[Random Reminiscences of Men and Events by John D. Rockefeller]@TWC D-Link bookRandom Reminiscences of Men and Events CHAPTER IV 7/36
But, had we been dependent solely upon local business, we should have failed long since.
We were forced to extend our markets into every part of the world.
This made the sea-board cities a necessary place of business, and we soon discovered that manufacturing for export could be more economically carried on there; hence refineries were established at Brooklyn, at Bayonne, at Philadelphia, at Baltimore, and necessary corporations were organized in the different states. We soon discovered, as the business grew, that the primary method of transporting oil in barrels could not last.
The package often cost more than the contents, and the forests of the country were not sufficient to supply cheaply the necessary material for an extended time.
Hence we devoted attention to other methods of transportation, adopted the pipe-line system, and found capital for pipe-line construction equal to the necessities of the business. To operate pipe-lines required franchises from the states in which they were located--and consequently corporations in those states--just as railroads running through different states are forced to operate under separate state charters.
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