Muckrakers and#8212; a term coined in 1906 by President Theodore Roosevelt and#8212; referred to American journalists, novelists and critics who, in the early 20th century, attempted to expose corruption in politics and the abuses of big business. One publication spearheading these exposand#233;s was McClures Magazine, and Ida Tarbell was the writer whose dramatic revelations eventually lead to effective regulation of the Standard Oil Company. Her story, serialized by McClure's in 1902 and 1903, tells the history of John D. Rockefeller's company. The first major industrial monopoly in the U.S., Standard Oil, in 1901, was the largest corporation in the country, and at its peak, controlled as much as eighty-five percent of oil refining in America. But with all his wealth and power, Rockfeller could not protect himself from Tarbell. Her story of the company, which became a model for militant journalists in the future, managed to place the blame for increasingly commercialized American ideals and practical behavior at Rockefeller's doorstep. Combining descriptions of his business practices with his personal characteristics and even his physical appearance, Tarbell created an image of a cunning and ruthless person and#8212; a picture that not even decades of Rockefeller philanthropy were able to dispel. This edition (the "briefer version" of her book; the original was more than 800 pages.) makes a great muckraking classic much more accessible to readers. As such, it will be invaluable to students and teachers of American economic history and a fascinating read for anyone interested in the muckraking era and the days of unregulated big business.
Introduction
About the Editor
Note
Author's Preface
1. THE BIRTH OF AN INDUSTRY
and#160; Petroleum first a curiosity and then a medicine
and#160; Discovery of its real value
and#160; The story of how it came to be produced in large quantities
and#160; Great flow of oil
and#160; Swarm of problems to solve
and#160; Storage and transportation
and#160; Refining and marketing
and#160; Rapid extension of the field of operation
and#160; Workers in great numbers with plenty of capital
and#160; Costly blunders frequently made
and#160; But every difficulty being met and overcome
and#160; The normal unfolding of a new and wonderful opportunity for individual endeavour
2. THE RISE OF THE STANDARD OIL COMPANY
and#160; John D. Rockefeller's first connection with the oil business
and#160; Stories of his early life in Cleveland
and#160; His first partners
and#160; "Organisation of the Standard Oil Company in June, 1870"
and#160; Rockefeller's able associates
and#160; First evidence of railway discriminations in the oil business
and#160; Rebates found to be generally given to large shippers
and#160; First plan for a secret combination
and#160; The South Improvement Company
and#160; Secret contracts made with the railroads providing rebates and drawbacks
and#160; Rockefeller and associates force Cleveland refiners to join the new combination or sell
and#160; Rumour of the plan reaches the oil regions
3. THE OIL WAR OF 1872
and#160; Rising in the oil regions against the South Improvement Company
and#160; Petroleum Producers' Union organised
and#160; Oilblockade against members of South Improvement Company and against railroads implicated
and#160; Congressional investigation of 1872 and the documents it revealed
and#160; Public discussion and general condemnation of the South Improvement Company
and#160; Railroad officials confer with committee from Petroleum Producers' Union
and#160; Watson and Rockefeller refused admittance to conference
and#160; Railroads revoke contracts with South Improvement Company and make contract with Petroleum Producers' Union
and#160; Blockade against South Improvement Company lifted
and#160; Oil war officially ended
and#160; Rockefeller continues to get rebates
and#160; His great plan still a living purpose
4. "AN UNHOLY ALLIANCE"
and#160; Rockefeller and his party now propose an open instead of a secret combination
and#160; "The Pittsburg Plan"
and#160; The scheme is not approved by the oil regions because its chief strength is the rebate
and#160; Rockefeller not discouraged
and#160; Three months later becomes president of National Refiners' Association
and#160; Four-fifths of refining interest of United States with him
and#160; Oil regions aroused
and#160; Producers' Union order drillings stopped and a thirty day shut-down to counteract falling price of crude
and#160; Petroleum Producers' Agency formed to enable producers to control their own oil
and#160; Rockefeller outgenerals his opponents and forces a combination of refiners and producers
and#160; Producers' association and producers' agency snuffed out
and#160; National Refiners' Association disbands
and#160; Rockefeller steadily gaining ground
5. LAYING THE FOUNDATIONS OF A TRUST
and#160; Evidence of reappearance of rebates soon after agreement of March 25 is signed
and#160; Principle thoroughly established that large shippers shall have advantages over small shippers in spite of railroads' duty as common carriers
and#160; Agreement worked out by which three roads are to have fixed percentage of eastern shipments
and#160; Oil regions robbed of their geographical advantage
and#160; The Rutter circular
and#160; The Rockefeller circular
and#160; Rockefeller now secretly plans realisation of his dream of personal control of the refining of oil
and#160; Organisation of the Central Association
and#160; H. H. Rogers' defence of the plan
and#160; Rockefeller's quiet and successful canvass for alliances with refiners
