CHAPTER EIGHT

THE COMPROMISE OF 1880

THE PRODUCERS’ SUIT AGAINST ROCKEFELLER AND HIS ASSOCIATES USED BY THE STANDARD TO PROTECT ITSELF—SUITS AGAINST THE TRANSPORTATION COMPANIES ARE DELAYED—TRIAL OF ROCKEFELLER AND HIS ASSOCIATES FOR CONSPIRACY POSTPONED—ALL OF THE SUITS WITHDRAWN IN RETURN FOR AGREEMENTS OF THE STANDARD AND THE PENNSYLVANIA TO CEASE THEIR PRACTICES AGAINST THE PRODUCERS—WITH THIS COMPROMISE THE SECOND PETROLEUM PRODUCERS’ UNION COMES TO AN END—PRODUCERS THEMSELVES TO BLAME FOR NOT STANDING BEHIND THEIR LEADERS—STANDARD AGAIN ENFORCES ORDERS OBJECTIONABLE TO PRODUCERS—MORE OUTBREAKS IN THE OIL REGIONS—ROCKEFELLER HAVING SILENCED ORGANISED OPPOSITION PROCEEDS TO SILENCE INDIVIDUAL COMPLAINT. Pages 1241–1262

APPENDIX. Pages 1263–1406

LIST OF ILLUSTRATIONS

PORTRAIT OF JOHN DAVISON ROCKEFELLER IN 1904 _Frontispiece 1_

Born July 8, 1839.

FACING PAGE

PORTRAIT OF E. L. DRAKE 1008

In 1859 Drake drilled near Titusville, Pennsylvania, the first artesian well put down for petroleum. He is popularly said to have “discovered oil.”

THE DRAKE WELL IN 1859—THE FIRST OIL WELL 1010

FAC-SIMILE OF A LABEL USED BY S. M. KIER IN ADVERTISING ROCK-OIL OBTAINED IN DRILLING SALT WELLS NEAR TARENTUM, PENNSYLVANIA 1034

FAGUNDUS—A TYPICAL OIL TOWN 1034

PORTRAIT OF JOHN D. ROCKEFELLER IN 1872 1040

PORTRAIT OF W. G. WARDEN 1053

Secretary of the South Improvement Company.

PORTRAIT OF PETER H. WATSON 1053

President of the South Improvement Company.

PORTRAIT OF CHARLES LOCKHART 1053

A member of the South Improvement Company, and later of the Standard Oil Company. At his death in 1904 the oldest living oil operator.

PORTRAIT OF HENRY M. FLAGLER IN 1882 1053

Active partner of John D. Rockefeller in the oil business since 1867. Officer of the Standard Oil Company since its organization in 1870.

PORTRAIT OF THOMAS A. SCOTT 1060

The contract of the South Improvement Company with the Pennsylvania Railroad was signed by Mr. Scott, then vice-president of the road.

PORTRAIT OF WILLIAM H. VANDERBILT 1060

The contract of the South Improvement Company with the New York Central was signed by Mr. Vanderbilt, then vice-president of the road.

PORTRAIT OF JAY GOULD 1060

President of the Erie Railroad in 1872. Signer of the contract with the South Improvement Company.

PORTRAIT OF COMMODORE CORNELIUS VANDERBILT 1060

President of the New York Central Railroad when the contract with the South Improvement Company was signed.

PORTRAIT OF JOHN D. ARCHBOLD IN 1872 1074

Now vice-president of the Standard Oil Company. Mr. Archbold, whose home, in 1872, was in Titusville, Pennsylvania, although one of the youngest refiners of the Creek, was one of the most active and efficient in breaking up the South Improvement Company.

PORTRAIT OF HENRY H. ROGERS IN 1872 1088

Now president of the National Transit Company and a director of the Standard Oil Company. The opposition to the South Improvement Company among the New York refiners was led by Mr. Rogers.

PORTRAIT OF M. N. ALLEN 1110

Independent refiner of Titusville. Editor of the _Courier_, an able opponent of the South Improvement Company.

PORTRAIT OF JOHN FERTIG 1110

Prominent oil operator. Until 1893 active in Producers’ and Refiners’ Company (independent).

PORTRAIT OF CAPT. WILLIAM HASSON 1110

President of the Petroleum Producers’ Association of 1872.

PORTRAIT OF JOHN L. McKINNEY 1110

Prominent oil operator. Until 1889 an independent. Now member of the Standard Oil Company.

PORTRAIT OF JAMES S. TARR 1122

Owner of the “Tarr Farm,” one of the richest oil territories on Oil Creek.

PORTRAIT OF WILLIAM BARNSDALL 1122

The second oil well on Oil Creek was put down by Mr. Barnsdall.

PORTRAIT OF JAMES S. McCRAY 1122

Owner of the McCray Farm near Petroleum Centre.

PORTRAIT OF WILLIAM H. ABBOTT 1122

One of the most prominent of the early oil producers, refiners and pipe-line operators.

FLEET OF OIL BOATS AT OIL CITY IN 1864 1136

PORTRAIT OF GEORGE H. BISSELL 1146

Founder of the first oil company in the United States.

PORTRAIT OF JONATHAN WATSON 1146

One of the owners of the land on which the first successful well was drilled for oil.

PORTRAIT OF SAMUEL KIER 1146

The first petroleum refined and sold for lighting purpose was made by Mr. Kier in the ’50s in Pittsburg.

PORTRAIT OF JOSHUA MERRILL 1146

The chemist and refiner to whom many of the most important processes now in use in making illuminating and lubricating oils are due.

PORTRAIT OF A. J. CASSATT IN 1877 1184

Third vice-president of the Pennsylvania Railroad in charge of transportation when first contract was made by that road with the Standard Oil Company.

PORTRAIT OF GENERAL GEORGE B. McCLELLAN 1184

President of the Atlantic and Great Western Railroad at the time of the South Improvement Company. General McClellan did not sign the contract.

PORTRAIT OF GENERAL JAMES H. DEVEREUX 1184

Who in 1868 as vice-president of the Lake Shore and Michigan Southern Railroad first granted rebates to Mr. Rockefeller’s firm.

PORTRAIT OF JOSEPH D. POTTS 1184

President of the Empire Transportation Company. Leader in the struggle between the Pennsylvania Railroad and the Standard Oil Company in 1877.

WOODEN CAR TANKS 1212

BOILER TANK CARS 1212

WOODEN TANKS FOR STORING OIL 1212

RAILROAD TERMINAL OF AN EARLY PIPE LINE 1212

PORTRAIT OF E. G. PATTERSON 1248

From 1872 to 1880 the chief advocate in the Oil Region of an interstate commerce law. Assisted in drafting the bills of 1876 and 1880. Abandoned the independent interests at the time of the compromise of 1880.

PORTRAIT OF ROGER SHERMAN 1248

Chief counsel of the Petroleum Producers’ Union from 1878 to 1880. From 1880 to 1885 counsel for the Standard Oil Company. From 1885 to his death in 1893 counsel of the allied independents.

PORTRAIT OF BENJ. B. CAMPBELL 1248

President of the Petroleum Producers’ Union from 1878 to 1880. Independent refiner and operator until his death.

PORTRAIT OF JOSIAH LOMBARD 1248

Prominent independent refiner of N. Y. City, whose firm was the only one to keep its contract with the Tidewater Pipe Line Company in 1880.

THE HISTORY OF

THE STANDARD OIL COMPANY