Walter Jennings, James A. Moffett, C. W. Harkness, John D. Rockefeller, Jr., Oliver H. Payne.

[169]. See Appendix, Number 62. Amended certificate of incorporation of the Standard Oil Company of New Jersey.

[170]. See Appendix, Number 9.

[171]. See Appendix, Number 63. Production of Pennsylvania and Lima crude oil by Standard Oil Company, 1890–1898.

[172]. See Appendix, Number 64. Business of Standard Oil Company and other refiners, 1894–1898.

[173].

America imported into China, 189331,060,527 gallons
Borneo imported into China, 1893574,615 gallons
Russia imported into China, 189313,503,685 gallons
Sumatra imported into China, 189339,859,508 gallons

[174]. See Chapter X.

[175]. The Petroleum Age, Volume I, page 35.