wells to railroad centers; from these stations the railroads transported it to the refineries at Cleveland, New York, and other places. At an early day the construction and management of these pipe lines became a separate industry. And now, in 1873, the Standard Oil Company secured possession of a one-third interest in the largest of these privately owned companies, the American Transfer Company. Soon afterward the United Pipe Line Company went under their control. In 1877 the Empire Transportation Company, a large pipe line and refining corporation which the Pennsylvania Railroad had controlled for many years, became a Standard subsidiary.

Meanwhile certain hardy spirits in the oil regions had conceived a much more ambitious plan. Why not build great underground mains directly from the oil regions to the seaboard, pump the crude oil directly to the city refineries, and thus free themselves from dependence on the railroads? At first the idea of pumping oil through pipes over the Alleghany Mountains seemed grotesque, but competent engineers gave their indorsement to the plan. A certain "Dr." Hostetter built for the Columbia Conduit Company a trunk pipe line that extended thirty miles from the oil regions to Pittsburgh. Hardly had Hostetter completed his splendid project when the Standard Oil capitalists quietly appeared and purchased it! For four years another group struggled with an even more ambitious scheme, the construction of a conduit, five hundred miles long, from the oil regions to Baltimore. The American people looked on admiringly at the splendid enterprise whose projectors, led by General Haupt, the builder of the Hoosac Tunnel, struggled against bankruptcy, strikes, railroad opposition, and hostile legislatures, in their attempts to push their pipe line to the sea. In 1879 the Tidewater Company first began to pump their oil, and the American press hailed their achievement as something that ranked with the laying of the Atlantic Cable and the construction of the Brooklyn Bridge. But in less than two years the Rockefeller interest had entered into agreements with the Tidewater Company that practically placed this great seaboard pipe line in its hands.

Thus in less than ten years Rockefeller had realized his ambitious dream; he now controlled practically everything concerned in the manufacture and sale of petroleum. The change had come about so stealthily, so secretly, and even so remorselessly that it impressed the public almost as the work of some uncanny genius. What were the forces, personal and economic, that had produced this new phenomenon in our business life? In certain particulars the Standard Oil monopoly was the product of well-understood principles. From his earliest days John D. Rockefeller had struggled to eliminate the middleman. He established factories to build his own barrels, to make his own acids; he created his own selling firms, and, instead of paying large storage charges, he constructed his own warehouses in New York. From his earliest days as a refiner, he had adopted the principle of paying no man a profit, and of performing all the intermediate acts that had formerly resulted in large tribute to middlemen. Moreover, the Standard Oil Company was apparently the first great American industrial enterprise that realized the necessity of operating with an abundant capital. Not the least of Mr. Rockefeller's achievements was his success in associating with the new company men having great financial standing—Amasa Stone, Benjamin Brewster, Oliver Jennings, and the like, capitalists whose banking resources, placed at the disposition of the Standard, gave it an immense advantage over its rivals. While his competitors were "kiting" checks and waiting, hat in hand, on the good nature of the money lenders, Rockefeller always had a large bank balance, upon which he could instantly draw for his operations.

Nor must we overlook the fact that the Standard group contained a large number of exceedingly able men. "They are mighty smart men," said the despairing W. H. Vanderbilt, in 1879, when pressed to give his reasons for granting rebates to the Rockefeller group. "I guess if you ever had to deal with them you would find that out." In Rockefeller the corporation possessed a man of tireless industry and unshakable determination. Nothing could turn him aside from the work to which he had put his hand. Public criticism and even denunciation, while he resented it as unjust and regarded it as the product of a general misunderstanding, never caused the leader of Standard Oil even momentarily to flinch. He was a man of one idea, and he worked at it day and night, taking no rest or recreation, skillfully turning to his purpose every little advantage that came his way. His associates—men like Flagler, Archbold, and Rogers—also had unusual talents, and together they built up the splendid organization that still exists. They exacted from their subordinates the last ounce of attention and energy and they rewarded generously everybody who served them well. They showed great judgment in establishing refineries at the most strategic points and in giving up localities, such as Boston and Portland, which were too far removed from their supplies. They established a marketing system which enabled them to bring their oil directly from their own refineries to the retailer, all in their own tank cars and tank wagons. They extended their markets in foreign countries, so that now the Standard sells the larger part of its products outside the United States. They established chemical research laboratories which devised new and inexpensive methods for refining the product and developed invaluable byproducts, such as paraffin, naphtha, vaseline, and lubricating oils. It is impossible to study the career of the Standard Oil Company without concluding that we have here an example of a supreme business intelligence working in a field which gave the widest possible scope of action.

A high quality of organization, however, does not completely explain the growth of this monopoly. The Standard Oil Company was the beneficiary of methods that have deservedly received great public opprobrium. Of these the one that stands forth most conspicuously is the railroad rebate. Those who have attempted to trace the very origin of the Rockefeller preeminence to railroad discrimination have not entirely succeeded. Only the most hazy evidence exists that the firm of Rockefeller, Andrews, and Flagler greatly profited from rebates. In fact, refined oil was not transported from Cleveland to the seaboard by railroad until 1870, the year that this firm dissolved; practically all of the product then went by way of the Great Lakes and the Erie Canal. Possibly the Rockefeller firm did get occasional rebates on crude oil from the oil regions to the refineries, but so did their competitors. It is therefore not likely that such favors had great influence in making this single firm the most successful in the largest refining center. With the organization of the Standard Oil Company, however, rebates became a more important consideration.

The turning-point in the history of the oil industry came when the Rockefeller interests acquired the Cleveland refineries. The details concerning this act of generalship are fairly well known. The South Improvement Company is a corporation that necessarily bulks large in the history of the Standard Oil. Mr. Rockefeller and his associates have always disclaimed the parentage of this organization. They assert—and their assertion is doubtless true—that the only responsible begetters were Thomas A. Scott, President of the Pennsylvania Railroad, and certain refineries in Pittsburgh and Philadelphia which, though they were afterwards absorbed by the Standard, were at that time their competitors. These refiners and the Pennsylvania, over which the Standard Oil then was making no shipments, thus represented a group, composed of railroads and refiners, which was antagonistic to the Rockefeller interests. The South Improvement Company was an association of refiners with which the railroads, chiefly the