South Improvement Company

The South Improvement Company was a Pennsylvania corporation in 1871-1872. It was created by major railroad interests, but was widely seen as part of John D. Rockefeller's early efforts to organize and control the oil and natural gas industries in the United States which eventually became Standard Oil. Although it lasted less than a year and never shipped any oil, the South Improvement Company scheme caused widespread attention to be focused on the relationships between big railroads and big businesses which wanted and demanded favorable treatment.

Thomas A. Scott, president of the Pennsylvania Railroad set up the South Improvement Company in the fall of 1871. The scheme was intended to benefit both the railroads and major refiners, notably those controlled by Rockefeller through secret rebates.

Rockefeller had earlier merged several of the Cleveland area refineries and issued 2,000 shares of stock, of which 900 were controlled by Rockefeller and his partners. Rockefeller then started negotiations to collude with the three major railroads running through Cleveland: the Erie, the Pennsylvania Railroad, and the New York Central. The result of these secret negotiations were as follows: (1) The official rate per barrel from Cleveland to New York would be $2.56, but South Improvement would receive a $1.06 rebate; (2) The railroads would also pay South Improvement $1.06 per barrel of oil shipped that was not produced by South; (3) The railroads would also give reports of the shipping destinations, costs, and dates of all of South's competitors; (4) The commerce would be divided evenly among the railroads, with a double share going to Pennsylvania Railroad; and (5) South would provide tank cars and loading facilities. The secret concessions would have helped lessen the "vicious" competition among the railroad lines by giving a steady, standardized flow of commerce.

Word leaked out of the South Improvement Scheme, and the proposed 100% increase in rail shipping rates inflamed the independent producers and many smaller refineries. Following a summit and vocal protest by the independent oil producers and refiners led by Henry Huttleston Rogers and the Charles Pratt and Company refining interests of Brooklyn, New York, which came close to physical warfare in western Pennsylvania in March 1872 (and came to be known as the "Oil War"), the railroads agreed to back down.

Other articles related to "improvement, company, south improvement company, improvements":

List Of Halloween Television Specials - Sitcoms - Home Improvement
... Home Improvement "Haunting of Taylor House" (1992) Home Improvement "Crazy for You" (1993) Home Improvement "Borland Ambition" (1994 Home Improvement "Let Them Eat Cake" (1995) Home ...
Abbie G. Rogers - Moving To New York, Oil Refining
... with Henry Rogers as a partner, he established the firm of Charles Pratt and Company ... In the early 1870s, Pratt and Rogers became involved in a conflict with the infamous South Improvement Company, which was basically a scheme to obtain favorable net ... Rockefeller and the South Improvement Company scheme outraged independent oil producers in western Pennsylvania and refineries there and afar alike ...
CIFMS
... The implementation of a CIFMS (Continuous Improvement and Focused Monitoring System) offers companies "quick wins" benefits, which enable them to produce high quality products with shorter lead-time ... Continuous improvement, in regard to organizational quality and performance, focuses on improving customer satisfaction through continuous and incremental improvements to processes, including by removing ... Quality is a never ending quest and Continuous Process Improvement (CPI) is a never ending effort to discover and eliminate the main causes of problems ...
Charles Pratt And Company
... Charles Pratt and Company was an oil company that was formed in Brooklyn, New York, in the United States by Charles Pratt and Henry H ... Watertown, Massachusetts, had come to New York around 1850-1851, where he worked for a company specializing in paints and whale-oil products ... he established the firm of Charles Pratt and Company ...
Lithium Iron Phosphate - Improvement
... Besides, coating LFP with inorganic oxides can make LFP’s structure more stable and increase conductivity ... Traditional LiCoO2 with oxide coating shows improved cycling performance ...

Famous quotes containing the words company, south and/or improvement:

    In the old days, one married a wife; now one forms a company with a female partner, or moves in to live with a friend. And then one seduces the partner, or defiles the friend.
    J. August Strindberg (1849–1912)

    They were more than hostile. In the first place, I was a south Georgian and I was looked upon as a fiscal conservative, and the Atlanta newspapers quite erroneously, because they didn’t know anything about me or my background here in Plains, decided that I was also a racial conservative.
    Jimmy Carter (James Earl Carter, Jr.)

    ... till women are more rationally educated, the progress of human virtue and improvement in knowledge must receive continual checks.
    Mary Wollstonecraft (1759–1797)