American Scandal - The Breakup of Big Oil | Rise of Rockefeller | 1
Episode Date: August 11, 2020John D. Rockefeller is a poor boy with a dream. He's going to become a businessman. And he's going to be wildly rich. Soon, he stumbles on the product that will seal his fate: oil. Thick, cru...de oil is gushing from the ground across America. It's creating boomtowns—and a new economy. Rockefeller begins to conquer the industry, but he quickly makes enemies, including a young woman who will challenge Rockefeller's growing empire.Need more American Scandal? With Wondery+, enjoy exclusive seasons, binge new seasons first, and listen completely ad-free. Start your free trial in the Wondery App, Apple Podcasts, Spotify or visit https://wondery.app.link/rUic7i1hMNb now. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
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It's the dead of night in March 1872.
The main street is empty in Titusville, Pennsylvania,
and all the homes are dark in this newly prosperous town.
But suddenly the silence is broken by the sound of heavy boots on a dirt road.
Men flood into the streets, their clothes stained with oil and the light of kerosene lamps flickering across their faces.
At the head of the pack walks Franklin Tarbell.
Tarbell is in his early 40s.
He's tall, lean, with a thick brown beard trimmed to a point.
Right now, Tarbell is gripping a sharpened axe.
He's not preparing to hurt anyone,
though he knows that tonight he may have to swing the weapon. Tarbell turns and notices the man beside him, who looks worried.
Like Tarbell, he's in the oil business. Both men run their own small companies, and both produce
crude oil from Pennsylvania's newly discovered deposits. Tarbell looks at the man and pats him
on the shoulder. Don't worry, we'll show John D. Rockefeller. We're not going to roll over for that crook. Frank, this seems like a bad idea. We're picking a fight with giants. No, no, no.
They picked this fight, not us. Remember that. Rockefeller is never going to give up. Not until
every last oil man is working for him. He's going to keep buying us out, one by one. Anyone who says
no, well, Rockefeller's going to crush them. That's why we've got to take action.
Stay strong, together.
The man stares down at his feet, shakes his head.
But what if we can't hold out?
Look, if we all sell to Rockefeller, at least we'll be on the winning side.
Tarbell shoots him a menacing glance.
No, I'll die before I take orders from any man, especially a man like Rockefeller.
Up ahead, Tarbell sees the rail station. It still
looks new and polished. It's a sign of all the oil that's been discovered in Titusville and all
the money that's poured in. As the mob approaches, the security guards look up, faces suddenly full
of fear. And just as quickly, they run away into the night. Tarbell raises his axe and addresses
the crowd. All right, men, let's go.
We can't let Rockefeller get one drop of our oil.
Him and the railroads, they're thieves.
So tonight, we set things right.
Tarbell feels the mob surging forward.
He hops over a set of tracks and makes his way to the first of the railroad cars.
In no time, the men break through the car door.
They climb inside and begin rolling wooden barrels out onto the track.
One barrel, then another, and another. Tarbell gazes at them. He licks his lips and grins.
Then he kicks one of the barrels aside, raises his axe,
and swings. Thick oil bursts from the spl raises his axe, and swings.
Thick oil bursts from the splintered wood,
and the familiar stinging smell of crude fills the air.
He looks around and sees other men swinging their axes,
their faces splattered with black, thick oil.
Tarville wipes his mouth on his sleeve,
and he thinks about how much blood and sweat it took to get this oil out of the ground.
He hates to waste even one drop, but it's worth it to stop Rockefeller.
Anything to keep that robber baron from threatening his livelihood and his family's future.
Tarbell races to grab another barrel. They have to move quickly in case the security comes back with reinforcements.
But Tarbell is full of energy and fueled by his anger at Rockefeller and his cronies. In this country, Tarbell thinks,
there's always a rich man trying to take everything for himself. Makes Tarbell furious.
So he swings down his axe, cracking yet another barrel. The thick oil comes gushing out. Tarbell
swings again, and the barrel smashes open. For Franklin Tarbell, this feels good.
He feels strong and powerful.
And tonight, he'll show John D. Rockefeller that free men don't give in so easily.
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In the past decade, Boeing has been involved in a series of scandals and deadly crashes that have dented its once sterling reputation.
At the center of it all, the 737 MAX.
The latest season of Business Wars explores how Boeing allowed things to turn deadly and what, if anything, can save the company's reputation.
Make sure to listen to Business Wars wherever you get your podcasts.
From Wondery, I'm Lindsey Graham,
and this is American Scandal. Today, the global economy is home to a number of massive, powerful companies.
Amazon, Walmart, Google, ExxonMobil.
They dominate their industries and often destroy their competition.
