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BLACK GOLD HOT GOLD
 
The Rise of Fascism in the American Energy Business
 (Pre-publication online preview excerpt) (CHAPTER ONE)
 
-- by Marshall Douglas Smith
 
http://www.brojon.org/frontpage/bj050701-1.html
 
 
What is often called the German or Italian form of Fascism had its roots in America. Both Hitler and Mussolini were funded and brought into power in the 1920's and '30s by international bankers, including the 12 banks which now make up the American Federal Reserve System. But I get ahead of myself. Beginning in the late 1800's, John D. Rockefeller, by means of a deception, using a ploy with his Union Tanker Car Company was able to control or "corner" the oil market. In this scheme, he owned the company which had the design patent for the all-metal sealed oil tanker railroad car. The same type of tanker cars are still in use today. Rockefeller, through Union Tanker Car, leased tanker cars by the hundreds to the owners of newly discovered oil fields so they could ship the crude to the refiners. This often included kickbacks from the railroad for increasing the profitable traffic on their rails. In the late 1800's, prior to the design of the tanker railroad car, petroleum was shipped to the refiner in open wooden barrels on flatbed cars. Some of the oil was lost as it sloshed out whenever the train stopped or started or went around corners. Much of the valuable part of the crude oil simply evaporated from the open barrels before it got to the refiner, often leaving only a heavy black tar. The wooden barrels were difficult and time consuming to fill and drain. The closed metal tanker car was a boon to the new petroleum business. After several months of oil field development and shipments from the numerous wells being sunk in the ground, and after the refiner had built new facilities to handle the increased flow
 
of crude, Union Tanker broke the lease and took back all of its tanker cars. Since there was no other source for the tanker cars, both the oil field developer and the refiner began to lose money caused by the instantaneous stoppage of the oil flow from field to refinery. Within months the oil producer and the refiner, after making large investments, were now on the verge of bankruptcy. Then John Rockefeller, through his holding company, Standard Oil, simply walked in and purchased both the oil fields and the refinery at pennies on the dollar. He usually also ended up with the railroad in between. Despite his reputation as an oil magnate, John D himself was not really an oilman. He had little experience as either an oil driller or refiner. He simply leased oil tanker cars and made money buying oil fields and refineries at "distressed" prices. To run his oil fields and refineries, Rockefeller often hired the very same entrepreneurs whom he had just defrauded. They now worked for him. Only many decades later was it discovered who caused the "distress." And any Rockefeller today will point out, "...but it was not illegal." In the period of 1900 to 1910 this conspiracy was repeated numerous times and Standard Oil then owned almost all the oil fields in California, Texas, Arkansas, New Jersey and Ohio, and several other states. Thus John D. Rockefeller either owned or controlled about 90% of what we now call the energy business. At that time, research shows, not many people knew that Rockefeller owned the Union Tanker Car Company. Otherwise, very few oilmen would have signed bogus leases for the cars if they had known that John D. and Standard Oil owned all the tanker cars. Many "muckraker" authors of the early 1900's, such as Ida Tarbell, exposed the predatory monopolist marketing practice of Standard Oil. But the Rockefeller connection with Union Tanker, and how Standard came into being, was not discovered until many decades later. And it still is not in the history books. And most of those few books which did show the connection between John Rockefeller and the Union Tanker Car Company have somehow mysteriously disappeared, but not all. In 1911, the US government brought charges of monopoly against John D. and Standard Oil, and the company was broken
 
apart. The many new companies all had names which were variations of the initials S.O., such as SOHIO in Ohio, SOCONY in New York, ESSO ("S.O.") which later became EXXON, etc. The splitting of the company was a mere inconvenience for Rockefeller. In retaliation, John D. made a vow. He vowed he would put his company back together. He also vowed in turn he would "break apart" the United States. He and his sons and grandsons and their companies have accomplished both. It was completed about 8 years ago. Again, I get ahead of myself. In the period of 1910 to 1914 there were only three major oil companies in the world, (1) Standard Oil in America and its many "mini-S.O.-standards" after the 1911 breakup, (2) the British-Persian Petroleum Company, which controlled the large oilfields in Persia (now Iran), roughly extending up into southern Russia, and (3) Royal Dutch Shell which controlled the vast oil fields in the old Dutch East Indies Colonies in Indonesia and southeast Asia. John D. resolved to take over control of both the British-Persian Petroleum company and Royal Dutch Shell. Rockefeller believed the world would be better served if all nasty corporate competition were eliminated. Then he could make the decisions to market petroleum like an efficient, smooth running, well oiled machine. It was simply a continuation of his business practice in the US for the previous 10 years. In several inter-corporate meetings around 1910 this was almost accomplished. He was distracted when the US government broke apart his oil holdings, but he was not deterred. The big three oil companies agreed, instead, to act jointly as if they were one company, the first oil cartel. They settled on one world price for oil, which from 1910 to about 1975 was the world pegged price of "West Texas Sweet Crude." The law of "supply-and-demand" had been subverted. It was as if everyone bought their oil in Texas from Standard Oil regardless of from where in the world the oil came. They also agreed to divide up the world into three oil zones to match their local oil supplies and markets. To accomplish this they would need to eliminate or take over control of all other smaller local national ownerships of crude oil, or even the colonial ownership of any oil fields, such as in the old colonies of France, Germany, Spain and Portugal.

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