Tidewater Oil Company


Tidewater Oil Company was a major vertically integrated oil company that operated independently from 1887 to 1926, when it was sold to a holding company. Over the decades, it passed through various corporate hands. It sold petroleum and gasoline products and fuel under various brand names, including Tydol, Flying A, and Veedol.
In 2011, Veedol was sold by British Petroleum to Tidewater India. Now it is part of Andrew Yule and Company's Indian group and manufactures automotive oil for the Indian market on the sub-continent of South Asia. Tidewater does not have its own refinery, so it is dependent on base oil suppliers like HPCL and BPCL. It also manufactures a wide range of automotive lubricants. Its corporate headquarters is in Los Angeles, California.

History

Tide-Water Pipe Company

In November 1878, the Tide-Water Pipe Company was founded by Byron D. Benson, Robert E. Hopkins, and David McKelvy. Other sources include as founders Samuel Q. Brown and Alanson Ashford Sumner.
The capital at incorporation was $625,000 of which $500,000 was paid in as cash and $125,000 represented the rights-of-way for the Seaboard Pipe Line which were eventually not used. The Reading Railroad Company subscribed to $250,000 of the stock.
Benson, Hopkins, and McKelvy had forged a deal with Franklin Gowen, president of the Reading Railroad, to build a pipeline from the new Bradford oil field at Coryville, Pennsylvania, eastward to Williamsport, where the oil would be loaded into Reading tank cars for transport to independent refiners in Philadelphia and New York. Gowen agreed to put up $250,000, half the predicted cost of building the pipeline.
The result was the world's first long-distance oil pipeline: 102.87 miles. The line included 6-inch, 18.5 pounds per linear foot wrought iron pipe joints, ordered from the Reading Iron Company, which began shipments on January 30, 1879, and the National Tube Works, which followed on February 12. Railroads delivered construction materials to 10 shipping points along the route. Laying of the pipe began near Oleona on February 22 and the last joints were put in place on May 22. The line rose 1,200 feet to cross the Allegheny Mountains near Waterville, then descended by gravity 2,100 feet. The cost of laying the line was 15.449 cents per foot, including freight, hauling and joining. Through May 28, 1880, a total of 1,097,761.06 barrels was moved, of which 943,483.02 were transported to eastern refineries.
The pipeline could move 6,000 barrels per day. Starting at Pumping Station No. 1 at Coryville, oil flowed 22.43 miles to No. 2 station at Olmsted near Coudersport, then 80.44 miles to Williamsport. The pumping engines at Coryville began operation at 4 p.m. on May 28; oil arrived at 10:18 a.m. on May 30 at No. 2 station, which began to pump the same day at 3:20 p.m. After a pressure drop was detected, a piece of wood and some rope were removed from the pipe. Olmsted resumed pumping at 5 p.m. on June 2. Oil arrived at the tank farm 1.5 miles east of Williamsport at 7:20 p.m. on June 4. From there the loading station of the railroad could be reached by 12,700 feet of 8-inch gravity-flow pipe.
In 1880, the Equitable Pipe Line was absorbed, the Coryville pumping station was moved a few miles to Rixford and the 4-inch pipe was replaced by 6-inch pipe. The line was extended from Williamsport to Tamanend in the winter of 1881-82 and new pumping stations were built at County Line, Muncy and Shumans. From Tamanend the New Jersey Central Railroad provided a direct route to New York bypassing Philadelphia in rail shipments. In 1887 the line was extended from Tamanend to Bayonne and pumping stations built at Hudsondale, Pa. and Changewater, New Jersey.
The company owned a refinery in Bayonne, New Jersey, next to the larger refinery of the Standard Oil Company. On July 20, 1887, a fire that destroyed the Standard Oil Co. refinery at Constable Hook, also destroyed facilities belonging to the Tide Water Pipe Co., the Polar Oil Co., and the Ocean Oil Co.
In 1908 and 1909, the line was extended westward 546 miles from Rixford to Stoy, Illinois. The joints, made of basic steel, were laid from August 1, 1908, to April 13, 1909. Telegraph poles were erected from August 3, 1908, to April 10, 1909. On May 11, 1909, testing of the line with water began. The first oil arrived at Rixford at 7:15 a.m. on July 7, 1909. Seven pumping stations were later added. Pipeline loops were later added to the eastern portion of the line, which at the beginning of 1913 could move more than 10,000 barrels per day.