It's a reality that today seems normal to many Americans. But over a hundred years ago,
one company helped set the stage for our modern economy, Standard Oil, and its founder was a man named John D. Rockefeller. In the mid-1800s, Rockefeller built an empire. Standard Oil would
go on to control a staggering 90% of the country's oil
refining. But Rockefeller wasn't the only one operating a ruthless monopoly. Men like Andrew
Carnegie and J.P. Morgan also rose to power by dominating an entire industry. Soon, politicians
questioned what these lords of industry meant for American democracy, and the public expressed
outrage about such vast concentrations of wealth.
In this six-part series, we'll look at how one man came to dominate America's oil industry.
He relied on secret deals, bribes, even espionage. Yet John D. Rockefeller wasn't invincible.
A woman named Ida Tarbell fought to expose him by relying on the power of journalism.
And through her extensive reporting, she also
exposed the dangers of big business. This is Episode 1, Rise of Rockefeller.
It's September 1850, outside Owego, New York. The broad Susquehanna River moves gently past
a small farmhouse. John Davison Rockefeller is on his hands and knees in the garden.
He's weeding a row of squash
and feels the soft snap of roots giving way.
He tosses the unwanted plants into a pile.
It's then that he hears the sound of hooves in the distance
and rises from the ground.
John is tall, with a high forehead and a thin nose.
When he stares in the mirror,
he sees someone who looks like an adult
on a boy who's just 11 years old.
John scans the horizon.
He's hoping to see his father break through the tree line.
Big Bill Rockefeller, as he's known, has been gone for months.
He's been on one of his business trips, selling medicines from his cart.
The townspeople laugh at John's father and say Big Bill is a fake doctor, a fraud.
But John ignores them.
A horse rider then appears on the road, but it's not John's father. Disappointed, John turns back to the garden. He knows he shouldn't
be idle. He looks over and tells his younger brother William to move on to the next row.
Then he turns to see that his youngest brother Frank has wandered away. Frank is five and plenty
old to help with the chores. So John yells at him to come back and says he'll never amount to anything if he doesn't work hard.
Frank just giggles and runs away.
John feels his anger rise.
John's mother always scolds him and tells him to help his brother Frank be a good Baptist who works hard.
But Frank has always been impossible to control.
That's not the only thing John is worried about, though.
The longer his father is gone, the more debt the family racks up.
John keeps the family books, and he knows that any day now,
he could go out to buy food and be refused.
John is about to go grab his little brother when suddenly Frank starts squealing with joy
and running toward the trees.
Then John hears the sound of hooves beating on the ground.
In rides his father on a beautiful new horse.
John walks calmly towards his father, trying to contain his excitement.
When John gets near, his father steps down from the saddle.
He wears a fine silk hat and a grin.
Big Bill reaches into his pocket and pulls out a large wad of new bills.
John's eyes widen.
He can see a $50 bill on the outside of the roll.
Big Bill claps John on the shoulder and tells him not to worry. He's settled all the debts at the
store, but John barely hears him. His eyes are fixed on the money, which seems magical in its
beauty and power. John looks back at his father, who smiles with a mischievous glint in his eyes.
He asks if John would like to ride his new horse, and John eagerly nods yes. His father bends down and weaves his hands into a
makeshift step. John places his foot into his father's hand, but just as he's about to leap
into the saddle, his father lets go. John smacks him to the side of the horse and collapses onto
the ground. He lies sprawled in the dirt, head spinning. He can hear his brothers
laughing. John looks up at his father, stunned. Big Bill issues a stern command. Remember, John,
never trust anyone completely. Not even me.
It's five years later in Cleveland, Ohio. John D. Rockefeller walks quickly down a cobblestone street.
He wears a dark suit, but his sleeves are too short.
He tugs at the cuffs.
He's 16 years old and worried that he might outgrow this suit before he can get a job that might pay for a new one.
Soon, further down the street, Rockefeller spots what he's looking for.
The entrance to a shipping firm known as Hewitt & Tuttle.
Rockefeller sighs in relief.
He's right on time for his interview.
He opens the front door and heads upstairs.
As he walks up the steps, Rockefeller can feel himself sweating, his heart racing.
He's been hunting for a job every day for nearly two months.
He needs this interview to go well, badly.
Rockefeller began his job search when his father wrote a letter and told him to drop out of
school. His father said he was starting a long sales trip in Canada, and that meant John needed
to provide for the family. Reading these words, Rockefeller's heart sank. He knew then that he'd
never be able to go to college, become a Baptist minister like his mother wanted. He was furious
and resistant at first, but there was only one choice. He had to get a job.
