Charles Pratt and Company
Encyclopedia
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. Rogers
in 1867. It became part of John D. Rockefeller
's Standard Oil
organization in 1874.
Pratt, born in Watertown, Massachusetts
, had come to New York around 1850-1851, where he worked for a company specializing in paints and whale-oil products. Pratt became a pioneer of the natural oil industry, and established his kerosene
refinery Astral Oil Works
in Brooklyn. Pratt's product later gave rise to the slogan, "The holy lamps of Tibet are primed with Astral Oil."
In the mid 1860s, Pratt met two aspiring young men, Charles Ellis and Henry H. Rogers
in western Pennsylvania
. Pratt had bought whale-oil from Charles Ellis in Fairhaven, Massachusetts
, the young men's hometown. He purchased the entire future output of their small venture, Wamsutta Oil Refinery
, at McClintocksville, near Oil City
at a fixed price.
Ellis and Rogers had no wells and were dependent upon purchasing crude oil to refine and sell to Pratt. A few months later, crude oil prices suddenly increased due to manipulation by speculators. The young entrepreneurs and their Wamsutta Oil Refinery struggled to try to live up to their contract with Pratt, but soon their surplus was wiped out. Before long, they were heavily in debt to him.
Charles Ellis gave up, but in 1866, Henry Rogers went to Pratt in New York, and told him he would take personal responsibility for the entire debt. This so impressed Pratt that he immediately hired him for his own organization. In the next few year Rogers became, in the words of Elbert Hubbard, Pratt's "hands and feet and eyes and ears" (Little Journeys to the Homes, 1909).
Pratt made Rogers foreman of his Brooklyn refinery, with a promise of a partnership if sales ran over fifty thousand dollars a year. Rogers and his wife Abbie moved to Brooklyn. The Rogers continued to live frugally and young Henry worked very hard. Abbie brought his meals to the "works," and often he would sleep but three hours a night rolled up in a blanket by the side of a still. Rogers moved steadily from foreman to manager, and then superintendent of Pratt's Astral Oil Refinery. Pratt finally gave Rogers an interest in the business. In 1867, 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 conflicts with John D. Rockefeller
's infamous South Improvement Company
, which was basically a scheme to obtain favorable net rates from the Pennsylvania Railroad
(PRR) and other railroads through a secret system of rebates. Rockefeller and the South Improvement Company scheme outraged independent oil producers in western Pennsylvania and refineries there and afar alike.
The opposition to the South Improvement Company scheme among the New York refiners was led by Rogers. The New York interests formed an association, and about the middle of March, 1872, sent a committee of three, with Rogers, of Charles Pratt and Company, as head, to Oil City
to consult with the Oil Producers' Union there. Their arrival in the oil regions was a matter of great satisfaction. Working with the Pennsylvania independents, they managed to forge an agreement with the PRR and other railroads whose leaders eventually agreed to open rates to all promised to end their shady dealings with South Improvement. The oil men were most exultant, but their joy was to be short-lived, for Rockefeller had already begun forming his Standard Oil
organization and was busy trying another approach, which included frequently buying-up opposing interests.
Rockefeller approached Charles Pratt
with his plans of cooperation and consolidation. Pratt talked it over with Rogers, and they decided that the combination would benefit them. Rogers formulated terms, which guaranteed financial security and jobs for Pratt and himself. John D. Rockefeller
quietly accepted the offer on Rogers' exact terms. Charles Pratt and Company (including Astral Oil) became one of the important formerly independent refiners to join Rockefeller's organization, and it was to become part of the Standard Oil
Trust in 1874. Pratt's son, Charles Millard Pratt
(1858-1913) became Secretary of Standard Oil.
Pratts' protégé, Henry H. Rogers
soon rose to become one of the key men of Standard Oil, and was a Vice-President by 1890. Rogers, who kept his residence in New York after moving there at Pratt's request, invested outside of Standard Oil and became one of the wealthiest men in the world. He had interests in oil, gas, steel, copper, coal, and railroads, and eventually founded and built the Virginian Railway
at the end of his own career.
Charles Pratt is credited with recognizing the growing need for trained industrial workers in a changing economy. In 1886, he founded and endowed the Pratt Institute
, which opened in Brooklyn, New York in 1887.
Pratt settled in Glen Cove, Long Island, New York about 1890. In an effort to keep his family near him, he purchased large tracts of land surrounding his estate, totaling 1,100 acres (4.5 km²). However, he died the next year, 1891, in New York City
.
