George Bissell (industrialist)
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George Henry Bissell (November 8, 1821 – November 19, 1884) was an
entrepreneur Entrepreneurship is the creation or extraction of economic value. With this definition, entrepreneurship is viewed as change, generally entailing risk beyond what is normally encountered in starting a business, which may include other values t ...
and industrialist who is often considered the father of the
American oil industry Petroleum has been a major industry in the United States since shortly after the oil discovery in the Oil Creek area of Titusville, Pennsylvania in 1859. The industry includes exploration, production, processing (refining), transportati ...
. His company, the Pennsylvania Rock Oil, was the first
Petroleum company The petroleum industry, also known as the oil industry or the oil patch, includes the global processes of exploration, extraction, refining, transportation (often by oil tankers and pipelines), and marketing of petroleum products. The larges ...
in America. His businesses included oil companies, banks, railroads, and substantial real estate in New York. At his death in 1884, his son Pelham would inherit his fortune, making him among the richest men in the United States.


Early life and education

Bissell was born in
Hanover Hanover (; german: Hannover ; nds, Hannober) is the capital and largest city of the German state of Lower Saxony. Its 535,932 (2021) inhabitants make it the 13th-largest city in Germany as well as the fourth-largest city in Northern Germany ...
,
New Hampshire New Hampshire is a state in the New England region of the northeastern United States. It is bordered by Massachusetts to the south, Vermont to the west, Maine and the Gulf of Maine to the east, and the Canadian province of Quebec to the nor ...
, the son of Nancy (Wemple) and Isaac Bissell. His father was a fur trader in Detroit and a Revolutionary war soldier, while his mother was a daughter of John Wemple, a Revolutionary war Captain. He had as relatives Governor
Clark Bissell Clark Bissell (September 7, 1782 – September 15, 1857) was the 34th governor of Connecticut. He served as an associate justice of the Connecticut Supreme Court from 1829 to 1839. He had previously served as a member of the Connecticut House of ...
and Governor William Henry Bissell. George Bissell's father died when he was twelve years old. For his education, George Bissell attended
Dartmouth College Dartmouth College (; ) is a private research university in Hanover, New Hampshire. Established in 1769 by Eleazar Wheelock, it is one of the nine colonial colleges chartered before the American Revolution. Although founded to educate Native ...
, paying his way by teaching and writing newspaper articles. He graduated in 1845 having studied literature and languages. Bissell then continued to earn a living as a teacher at Norwich Academy and also traveled, working as a journalist. He settled for a time in , where he served as a high school principal and superintendent of schools. He continued to study languages and also took up the study of law in his spare time. In 1853, Bissell relocated to
New York City New York, often called New York City or NYC, is the most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the most densely populated major city in the Un ...
to become a practicing attorney. Concern over the yellow fever epidemic in New Orleans was a reason for Bissell's relocation.