Right now, Rockefeller reaches the top of the stairs and finds Isaac Hewitt,
the senior partner of the shipping firm. Hewitt is gray-haired and dressed neatly in a frock coat.
He looks rich, well-respected, just the kind of man Rockefeller would like to be someday.
Hewitt greets him, then gestures to a desk and asks John to demonstrate his penmanship.
Rockefeller approaches the desk
and writes out a series of sums in a careful hand.
Then he steps back.
Hewitt looks over his work and frowns.
Rockefeller's stomach turns.
He was sure he hadn't made a single error.
But then Hewitt nods his approval and offers the job.
Rockefeller can begin as a bookkeeper right away.
Rockefeller feels like he's floating off the ground. He has a job as a bookkeeper right away. Rockefeller feels like
he's floating off the ground. He has a job, and soon he'll have money. He can support his family.
Rockefeller almost feels like he's about to cry. But instead, he summons all his calm so that he
can thank Mr. Hewitt in a steady voice. Then he's shown to where the books are kept, the room where he'll make his first real salary.
It's two years later, in a winter morning in 1857. A cold wind rattles the windows of the Erie Street Baptist Mission Church in Cleveland, Ohio. John D. Rockefeller stands near the church's
entrance. He's wearing his best Sunday suit and eagerly shakes the hands of worshipers as they
come in from the cold. Rockefeller is only 18, but ever since getting his bookkeeping job, he's become an
important member of this congregation. He gives precisely 10% of his $500 salary to church causes,
like the abolition of slavery. He then carefully records each donation in a little red notebook.
Rockefeller's fastidious attention to the numbers recently even had the preacher make him the church treasurer. Rockefeller thanks God he's a member of a humble church like
this, one where he can be of use. When Rockefeller finishes his final greeting, he hurries inside,
closes the door, and joins his mother and siblings in their pew near the front. Today, as usual,
though, his father won't be joining them. He's not in town. And while Big Bill still comes to
Cleveland from time to time, John has become the main provider for the family. The preacher then
takes the pulpit. His expression is grave, and he clears his throat. He says he has a serious
announcement, one that concerns the future of the church. The congregants murmur, and John exchanges
a worried glance with his mother. The preacher continues, explaining that a creditor has threatened to foreclose on the church's mortgage.
They'll need to raise $2,000 by the end of the month, or God's house will be taken by the bank.
Rockefeller hears people gasping.
$2,000 is a great deal of money, but there must be a way to raise it.
Then Rockefeller grins.
He has a simple plan.
After the sermon, Rockefeller hurries to the church door. He stops one of the congregants, a railroad conductor, just as he's about to leave.
Rockefeller says he's decided to raise funds to save the church and asks what the conductor can
spare. When he hears a paltry figure, Rockefeller points to the conductor's gold watch. And
Rockefeller reminds him that surely the man can double that amount. The conductor sheepishly agrees. Rockefeller then
writes the promised sum in his notebook and steps in front of the next man. Rockefeller moves from
one parishioner to another, gaining a steady stream of pledges to donate money. At that moment,
Rockefeller feels a warmth welling up inside him, and he realizes that he's not just adding up numbers like he does in his day job.
He's raising funds like a businessman.
Rockefeller smiles, proud of himself.
He has a natural talent.
He can convince men to put money in his hands.
This can only mean one thing.
God wants him to be successful,
and now he just needs to find a business to apply himself to.
Because once he does, finds the right market,
he's sure the Lord will help him conquer it.
It's April 17th, 1861, in Rouseville, Pennsylvania.
Franklin Tarbell enters the town's general store,
a scowl plastered on his face.
He looks around the store and notices the gaunt,
angry faces of men like him,
tired and disappointed.
Tarbell knows how they feel.
He came to Pennsylvania to build oil barrels.
He thought he'd make a fortune.
But there was a problem.
His barrels aren't worth much if there's no oil to fill them.
It seems like the wells might have dried up for good,
in which case he and his wife will have to move their whole family again, including their four-year-old daughter Ida. The uncertainty has been weighing
heavily on him. Plus, there's the bigger news, the story everyone in the country is talking about.
Inside the general store, Tarbell approaches a group of men.
He takes a seat on a cracker barrel, and one of the men, an oil driller, addresses him.
Tarbell, looks like you heard the news.
Yeah, who hasn't?
I just can't believe the rebels took Fort Sumter.
What do you suppose President Lincoln will do?
Well, it's war. No way around it now.
Well, if that's it, then I'm going to fight.
I suppose I would, too, if I didn't have my family to look after.
