Omaha daily bee., 1920-01-11
MODERN ''|LIAD"
SUNG BY FOUNDER
OF STANDARD OIL
John D. Rockefeller Tells Of
How Company Grew From
Humble Beginnings to Its
Present Enormity.

> New York. Jan. 10.-The story of
how the Standard Oil company
grew from humble beginnings until
it became the greatest business or
ganization in the world was related
by the founder himself, John D.
Rockefeller, in a letter which was
read tonight at a dinner held in
celebration of the golden jubilee of
the world wide corporation. Alb
sence in Florida prevented Mr..
Rockefeller iron, joining the little
group Of multi-n,illionaires who as
sembled for the celebration.
In his letter, which was addressed
to A. c. Bedford, chairman of the
Standard Oil company of New Jer-
sey, Mr.. Rockefeller said he be-
lieved that there were only two sur
vivors of the original organizers of
the Standard Oil company of Ohio,
the parent organization--his brother
William, and himself. He said that
he had commenced his career as an
oil rehner, preceding his brother in
the business by four years.
Oil Refining Profitable.
"The business of oil refining
Mr.. Rockefeller wrote, was very
profitable in the early Cos, but in
the late Cos it was overdone and the
competition was rulnous, so that
probably 80, and possibly 90 per
cent Of all engaged in it were either
barely holding their own or suffer
ing actual loss"
Many efforts were made to rem
edy the decentralization in the in
dustry but without success, Mr..
Rockefeller continued, until the
Standard Oil company undertook to
unite certain refining interests un-
der . common ownership. The find
ing of the capital for the scheme
was difficult in view OF the poor
credit conditions in the business,
and Mr.. Rockefeller could recall
only two concerns-the Warden,
Frew & Co. interests of Philadel-
phia and the Charles Pratt company
of New York-who were willing to
furnish cash in return for stock. AS
an illustration of the stringency IN
the money market, he said that the
Standard Oil company borrowed
from its stockholders all the money
they would lend and paid 10 per
cent interest.
Get Financial Backing. -.
The money thus raised was stilI
insufficient, but financial backing
was obtained through the sale OF
stock to leading capitalists and the
business of other refners was taken
over by payments either IN stock
or cash. The ablest representatives
of such concerns were enlisted IN
the administration of the joint un-
dertaking.
And here l may be pardoned tor
saving" Mr.. Rockefeller wrote, that
the Standard Oil Co., made a rec
ord without precedent in the history
of commercial enterprises in turn
ING to its weaker and bankrupt COM
petitors and offering them chance
TO recoup their waning fortunes
without any risk on their part ex-
cept the putting in of their plants,
4 MANY of which were superannuated
and lily equipped to cope with more
up to date refineries, even OF tha'
time. , ,-
stock prospered and did much bet
ter than they could have done under
sny other circumstances.
Not Optimistic Of Results.
"This, however, was not so sur
prising, after the trying years
through which they passed; and 1t
must be remembered that this was
new and untried thing and that
MANY people regarded the organ
ization as a rope OF sand.
"Not only was this true at It's
;nception, but for some time efforts
we're made on every hana 10 ois-
credit the company. ouch opposl-
ton was to be expected as the
methods of economizing in every
sfen from the putting down OF the
well to the delivery to the consuin-
- Of the manufactured product
brought about an economic revoiu-
t;on. accompanied, as such great
movements always are, by more or
less antagonism from those VINO
nreferred5 TO continue the old ana
obsolete method. :.
The history of the company was
also reviewed by Mr.. Bedford, VINO $,
declared that in many respects 1t
was the history OF petroleum,
throughout the world. lie assertea e;1
that in every country where OH
abduction has been properly or
ran;zed. it has been made 50 Dy
semulating Standard Oil methods
Mr.. Bedford eulogized Mr.. Rocke.
feller, Henry NJ Flaglsr, Charles
Pratt and Henry H. Rogers, as
sociates in the formation an, and de de
velopment of the STANDARD i &c, o., l,,ep.. cor.
poration. as men who mac not lisi
r built up a tremendous enterprise
hut who had made great contr,bu
lions to their country in phiian
thropy medicine, education and art
AeLe $50 100000 for