Career

In 1853 during a social visit to Dr. Dixi Crosby, a professor at Dartmouth College in Hanover, New Hampshire, Bissell saw samples of what was then known as "rock oil" which had been obtained from the ground. Bissell was aware of the primitive
oil An oil is any nonpolar chemical substance that is composed primarily of hydrocarbons and is hydrophobic (does not mix with water) & lipophilic (mixes with other oils). Oils are usually flammable and surface active. Most oils are unsaturated ...
-gathering industry in western
Pennsylvania Pennsylvania (; ( Pennsylvania Dutch: )), officially the Commonwealth of Pennsylvania, is a state spanning the Mid-Atlantic, Northeastern, Appalachian, and Great Lakes regions of the United States. It borders Delaware to its southeast, ...
. At the time, oil was gathered by such crude methods as soaking blankets in surface oil and then draining the blankets over barrels. Rock oil in that period of time was used mainly for medicinal purposes. Bissell recognized that the oil could be refined to produce
kerosene Kerosene, paraffin, or lamp oil is a combustible hydrocarbon liquid which is derived from petroleum. It is widely used as a fuel in aviation as well as households. Its name derives from el, κηρός (''keros'') meaning "wax", and was regi ...
, then in high demand, especially for lighting. If the rock oil could be obtained inexpensively and properly refined, it could replace such substances as
whale oil Whale oil is oil obtained from the blubber of whales. Whale oil from the bowhead whale was sometimes known as train oil, which comes from the Dutch word ''traan'' (" tear" or "drop"). Sperm oil, a special kind of oil obtained from the head ...
and
coal oil Coal oil is a shale oil obtained from the destructive distillation of cannel coal, mineral wax, or bituminous shale, once used widely for illumination. Chemically similar to the more refined, petroleum-derived kerosene, it consists mainly of seve ...
as sources of fuel for illumination. Recognizing the potential for rock oil in 1854, Bissell and his law partner Jonathan Eveleth, a Harvard graduate, decided to start their own firm. Eveleth & Bissell will be formed and their office would be in New York at
14 Wall Street Fourteen or 14 may refer to: * 14 (number), the natural number following 13 and preceding 15 * one of the years 14 BC, AD 14, 1914, 2014 Music * 14th (band), a British electronic music duo * ''14'' (David Garrett album), 2013 *''14'', an unrelea ...
, on Wall Street. Together, they purchased a 105-acre farm, the Hibbard Farm which was owned by timber company Brewer, Watson & Co, at a cost of $5000. The timber company had also received a competitive offer from
Samuel Kier Samuel Martin Kier (July 19, 1813 – October 6, 1874) was an American inventor and businessman who is credited with founding the American petroleum refining industry. He was the first person in the United States to refine crude oil into la ...
, a pioneer in oil refining, and an early founder of
Jones and Laughlin Steel Company The Jones and Laughlin Steel Corporation began as the American Iron Company, founded in 1852 by Bernard Lauth and Benjamin Franklin Jones, a few miles (c 4 km) south of Pittsburgh along the Monongahela River. Lauth's interest was bought in ...
, an important competitor of
Andrew Carnegie Andrew Carnegie (, ; November 25, 1835August 11, 1919) was a Scottish-American industrialist and philanthropist. Carnegie led the expansion of the American steel industry in the late 19th century and became one of the richest Americans i ...
. Despite having received a lucrative offer from Kier, Brewer, Watson & Co decided to accept the one of Bissell and Eveleth, as they intended to sell the stock of their new enterprise through New York's
financial markets A financial market is a market in which people trade financial securities and derivatives at low transaction costs. Some of the securities include stocks and bonds, raw materials and precious metals, which are known in the financial ma ...
, and Brewer, Watson & Co. perceived that they could therefore develop an equity position in the new business. In December 1854, Bissell and Eveleth formed the Pennsylvania Rock Oil Company while transferring ownership of the Hibbard Farm to the new company. The Pennsylvania Rock Oil Co. was the first
oil exploration Hydrocarbon exploration (or oil and gas exploration) is the search by petroleum geologists and geophysicists for deposits of hydrocarbons, particularly petroleum and natural gas, in the Earth using petroleum geology. Exploration methods Vis ...
company in the United States. Early in the enterprise, Bissell and Eveleth gained the support of James Townsend, a bank President from
New Haven, Connecticut New Haven is a city in the U.S. state of Connecticut. It is located on New Haven Harbor on the northern shore of Long Island Sound in New Haven County, Connecticut and is part of the New York City metropolitan area. With a population of 134 ...
, who helped them obtain further support. Shortly after obtaining the Hibbard Farm, Bissell and Eveleth hired
Yale University Yale University is a Private university, private research university in New Haven, Connecticut. Established in 1701 as the Collegiate School, it is the List of Colonial Colleges, third-oldest institution of higher education in the United Sta ...
chemist
Benjamin Silliman Jr. Benjamin Silliman Jr. (December 4, 1816 – January 14, 1885) was a professor of chemistry at Yale University and instrumental in developing the oil industry. His father Benjamin Silliman Sr., also a famous Yale chemist, developed the process o ...
and coal oil chemist Luther Atwood of Boston to evaluate the suitability of the rock oil for making a refined oil suitable for illumination. The evaluation included an economic study and a chemical analysis, and Atwood was positive on the prospects from the beginning of the evaluation. Silliman was more cautious, although he issued a promising opinion in May 1855. Silliman's evaluation cost Bissell and Eveleth $1200. With these expert opinions, Bissell and Eveleth continued with their endeavor.


