The American Petroleum Industry: The Age of Illumination, 1859–1899, 1959: vol 2, American Petroleum Industry: the Age of Energy 1899–1959, 1964.
Rogers, who built the Virginian Railway. ==Founding and early years== Standard Oil's pre-history began in 1863, as an Ohio partnership formed by industrialist John D.
Smaller companies decried such deals as unfair because they were not producing enough oil to qualify for discounts. Standard's actions and secret transport deals helped its kerosene price to drop from 58 to 26 cents from 1865 to 1870.
"Dominance in the Oil Industry: Standard Oil from 1865 to 1911" in David I.
In 1931, Socony merged with Vacuum Oil Co., an industry pioneer dating back to 1866, and a growing Standard Oil spin-off in its own right. In the Asia-Pacific region, Jersey Standard had oil production and refineries in Indonesia but no marketing network.
In a seminal deal, in 1868, the Lake Shore Railroad, a part of the New York Central, gave Rockefeller's firm a going rate of one cent a gallon or forty-two cents a barrel, an effective 71% discount from its listed rates in return for a promise to ship at least 60 carloads of oil daily and to handle loading and unloading on its own.
Established in 1870 by John D.
In 1870, Rockefeller abolished the partnership and incorporated Standard Oil in Ohio.
Smaller companies decried such deals as unfair because they were not producing enough oil to qualify for discounts. Standard's actions and secret transport deals helped its kerosene price to drop from 58 to 26 cents from 1865 to 1870.
The company was perceived to own and control all aspects of the trade. ===South Improvement Company=== In 1872, Rockefeller joined the South Improvement Co.
Barton Hepburn was directed by the New York State Legislature in 1879, to investigate the railroads' practice of giving rebates within the state.
Although Standard had 90 percent of American refining capacity in 1880, by 1911, that had shrunk to between 60 and 65 percent because of the expansion in capacity by competitors.
The result was that although in 1911 Standard still controlled most production in the older regions of the Appalachian Basin (78 percent share, down from 92 percent in 1880), Lima-Indiana (90 percent, down from 95 percent in 1906), and the Illinois Basin (83 percent, down from 100 percent in 1906), its share was much lower in the rapidly expanding new regions that would dominate U.S.
London: Warner Books, 1998. Cochran, S., Encountering Chinese Networks: Western, Japanese, and Chinese Corporations in China, 1880-1937, University of California Press, 2000. Folsom Jr., Burton W.
By 1882, his top aide was John Dustin Archbold.
On January 2, 1882, they combined their disparate companies, spread across dozens of states, under a single group of trustees.
Watson. ===Earnings and dividends=== From 1882 to 1906, Standard paid out $548,436,000 in dividends at 65.4% payout ratio.
The total net earnings from 1882 to 1906 amounted to $838,783,800, exceeding the dividends by $290,347,800, which was used for plant expansions. ==1895–1913== In 1896, John Rockefeller retired from the Standard Oil Co.
(New Jersey : Pioneering in Big Business 1882–1911).
Flagler and Jabez Abel Bostwick - 1882 CHARLES A.
(Legislators established such restrictions in the hope that they would force successful companies to incorporate—and thus pay taxes—in their state.)” Standard Oil's organizational concept proved so successful that other giant enterprises adopted this "trust" form. In 1885, Standard Oil of Ohio moved its headquarters from Cleveland to its permanent headquarters at 26 Broadway in New York City.
of New Jersey (SOCNJ) to take advantage of New Jersey's more lenient corporate stock ownership laws. ===Sherman Antitrust Act=== In 1890, Congress overwhelmingly passed the Sherman Antitrust Act (Senate 51–1; House 242-0), a source of American anti-monopoly laws.
In the 1890s, Standard Oil began marketing kerosene to China's large population of close to 400 million as lamp fuel.
It explored in Palestine before the World War broke out, but ran into conflict with the local authorities. ===Monopoly charges and antitrust legislation=== By 1890, Standard Oil controlled 88 percent of the refined oil flows in the United States.
