“Through the 1870s and ’80s, Standard Oil invested in the construction of pipelines to connect the wells of the oil fields with the refineries. Enormous profits gave the firm the capital to invest in staying steps ahead of the competition. A gang of twenty-eight men could bury a six-inch pipe
in a ditch at a pace of two-thirds of a mile per day. By this method, Standard Oil built a pipeline network connecting Philadelphia, Baltimore, Buffalo, Pittsburgh, and Cleveland to the oil fields of Pennsylvania. They even connected Bayonne, New Jersey, to a refinery on Long Island with a
pipe that ran under the Hudson River, across the southern edge of Manhattan’s Central Park, and under the East River.
Anyone looking to move crude oil from the wells had to go through Standard Oil.
Rockefeller then moved into the retail market in the 1880s. Standard Oil wagons pulled by horses moved across country lanes and city streets
bringing kerosene for cooking and lighting directly to people’s homes.
By the early 1880s, the goal of monopoly in America was complete. Though Rockefeller declared his ability to make money was a gift from God, he was very careful “not to show it off. Secrecy was tantamount. Once when Rockefeller was riding a train back to Cleveland, a fellow passenger
remarked on a beautiful and extravagant mansion on a hill, visible from the train. The home was owned by a senior executive at Standard Oil.
Upon arrival at the Cleveland office, Rockefeller reviewed the payroll
books, determined the executive was overpaid, and reduced his salary. Rockefeller knew that great wealth attracted competition, negative coverage in the press, and the unwanted attention of the federal government. Rockefeller invested enormous capital to build the infrastructure that
would ensure the massive and steady supply of oil to the world. What he relied upon, but could not control, was the world’s steady demand for his product.
”
Excerpt From
The Mysterious Case of Rudolf Diesel
Douglas Brunt
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