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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.

Grokipedia·Rockefeller·David Senra

Transcript

#405 How Rockefeller Worked ·

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  1. What Did Rockefeller Learn as a Teenager?David Senra says Rockefeller learned as a teenager that all is not how it seems on the outside, and he carried that belief through his entire career.
  2. Why Did It Cost More to Ship Oil Than to Refine It?David Senra says it cost more to ship a barrel of oil than to refine it.
  3. Was Rockefeller's Calm Face a Mask?David Senra says the calm face Rockefeller showed the world was a mask.
  4. How Did Rockefeller Buy Crude at the Bottom?David Senra says Rockefeller bought crude in large lots as the price was bottoming out, and he treated that timing as a central part of how the refinery made…
  5. Why Did Rockefeller Keep a Fortress of Cash?David Senra says Rockefeller led the strategy as the business organized into an actual corporation so it could issue stock.
  6. How Did Rockefeller Turn Competitors Into Partners?David Senra says Rockefeller turned competitors into partners by aligning interests, because men have not made a success of a concern they were forced or…
  7. What Did Rockefeller Want as His Power Grew?David Senra says as Rockefeller's power grows, he is no longer aiming for order. He wants a monopoly.
  8. Why Did Rockefeller Buy Leases With His Own Money?David Senra says Rockefeller bought the oil leases with his own money so he would take the loss personally if it went wrong, and the company could repay him…

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