The Humbugs of the World · Chapter
The Petroleum Humbug explained
This chapter exposes the fraudulent organization of the New York and Rangoon Petroleum Company by Peter Rolleum and Diddle Digwell, who used bribes, false promises, and deceptive advertising to collect over $100,000 from investors before ac
What happens
This chapter exposes the fraudulent organization of the New York and Rangoon Petroleum Company by Peter Rolleum and Diddle Digwell, who used bribes, false promises, and deceptive advertising to collect over $100,000 from investors before acquiring any land or oil. The author details the step-by-step swindle as a prime example of the petroleum mania and stock speculation of the era.
Themes in this chapter
Gullibility and Human Nature
The chapter highlights how investors were easily deceived by impressive names, bribed trustees, and confident advertising, trusting printed claims without verification.
Advertising and Showmanship
Rolleum and Digwell's success depended on a carefully crafted prospectus, newspaper ads, and the appearance of respectability, showing how showmanship can mask fraud.
Definition and Nature of Humbug
The entire scheme is presented as a classic humbug—a grand deception built on lies, half-truths, and the exploitation of public credulity for profit.
Characters to notice
- Mr. Rolleum
Vice President and managing officer of the New York and Rangoon Petroleum Company; originator of the fraudulent scheme.
- Mr. Croesus
Mentioned as a type of wealthy individual; not directly involved but referenced in the context of stock speculation.
Key passages
“Every sham, as has often been said, proves some reality. Petroleum exists, no doubt, and is an important addition to our national wealth. But the petroleum humbug or mania or superstition, or whatever you choose to call it, is a humbug, just as truly, and a big one, whether we use the word in its milder or its bitterer sense.”
Every fraud contains a grain of truth: petroleum is real and valuable, but the speculative frenzy surrounding it is a massive deception.
The author distinguishes between the genuine substance and the fraudulent mania built around it.
“It's not much of a lie, after all,' said Rolleum, confidentially, to brother Digwell. 'When we've said we've got it for awhile, we shall get it. It's not a lie at all. It's only discounting the truth at sixty days!'”
Rolleum rationalizes their deception as merely a temporary exaggeration, claiming they will eventually acquire what they have falsely promised.
This quote captures the moral flexibility and self-justification typical of humbugs.
“So truthful is our Great American Nation—so confiding, so sure of the truth of what is said in print, even if only in the advertising columns of a newspaper—so certain of the good faith of people who have their names printed in large capitals and with a handle at one end—that actually these fellows had a hundred thousand dollars in bank within ten weeks—before they owned one foot of land, or one inch of well, or one drop of oil, except those three pints in the vials on the office shelf!”
The American public's trust in printed advertisements and impressive titles allowed the swindlers to collect $100,000 in just ten weeks without owning any real assets.
The author criticizes the gullibility of the public and the power of print media to lend credibility to fraud.