Tide Water Oil Company

The Tide Water Oil Company was incorporated in New Jersey on November 17, 1888.
In July 1916, 26,660 shares were offered to the public at $185 per share.
In June 1917, when the company was first listed on the New York Stock Exchange, its main pipeline had grown to include 833.69 miles of 6-inch trunk line from Stoy to Bayonne. Its pipeline system also included 304 miles of 6-inch trunk line loops; 2,000 miles of gathering lines; 20 pumping stations with redundant pump engines; and 92 tanks with a total capacity of 2,672,900 barrels. On one day that year, company pipelines held 1.6 million barrels of oil worth a total of $3,400,000.
The company held all or controlling interest in nine subsidiaries, including:
NameIncorporatedDateAuth. cap.ParIssuedOwned by TWO%
The Tide Water Pipe Co. LtdPennsylvaniaNov 13, 1878$6,250,000$100$6,250,000$6,218,00099.49
Associated Producers CoPennsylvaniaNov 5, 1884$900,000$100$800,000$797,00099.69
Tidal Oil CoOklahomaSep 27, 1907$1,000,000$100$582,000$495,00085.05
Platt & Washburn Refining CoNew JerseyMay 11, 1885$250,000$100$250,000$250,000100%
Tide Water Oil Co of MassachusettsMassachusettsJan 2, 1908$25,000$100$25,000$25,000100%
American Oil CoRhode IslandFeb 7, 1902$100,000$10$50,000$37,30074.60
Allegheny Pipe Line CoNew YorkFeb 28, 1903$9,000$5$9,000$5,35059.44
East Jersey RR & Terminal CoNew JerseyMar 12, 1901$300,000$100$257,000$257,000100%
Currier Lumber CorpVirginiaJune 5, 1908$225,000$100$225,000$225,000100%

DateAuth. capPurpose
Nov 17, 1888$5,000,000Acquisition of Polar Oil Company, Ocean Oil Company, Chester Oil Company, Lombard, Ayers & Company and purchase of real estate in Bayonne
May 15, 1907$20,000,000acquisition by exchange for stock of the Tide Water Pipe Line Co; for some time this company was the parent company and owned the entire stock of Tide Water Oil Co. until in 1907 the subsidiary took over the parent in a reorganization.
May 6, 1908$25,000,000extension of the pipe line to Illinois and purchase of producing lands in Illinois
Illinois oil production boomed in 1906. For a few years it was 3rd largest producing state behind California and Oklahoma.
Mar 15, 1916$30,000,000acquisition of oil producing lands in Oklahoma.
Holders of stock were given the right to subscribe at par to 1 share for each 5 shares held from Apr 10 to Jul 6, 1916.
Feb 20, 1917$40,000,000in 1917 $2,900,000 issued for a stock dividend and $8.1m unissued. Pursuant to a board resolution of May 2, 1919, 11,870 shares were issued and exchanged for the entire remaining stock of the Tidal Oil Co. not already owned by TWO, whose total issue was then 330,870 shares. TWO stock was trading between $236 and $250 in June 1919: each par $100 share of Tidal Oil had a market value of $3,220 to $3,411.
Dec 15, 1919$100,000,000Dec 1919 $8,617,400 plant extensions, 1 tanker, 1 power barge, employee stock program
Dec 1920, $9,931,500 Mexican operation, 4 tankers, plant extensions

DateCommonPreferred
1914240,000n/a
1915240,000n/a
May 1923496,735n/a
Dec 31, 1924500,045n/a
Jun 30, 1925504,429n/a
Nov 19252,017,741250,598
Nov 19262,138,373207,061
May 19272,158,047207,052
Nov 19272,168,285207,052
Sep 19312,191,821199,446
Jun 30, 19342,191,823196,246
Jun 30, 19352,191,860190,763

In May 1925, the common stock was split 4-for-1. Authorized capital was increased from 1,000,000 to 4,000,000 shares and each outstanding $100 par share was exchanged for 4 new shares of no par value.
In August 1925, the company issued $25,221,500 of 5% cumulative convertible preferred stock to provide working capital, finance infrastructure, and retire its entire funded debt of $12,000,000. The preferred was called on August 15, 1935 at $105 and the final $1.25 quarterly dividend, using ca. $1,800,000 from the cash reserve and a $19,000,000 3.23% 5-year bank loan dated Aug 15, 1935. Apparently or 195,765 shares were called and some 56,450 were converted, but a few seem to also have been bought on the market just prior to the call.
DateCompanyArea ServedBulk plantsService stationsDealer outlets/accountsNotes
May 1930Pioneer Distribution CoHazleton, Pennsylvania622180
Jul 1930Pittsford Oil CoPittsford, New York13225
Aug 1930Demmy Oil CoScranton, Pennsylvania26125
Aug 1, 1930Little & Coffin Oil CoPortland, Maine1221600