At Glen Cove, on Long Island, Pratt's six sons and two daughters later built their homes. As of 2004, most of the extant Pratt mansions along the Gold Coast there are still in use:
The current Charles Pratt & Co. exists, according to its website "as a central administrative office providing professional financial services for the descendants of Charles Pratt and selected other private clients."
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
by Charles Pratt
Charles Pratt
Charles Pratt was a United States capitalist, businessman and philanthropist.Pratt was a pioneer of the U.S. petroleum industry, and established his kerosene refinery Astral Oil Works in Brooklyn, New York. An advertising slogan was "The holy lamps of Tibet are primed with Astral Oil." He...
and Henry H. Rogers
Henry H. Rogers
Henry Huttleston Rogers was a United States capitalist, businessman, industrialist, financier, and philanthropist. He made his fortune in the oil refinery business, becoming a leader at Standard Oil....
in 1867. It became part of John D. Rockefeller
John D. Rockefeller
John Davison Rockefeller was an American oil industrialist, investor, and philanthropist. He was the founder of the Standard Oil Company, which dominated the oil industry and was the first great U.S. business trust. Rockefeller revolutionized the petroleum industry and defined the structure of...
's Standard Oil
Standard Oil
Standard Oil was a predominant American integrated oil producing, transporting, refining, and marketing company. Established in 1870 as a corporation in Ohio, it was the largest oil refiner in the world and operated as a major company trust and was one of the world's first and largest multinational...
organization in 1874.
Pratt, born in Watertown, Massachusetts
Watertown, Massachusetts
The Town of Watertown is a city in Middlesex County, Massachusetts, United States. The population was 31,915 at the 2010 census.- History :Archeological evidence suggests that Watertown was inhabited for thousands of years before the arrival of settlers from England...
, had come to New York around 1850-1851, where he worked for a company specializing in paints and whale-oil products. Pratt became a pioneer of the natural oil industry, and established his kerosene
Kerosene
Kerosene, sometimes spelled kerosine in scientific and industrial usage, also known as paraffin or paraffin oil in the United Kingdom, Hong Kong, Ireland and South Africa, is a combustible hydrocarbon liquid. The name is derived from Greek keros...
refinery Astral Oil Works
Astral Oil Works
Astral Oil Works was founded in the Greenpoint section of Brooklyn, New York by Charles Pratt. Pratt was a pioneer of the petroleum industry who formed Charles Pratt and Company with Henry H. Rogers. The Pratt interests became part of John D...
in Brooklyn. Pratt's product later gave rise to the slogan, "The holy lamps of Tibet are primed with Astral Oil."
In the mid 1860s, Pratt met two aspiring young men, Charles Ellis and Henry H. Rogers
Henry H. Rogers
Henry Huttleston Rogers was a United States capitalist, businessman, industrialist, financier, and philanthropist. He made his fortune in the oil refinery business, becoming a leader at Standard Oil....
in western Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
. Pratt had bought whale-oil from Charles Ellis in Fairhaven, Massachusetts
Fairhaven, Massachusetts
Fairhaven is a town in Bristol County, Massachusetts, in the United States. It is located on the south coast of Massachusetts where the Acushnet River flows into Buzzards Bay, an arm of the Atlantic Ocean...
, the young men's hometown. He purchased the entire future output of their small venture, Wamsutta Oil Refinery
Wamsutta Oil Refinery
Wamsutta Oil Refinery was established around 1861 in McClintocksville in Venango County near Oil City, Pennsylvania, in the United States. It was the first business enterprise of Henry Huttleston Rogers , who became a famous capitalist, businessman, industrialist, financier, and philanthropist.-...
, at McClintocksville, near Oil City
Oil City, Pennsylvania
Oil City is a city in Venango County, Pennsylvania that is known in the initial exploration and development of the petroleum industry. After the first oil wells were drilled nearby in the 1850s, Oil City became central in the petroleum industry while hosting headquarters for the Pennzoil, Quaker...
at a fixed price.
Ellis and Rogers had no wells and were dependent upon purchasing crude oil to refine and sell to Pratt. A few months later, crude oil prices suddenly increased due to manipulation by speculators. The young entrepreneurs and their Wamsutta Oil Refinery struggled to try to live up to their contract with Pratt, but soon their surplus was wiped out. Before long, they were heavily in debt to him.