Seneca Oil Company

In 1856, after seeing pictures of derrick drilling for salt, Bissell conceived of the idea of drilling for oil, rather than mining it or digging for it as is done with salt wells. This was widely considered ludicrous at the time. However, Bissell and Eveleth pursued the idea and sought investors. This included a group from New Haven, Connecticut, who eventually formed the
Seneca Oil Company Edwin Laurentine Drake (March 29, 1819 – November 9, 1880), also known as Colonel Drake, was an American businessman and the first American to successfully drill for oil. Early life Edwin Drake was born in Greenville, New York on March ...
. Bissell and Eveleth had a royalty dispute with the investors in Seneca Oil Co., although a business relationship resulted. On August 27, 1859, the company first succeeded in striking oil, on a farm in Titusville,
Pennsylvania Pennsylvania (; ( Pennsylvania Dutch: )), officially the Commonwealth of Pennsylvania, is a state spanning the Mid-Atlantic, Northeastern, Appalachian, and Great Lakes regions of the United States. It borders Delaware to its southeast, ...
.
John D. Rockefeller John Davison Rockefeller Sr. (July 8, 1839 – May 23, 1937) was an American business magnate and philanthropist. He has been widely considered the wealthiest American of all time and the richest person in modern history. Rockefeller was ...
took notice of this event and decided to jump on the opportunity and joined the Pennsylvania oil rush, forming his own oil-refining business with Maurice B. Clark, naming it Clark & Rockefeller. Rockefeller's enterprise would evolve into the
Rockefeller, Andrews & Flagler Rockefeller, Andrews & Flagler was a business concern formed in 1867 in Cleveland, Ohio which was a predecessor of the Standard Oil Company. The principals and namesakes were John D. Rockefeller, William Rockefeller, Samuel Andrews, and Henry M. ...
partnership, with Samuel Andrews, Henry Flagler, and Stephen V. Harkness as associates. As a result of the first success at striking oil, a business relationship will develop between Bissell's Pennsylvania Rock Oil Co. and Seneca Oil Company. Colonel
Edwin Drake Edwin Laurentine Drake (March 29, 1819 – November 9, 1880), also known as Colonel Drake, was an American businessman and the first American to successfully drill for oil. Early life Edwin Drake was born in Greenville, New York on March 2 ...
became involved in the enterprise through his employment with Seneca Oil Co., and Drake played a critical role in the first successful oil well in the region. Bissell, through Pennsylvania Rock Oil Co., invested heavily in the surrounding region with significant financial success. With time, Seneca Oil Co. became unable to pay the royalties due to the Pennsylvania Rock Oil Company. The matter was resolved when Bissell and Eveleth agreed to forgive the unpaid royalties in exchange for taking full title to the portion of the Hibbard Farm that Seneca Oil controlled. Additionally, Eveleth died in 1862. As a result of these two events, Bissell had much control over development of this oil-producing region. He continued to attract investors, to develop new
oil fields A petroleum reservoir or oil and gas reservoir is a subsurface accumulation of hydrocarbons contained in porous or fractured rock formations. Such reservoirs form when kerogen (ancient plant matter) is created in surrounding rock by the presence ...
in the region, and built a
railroad Rail transport (also known as train transport) is a means of transport that transfers passengers and goods on wheeled vehicles running on rails, which are incorporated in tracks. In contrast to road transport, where the vehicles run on a pre ...
to carry the oil to markets. In an 1866 economic downturn, Bissell opened a
bank A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Because ...
in the region, George H. Bissell & Co., to assure continued development of the oil-producing region. His bank at Petroleum Center, Pennsylvania, with office at
5 Beekman Street 5 Beekman Street, also known as the Beekman Hotel and Residences, is a building in the Financial District of Manhattan in New York City. It is composed of the interconnected 10-story, Temple Court Building and Annex (also known as Temple Court ...
, New York, was regarded as one of the most substantial banking institution in the oil industry at the time. As the decade progressed, large producers like
John D. Rockefeller John Davison Rockefeller Sr. (July 8, 1839 – May 23, 1937) was an American business magnate and philanthropist. He has been widely considered the wealthiest American of all time and the richest person in modern history. Rockefeller was ...
would learn at his expense, and would begin to consolidate the
oil wells An oil well is a drillhole boring in Earth that is designed to bring petroleum oil hydrocarbons to the surface. Usually some natural gas is released as associated petroleum gas along with the oil. A well that is designed to produce only gas may ...
and refineries in the region. By 1882, with the formation of the Standard Oil Trust, Rockefeller would effectively establish a monopoly over the industry in
Pennsylvania Pennsylvania (; ( Pennsylvania Dutch: )), officially the Commonwealth of Pennsylvania, is a state spanning the Mid-Atlantic, Northeastern, Appalachian, and Great Lakes regions of the United States. It borders Delaware to its southeast, ...
, and with the discovery of oil in other states, the nation's interest would shift elsewhere.