An example of this thinking was given in 1890, when Rep.
Antitrust and the Oil Monopoly: The Standard Oil Cases, 1890–1911.
The state of Ohio successfully sued Standard, compelling the dissolution of the trust in 1892.
After 1896, Rockefeller disengaged from business to concentrate on his philanthropy, leaving Archbold in control.
The total net earnings from 1882 to 1906 amounted to $838,783,800, exceeding the dividends by $290,347,800, which was used for plant expansions. ==1895–1913== In 1896, John Rockefeller retired from the Standard Oil Co.
"Trust-busting" critics accused Standard Oil of using aggressive pricing to destroy competitors and form a monopoly that threatened other businesses. Rockefeller ran the company as its chairman, until his retirement in 1897.
So, in 1899, the Standard Oil Trust, based at 26 Broadway in New York, was legally reborn as a [company], the Standard Oil Co.
The American Petroleum Industry: The Age of Illumination, 1859–1899, 1959: vol 2, American Petroleum Industry: the Age of Energy 1899–1959, 1964.
After 1900 it did not try to force competitors out of business by underpricing them.
Mei An was launched in 1901 and was the first vessel in the fleet.
Her work was published in 19 parts in McClure's magazine from November 1902 to October 1904, then in 1904 as the book The History of the Standard Oil Co. The Standard Oil Trust was controlled by a small group of families.
2 (February, 1902), pp. 265–292 in JSTOR Montague, Gilbert Holland.
2 (February, 1903), pp. 293–325 in JSTOR Nevins, Allan.
In the year 1904, Standard Oil controlled 91% of oil refinement and 85% of final sales in the United States.
Her work was published in 19 parts in McClure's magazine from November 1902 to October 1904, then in 1904 as the book The History of the Standard Oil Co. The Standard Oil Trust was controlled by a small group of families.
According to Daniel Yergin in his Pulitzer Prize-winning The Epic Quest for Oil, Money, and Power (1990), this conglomerate was seen by the public as all-pervasive, controlled by a select group of directors, and completely unaccountable. In 1904, Standard controlled 91 percent of production and 85 percent of final sales.
The federal Commissioner of Corporations studied Standard's operations from the period of 1904 to 1906 and concluded that "beyond question ...
The History of the Standard Oil Co., 1904.
WHITESHOT: THE OIL-WELL DRILLER.A HISTORY OF THE WORLD'S GREATEST ENTERPRISE, THE OIL INDUSTRY Publisher: MANNINGTON 1905 The Standard Oil (New Jersey) Collection – A digital collection of photographs from the documentary project directed by Roy E.
Watson. ===Earnings and dividends=== From 1882 to 1906, Standard paid out $548,436,000 in dividends at 65.4% payout ratio.
The total net earnings from 1882 to 1906 amounted to $838,783,800, exceeding the dividends by $290,347,800, which was used for plant expansions. ==1895–1913== In 1896, John Rockefeller retired from the Standard Oil Co.
In 1906, SOCONY (later Mobil) opened its first fuel terminals in Alexandria.
The federal Commissioner of Corporations studied Standard's operations from the period of 1904 to 1906 and concluded that "beyond question ...
Because of competition from other firms, their market share had gradually eroded to 70 percent by 1906 which was the year when the antitrust case was filed against Standard, and down to 64 percent by 1911 when Standard was ordered broken up and at least 147 refining companies were competing with Standard including Gulf, Texaco, and Shell.
The result was that although in 1911 Standard still controlled most production in the older regions of the Appalachian Basin (78 percent share, down from 92 percent in 1880), Lima-Indiana (90 percent, down from 95 percent in 1906), and the Illinois Basin (83 percent, down from 100 percent in 1906), its share was much lower in the rapidly expanding new regions that would dominate U.S.
For example, Standard created the first synthetic competitor for beeswax and bought the company that invented and produced Vaseline, the Chesebrough Manufacturing Co., which was a Standard company only from 1908 until 1911. One of the original "Muckrakers" was Ida M.
