Page:The History of the Standard Oil Company Vol 2.djvu/25

CHAPTER NINE

THE FIGHT FOR THE SEABOARD PIPE-LINE

Project for seaboard pipe-line pushed by independents—Tidewater pipe company formed—Oil pumped over mountains for the first time—Independent refiners ready to unite with Tidewater because it promises to free them from railroads—The Standard face to face with a new problem—Day of the railroads over as long distance transporters of oil—National Transit Company formed—War on the Tidewater begun—Plan to wreck its credit and but it in—Rockefeller buys a third of the Tidewater's stock—The Standard and Tidewater become allies—National Transit Company now controls all pipe-lines—Agreement entered into with Pennsylvania railroad to divide the business of transporting oil.

 

THE project for a seaboard pipe-line to be built by the producers and to be kept independent of Standard capital and direction had been pushed with amazing energy. Early in the fall of 1878 General Haupt reported that his right of way was complete from the Allegheny River to Baltimore; contracts were let for the telegraph line and preparation begun to lay the pipe. Before much actual work had been done it became clear to the company that it was not from the Butler oil field but from that of Bradford that a seaboard pipe-line should run; that the former field was showing signs of exhaustion, while the latter was evidently going to yield abundantly. With a promptness which would have done credit to Mr. Rockefeller himself, Messrs. Benson, Hopkins and McKelvy changed their plan.

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