Investments

When Bissell's oil enterprise began to flourish, he moved from
New York City New York, often called New York City or NYC, is the most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the most densely populated major city in the Un ...
to the Pennsylvania Oil Region, taking up residence at the Franklin Hotel in
Franklin, Pennsylvania Franklin is a city and the county seat of Venango County, Pennsylvania. The population was 6,097 in the 2020 census. Franklin is part of the Oil City, PA Micropolitan Statistical Area. Franklin is known for its three-day autumn festival in Oc ...
. He lived in Pennsylvania until 1864, when he returned to New York City. On his return, Bissell diversified his investments and started to include
insurance Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
in his portfolio. In addition to the Hibbard Farm and his bank, Bissell's other investments in the region included various other farms and oil wells, a barrel factory, the Central Petroleum Company, the Farmer’s Railroad, United Petroleum Farms Company, and the George H. Bissell Express Company. When retiring in New York, he was the owner of 3 banks, a railroad, and was also director and President of various companies, such as the Peruvian Petroleum Company and the Peruvian Refining Company. He and other investors started these companies with a capital of 5 millions dollars and a lease on 4.5 millions acres of land. They supplied most of the oil in west South America, exporting the surplus to Australia, England and New Zealand. He also invested extensively in real estate, becoming one of the largest operators in dealing in New York real estate, which would be inherited by his son Pelham, along with his oil companies, banks and railroads. His son became a millionaire as a result, as seen in the registry of the American Millionaires of 1892, with a fortune of over a million dollars, which translate to over a billion dollars in 2022 money. There was only 4047 millionaires in the United States at the time, making him among the richest men in the country.