Lord knows I have to start making money somehow. Soon, too.
family to look after. Lord knows I have to start making money somehow. Soon, too. Right then, a man burst through the door, his eyes wide with joy. Henry Rouse just drilled a gusher. Come quick,
it's the biggest I've ever seen. Tarbell and the other men trade excited glances,
then Tarbell leaps from his seat, his heart pounding. He hurries out of the store, then he
sees it. A giant black tower bursting high
above the trees. He rises into the blue sky and blots out the sun. Tarbell turns to the driller.
Well, gosh darn it. You believe it? We got one. This is going to change everything. The whole town.
We're back in business. Tarbell hurries toward the growing column of oil.
He can see the entire hillside already has a thick black-green coat.
The grasses are matted with it, and the tree limbs hang heavy from the weight.
Tarbell stops in his tracks, awed by the sight, as the gusher grows even taller.
That's when Tarbell sees an orange flash.
In one awful instant, the gusher erupts in a towering fountain of flames. Tarbell hears the terrified screams of men running from the inferno. Tarbell feels his body go stiff.
Then, without thinking, he turns to run, the others racing alongside. He feels the heat of
the flames behind him. He doesn't have time to think, to wonder how many of his friends are now
dead. He can only run as fast as he can until the sound of splashing oil disappears.
Then he stops, panting, trying to catch his breath.
He turns back and watches the tower of oil off in the distance
as it continues bursting into the air,
as unrelenting as the fire.
Tarbell's breath is still labored.
He wipes from his face droplets of oil that will save his family,
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I'm Jake Warren, and in our first season of Finding, I set out on a very personal quest to find the woman who saved my mom's life.
You can listen to Finding Natasha right now exclusively on Wondery Plus. In season two, I found myself caught up in
a new journey to help someone I've never even met. But a couple of years ago, I came across a social
media post by a person named Loti. It read in part, three years ago today that I attempted to
jump off this bridge, but this wasn't my time to go. A gentleman named Andy saved my life.
I still haven't found him.
This is a story that I came across purely by chance,
but it instantly moved me,
and it's taken me to a place
where I've had to consider some deeper issues
around mental health.
This is season two of Finding,
and this time, if all goes to plan,
we'll be finding Andy.
You can listen to Finding Andy and Finding Natasha
exclusively and ad-free on Wondery+. will be Finding Andy. You can listen to Finding Andy and Finding Natasha exclusively
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It's the spring of 1863 in Cleveland, Ohio.
A sign reading Clark and Rockefeller hangs over the entrance to a produce warehouse.
Inside, John D. Rockefeller leans forward in his chair as he stares at the figures in a tall ledger book.
Rockefeller started this produce business five years ago, and since then it's been a success.
Because of the Civil War, prices are up, and that means the business is now more profitable than ever.
There's a knock at the door, and Rockefeller looks up from the ledger. He finds Samuel Andrews
standing in the doorway, smiling. Rockefeller knows Andrews from church, and gestures for him
to come in. Hello, Mr. Andrews. What brings you to the world of produce? Placing a large order,
I hope? I'm afraid not, Mr. Rockefeller. It's another matter, but a matter of business.
Rockefeller scrutinizes the man.
He's grown to distrust many businessmen.
The Civil War has created business for many conmen,
and Rockefeller knows he must be extraordinarily careful with his money.
Still, Andrews has a strong reputation.
He's a self-taught chemist and was the first man in Cleveland to refine oil into kerosene.
Rockefeller stares at Andrews as the chemist shuffles his feet and looks away.
Well then, what is it? What's the business? I'm starting an oil refinery, and I wonder if you'd
be interested in joining as a partner. Well, I'm flattered, but I'm not sure it would be to my
taste. I like a steady business, not one populated with all the drunkards I hear about in the oil country. Oh, yes, but this isn't production, Mr. Rockefeller. This is refining oil, turning it into
kerosene. You wouldn't be drilling wells in Pennsylvania. You'd be the middleman. Hmm.
But it's still a risk, isn't it? The oil can always run dry. Andrews pauses and then points
to the wall. I see you have a kerosene lamp. Certainly beats burning whale blubber, I imagine.
It does?
Every other man in Cleveland feels the same.
Look, perhaps the oil will disappear someday,
but today, no, there are huge profits to be made.
Rockefeller taps his pen against the desk, thinking.
He purses his lips, then looks back at Andrews.
Well, I'll warn you, I'll want to keep a very close eye on the whole operation.
That's fine. I'm not a passive investor.
I'd welcome your help with the business. I prefer tinkering with my chemicals.
Well, excellent then.
Count me in.
Andrews thanks him and leaves, and Rockefeller's mind races ahead to the possibilities of this new venture.
Oil is a higher risk than most of the investments Rockefeller has made.
It's far riskier than his produce business.
