The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-02-28
THE PETROLEUM KINGS.
How Poor Accountant and an English
Porter Made Their Fortunes.

enterprise, started in Cleveland One of the
originators was a small salaried book keeper.
The other was porter in Waterstreet com
mission house. The book-keeper is now president
of the company. while the porter lives in $500,
900 palace.
j. D. Rockefeller president of the Standard,
has two elegant houses in Cleveland, and one in
New York, where he resides each winter. The
Rockefeller family came from some little town
in central New York, where the father prac-
ticed medicine. They took up their residence
in Cleveland in 1853 John d. was then little
shaver of fourteen. He went to school for two
or three years. and afterward became a book
keeper for a one horse commission firm in Water
street When he was nineteen or in 1857, he
and q man named M. B. Clark, who is now a
member of the elevator firm Of Gardner, Clark
" YORK. went into the produce business on their
own account. This partnership continued until
1868, when Rockefeller sold his interest and
went into oil refining Three years before, how
ever, he, with Clark, his partner, and one or two
others, had built little petroleum refinery up
the river Rockefeller and Clarke's investment
in this enterprise was 81 600. 1t gave promise
OF doing big business. and Rockefeller deter
mined, therefore, to devote his entire attention
to it. Clark bought his interest in the commits
sion house, and Rockefeller and Samuel An
drews became sole owners Of the refinery. When
Rockefeller was a book keeper, Andrews
was porter in another produce store
further down the street. They became ac-
few hundred dollars and was practical fellow.
Rockefeller invited him to become a partner
in the refinery AT this time Rockefeller was
twenty-six and Andrews year or two
worth much more than S., 900, and was probably
not all paid for. From this humble beginning
has grown the Standard Oil Company with its
hundreds of offshoots and its $40 900 900 Of CAPT
tai. year or two after Rockefeller and An
drews had joined fortunes they, in connection
William ROcEpfpller a brother n n ID
established another refinery.
The two establishments were finally consoh
dated and a warehouse for the sale of the
product was opened in New York. William
Rockefeller took charge of the warehouse; John
d. was the business head of the consolidated
concern; Andrews looked after the machinery
and men. Andrews had come over from Eng
land tc better his fortune, and, as he had had
some mechanical experience at home, was we'll
qualified to superintend the practical part Of the
business.
short time after the consolidation the young
reiners found themselves in very deep water.
They had spent considerable money in extending
their business, and were threatened with ruin
before they could get returns from the invest
ment John d. Rockefeller started out on a
hunt for financial relief and found S. V. Hank
ness, rich whisky distller, whose son-in-
law, Henry III. Flagler, was then doing badly in
the salt and lumber business near Saginaw,
Mich. Hardness advanced 500 900 to Rockefel
Ter, called his son-in law in from the pine woods.
and had the satisfaction of seeing new firm
created under the name of Rockefeller, Andrews
% Flager The money of Hardness and the
business tact of Flagler strengthened the con-
Germ greatly. Flagler, although far from being
successful as a maker of salt and saver OF
logs, developed remarkable talents when it came
to petroleum. In dealing with opposing refners
he went as far as the Jaw would permit. He ar
gued that there was neither friendship nor feel
ing in traffic; consequently. when he got his
business enemy in hole he squeezed him. Mr..
Flagler continued to live in Cleveland until
within two or three years, when he removed to
New York.
In 1870 the firm of Rockefeller Andrews &
Flagler had become so imposing, and the bust
ness they were doing so immense, that it was
thought best to incorporate under the style of
the Standard Oil Company. with a capital of
$1,000 600. More consultations followed. John
ID. Rockefeller originated the idea of one great
concern that should control all the petroleum in
the country. Refneries in New York and oil
lands IN Pennsylvania were purchased The
capital of the corporation was increased to
s.. 500, 900. and yearly business aegregatirg
$50, 0OO coo transacted Immediately thereafter.
Great warehouses were built in the metropolis
pipe lines were constructed, hundreds of iron
cars went laundering over the railroads, and
cooper shop was erected with capacity of 5000
barrels day. The stock was increased to
$40 900 600, and on this immense capital hand
some dividend was declared yearly
In the meantime another great scheme was
formulated by John d. Rockefeller. He went
into Pennsylvania and dug up an old charter
that had been granted some one, and under it he
proposed to operate a concern called the South
Improvement Company" The purpose Of the
Improvement company was to cooperate with the
railroads and prevent every refinery not con-
nected with the Standard from shipping it's
praduct 20 market.
The scheme was killed in it's infancy, and the
Standard. being determined to govern things. be-
gan buying up refineries in every direction.
Owners thereof were offered fair prices for their
property either in cash or Standard stock Near
ly everyone took money but few had faith in
the outcome, and accepted stock.
Colonel O. II. Payne, son of Senator elect HI
3. Payne. took stock He is now vice president
and treasurer of the Standard, and is worth
$12. 000. 900 at a low estimate. He and man
named Clark-not the one mentioned previously
and John Huntington owned refinery in
Cleveland. The Standard in accordance with
its policy, bought them out Clark accepted
money, while Payne and Huntington were salts.
fled with stock Huntington. like Andrews had
been an English peasant. He worked here at
day labor built fences, drove horses, wheeled
roof for some one, and made good wages He
followed that occupation for several years. and
until he had accumulated enough to branch out.
He then took contract TO puta slate roof over
the Union Depot. aid his profits added to his
accommodations, purchased him small interest
In the refinery with Colonel Payne. To day he
has mansion in Prospect street that cost
800 900. He keeps sixteen horses in his stable,
and draws 800 900 every three months in divi-
dends
The Standard had absolute control of the oil
business until 1880, and its profits ranged from
SIS 000. 900 TO $li. DOC, 0G0 annually.
BY virtue OF the volume of its traffic it was
able to command unusual Tavors from the rail
roads. 1t owned all the oil cars run over the
New York Central and all that roads terminal
facilities for oil 1t owned about 200 of the oil
cars run on the Erie. and leased all the roads
terminal facilities for oil. The Pennsylvania al
lowed the Standard %! cents barrel on all oil
shipped by itself or competitors 1t is reported
that Commodore Vanderbilt once said that but
one man could dictate to him. That man was
Rockefeller. The Standard did everything with
the Pennsylvania Legislature but refine it, The
congressional committee appointed to investi-
gate the Standard never reported.
The backbone of the monopoly was bent when
the railroads broke away from the Standard aid
offered every re6ner in the country fair play and
no favors. The Standard retaliated by building
MIN and fro tipO &c oil; ~.