It did not try to monopolize the exploration and pumping of oil (its share in 1911 was 11 percent). In 1909, the U.S.
Rockefeller stated in 1910: "I think it is true that the Pratt family, the Payne–Whitney family (which were one, as all the stock came from Colonel Payne), the Harkness-Flagler family (which came into the company together) and the Rockefeller family controlled a majority of the stock during all the history of the company up to the present time." These families reinvested most of the dividends in other industries, especially railroads.
Its history as one of the world's first and largest multinational corporations ended in 1911, when the U.S.
He remained the major shareholder, and in 1911, with the dissolution of the Standard Oil trust into 34 smaller companies, Rockefeller became the richest person in modern history, as the initial income of these individual enterprises proved to be much bigger than that of a single larger company.
For example, Standard created the first synthetic competitor for beeswax and bought the company that invented and produced Vaseline, the Chesebrough Manufacturing Co., which was a Standard company only from 1908 until 1911. One of the original "Muckrakers" was Ida M.
Because of competition from other firms, their market share had gradually eroded to 70 percent by 1906 which was the year when the antitrust case was filed against Standard, and down to 64 percent by 1911 when Standard was ordered broken up and at least 147 refining companies were competing with Standard including Gulf, Texaco, and Shell.
It did not try to monopolize the exploration and pumping of oil (its share in 1911 was 11 percent). In 1909, the U.S.
The dissolution had actually propelled Rockefeller's personal wealth. ==Breakup== By 1911, with public outcry at a climax, the Supreme Court of the United States ruled, in Standard Oil Co.
The federal courts ruled otherwise. Some economic historians have observed that Standard Oil was in the process of losing its monopoly at the time of its breakup in 1911.
Although Standard had 90 percent of American refining capacity in 1880, by 1911, that had shrunk to between 60 and 65 percent because of the expansion in capacity by competitors.
The result was that although in 1911 Standard still controlled most production in the older regions of the Appalachian Basin (78 percent share, down from 92 percent in 1880), Lima-Indiana (90 percent, down from 95 percent in 1906), and the Illinois Basin (83 percent, down from 100 percent in 1906), its share was much lower in the rapidly expanding new regions that would dominate U.S.
In 1911, Standard controlled only 44 percent of production in the Midcontinent, 29 percent in California, and 10 percent on the Gulf Coast. Some analysts argue that the breakup was beneficial to consumers in the long run, and no one has ever proposed that Standard Oil be reassembled in pre-1911 form.
The company's upstream operations are now Marathon Oil while the downstream operations is now known as Marathon Petroleum, and was often a rival with the in-state Standard spinoff, Sohio. Other companies divested in the 1911 breakup: Anglo-American Oil Co.
History of Standard Oil Co.: Resurgent Years 1911–1927.
"Dominance in the Oil Industry: Standard Oil from 1865 to 1911" in David I.
Steel, Amalgamated Copper, and even Corn Products Refining Co. Weetman Pearson, a British petroleum entrepreneur in Mexico, began negotiating with Standard Oil in 1912–13 to sell his "El Aguila" oil company, since Pearson was no longer bound to promises to the Porfirio Díaz regime (1876–1911) to not to sell to U.S.
Mei Hsia, a tanker, was specially designed for river duty and was built by New Engineering and Shipbuilding Works of Shanghai, who also built the 500-ton launch Mei Foo in 1912.
The Trust Problem in the United States 1922.
Mei Hsia ("Beautiful Gorges") was launched in 1926 and carried 350 tons of bulk oil in three holds, plus a forward cargo hold, and space between decks for carrying general cargo or packed oil.
Mei Ping ("Beautiful Tranquility"), launched in 1927, was designed off shore, but assembled and finished in Shanghai.
– acquired by Jersey Standard in 1930, now Esso UK. Buckeye Pipe Line Co. Borne-Scrymser Co.
