Back to #405 How Rockefeller Worked.
Why Did Rockefeller Start Paying the Railroads?
David Senra says Rockefeller was willing to change his mind when the facts changed and started paying the railroads. Rockefeller's advantage was the rebates from shipping oil by railroad, so he first tried to stop the pipelines.
Other companies outside Standard Oil invented and started building pipelines to carry oil. Rockefeller bought up land in the way of the pipeline companies. He planted stories in the press that pipelines were prone to leaks, which would destroy farmers crops. He bought up the customers of the pipeline companies to deprive the pipeline company of revenue, then tried to buy the pipeline company outright. It was said that he used every weapon but violence.
Rockefeller reversed his decision and embraced the innovation. He started building his own network of pipelines. Partners at the railroads protested. He told them that any oil traffic lost because of the pipeline would be made up by subsidy. He had built his entire career on getting rebates from railroads. When the facts changed, he reversed the traditional rebate pattern and paid the railroads.