THERE WAS MORE MONEY IN A REFINERY
The use of petroleum was dangerous at that time, on account of the highly inflammable gases it contained. Many persons stuck to candles and sperm oil through fear of an explosion if they used the new illuminant. The process of removing these superfluous gases by refining, or distilling, as it was then called, was in its infancy. There were few men who knew anything about it.
Among Rockefeller’s acquaintances in Cleveland was one of these men. His name was Samuel Andrews. He had worked in a distillery, and was familiar with the process. He believed that there was a great business to be built up by removing the gases from the crude oil and making it safe for household use. Rockefeller listened to him, and became convinced that he was right. Here was a field as wide as the world, limited only by the production of crude oil. It was a proposition on which he could figure and make sure of the result. It was just the thing Rockefeller had been looking for. He decided to leave the production of oil to others, and to devote his attention to preparing it for market.
Andrews was a brother commission merchant. The two started a refinery, each closing out his former business connection. In two weeks it was running night and day to fill orders. So great was the demand, and so great was the judgment of young Rockefeller,—seeing what no one else had seen.
A second refinery had to be built at once, and in two years their plants were turning out two thousand barrels of refined petroleum per day. Henry M. Flagler, already wealthy, came into the firm, the name of which then became Rockefeller, Flagler and Andrews. More refineries were built, not only at Cleveland, but also at other advantageous points. Competing refineries were bought or rendered ineffective by the cutting of prices.
It is related that Mr. Andrews became one day dissatisfied, and he was asked,—“What will you take for your interest?” Andrews wrote carelessly on a piece of paper,—“One million dollars.” Within twenty-four hours he was handed that amount; Mr. Rockefeller saying,—“Cheaper at one million than ten.” In building up the refinery business Rockefeller was the head; the others were the hands. He was always the general commanding, the tactician. He made the plans and his associates carried them out. Here was the post for which he had fitted himself, and in which his genius for planning had full sway. In the conduct of the refinery affairs, as in every enterprise in which he has taken part, he exemplified another rule to which he had adhered from his boyhood days. He was the leader in whatever he undertook. In going into any undertaking, John D. Rockefeller has made it his rule to have the chief authority in his own hands or to have nothing to do with the matter.
STANDARD OIL
In 1870, when Mr. Rockefeller was thirty-two years old, the business was merged into the Standard Oil Company, starting with a capital of one million dollars. Other pens have written the later story of that great corporation; how it started pipe lines to carry the oil to the seaboard; how it earned millions in by-products which had formerly run to waste; how it covered the markets of the world in its keen search for trade, distancing all competition, and cheapening its own processes so that its dividends in one year, 1899, amounted to $23,000,000 in excess of the fixed dividend upon the whole capital stock. This is the outcome of thirty years’ development. The corporation is now the greatest business combination of modern times, or of any age of the world. Mr. Rockefeller’s annual income from his holdings of Standard Oil stock is estimated at about sixteen millions of dollars.
MR. ROCKEFELLER’S PERSONALITY
The brains of all this, the owner of the largest percentage of the stock in the parent corporation, and in most of the lesser ones, is now sixty-two years old. His personality is simple and unaffected, his tastes domestic, and the trend of his thoughts decidedly religious. His Cleveland residential estate is superb, covering a large tract of park-like land,—but even there he has shown his unselfishness by donating a large portion of his land to the city for park purposes. His New York home is not a pretentious place,—solid, but by no means elegant in outward appearance. Between the two homes he divides his time with his wife and children. He is an earnest and hardworking member of the Fifth Avenue Baptist Church, in New York, and does much to promote the good work carried on by that organization. He is particularly interested in the Sunday-school work.