and#160; The rebate his weapon
and#160; Consolidation by persuasion or force
and#160; More talk of a united effort to counteract the movement
6. STRENGTHENING THE FOUNDATIONS
and#160; First Interstate Commerce Bill
and#160; The bill pigeon-holed through efforts of Standard's friends
and#160; Independents seek relief by proposed construction of pipe-lines
and#160; Plans for the first Seaboard Pipe-line
and#160; Scheme fails on account of mismanagement and Standard and railroad opposition
and#160; Development of the Empire Transportation Company and its proposed connection with the refining business
and#160; "Stand, Erie and Central fight the Empire Transportation Company and its backer, the Pennsylvania Railroad"
and#160; The Pennsylvania finally quits after a bitter and costly war
and#160; Empire Line sold to the Standard
and#160; Entire pipe-line system of oil regions now in Rockefeller's hands
and#160; New railroad pool between four roads
and#160; Rockefeller puts into operation system of drawbacks on other people's shipments
and#160; He proceeds rapidly with the work of absorbing rivals
7. THE CRISIS OF 1878
and#160; A rise in oil
and#160; A blockade in exports
and#160; Producers do not get their share of the profits
and#160; They secretly organise the Petroleum Producers' Union and promise to support proposed independent pipe-lines
and#160; Another Interstate Commerce Bill defeated at Washington
and#160; "Immediate Shipment"
and#160; Independents have trouble getting cars
and#160; Riots threatened
and#160; Appeal to Governor Hartranft
and#160; "Suits brought against United Pipe-lines, Pennsylvania Railroad and others "
and#160; Investigations precipitated in other states
and#160; The Hepburn Commission and the Ohio investigation
and#160; Evidence that the Standard is a continuation of the South Improvement Company
and#160; Producers finally decide to proceed against Standard officials
and#160; Rockefeller and eight of his associates indicted for conspiracy
8. THE COMPROMISE OF 1880
and#160; The producers' suit against Rockefeller and his associates used by the Standard to protect itself
and#160; Suits against the transportation companies are delayed
and#160; Trial of Rockefeller and his associates for conspiracy postponed
and#160; All of the suits withdrawn in return for agreements of the Standard and the Pennsylvania to cease their practices against the producers
and#160; With this compromise the Second Petroleum Producers' Union comes to an end
and#160; Producers themselves to blame for not standing behind their leaders
and#160; Standard again enforces orders objectionable to producers
and#160; More outbreaks in the oil regions
and#160; Rockefeller having silenced organised opposition proceeds to silence individual complaint
9. THE FIGHT FOR THE SEABOARD PIPE-LINE
and#160; Project for Seaboard Pipe-line pushed by independents
and#160; Tidewater Pipe Company formed
and#160; Oil pumped over mountains for the first time
and#160; Independent refiners ready to unite with Tidewater because it promises to free them from railroads
and#160; The Standard face to face with a new problem
and#160; Day of the railroads over as long distance transporters of oil
and#160; National Transit Company formed
and#160; War on the Tidewater begun
and#160; Plan to wreck its credit and buy it in
and#160; Rockefeller buys a third of the Tidewater's stock
and#160; The Standard and Tidewater become allies
and#160; National Transit Company now controls all pipe-lines
and#160; Agreement entered into with Pennsylvania Railroad to divide the business of transporting oil
10. CUTTING TO KILL
and#160; Rockefeller now plans to organise oil marketing as he had already organised oil transporting and refining
and#160; Wonderfully efficient and economical system installed
and#160; Curious practices introduced
and#160; Reports of competitors' business secured from railway agents
and#160; Competitors' clerks sometimes secured as allies
and#160; In many instances full records of all oil shipped are given Standard by railway and steamship companies
and#160; This information is used by Standard to fight competitors
and#160; Competitors driven out by underselling
and#160; Evidence from all over the country
and#160; Pretended independent oil companies started by the Standard
and#160; Standard's explanation of these practices is not satisfactory
and#160; Public derives no benefit from temporary lowering of prices
and#160; Prices made abnormally high when competition is destroyed
11. THE WAR ON THE REBATE
and#160; Rockefeller's silence
and#160; Belief in the oil regions that combined opposition to him was useless
and#160; Individual opposition still conspicuous
and#160; "The Standard's suit against Scofield, Shurmer and Teagle"
and#160; Seeks to enforce an agreement with that firm to limit output of refined oil
and#160; "Scofield, Shurmer and Teagle attempt to do business independently of the Standard and its rebates"
and#160; Find their lot hard
and#160; They sue the Lake Shore and Michigan Southern Railway for discriminating against them
and#160; A famous case and one the railway loses
and#160; Another case in this war of individuals on the rebate shows the Standard still to be taking drawbacks
and#160; The case of George Rice against the Receiver of the Cincinnati and Marietta Railroad
12. THE BUFFALO CASE
and#160; The Standard buys three-fourths of the Vacuum Oil Works of Rochester
and#160; Two Vacuum employees establish Buffalo Lubricating Oil Company and take with them an experienced Stillman from the Vacuum
