Changes

The railroads were competing fiercely for traffic and, in an attempt to create a cartel to 'stabilize' freight rates, formed the South Improvement Company.  Rockefeller agreed to support this cartel if they gave him preferential treatment as a high volume shipper which included not just steep rebates for his product, but also rebates for the shipment of competing products.  Part of this scheme was the announcement of sharply increased freight charges. This touched off a firestorm of protest, which eventually led to the discovery of Standard Oil's part of the deal.  A major New York refiner, Charles Pratt and Company, headed by Charles Pratt and Henry H. Rogers, led the opposition to this plan, and railroads soon backed off.

The railroads were competing fiercely for traffic and, in an attempt to create a cartel to 'stabilize' freight rates, formed the South Improvement Company.  Rockefeller agreed to support this cartel if they gave him preferential treatment as a high volume shipper which included not just steep rebates for his product, but also rebates for the shipment of competing products.  Part of this scheme was the announcement of sharply increased freight charges. This touched off a firestorm of protest, which eventually led to the discovery of Standard Oil's part of the deal.  A major New York refiner, Charles Pratt and Company, headed by Charles Pratt and Henry H. Rogers, led the opposition to this plan, and railroads soon backed off.

Undeterred, Rockefeller continued with his self-reinforcing cycle of buying competing refiners, improving the efficiency of his operations, pressing for discounts on oil shipments, undercutting his competition, and buying them out. In six weeks in 1872, Standard Oil had absorbed 22 of its 26 Cleveland competitors.  Eventually, even his former antagonists, Pratt and Rogers saw the futility of continuing to compete against Standard Oil, and in 1874, they made a secret agreement with their old nemesis to be acquired.  Pratt and Rogers became Rockefeller's partners.  Rogers, in particular, became one of Rockefeller's key men in the formation of the Standard Oil Trust.  Pratt's son, Charles Millard Pratt) became Secretary of Standard Oil.

Undeterred, Rockefeller continued with his self-reinforcing cycle of buying competing refiners, improving the efficiency of his operations, pressing for discounts on oil shipments, undercutting his competition, and buying them out. In six weeks in 1872, Standard Oil had absorbed 22 of its 26 Cleveland competitors.  Eventually, even his former antagonists, Pratt and Rogers saw the futility of continuing to compete against Standard Oil, and in 1874, they made a secret agreement with their old nemesis to be acquired.  Pratt and Rogers became Rockefeller's partners.  Rogers, in particular, became one of Rockefeller's key men in the formation of the Standard Oil Trust.  Pratt's son, Charles Millard Pratt became Secretary of Standard Oil.

For many of his competitors, Rockefeller had merely to show them his books so they could see what they were up against, then make them a decent offer.  If they refused his offer, he told them he would run them into bankruptcy, then cheaply buy up their assets at auction.  Most capitulated.

For many of his competitors, Rockefeller had merely to show them his books so they could see what they were up against, then make them a decent offer.  If they refused his offer, he told them he would run them into bankruptcy, then cheaply buy up their assets at auction.  Most capitulated.