Standard Oil
Years: 1870 - 1882
Standard Oil is a predominant American integrated oil producing, transporting, refining, and marketing company.
Established in 1870 as a corporation in Ohio, it is the largest oil refiner in the world and operates as a major company trust and is one of the world's first and largest multinational corporations until it is broken up by the United States Supreme Court in 1911.John D. Rockefeller is a founder, chairman and major shareholder.
As it grows exponentially and engages in business strategies, tactics and practices that are lawful but drive many smaller businesses under, Standard Oil becomes widely criticized in the public eye, even as it makes Rockefeller the richest man in modern history.
Other notable Standard Oil principals include Henry Flagler, developer of Florida's Florida East Coast Railway and resort cities, and Henry H. Rogers, who builds the Virginian Railway (VGN), a well-engineered highly efficient line dedicated to shipping southern West Virginia's bituminous coal to port at Hampton Roads.
Related Events
Filter results
Showing 10 events out of 10 total
Standard Oil absorbs twenty-two of its twenty-six Cleveland competitors in less than four months in 1872, in what will later be known as "The Cleveland Conquest" or "The Cleveland Massacre".
John D. Rockefeller had in January 1870 formed Standard Oil of Ohio, which had rapidly become the most profitable refiner in Ohio and has grown to become one of the largest shippers of oil and kerosene in the country.
The railroads are fighting fiercely for traffic and, in an attempt to create a cartel to control freight rates, had formed the South Improvement Company, a Pennsylvania corporation, in the fall of 1871, in collusion with Standard and other oil men outside the main oil centers.
The cartel receives preferential treatment as a high-volume shipper, which includes not just steep rebates of up to fifty percent for their product, but also rebates for the shipment of competing products.
Founded by Thomas A. Scott, president of the Union Pacific Railroad in 1871-1872, the South Improvement Company had issued two thousand shares of stock, of which nine hundred are controlled by Rockefeller and his partners.
Rockefeller had then started negotiations to collude with the three major railroads running through Cleveland: the Pennsylvania Railroad, the Erie, and the New York Central.
The result of these secret negotiations were as follows: (1) The official rate per barrel from Cleveland to New York will be $2.56, but South Improvement will receive a $1.06 rebate; (2) The railroads will also pay South Improvement $1.06 per barrel of oil shipped that is not produced by South; (3) The railroads will also give reports of the shipping destinations, costs, and dates of all of South's competitors; (4) The commerce will be divided evenly among the railroads, with a double share going to Pennsylvania Railroad; and (5) South will provide tank cars and loading facilities.
The secret concessions would have helped lessen the "vicious" competition among the railroad lines by giving a steady, standardized flow of commerce, but word leaks out of the South Improvement Scheme, and the proposed one hundred percent increase in rail shipping rates inflames the independent producers and many smaller refineries.
Following a summit and vocal protest by the independent oil producers and refiners led by Pratt and Rogers of the Charles Pratt and Company refining interests of Brooklyn, New York, which comes close to physical warfare, including boycotts and vandalism, in western Pennsylvania in March 1872 (and comes to be known as the "Oil War"), the railroads soon agree to back down.
Pennsylvania revokes the cartel’s charter and equal rates are restored for the time being.
Although Rockefeller will become the target of many who decry Standard Oil's ruthlessness in subsequent years, the South Improvement rebate scheme had been Flagler's idea.
Undeterred, though vilified for the first time by the press, Rockefeller continues with his self-reinforcing cycle of buying competing refiners, improving the efficiency of his operations, pressing for discounts on oil shipments, undercutting his competition, making secret deals, raising investment pools, and buying rivals out.
Even Charles Pratt and Henry H. Rogers, Rockefellers’ former antagonists, eventually see the futility of continuing to compete against Standard Oil: in 1874, they make a secret agreement with their old nemesis to be acquired.
Pratt and Rogers become Rockefeller's partners.
Rogers, in particular, becomes one of Rockefeller's key men in the formation of the Standard Oil Trust.
Pratt's son, Charles Millard Pratt, will eventually become Secretary of Standard Oil.
For many of his competitors, Rockefeller has merely to show them his books so they can see what they are up against, then make them a decent offer.
If they refuse his offer, he tells them he will run them into bankruptcy, then cheaply buy up their assets at auction.
He sees himself as the industry’s savior, "an angel of mercy", absorbing the weak and making the industry as a whole stronger, more efficient, and more competitive.