Charles Ellis gave up, but in 1866, Henry Rogers went to Pratt in New York, and told him he would take personal responsibility for the entire debt. This so impressed Pratt that he immediately hired him for his own organization. In the next few year Rogers became, in the words of Elbert Hubbard, Pratt's "hands and feet and eyes and ears" (Little Journeys to the Homes, 1909).
Pratt made Rogers foreman of his Brooklyn refinery, with a promise of a partnership if sales ran over fifty thousand dollars a year. Rogers and his wife Abbie moved to Brooklyn. The Rogers continued to live frugally and young Henry worked very hard. Abbie brought his meals to the "works," and often he would sleep but three hours a night rolled up in a blanket by the side of a still. Rogers moved steadily from foreman to manager, and then superintendent of Pratt's Astral Oil Refinery. Pratt finally gave Rogers an interest in the business. In 1867, 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 conflicts with John D. Rockefeller
John D. Rockefeller
John Davison Rockefeller was an American oil industrialist, investor, and philanthropist. He was the founder of the Standard Oil Company, which dominated the oil industry and was the first great U.S. business trust. Rockefeller revolutionized the petroleum industry and defined the structure of...
's infamous South Improvement Company
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...
, which was basically a scheme to obtain favorable net rates from the Pennsylvania Railroad
Pennsylvania Railroad
The Pennsylvania Railroad was an American Class I railroad, founded in 1846. Commonly referred to as the "Pennsy", the PRR was headquartered in Philadelphia, Pennsylvania....
(PRR) and other railroads through a secret system of rebates. Rockefeller and the South Improvement Company scheme outraged independent oil producers in western Pennsylvania and refineries there and afar alike.
The opposition to the South Improvement Company scheme among the New York refiners was led by Rogers. The New York interests formed an association, and about the middle of March, 1872, sent a committee of three, with Rogers, of Charles Pratt and Company, as head, to Oil City
Oil City, Pennsylvania
Oil City is a city in Venango County, Pennsylvania that is known in the initial exploration and development of the petroleum industry. After the first oil wells were drilled nearby in the 1850s, Oil City became central in the petroleum industry while hosting headquarters for the Pennzoil, Quaker...
to consult with the Oil Producers' Union there. Their arrival in the oil regions was a matter of great satisfaction. Working with the Pennsylvania independents, they managed to forge an agreement with the PRR and other railroads whose leaders eventually agreed to open rates to all promised to end their shady dealings with South Improvement. The oil men were most exultant, but their joy was to be short-lived, for Rockefeller had already begun forming his Standard Oil
Standard Oil
Standard Oil was a predominant American integrated oil producing, transporting, refining, and marketing company. Established in 1870 as a corporation in Ohio, it was the largest oil refiner in the world and operated as a major company trust and was one of the world's first and largest multinational...
organization and was busy trying another approach, which included frequently buying-up opposing interests.
Rockefeller approached Charles Pratt
Charles Pratt
Charles Pratt was a United States capitalist, businessman and philanthropist.Pratt was a pioneer of the U.S. petroleum industry, and established his kerosene refinery Astral Oil Works in Brooklyn, New York. An advertising slogan was "The holy lamps of Tibet are primed with Astral Oil." He...
with his plans of cooperation and consolidation. Pratt talked it over with Rogers, and they decided that the combination would benefit them. Rogers formulated terms, which guaranteed financial security and jobs for Pratt and himself. John D. Rockefeller
John D. Rockefeller
John Davison Rockefeller was an American oil industrialist, investor, and philanthropist. He was the founder of the Standard Oil Company, which dominated the oil industry and was the first great U.S. business trust. Rockefeller revolutionized the petroleum industry and defined the structure of...
quietly accepted the offer on Rogers' exact terms. Charles Pratt and Company (including Astral Oil) became one of the important formerly independent refiners to join Rockefeller's organization, and it was to become part of the Standard Oil
Standard Oil
Standard Oil was a predominant American integrated oil producing, transporting, refining, and marketing company. Established in 1870 as a corporation in Ohio, it was the largest oil refiner in the world and operated as a major company trust and was one of the world's first and largest multinational...
Trust in 1874. Pratt's son, Charles Millard Pratt
Charles Millard Pratt
Charles Millard Pratt was an American oil industrialist and philanthropist.-Early life:Pratt was born and raised in Clinton Hill, Brooklyn, the eldest son of Charles Pratt and Lydia Ann Richardson....
(1858-1913) became Secretary of Standard Oil.