But Rockefeller knows the Civil War won't last forever.
In time, the price of food will go back down.
So it's time to try something new,
something that could make him the fortune he's always dreamed of.
It's early in the morning, a year and a half later.
Today, workers are filing into the Excelsior Refinery, a sprawling complex set on a red clay hill outside Cleveland. The sun hasn't fully risen, but John D. Rockefeller started the day
long ago. He's already inside the refinery, and right now, he's pushing a wooden barrel and rolling
it toward a room where the barrels are filled with kerosene.
Rockefeller may be the senior partner at the refinery,
but he enjoys these small tasks of labor.
He takes great pride in seeing the operation run smoothly,
and he's feeling especially proud today.
It's his wedding day, and there's no doubt that this refinery
and its remarkable profits helped him win his bride's hand.
Rockefeller smiles as he
works. He's been courting Setti for two years, and she's a good woman from a respected Cleveland
family. Rockefeller feels a glow of accomplishment, like he's finally becoming the man he always
dreamed he'd be. By the end of the day, he'll be part of a respected family. It'll be a small
ceremony at his in-law's home, so there won't be any unwanted guests asking unwanted questions
about his absent father.
Rockefeller takes a deep breath and then enters the refining room.
The stench of sulfuric acid stings his nose, but Rockefeller doesn't wince.
Oil may be an ugly, dirty business, but it's helping him to move up in the world.
He's making far more money than he made selling produce, and already he's made this
operation lean and efficient by cutting unnecessary expenses and employees. Soon he'll also break free from his business partner,
Maurice Clark. The two of them ran the produce company, and Clark moved with Rockefeller into
the oil business. But Clark is less disciplined. Rockefeller sneers, thinking that Clark is the
kind of man who'd take a day off to get married. Rockefeller grabs another barrel and rolls it
across the ground. As he once again enters the refining room, Rockefeller stops and breathes
in the foul air. This time, he doesn't hold his nose. He can handle the discomfort. It doesn't
bother him, unlike Clark, who doesn't have the appetite to be a successful businessman or to do
what it takes to make money. Rockefeller grins, pushes the barrel forward. Clark is no real
concern, he thinks. Rockefeller will soon find a way to cut him out of the operation,
to keep the business growing efficiently and without distractions.
It's February 14th, 1865, four months later. Hoofbeats echo on the streets of downtown
Cleveland. John D. Rockefeller exits a horse-drawn carriage and approaches the office of a law firm.
He wears a silk hat and striped trousers, a fitting outfit for an important day.
A few weeks ago, Rockefeller learned about a new oil gusher in a place called Pithole in western Pennsylvania.
It was the largest well yet.
Rockefeller took it as a sign from God that oil was here to stay and that he should stake his entire future on it.
He could make a fortune, but there was a problem.
Maurice Clark was still his business partner, so Rockefeller decided to lay a trap.
A few days prior, Rockefeller invited Clark to dinner, where he intentionally proposed an unwise business plan for the refinery.
And as expected, Clark lost his temper.
He became so angry that he suggested they dissolve their partnership in for the refinery. And as expected, Clark lost his temper. He became so angry that he suggested
they dissolve their partnership in the oil refinery.
For John D. Rockefeller,
this plan couldn't have gone any smoother.
So today, Rockefeller walks upstairs into the law office,
comes face-to-face with Clark.
This will be their last meeting,
a private auction to determine
who will take control of the refinery.
Rockefeller
feels remarkably calm. He's determined to win. And if he does, the largest refinery in Cleveland
will be under his control. Soon, the auction begins, and the two men quickly bid up to $50,000.
It's a large sum, and more than the whole value of the refinery. But Rockefeller won't give up.
Clark places a higher bid, and then Rockefeller won't give up. Clark places a
higher bid, and then Rockefeller outbids him. But the numbers are getting staggering. Rockefeller
feels a tightness in his throat. The bid reaches $60,000, then $70,000. Rockefeller breathes,
trying to steady himself. If the price goes much higher, there isn't a banker in Cleveland who will
finance the deal. And yet, Rockefeller knows he
cannot back down. This is his future, his chance at glory. So when Clark comes in at $72,000,
Rockefeller immediately raises him an additional $500. His heart is racing, but Rockefeller makes
sure not to reveal an ounce of concern. Clark looks over, his eyes sullen. And at that moment,
Rockefeller knows it's over. Clark mutters, you win sullen. And at that moment, Rockefeller knows it's over.
Clark mutters, you win, John. The business is yours. Rockefeller doesn't smile. He doesn't
boast. Instead, he just nods and walks out of the room. John D. Rockefeller is 25 years old,
and now he owns the largest oil refinery in Cleveland. In fact, it's one of the largest
in the entire world.