Personal life

Bissell's wife was Ophie Louise Griffin, with whom he had two children. Ophie died in 1867. At the time of Bissell's death in 1884, he was living at 16 West 40th Street in New York City. He was interred at the Dartmouth College Cemetery. His son, Pelham St. George Bissell, a millionaire of 1892, married to Helen Alsop French, daughter of
Colonel Colonel (abbreviated as Col., Col or COL) is a senior military officer rank used in many countries. It is also used in some police forces and paramilitary organizations. In the 17th, 18th and 19th centuries, a colonel was typically in charge o ...
Thomas J. French. He was educated at Columbia College, and was a large owner of the Adirondacks Pulp Company, later merged into the
International Paper Company The International Paper Company is an American pulp and paper company, the largest such company in the world. It has approximately 56,000 employees, and is headquartered in Memphis, Tennessee. History The company was incorporated January 31, ...
. He was also a member of the Columbia Alumni Association, the
New York Athletic Club The New York Athletic Club is a private social club and athletic club in New York state. Founded in 1868, the club has approximately 8,600 members and two facilities: the City House, located at 180 Central Park South in Manhattan, and Traver ...
and the
New York Historical Society The New-York Historical Society is an American history museum and library in New York City, along Central Park West between 76th and 77th Streets, on the Upper West Side of Manhattan. The society was founded in 1804 as New York's first museum. ...
. His grandson, Pelham St. George Bissell Jr., married to Mary Valentine Yale (1889-1948), a member of the Yale family. They both resided on
Park Avenue Park Avenue is a wide New York City boulevard which carries north and southbound traffic in the boroughs of Manhattan and the Bronx. For most of the road's length in Manhattan, it runs parallel to Madison Avenue to the west and Lexington Avenu ...
, New York. Pelham Jr. served as a special attorney for the U.S. Department of Justice, and as Judge and President Justice of the Municipal Court of the City of New York. He also served as Chairman of the Mayor's Board of Survey, joined the
Union League Club The Union League Club is a private social club in New York City that was founded in 1863 in affiliation with the Union League. Its fourth and current clubhouse is located at 38 East 37th Street on the corner of Park Avenue, in the Murray Hill ...
of New York, and served in the army as Lieutenant, Captain, Major and Lieutenant-Colonel. Mary Valentine Yale served as
Chairman The chairperson, also chairman, chairwoman or chair, is the presiding officer of an organized group such as a board, committee, or deliberative assembly. The person holding the office, who is typically elected or appointed by members of the grou ...
of
American Legion Auxiliary The American Legion Auxiliary (ALA) is a separate entity from the American Legion that shares the same values. Composed of spouses, mothers, daughters, granddaughters, and sisters of American war veterans. Founded in 1919, the ALA is dedicated to ...
in New York, Chairman of the First New York District of the Auxiliary, President of the
Greenwich Village Greenwich Village ( , , ) is a neighborhood on the west side of Lower Manhattan in New York City, bounded by 14th Street to the north, Broadway to the east, Houston Street to the south, and the Hudson River to the west. Greenwich Village ...
unit, and Salon 33, Society of 8 and 40. She was also member of the
Daughters of the American Revolution The Daughters of the American Revolution (DAR) is a lineage-based membership service organization for women who are directly descended from a person involved in the United States' efforts towards independence. A non-profit group, they promote ...
and of the
Society of Mayflower Descendants The General Society of ''Mayflower'' Descendants — commonly called the Mayflower Society — is a hereditary organization of individuals who have documented their descent from at least one of the 102 passengers who arrived on the ''Mayflower'' ...
. One of their children, Pelham St. George Bissell III, was
Lieutenant-Colonel Lieutenant colonel ( , ) is a rank of commissioned officers in the armies, most marine forces and some air forces of the world, above a major and below a colonel. Several police forces in the United States use the rank of lieutenant colonel. ...
during
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
, Judge of Manhattan's Civil Court for 30 years, and a graduate from
Columbia University Columbia University (also known as Columbia, and officially as Columbia University in the City of New York) is a private research university in New York City. Established in 1754 as King's College on the grounds of Trinity Church in Manhatt ...
. A daughter, Molla Bissell, married
Brigadier General Brigadier general or Brigade general is a military rank used in many countries. It is the lowest ranking general officer in some countries. The rank is usually above a colonel, and below a major general or divisional general. When appointed ...
William Wilbur.


Legacy

George H. Bissell's name was a household word among oil men from all over the continent. In the oil industry, he was a giant, and his business empire was seen as an industry of its own. Bissell funded the Bissell Hall which was a gymnasium on the campus of
Dartmouth University Dartmouth University is a defunct institution in New Hampshire which existed from 1817 to 1819. It was the result of a thwarted attempt by the state legislature to make Dartmouth College, a private college, into a public university. The United ...
that included a gymnastics center, a bowling alley, and an indoor track. This building was demolished in 1958. A residence hall constructed that year, Bissell Hall of the Choates, is now named in His honor. The Pennsylvania Rock Oil Co.'s agent, Edwin Drake, is sometimes credited with the "discovery" of oil, although the success of Drake's efforts is due in part to Bissell's
business acumen Business acumen, also known as business savviness, business sense and business understanding, is keenness and quickness in understanding and dealing with a business situation (risks and opportunities) in a manner that is likely to lead to a good ...
.


See also

* Pennsylvania oil rush *
Drake Well Museum The Drake Well Museum and Park is a museum that interprets the birth of the American oil industry in 1859 by "Colonel" Edwin Drake along the banks of Oil Creek in Cherrytree Township, Venango County, Pennsylvania in the United States. The museu ...


References


Resources

* '' The Prize: The Epic Quest for Oil, Money, and Power'' by Daniel Yergin. (1991; ) *


External links

* George H. Bissell Papers. General Collection, Beinecke Rare Book and Manuscript Library, Yale University. {{DEFAULTSORT:Bissell, George H. Dartmouth College alumni Founders of the petroleum industry 19th-century American businesspeople American energy industry businesspeople 1821 births 1884 deaths