THE DARK SIDE OF JOHN C. OSGOOD
By Deb Strom
with Jane Munsell's collaboration
In 1892, at the age of 41 and with the loyal support of Cass, Kebler and Jerome, Osgood now controlled the largest corporation in Colorado – Charlotte Osgood Blackmer photo
In October 1892 through the merger of two coal companies, John C. Osgood gained control of Colorado Fuel and Iron, the largest corporation in Colorado. With that surge in capital, Osgood began a program of expansion and modernization including his own “grand model” company town of Redstone. But the incurred expenses came at a price, and on June 24, 1903, Osgood, as Chairman of the Board, relinquished control of the cash strapped CF&I to John D. Rockefeller and George Gould following a failed stock fight with financier John Gates.
Through “backroom negotiations” with Rockefeller and Gould, Osgood maintained control of two improvement companies, two railroads, Cleveholm Manor and the surrounding 4200 acres, and the village of Redstone. He also held ownership of the Victor and American Fuel companies, established with his associates in 1901. However, his three loyal associates, who had been with him since the early 1880s, did not fare as well. Following Osgood’s lead, Vice President Alfred Cass, President Julian Kebler, and Treasurer John Jerome also resigned their positions, which were quickly filled by Rockefeller supporters. The three no longer benefited from companies they had helped to organize. Worse yet, they all died within six months, as reported in a special to the Star-Journal, Denver, Colo. On November 23, 1903:
J.L. JEROME DIED SUDDENLY
Found Dead in Bed-Another Official of the Old Fuel Company Gone
“Mr. Jerome is the third member of the quartette [sic] which founded the great Colorado Fuel and Iron Company to meet his death within the past six months. Alfred C. Cass died suddenly (July 4) in the present year. On last Friday Julian Kebler was found dead at his home (November 17) and yesterday the telephone wires from Buffalo Park carried the sad announcement that John L. Jerome had joined those with whom he had been associated the greater part of his life. Of the four who made The Colorado Fuel and Iron Company what it is today, only one remains, John C. Osgood, who was abroad.”
Darrell Munsell, West Texas A&M Professor Emeritus and Redstone historian, researched and penned the definitive 392-page study on Osgood, FROM REDSTONE TO LUDLOW: John Cleveland Osgood’s struggle against the United Mine Workers of America, published by the University of Colorado Press in 2009. His book sheds light on Osgood’s role in the complicated negotiations surrounding the Rockefeller takeover and its aftermath.
Failing to successfully negotiate what they considered a fair deal with Osgood after the loss of CF&I, John Jerome, as legal consultant, began building a legal case with Kebler and Cass as his collaborators. The men believed that Osgood, who was always driven by personal ambition, had begun to distance himself from them before the takeover, even though they were significant stockholders and partners in these business interests. Jerome asserted that Osgood intended to defraud them by refusing to settle some company accounts in which they were involved. His requests to see papers related to the properties were denied. He further suspected that Osgood’s actions were based on personal vindictiveness centered on incidents that had occurred earlier.
One such allegation, on the subject of social status, involved Osgood’s new bride, Alma Regina Shelgren, who was initially shunned by Denver Society. Rumors alleging her questionable background and involvement with Osgood before his divorce from his first wife was final followed the pair as they arrived in Denver. Jerome believed that his wife’s failure to introduce her to Denver’s “smart set” was a cause of resentment. In addition, Jerome was left with unreimbursed debt, while Osgood willingly gave money to family interests and his own personal projects. Other associates acknowledged that Osgood could be very difficult to get along with. The dispute continued for some time, with Osgood’s “propensity to see only one side of a question,” quick temper, and stubbornness constant threats to Jerome’s arguments. Jerome’s legal brief against Osgood was never filed. Although there was speculation that his allegations were true, all action ended with his death on November 23, 1903.
The untimely deaths of Osgood’s business associates, fueled by newspaper accounts, raised questions in the financial sector. Reports confirmed that the men had been under considerable stress during and after the negotiations. While several articles searched for blame, including Rockefeller for his takeover of CF&I, there was no proof of intentional wrongdoing.
Osgood’s pursuit of the western fuel trade continued after the loss of his associates. Now a wealthy man, Osgood never again owned a publicly traded company that relied on investors. By 1909, he had successfully developed and consolidated his two mining companies as Victor-American in the southern, more profitable, coal fields and was number two producer of Colorado coal. Notably, Osgood also abandoned his “Social Experiment” and ran shabby, anti-union company towns in southern Colorado. By 1913, his altruistic ambitions as visualized at Redstone were overshadowed by the strikes, anti-union policies, and tragic events that occurred in the southern coalfields including the 1914 Ludlow Massacre.