God's bounty will continue to flow from the wells of western Pennsylvania,
and Rockefeller won't rest
until every last drop of it
passes through his hands.
It's June 1865.
Ida Minerva Tarbell stands on her family's front porch
in Rouseville, Pennsylvania.
Ida is tall for a seven-year-old and has quick, intelligent eyes.
Right now, she's watching in fascination as another group of soldiers marches past her family's home.
The men march in blue Union uniforms.
Their faces and outfits are dirty, though, and as they pass, Ida can make out bits and pieces of their conversations.
They sound like all the men who pass by the house on a daily basis now,
celebrating after the end of the war.
They talk about money, and they talk about oil in Pennsylvania.
Just then, Ida's father appears on the horizon as he rides his horse into the valley.
Franklin Tarbill rides his chestnut gelding at an easy trot,
and Ida feels a wave of relief.
She worries whenever her father doesn't make it home before dark.
He runs a business making oil barrels, and recently he's been making lots of money,
which he carries as he rides home. Ida knows that he has a pistol,
but she shakes as she thinks about all the rumors about bandits on the road.
Franklin rides up and ties his horse. Ida runs to him, and he hugs her close,
his beard scratching her face. She holds on to him and tells him that she's seen more soldiers.
She wants to know why they just keep coming.
Franklin steps back and kneels down.
He tells her not to be afraid.
They're men trying to make an honest living, just like he is.
He adds that everyone has the right and no man or woman is above anyone else.
That's what the war was about.
Ida locks eyes with her father and feels safe, but she doesn't
know if he's telling the truth. He talks a lot about goodness and fairness, but sometimes she
doesn't believe him. She's a girl, and that means she can't go to college. So how fair is that?
What about President Lincoln, she thinks? He was shot for doing the right thing. Men fight each
other in the road. They look greedy and dangerous. And while her father says men can overcome their desires, Ida doesn't believe him.
Greed seems awfully powerful.
Maybe, Ida thinks, maybe men can't overcome their greed.
Maybe that's what the war was about.
Maybe her father was wrong.
Maybe Ida will have to face the world and put up a fight.
have to face the world and put up a fight.
On January 5th, 2024, an Alaska Airlines door plug tore away mid-flight, leaving a gaping hole in the side of a plane that carried 171 passengers.
This heart-stopping incident was just the latest in a string of crises surrounding the
aviation manufacturing giant,
Boeing. In the past decade, Boeing has been involved in a series of damning scandals and deadly crashes that have chipped away at its once sterling reputation. At the center of it all,
the 737 MAX, the latest season of business wars, explores how Boeing, once the gold standard of
aviation engineering, descended into a nightmare of safety concerns and public mistrust.
The decisions, denials, and devastating consequences
bringing the Titan to its knees,
and what, if anything, can save the company's reputation.
Now, follow Business Wars on the Wondery app
or wherever you get your podcasts.
You can binge Business Wars, The Unraveling of Boeing,
early and ad-free, right now on Wondery Plus.
It's March 1870.
A train squeals to a halt at the station in Titusville, Pennsylvania.
Workmen race to the train and begin unloading freight.
And out of one car steps John D. Rockefeller, who gazes across the station and stretches his arms. It's been a long journey from Cleveland,
and Rockefeller hates to leave his wife and two young daughters at home. But he knows he can't
control his growing empire while sitting behind a desk. He needs to come to Titusville to get a
view of all his future operations. The last five years have been a series of successes for
Rockefeller. Ever since he took
control of the refinery, Rockefeller has continued to weed out inefficiencies and find new areas for
growth. These days, Rockefeller sells his leftover sulfuric acid for fertilizer. He sells petroleum
jelly to households. He's even found a use for gasoline. Most refiners treat gasoline as a
useless byproduct of kerosene refining. Many simply dump their gasoline in the river,
even if that means the water occasionally sets on fire.
But Rockefeller's refinery is home to an innovation.
They now burn gasoline to power the refining process itself.
And all the while, Rockefeller has been expanding the business.
His enterprise now creates wooden barrels.
He controls multiple refineries.
He owns a fleet of railroad cars.
And yet Rockefeller knows that he's just getting started. As he walks through the streets of
Titusville, he sees a horse-drawn cart racing by, loaded with massive oil barrels. The barrels teeter
on the edge of the cart, and as the horses take a turn, one of the barrels tips over, comes crashing
down onto the road. It lands with a thud and the crack of splintering wood.
The driver brings the cart to a halt. Rockefeller can't believe his eyes. This is an industry stuck
in ugly adolescence, and it's not that better technology is unavailable. Oil can be shipped
by pipelines. Still, the small-time producers in towns like Titusville are stuck in their old ways,
Rockefeller thinks. That has to change.
