1865
In December 1865 Rockefeller opened a second Cleveland refinery beside the Excelsior Works, which took the Standard name.
“He opens a second refinery in Cleveland next to the Excelsior works.”
Topic
Standard Oil
33 facts from 3 episodes, in date order. These are what speakers said on the shows, each linked to the moment it was said. They aren't independently verified.
1866
By 1866 the young Standard Oil was already selling about two thirds of its kerosene overseas, mainly to Europe.
“the fledgling standard oil company is already selling two thirds of their kerosene overseas, primarily to Europe”
1870
On January 10, 1870, Rockefeller and his partners dissolved their partnership and formed the joint stock company Standard Oil Company of Ohio.
“on January 10th, 1870, they abolish the old partnership and they pour all of its assets into the new joint stock company, the Standard Oil Company of Ohio.”
1870
In its first year, 1870, Standard Oil of Ohio, capitalized at $1 million, paid a 105% dividend while also reinvesting heavily.
“They pay a 105% dividend at the end of the year, including also reinvesting tons of cash flow back into the business and expanding and buying other companies.”
1870s
According to the book, 24 acquired refineries were consolidated into six large modern installations designed for efficient production.
“As a total of twenty four refineries were consolidated into six large state of the art installations”
1872
The South Improvement Company scheme would have set one high fixed railroad rate for shipping oil for non-members.
“There is now a fixed, literally a fixed price for shipping oil on railroads.”
1872
Between February and April 1872, Standard Oil bought 22 of the 26 other Cleveland refineries, an episode known as the Cleveland massacre.
“standard oil buys 22 of the 26 other refineries that are operating in Cleveland”
1872
The host says Rockefeller consolidated about 25 or 26 Cleveland refineries in a few weeks in the episode known as the Cleveland Massacre.
“I think he he consolidated twenty five or twenty six refineries in Cleveland”
1877
By 1877 Standard Oil controlled about 90% of the oil business in the United States.
“By 1877 standard oil controls 90% of the oil business in America, nine, zero percent.”
1880
After taking control of Tidewater in 1880, Standard Oil built four more major pipelines linking Titusville to Cleveland, New York, Philadelphia and Buffalo.
“Standard assumes control of the pipeline, takes all the technology, immediately turns around and goes and builds out four more major pipelines from Titusville to Cleveland to Manhattan to Philadelphia to Buffalo”
1880s
Standard Oil sent a letter to Mississippi grocers threatening to open competing stores selling at cost unless they bought its oil.
“They say, if you do not buy our oil, we will start a grocery store chain to compete with you and sell goods at cost and put you all out of business”
1880s
The host says Standard Oil employed about 100,000 people in the mid-1880s, probably the first company to do so.
“So Standard Oil in the mid 1880s employed 100,000 people, which that's probably the first time a company ever employed 100,000 people.”
1880s
The host says Standard Oil paid dividends of 50% to 200% per year to its private shareholders.
“They had dividends of between 50 and 200% to all shareholders per year”
1883
Standard Oil's official headquarters moved to Manhattan in 1883, eventually to 26 Broadway.
“In 1883, official Standard Oil headquarters moves to Manhattan, to New York City”
1890
In 1890 John D. Rockefeller was generating about $10 million in annual income from Standard Oil dividends and other sources.
“in 1890 he was generating 10 million dollars in annual income just from standard oil dividends from a variety of sources”
1890s
John D. Rockefeller owned 257,000 of Standard Oil's 973,000 shares, about a quarter of the company.
“he owns 257 000 of the 973 000 shares of standard oil so he owns a quarter of standard oil”
1892
In 1892 the Ohio Supreme Court ruled against Standard Oil and ordered the trust dissolved.
“by 1892 the case reaches the ohio supreme court the state supreme court which rules against standard oil which means that the trust has to be dissolved”
1892
New Jersey corporate law at the time allowed New Jersey corporations to hold stock in out-of-state corporations, which Standard Oil used to reorganize without a trust.
“in new jersey there actually is a loophole in state corporate law at the time that did allow new jersey corporations to straight up hold stock in other out-of-state corporations”
1893-1901
Standard Oil paid out $250 million to shareholders between 1893 and 1901.
“from 1893 to 1901 they paid out 250 million dollars to shareholders”
1896
Standard Oil contributed about $250,000 to William McKinley's presidential campaign.
“standard contributed a cool quarter million dollars to his campaign everybody is just pumped”
1897
Standard Oil's annual dividend, once a modest 11%, was raised to 31% in 1897 and 33% in 1899 after John Archbold took over day-to-day running, against Rockefeller's wishes.
“that modest 11 dividend archbold's pretty big shareholder all his friends are pretty big shareholders that ratcheted up to 31 in 1897 and then 33 in 1899”
1898
The number of cars grew from about 800 in 1898 to about 8,000 two years later, opening a market for gasoline.
“we go from 800 cars in 1898 to then two years later 8 000 cars”
1900
The host says Standard Oil's annual earnings, about $10-20 million around 1890, grew roughly sixfold by 1900, to over $60 million.
“By 1900, they 6X'd that. So over a decade, they actually grew tremendously.”
1904
Standard Oil controlled 91% of U.S. oil refining and 85% of final sales in 1904.
“that standard oil controlled 91 of oil refinement in 1904 and 85 of even the final sales”
1906
On November 18, 1906, a federal antitrust suit against Standard Oil was filed in Missouri.
“on november 18th 1906 that suit is filed in missouri federal antitrust suit against standard oil on the grounds”
1911
By 1911 Standard Oil's refining market share had fallen to 64% and at least 147 other refiners competed in the United States.
“their market share had eroded to 64 there were at least 147 other refining companies competing with in the united states at that point”
1911
On May 15, 1911, Chief Justice Edward White read the U.S. Supreme Court's decision against Standard Oil.
“judgment day may 15th 1911 u.s supreme court chief justice edward white reads the decision”
1911
The court's order required Standard Oil to be broken into 34 separate companies within six months.
“cannot undo this broken up into 34 separate companies and it has to happen within the next six months”
Undated
Stephen Harkness invested $100,000 in Standard and asked that his relative Henry Flagler join as treasurer.
“Stephen Harkness, who hears about what's going on and wants to invest like equity dollars into this new standard operation. So he invests $100,000 in the operation”
Undated
After the railroad deal, Cleveland overtook Pittsburgh as the largest oil refining center in America, according to the host.
“Once they do this deal, Cleveland is like fast tracked and becomes number one.”
Undated
The trust structure was devised to get around the limit on companies owning shares and property in other states.
“technically companies can't own shares and other companies outside the state. But what if we create a trust, then this trust holds shares in companies all around the country”
Undated
Biographer Ron Chernow wrote that Standard's ownership of nearly all Erie and New York Central tank cars made its position unassailable.
“as the owner of almost all the Erie and New York Central tank cars, Standard Oil's position grew unassailable.”
Undated
A Chicago judge fined Standard Oil $29 million, which the host describes as the highest fine ever given to a company up to that point.
“he levies a 29 million dollar fine on standard oil which is like by like two orders of magnitude the highest fine ever given to a company ever at this point”
Episodes