Pratts' protégé, Henry H. Rogers
Henry H. Rogers
Henry Huttleston Rogers was a United States capitalist, businessman, industrialist, financier, and philanthropist. He made his fortune in the oil refinery business, becoming a leader at Standard Oil....
soon rose to become one of the key men of Standard Oil, and was a Vice-President by 1890. Rogers, who kept his residence in New York after moving there at Pratt's request, invested outside of Standard Oil and became one of the wealthiest men in the world. He had interests in oil, gas, steel, copper, coal, and railroads, and eventually founded and built the Virginian Railway
Virginian Railway
The Virginian Railway was a Class I railroad located in Virginia and West Virginia in the United States. The VGN was created to transport high quality "smokeless" bituminous coal from southern West Virginia to port at Hampton Roads....
at the end of his own career.
Charles Pratt is credited with recognizing the growing need for trained industrial workers in a changing economy. In 1886, he founded and endowed the Pratt Institute
Pratt Institute
Pratt Institute is a private art college in New York City located in Brooklyn, New York, with satellite campuses in Manhattan and Utica. Pratt is one of the leading undergraduate art schools in the United States and offers programs in Architecture, Graphic Design, History of Art and Design,...
, which opened in Brooklyn, New York in 1887.
Pratt settled in Glen Cove, Long Island, New York about 1890. In an effort to keep his family near him, he purchased large tracts of land surrounding his estate, totaling 1,100 acres (4.5 km²). However, he died the next year, 1891, in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
.
At Glen Cove, on Long Island, Pratt's six sons and two daughters later built their homes. As of 2004, most of the extant Pratt mansions along the Gold Coast there are still in use:
- Welwyn, originally the home of Harold I. PrattHarold I. PrattHarold Irving Pratt was an American oil industrialist and philanthropist. A director of Standard Oil of New Jersey, he also served on the Council of Foreign Relations from 1923-1939.- Early life :...
, is now owned by the Nassau County Museum. - The Braes, originally owned by Herbert L. PrattHerbert L. PrattHerbert Lee Pratt was an American businessman and a leading figure in the United States oil industry.- Early life :...
, is now the Webb Institute of Naval Architecture. - The Manor House, built for John Teele PrattJohn Teele PrattJohn Teele Pratt was an American corporate attorney, philanthropist, music impresario, and financier.- Early life :...
, is now the Glen Cove Mansion Hotel and Conference Center. - Poplar Hill, the Frederic B. PrattFrederic B. PrattFrederic Bayley Pratt was the president of Brooklyn's Pratt Institute for 44 years, from 1893-1937.-Early life:He was born in Brooklyn NY, the son of Standard Oil magnate Charles Pratt and Mary Helen Richardson....
house, is now owned by Glengariff Nursing Home. - Killenworth, originally the house of George Dupont PrattGeorge Dupont PrattGeorge Dupont Pratt was an American conservationist, philanthropist, Boy Scout sponsor, big-game hunter and collector of ancient antiquities.-Early life:...
, is now the retreat for the Soviet Delegation to the United Nations.
The current Charles Pratt & Co. exists, according to its website "as a central administrative office providing professional financial services for the descendants of Charles Pratt and selected other private clients."
See also
- Charles PrattCharles PrattCharles Pratt was a United States capitalist, businessman and philanthropist.Pratt was a pioneer of the U.S. petroleum industry, and established his kerosene refinery Astral Oil Works in Brooklyn, New York. An advertising slogan was "The holy lamps of Tibet are primed with Astral Oil." He...
- Henry H. RogersHenry H. RogersHenry Huttleston Rogers was a United States capitalist, businessman, industrialist, financier, and philanthropist. He made his fortune in the oil refinery business, becoming a leader at Standard Oil....
- Standard OilStandard OilStandard Oil was a predominant American integrated oil producing, transporting, refining, and marketing company. Established in 1870 as a corporation in Ohio, it was the largest oil refiner in the world and operated as a major company trust and was one of the world's first and largest multinational...
- Pratt InstitutePratt InstitutePratt Institute is a private art college in New York City located in Brooklyn, New York, with satellite campuses in Manhattan and Utica. Pratt is one of the leading undergraduate art schools in the United States and offers programs in Architecture, Graphic Design, History of Art and Design,...
- Ida M. TarbellIda M. TarbellIda Minerva Tarbell was an American teacher, author and journalist. She was known as one of the leading "muckrakers" of the progressive era, work known in modern times as "investigative journalism". She wrote many notable magazine series and biographies...