Northeastern North America
(1876 to 1887 CE): Indigenous Relocation, Industrial Consolidation, Infrastructure Standardization, and Political Evolution
Between 1876 and 1887, Northeastern North America underwent significant transitions in indigenous relations, infrastructure development, industrial growth, and political changes. This era saw the continued reshaping of regional economies, further integration through technological advancements, and notable shifts in governance.
Indigenous Affairs and Relocations
In 1876, Fort Belknap was discontinued, prompting the Gros Ventre and Assiniboine peoples receiving annuities there to relocate to Fort Peck and Wolf Point agencies. While the Assiniboine relocated without objection, the Gros Ventre refused due to tensions with the Sioux, forfeiting their annuities rather than move. The Fort Belknap Agency was reinstated in 1878, allowing the Gros Ventre and remaining Assiniboine to resume receiving supplies at the site.
Industrial Growth and Standardization
Bluestone Industry and Infrastructure
Bluestone continued as a critical construction material, shaping urban architecture and infrastructure. An eighteen-mile road built from bluestone "tracks" supported heavy wagon transport from quarries in villages later submerged by the Ashokan Reservoir, passing through Kingston down to Wilbur on Rondout Creek. Shipments from these areas, notably by entrepreneur Thomas Cornell's barges and tugboats, supplied urban areas like New York City extensively.
Kingston’s sidewalks and curbstones remained almost entirely bluestone, and notable buildings included Kingston's Old Dutch Church, designed by Minard Lefever, constructed from native bluestone blocks. Bluestone was also prominently used in residential architecture, exemplified by Henry Samson's Italian villa on West Chestnut Street.
Continental Time Zones
In this era, U.S. and Canadian railroads introduced five standard continental time zones, resolving confusion from thousands of local timekeeping systems and significantly aiding in transportation coordination and commerce.
Corporate Expansion
Industrial consolidation accelerated notably, with corporations such as Standard Oil becoming the world’s largest company. Trusts emerged to dominate commodities including oil, whiskey, sugar, and lead, signaling a growing concentration of economic power.
Political Evolution
Political transitions marked this period, beginning with Rutherford B. Hayes assuming the presidency in 1877following a contentious election against Democrat Samuel J. Tilden. Subsequent leaders, including short-tenured President James A. Garfield, assassinated in 1881, and his successor Chester A. Arthur, continued to steer national policy amidst rapid societal and economic changes. The facial hair of these presidents, evolving in style and prominence, reflected broader cultural trends of the period.
Legacy of the Era (1876–1887 CE)
The developments between 1876 and 1887 highlighted continuing indigenous struggles, significant technological advancements, economic centralization, and ongoing political shifts, all of which further defined Northeastern North America’s evolving character and historical trajectory.
Trusts are created to control oil, whiskey, sugar, lead and other commodities.
Standard Oil becomes the world’s largest company.
John D. Rockefeller’s Standard Oil Company is growing horizontally and vertically, adding its own pipelines, tank cars, and home delivery network.
It keeps oil prices low to stave off competitors, makes its products affordable to the average household, and to increase market penetration, sometimes sells below cost if necessary.
It has developed over three hundred oil-based products from tar to paint to Vaseline petroleum jelly to chewing gum.
In collusion with other Rockefeller companies, Standard Oil controls eighty-five percent of the US oil industry by 1878.
By the end of the 1870s, Standard is refining over 90% of the oil in the U.S.
Rockefeller has already become a millionaire.
Standard had clashed in 1877 with the Pennsylvania Railroad, its chief hauler.
Rockefeller had envisioned the use of pipelines as an alternative transport system for oil and had begun a campaign to build and acquire them.
The railroad, seeing Standard’s incursion into the transportation and pipeline fields, had struck back and formed a subsidiary to buy and build oil refineries and pipelines.
Standard had countered and held back its shipments, and with the help of other railroads, started a price war that had dramatically reduced freight payments and caused labor unrest as well.
Rockefeller eventually prevailed and the railroad sold all its oil interests to Standard, but in the aftermath of that battle, in 1879, the Commonwealth of Pennsylvania indicts Rockefeller on charges of monopolizing the oil trade, starting an avalanche of similar court proceedings in other states and making a national issue of Standard Oil’s business practices.
Standard Oil has gradually gained almost complete control of oil refining and marketing in the United States through horizontal integration.
In the kerosene industry, Standard Oil has replaced the old distribution system with its own vertical system.
It supplies kerosene by tank cars that bring the fuel to local markets and tank wagons then deliver to retail customers, thus bypassing the existing network of wholesale jobbers.