– eventually became Pennzoil, now part of Shell. Southwest Pennsylvania Pipe Line Co. Standard Oil of Kansas Standard Oil of Nebraska Swan and Finch Union Tank Lines Vacuum Oil Co. Washington Oil Co. Waters-Pierce Note: Standard Oil of Colorado was not a successor company; the name was used to capitalize on the Standard Oil brand in the 1930s.
federal court to lift the 1930s, trademark injunction that banned it from using the Esso brand in some states.
In 1931, Socony merged with Vacuum Oil Co., an industry pioneer dating back to 1866, and a growing Standard Oil spin-off in its own right. In the Asia-Pacific region, Jersey Standard had oil production and refineries in Indonesia but no marketing network.
investment in Southeast Asia. The North China Department of Socony (Standard Oil Company of New York) operated a subsidiary called Socony River and Coastal Fleet, North Coast Division, which became the North China Division of Stanvac (Standard Vacuum Oil Company) after that company was formed in 1933.
In 1933, Jersey Standard and Socony-Vacuum merged their interests in the region into a 50–50 joint venture.
All three were destroyed in the 1937 USS Panay incident.
Rockefeller: Robber Baron or Industrial Statesman?, 1949.
(Harper, 1956); 869pp; a standard scholarly study. Jones; Eliot.
New York: Harper & Row, 1956. Latham, Earl ed.
The American Petroleum Industry: The Age of Illumination, 1859–1899, 1959: vol 2, American Petroleum Industry: the Age of Energy 1899–1959, 1964.
Standard-Vacuum Oil Co., or "Stanvac", operated in 50 countries, from East Africa to New Zealand, before it was dissolved in 1962. The original Standard Oil Company corporate entity continues in existence and was the operating entity for Sohio; it is now a subsidiary of BP.
The American Petroleum Industry: The Age of Illumination, 1859–1899, 1959: vol 2, American Petroleum Industry: the Age of Energy 1899–1959, 1964.
Publishing, 1976. Henderson, Wayne.
New York: Greenwood Press, 1979. Chernow, Ron.
The only company since the breakup of Standard Oil that was divided into parts like Standard Oil was AT&T, which after decades as a regulated natural monopoly, was forced to divest itself of the Bell System in 1984. ==Successor companies== Standard Oil's breakup split the company into 34 separate companies.
Atlantic operations were spun off and bought by Sunoco. Continental Oil Company – or Conoco – later merged with Phillips Petroleum Company to form ConocoPhillips, downstream & midstream operations since spun off to form Phillips 66. Standard Oil of Kentucky – or Kyso – was acquired by Standard Oil of California, currently Chevron. The Standard Oil Company (Ohio) – or Sohio – the original Standard Oil corporate entity, acquired by BP in 1987. The Ohio Oil Co.
BP continued to sell gasoline under the Sohio brand until 1991.
New York: Simon & Schuster, 1991. Naomi R.
New York: Motorbooks International, 1996. Hidy, Ralph W.
London: Warner Books, 1998. Cochran, S., Encountering Chinese Networks: Western, Japanese, and Chinese Corporations in China, 1880-1937, University of California Press, 2000. Folsom Jr., Burton W.
London: Warner Books, 1998. Cochran, S., Encountering Chinese Networks: Western, Japanese, and Chinese Corporations in China, 1880-1937, University of California Press, 2000. Folsom Jr., Burton W.
New York: Young America, 2003. Giddens, Paul H.
Reed—argues Standard Oil was not a coercive monopoly. The Truth About the "Robber Barons"—arguing that Stand Oil was not a monopoly. Google Books: Dynastic America and Those Who Own It, 2003 (1921), by Henry H.
Over time, Chevron has changed which station in a given state is the Standard station. In February 2016, ExxonMobil successfully asked a U.S.
ExxonMobil primary asked for it to be lifted so it could have universal marketing material for its stations globally and, likewise, the Esso name returned to some minor station signage at both Exxon and Mobil stations. As of 2021, six states that have the Standard Oil name rights are not being actively used by the companies that own them.
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