Rockefeller walks down the dusty street, watching as a group of men loads the fallen oil barrel back into the cart. Crude oil drips out of the side of the barrel, leaving a trail of black liquid on
the ground. As much as Rockefeller is embarrassed by the sight, he also feels a surge of hope and
promise. Because now, finally, he has the instrument to control this chaotic industry.
Just before this trip, he signed a piece of paper that created a new company, Standard Oil.
Standard Oil will bring all his ventures under one corporation.
And thanks to his sterling credit, Rockefeller has $1 million in capital.
With that sort of backing, he'll be able to acquire any oil business he chooses.
Another oil cart rumbles past, and another wooden barrel nearly rolls off the cart.
Rockefeller cracks his knuckles.
Soon all this disorder will come under his calm discipline.
One day, Standard will refine all the oil.
They'll make all the barrels and own all the tank cars.
As he continues walking down the street, Rockefeller surveys the dirty town.
Soon he'll own the oil wells too
For these small-time oil producers, the end of an era is coming soon
It's December, 1870, in Titusville, Pennsylvania
A school bell rings, and children in thick winter coats
Flood out of the newly built schoolhouse, laughing and gossiping
Ida Tarbell waits until the rest of the children have left. Then she steps out onto the street
and makes her way home. Tarbell is 13 years old, and so far she hasn't made any friends since
moving to this new town. So different from everywhere she's lived before. Titusville has
banks and schools and even an opera house. Still, for Tarbell, something about this town feels off.
Her father, Franklin,
says they'll have good fortune in this town, that the oil won't stop flowing. But Ida isn't so sure
he's right. Ida turns down Main Street towards home, and already she can hear the sound of her
father's hammer. When she arrives, she sees him on the front porch. He's building a wooden handrail.
Franklin puts down his tools to greet her. But after a moment he gets a strange look on his face. He asks Ida what's wrong. Ida knows she can't hide her feelings, so she lets it out.
She asks what will happen if everything falls apart again. Back in their old town, the oil
disappeared and Franklin had to close his barrel shops. It felt like it was almost overnight. The
entire town disappeared. Ida's father leans toward her, gently tucking a strand of Ida's
long hair behind her ear. He tells her not to worry. Yes, he had to close his shops, but he's
done making barrels. He's in production now. His company buys and leases oil wells, and if one goes
dry, there's always another. He's been in the oil business a long time now, and they'll have plenty
of money. They won't have to leave this new home. Franklin smiles at Ida and says he has something to show her.
He takes her hand and leads her into the living room.
There, she discovers a new piano.
Ida is shocked, gasps at the beauty of it.
She's always wanted to learn piano,
but then a feeling of dread creeps up on her.
She gives her father a look
and asks what they'll do with this piano
if they have to move again.
Franklin smiles and pats her on the back, and then he makes a promise. The times living in
boom towns are over. Oil is a respectable industry, and it's here to stay. Ida steps up to the piano,
presses two of the small black keys. A sour sound fills the living room. Her father laughs and says
they'll get her lessons soon once the next oil well begins to flow.
Franklin walks toward the front door and grabs his hammer.
Before stepping out onto the front porch to return to his work, he turns back to Ida, saying,
I promise, it's different this time.
It's November 30th, 1871.
The Union flag flaps in the wind above the massive St. Nicholas Hotel in New York City.
John D. Rockefeller strives into the hotel's vaulted lobby and announces himself to the concierge. The man nods and leads him to a suite on the second floor. When Rockefeller enters,
he sees a man sitting on a velvet sofa. He has side whiskers and wears a black bow tie.
When the man notices Rockefeller, he rises with an outstretched hand. The man's name
is Peter H. Watson, and Rockefeller knows that he's in charge of a vast railroad network.
Watson's network is key for Rockefeller's business because it connects him to the oil producers.
In Pennsylvania, oil producers drill oil out of the ground, but crude oil isn't much use for
everyday people. Americans use kerosene, not crude. Rockefeller knows that that's why his business is so popular.
He makes products that people actually use.
The oil comes out of the ground,
and Rockefeller's refineries turn it into products
Americans want and pay for.
So the two sides depend on each other.
Rockefeller needs crude oil so he can refine it into kerosene,
and the drillers need someone like Rockefeller
who can buy their crude oil and turn it into something useful.
At the same time, the drillers are in Pennsylvania,
and his refineries are in Cleveland.
That's why the railroad network is so crucial.
It connects Rockefeller's refineries with the oil drillers in Pennsylvania.
But for John D. Rockefeller,
that means he must have a good relationship with the railroads.