Its vast American empire includes twenty thousand domestic wells, four thousand miles of pipeline, five thousand tank cars, and over one hundred thousand employees.
Despite improving the quality and availability of kerosene products while greatly reducing their cost to the public (the price of kerosene will drop by nearly eighty percent over the life of the company), Standard Oil's business practices create intense controversy.
Standard’s most potent weapons against competitors are underselling, differential pricing, and secret transportation rebates.
The firm will be attacked by journalists and politicians throughout its existence, in part for these monopolistic methods, giving momentum to the anti-trust movement.
Standard has ninety percent of American refining capacity in 1880, by which time, according to the New York World, Standard Oil is "the most cruel, impudent, pitiless, and grasping monopoly that ever fastened upon a country."
To the critics Rockefeller replies, "In a business so large as ours … some things are likely to be done which we cannot approve. We correct them as soon as they come to our knowledge.” (Segall, Grant (2001). John D. Rockefeller: Anointed With Oil. Oxford University Press. p. 60.)
Samuel Calvin Tate Dodd devises the trust arrangement to solidify Rockefeller’s control over his various acquisitions and in order to avoid state controls.
Dodd, Standard Oil’s legal counsel, who has helped to organize Standard Oil as one of the earliest large holding companies, creates the business trust arrangement that enables Rockefeller's control of many oil companies.
A North Carolina-based railroad is, according to some researchers, the actual owner of Standard Oil.
The Standard Oil Trust will soon absorb virtually all other oil companies.
Northeastern North America
(1888 to 1899 CE): Industrial Titans, Immigration, Public Health, and Cultural Evolution
Between 1888 and 1899, Northeastern North America witnessed extraordinary industrial expansion, intensified immigration, health crises, cultural shifts, and significant political evolution. These years shaped the region through economic consolidation, urbanization, and profound social changes.
Rise of Industrial Titans
Rapid economic growth gave rise to powerful industrialists, including Cornelius Vanderbilt in railroads, John D. Rockefeller in petroleum, and Andrew Carnegie in steel. Banking emerged as a key economic driver, notably under the guidance of financier J. P. Morgan. Technological innovations by Thomas Edison and Nikola Tesla transformed urban life, distributing electricity broadly for industry, home use, and street lighting.
Trusts and Monopolies
Corporations such as Standard Oil dominated their industries. The formation of monopolistic trusts extended beyond oil to sugar, whiskey, and lead. After the Sugar Trust was ruled illegal in 1891, Henry Osborne Havemeyer and Theodore A. Havemeyer were elected chairman and president, respectively, of the American Sugar Refining Company, which in May 1896 became one of the original twelve companies listed in the Dow Jones Industrial Average. After absorbing the E.C. Knight Company and others, it controlled ninety-eight percent of sugar refining in America, surviving a Supreme Court antitrust challenge in 1895.
Immigration and Urbanization
Urban centers swelled with immigrants, especially from Southern and Eastern Europe, creating labor surpluses fueling industrial growth and significantly transforming regional culture. Nearly a quarter of the Canadian population emigrated southward to the U.S. between 1871 and 1896, reshaping the demographics further.
Public Health Challenges
Massive immigration and urban growth intensified public health crises. Infectious diseases caused severe fatalities, with an estimated twenty-five to thirty-three percent mortality among European immigrants to Canada before 1891. Cholera outbreaks, notably in Chicago in 1854, underscored ongoing urban health vulnerabilities.
Cultural and Social Shifts
The late nineteenth century saw heightened narcotic consumption, particularly opium. By 1896, American addiction peaked at over three hundred thousand individuals. Sensationalist media coverage by publishers like William Randolph Hearst fueled xenophobic fears, associating narcotic use with immigrants and criminals, prompting early narcotics regulation.
Intellectual and Cultural Trends
Robert G. Ingersoll, known as "the great agnostic," popularized scientific rationalism, humanism, and higher criticism of religious texts. His compelling lectures attracted national attention, influencing public discourse with intellectual vigor and challenging established orthodoxies.
Hudson River School artists, including John Frederick Kensett, George Inness, and Frederick Edwin Church, reached the zenith of their influence, romanticizing American landscapes and reinforcing the cultural identity rooted in the natural environment.
Fashion shifted toward more relaxed, country-inspired attire, with Norfolk jackets and knickerbockers—named after Washington Irving's fictional Dutch family—becoming popular among men.