and#160; The Buffalo Lubricating Oil Company has an explosion and the Stillman suddenly leaves
and#160; The Buffalo Lubricating Oil Company is sued by Vacuum for infringement of patents
and#160; Matthews sues the Everests of the Vacuum for deliberately trying to ruin his business
and#160; Matthews wins his first civil suit
and#160; "He files a second suit for damages, and secures the indictment of several Standard officials for criminal conspiracy"
and#160; "Rogers, Archbold and McGregor acquitted"
and#160; The Everests fined
13. THE STANDARD OIL COMPANY AND POLITICS
and#160; Oil men charged Standard with intrenching itself in state and national politics
and#160; Election of Payne to Senate in Ohio in 1884 claimed to establish charge of bribery
and#160; Full investigation of Payne's election denied by United States Senate Committee on Elections
and#160; Payne himself does not demand investigation
and#160; Popular feeling against Standard is aggravated
and#160; The Billingsley Bill in the Pennsylvania Legislature
and#160; A force bill directed against the Standard
and#160; Oil men fight hard for it
and#160; The bill is defeated
and#160; Standard charged with using money against it
and#160; A growing demand for full knowledge of the Standard a result of these specific cases
14. THE BREAKING UP OF THE TRUST
and#160; Epidemic of trust investigation in 1888
and#160; Standard investigated by New York State Senate
and#160; Rockefeller's remarkable testimony
and#160; Inquiry into the nature of the mysterious Standard Oil Trust
and#160; Original Standard Oil Trust agreement revealed
and#160; Investigation of the Standard by Congress in 1888
and#160; As a result of the uncovering of the Standard Oil Trust agreement Attorney-General Watson of Ohio begins an action in quo warranto against the trust
and#160; Marcus A. Hanna and others try to persuade Watson not to press the suit
and#160; Watson persists
and#160; Court finally decides against Standard and trust is forced to make an apparent dissolution
15. A MODERN WAR FOR INDEPENDENCE
and#160; Producers' Protective Association formed
and#160; A secret independent organization intended to handle its own oil
and#160; Agreement made with Standard to cut down production
and#160; Results of agreements not as beneficial to producers as expected
and#160; "Producers proceed to organise Producers' Oil Company, limited"
and#160; Independent refiners agree to support movement
and#160; Producers and refiners' company formed
and#160; "Lewis Emery, Jr.'s, fight for Seaboard Pipe-line"
and#160; The United States Pipe line
and#160; Standard's desperate opposition
and#160; Independent refiners almost worn out
and#160; They are relieved by formation of Pure Oil Company
and#160; Pure Oil Company finally becomes head of Independent Consolidation
and#160; "Independence possible, but competition not restored"
16. THE PRICE OF OIL
and#160; Earliest designs for consolidation include plans to hold up the price of oil
and#160; South Improvement Company so intends
and#160; Combination of 1872-1873 makes oil dear
and#160; Scheme fails and prices drop
and#160; The Standard's great profits in 1876-1877 through its second successful consolidation
and#160; Return of competition and lower prices
and#160; Standard's futile attempt in 1880 to repeat raid of 1876-1877
and#160; Standard is convinced that making oil too dear weakens markets and stimulates competition
and#160; Great profits of 1879-1889
and#160; Lowering of the margin on export since 1889 by reason of competition
and#160; Manipulation of domestic prices even more marked
and#160; Home consumers pay cost of Standard's fights in foreign lands
and#160; Standard's various prices for the same goods at home
and#160; High prices where there is no competition and low prices where there is competition
17. THE LEGITIMATE GREATNESS OF THE STANDARD OIL COMPANY
and#160; Centralisation of authority
and#160; Rockefeller and eight other trustees managing things like partners in a business
and#160; Newsgathering organization for collecting all information of value to the trustees
and#160; Rockefeller gets picked men for every post and contrives to make them compete with each other
and#160; Plants wisely located
and#160; The smallest details in expense looked out for
and#160; Quick adaptability to new conditions as they arise
and#160; Economy introduced by the manufacture of supplies
and#160; A profit paid to nobody
and#160; Profitable extension of products and by-products
and#160; A general capacity for seeing big things and enough daring to lay hold of them
18. CONCLUSION
and#160; Contempt proceedings begun against the Standard in Ohio in 1897 for not obeying the courts order of 1892 to dissolve the trust
and#160; Suits begun to oust four of the Standard's constituent companies for violation of Ohio anti-trust laws
and#160; All suits dropped because of expiration of Attorney-General Monnett's term
and#160; Standard persuaded that its only corporate refuge is New Jersey
and#160; "Capital of the Standard Oil Company of New Jersey increased, and all Standard Oil business taken into new organisation "
and#160; Restriction of New Jersey law small
and#160; Profits are great and Standard's control of oil business is almost absolute
and#160; Standard Oil Company essentially a realisation of the South Improvement Company's plans
and#160; "The crucial question now, as always, is a transportation question"
and#160; The trust question will go unsolved so long as the transportation question goes unsolved
and#160; The ethical questions involved