He's not certain why Watson asked him here today,
but he suspects it's about forming an alliance. he must have a good relationship with the railroads. He's not certain why Watson asked him here today,
but he suspects it's about forming an alliance.
Rockefeller enters and shakes Watson's hand,
and the two settle into high-backed chairs.
Rockefeller then waits patiently.
Watson gives a nervous smile, then leans forward.
Mr. Rockefeller, thank you for coming.
I hardly need to tell you that this meeting should be kept secret, please. Of course, you can count on my discretion. Very good. Now, I have a proposal.
The railroads are tired of dealing with the small oil producers and refineries. They're unpredictable and that cuts into our profits. We never know how much they'll ship or how little.
We'd much rather the oil industry be in standard Oil's capable hands. Rockefeller nods.
He likes where this is going.
Now, the other railroads and I have formed a company together.
It's, um, how should I describe it?
Well, it sounds like an alliance.
Oh, yes, that's right, an alliance.
One that will allow us to jointly improve our oil interests.
We've named it the South Improvement Company.
A bland name, one that won't draw attention.
And we've decided to raise our rates for shipping crude and refined oil.
Huh. Raise your rates?
And how exactly does that help Standard Oil?
Watson shifts in his seat, gives a slight smirk.
Well, Mr. Rockefeller, those rates aren't for you.
We want to do business with you.
Those rates are for the small-timers.
We'll only charge Standard Oil half of that.
Well, that's a start, but I don't see it as sufficient.
Watson stares in disbelief, but Rockefeller is feeling emboldened and presses forward.
You know, we can ship in other ways.
I see, for one, and we're building pipelines that could make your railroads obsolete.
But you're paying half as much as your competition.
You can still do more.
I want to know everything about my competitors' shipments.
I want to know where their oil and kerosene are going, and I want as much detail as you can
provide on their operations so I can adjust my tactics and prices. That way, I can undercut them.
And when I do, we can get rid of all the small producers. That's a great deal to ask,
Mr. Rockefeller. The sooner I control the market, the sooner I can save costs for myself and for you. Watson swallows hard. Very well. Excellent, Mr. Watson. You are doing
God's work here. Indeed. But as you know, some members of the public won't stand for this.
And needless to say, the small refiners will start howling as soon as we raise the rates.
Well, the public doesn't need to know anything about this, and you overestimate the independents. They're chaotic, disorganized. Your proposal will pull
them out by the roots, like weeds in a garden. And then you and I will make lots and lots of money.
At that, Rockefeller rises for a handshake. Rockefeller grips Watson's hand, squeezing
tighter, imagining himself gripping the entire region's oil supply.
Soon, Rockefeller would thrash the competition.
Any independent with an ounce of sense will sell out to him.
And the rest won't last a year.
Next on American Scandal, John D. Rockefeller moves quickly on his secret new deal with the railroads, but the men in oil country aren't going down without a fight.
From Wondery, this is Episode 1 of The Breakup of Big Oil for American Scandal.
You've just listened to Episode 1 of The Breakup of Big Oil, but the real battle has only just begun.
As the series continues, journalist Ida Tarble takes on one of the most powerful men in the world, John D. Rockefeller.
With his Standard Oil dominating the market, Tarbell's investigation threatens to expose the company's ruthless tactics.
Rockefeller, though, is not one to back down, dodging subpoenas and evading justice at every turn.
But even he knows his empire is under siege.
As Tarbell uncovers damning evidence, the fight reaches the courtroom, where Rockefeller's empire is on the line. Will Tarbell succeed in bringing down America's most
powerful monopoly, or will Rockefeller's influence prove too strong? To listen to the rest of this
season of American Scandal, start your free trial of Wondery Plus in the Wondery app,
Apple Podcasts, or Spotify. With Wondery Plus, you can listen to other incredible history podcasts
like American History Tellers, History Daily, Tides of History, and more. Download With Wondery+, you can listen to other incredible history podcasts like American
History Tellers, History Daily, Tides of History, and more. Download the Wondery app today.
And a quick note about our reenactments. In most cases, we can't know exactly what was said,
but all our dramatizations are based on historical research. And if you'd like to learn more about
the breakup of Big Oil, we recommend the book Titan, The Life of John D. Rockefeller by Ron Chernow. American Scandal is hosted, edited,
and executive produced by me, Lindsey Graham for Airship. Audio editing by Molly Bach. Sound
design by Derek Behrens. This episode is written by Michael Canyon-Meyer, edited by Christina
Malsberger, produced by Gabe Ribbon. Executive producers are Stephanie Jens, Jenny Lauer-Beckman,
and Hernán López for Wondery.