Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-01-11
OIL KING WRITES HISTORY
TESLS OF HUMBLE START
OF GIANT CORPORATION
Group of nultiin uIionaircs Assemble
and Celebrate \sol'Scn Jubilee Of
wori6-Wi&s combine.
IBy Axsociate,i Press.l


NEW YORK. Jan. l2.-Thc story of
hoTS the Standar I'd Oil Company grew
from humble beginnings until IL be-
came the greatert business orEaniza-
founder himself. Iohn u Rockefeller.
in letter which was rcad here to-
night at dinner neld in celebration
of the golden jubilee sf the world
wide corporation Absence in Florida
prevented MIR. RocltcIailei' from joining
The little group Of Hlui;imil!ionaires
who assembled for the celebration in
his letter. which was addressed TO \. g.
Bedford, chairman Of tho standard oil
Company OF New jersey. Nj. Rockcfei-
Ter said he believed there We're only
Two survivors OF the original orEa nizers
Of the Standard OIL Company, tho par
snt organizat on, his brother William
his career as an oil refincr. preceding
his brother in the business by four
Profits in Early Sixties
The business OF Gil refining" Mr..
Rockefeller wrote, was very profit
able in the early sixties, but in the late
petition was ruinous, so That probably
so and possibly 20 per cent OF an en-
gagged in il were either barely holding
their own or suffering actual loss"
Many efforts were made 20 remedy
the Generalization in the industry. but
without success. Mir. Rockefeller con
. tinued, until the Standard oil Company
undertook to unite certain refining in
tereSts under a common ownership. The
finding of the capital for the scheme
was difficult, in view Of tho poor credit
conditions in tho business, ana Mr..
Rockefeller could recalll only two CON
ccrns-the Warden. Frew & Co. inter-
ests, of, Philadelphia. and the Charles
Pratt Co, OF New York-who were
willing to furnish cash in return for
stock. AS an illustration Of the string
cncy in the money market, he said.
the Standard Oil Company borrowed
from its shareholders ell the money
they would lend and PAID 10 per cent
interest.
How Fund Wa. Obtained.
The money thus raised was stll in
sufficient. but financial backing was OBJ
tanned through the sale or stock to
other retiners were taken over by !. -
!nents either in stock or cash. The
aSlest representatives. Of sneh con
tion OF the joint Undertaking.
q, vin. here Si may be hardened for
thy al NG ok Wyo'E aae
record without precedent in the his
tory of commercial enterprises in turn
ing to its weaker and bankrupt com
retitors ,and Offering them n chance TO
rccoup their waning fortunes without
any risk on their part except the put
llng in or their plants. many Of which
were superanDuatod and lily equipped
10 cope with the more up to-tiatc re-
fineries even of that time.
Stockholders Prosncrcd
II am happy that all who took stock
prospered and did much better than
they would have done under any other
circumstances.
This. however, was not so surpris
Ing after the trying years through
which they had passed. and IL must
be remembered that this was a new
and untried thing and that many pco-
, pie REGARDED the organization as rope
OF sand. Not only WIS this true At
Its inception, but for some time efforts
were made on every hand TO discredit
tho company. Such opposition was to
be expected, as the methods OF eco
nomiztng in every step from the put
Ting down of the well to the delivery
to the consumer of the manufactured
product brought about an economic
revolution, accompanic d, as such rrea,
movements always are, by more or les,
nntaGontsm from those! who preferred
to continue the Old and SbSolte method
History Is Reviewed.
The history of the company alst
Z WINS reviewed by Mr.. Bedford. whC
declared that in many respects il was
the history OF petroleum throughout
the wo rid. He asserted in every conn
try where oil production has been prom
erly or. sanized it has been made 50