Political Dynamics
Presidential elections reflected shifting political landscapes and changing cultural norms. Benjamin Harrison, notable for his full beard, defeated mustachioed incumbent Grover Cleveland in 1888. However, Cleveland reclaimed the presidency in 1892, overcoming Harrison and Populist candidate James A. Weaver. In 1896, clean-shaven Republican William McKinley defeated similarly beardless Democrat and Populist William Jennings Bryan, reflecting evolving political and social attitudes.
Legacy of the Era (1888–1899 CE)
This transformative period, marked by powerful industrial leaders, massive immigration, evolving cultural practices, and shifting political alliances, established a framework that profoundly shaped Northeastern North America's socioeconomic and cultural landscapes for decades to follow.
Northeastern North America
(1900 to 1911 CE): Progressive Reforms, Technological Advances, and Social Transformations
The period from 1900 to 1911 in Northeastern North America was characterized by progressive reforms, groundbreaking technological advancements, intensified immigration, social transformations, and rising political and economic complexities. These changes profoundly shaped the region’s trajectory, influencing both urban and rural communities.
Progressive Era Reforms
The turn of the century saw a surge of progressive activism aimed at addressing the excesses of industrialization and urbanization. Reformers advocated for improved working conditions, labor rights, and the regulation of powerful monopolies. Activists like Jane Addams established settlement houses to support immigrants and the urban poor. Antitrust efforts intensified under Presidents Theodore Roosevelt and later William Howard Taft, targeting corporate giants such as Standard Oil and the American Tobacco Company.
Technological Innovations
Technological progress reshaped everyday life. The widespread adoption of automobiles, pioneered by industrialists like Henry Ford, began to transform transportation and city landscapes. Electrification expanded rapidly, enhancing industrial productivity and household convenience. Innovations such as the Wright brothers' successful powered flight in 1903 foreshadowed a new era of aviation.
Charles Rohlfs, a prominent figure in the Arts and Crafts movement, gained international recognition during this period. In 1900, he participated in the Arts and Crafts Exhibition at the National Arts Club in New York and was notably involved as both an exhibitor and organizer of the Pan-American Exposition in Buffalo in 1901, significantly enhancing his reputation. He further distinguished himself as the only American furniture maker at the International Exposition of Decorative Art in Turin in 1902, subsequently earning membership in the Royal Society of Arts in London. After retiring from furniture making around 1907, Rohlfs became a leading advocate for child labor reform and promoted the adoption of the metric system as a leader of the Chamber of Commerce in Buffalo.
Immigration and Urban Expansion
Mass immigration continued, particularly from Southern and Eastern Europe, significantly altering urban demographics. Cities like New York, Boston, and Philadelphia experienced rapid population growth and increased cultural diversity, prompting both vibrant cultural exchanges and social tensions. Ellis Island, New York, became a primary entry point for millions of newcomers.
Public Health and Social Challenges
Urban centers struggled with public health issues such as tuberculosis, cholera, and influenza. Cholera epidemics periodically swept through major cities, including severe outbreaks in New York, prompting widespread public health reforms. Efforts to improve sanitation and living conditions gained momentum, driven by reform movements and scientific understanding. Health education and infrastructure improvements contributed to declining mortality rates, although challenges remained substantial.
Cultural and Intellectual Movements
The era witnessed significant cultural and intellectual shifts. Realism and naturalism dominated literature, exemplified by writers such as Upton Sinclair, whose novel The Jungle (1906) exposed appalling conditions in the meatpacking industry, prompting widespread public outrage and regulatory reforms.
Artistic innovation flourished through movements such as the Ashcan School, led by artists like Robert Henri and George Bellows, who captured urban realities and everyday life in vivid, unidealized portrayals.
Political Dynamics
Politically, the era was marked by dynamic leadership. President William McKinley, re-elected in 1900, was assassinated in 1901, succeeded by Vice President Theodore Roosevelt, whose progressive agenda included trust-busting, conservation efforts, and consumer protection legislation, notably the Pure Food and Drug Act of 1906. Roosevelt's "Square Deal" emphasized fairness, conservation, and the regulation of powerful interests.
In Canada, continued nation-building efforts included railway expansion, notably the completion of additional transcontinental routes facilitating further western settlement and economic growth. Canadian immigration surged, with many immigrants eventually moving southward into the United States, significantly impacting labor and demographic trends.
Legacy of the Era (1900–1911 CE)
The early twentieth century established critical foundations for modern North America. Progressive reforms, immigration waves, technological innovations, and political activism collectively reshaped the region, setting the stage for further social and economic transformations in subsequent decades.
