AN OIL KING’S CAREER

Taranaki Herald, Volume LXI, Issue 144147, 17 July 1913, Page 4

AN OIL KING’S CAREER

WEALTH FROM PETROLEUM. One of tho founders of tho great Standard Oil Company, and a man of enormous wealth, died recently, in the person of Mr. Henry M. Flagler, a partner of Mr. J. D. Rockefeller. Like most American plutocrats, Mr. Flagler began life in humble circumstances. Ho was born in 1830 at Canadaigua, in tho State of New York, and was educated'at the public schools. Ho seems to have begun his business career as a clerk in a store in Oreleaus County, in the State of Michigan. Thence he removed to Saginaw, in the same State, and had charge of salt works there; later ho became a resident in Cleveland, Ohio, on Lake Eric, and there obtained an interest in tho petroleum business, at that time in its infancy. That association was tho commencement of the fortune of J. D. Rockefeller and of H, M. Flagler. It was in 1867 that Flagler joined Rockefeller in the oil industry, and by 1870 the business was so- extended that tho captial had risen to £200,000, and the Standard Oil Company was formed, with John D. Rockefeller as president; William Rockefeller, his brother, vicepresident; and H. M. Flagler,'score-' tary and treasurer. Mr. Flagler brought some capital into the undertaking and, what proved ‘of no less value, a knowledge of accounts and finance. Seven years later tho capita! was set down at £700,000, and the company’s progress was advancing by leaps and bounds. Up to this point the fight had been fair, but now there came in a transaction which more than -any other has embittered American sentiment against the Standard Company. They obtained concessions frqm the railway companies for lower rates of transportation than were charged to any other traders. Tho agreements to this effect were contrary to the laws_ of tho States through which tho rail-’ ways passed. The result had been foreseen. .

Competition was killed, and tho Standard Oil Company became the colossal Trust it now is. In any case the Rockefellers and Flagler were sure of victory over their opponents, for their economies of production and transport outdistanced immeasureably all rivals. Five men in tho main were concerned in establishing and developing this wonderful organisation, and they all amassed vast fortunes. Mr. J. D. Rockefeller—w-ho retired from active participation in business in 1895 was believed then to be worth at least £50,000,000 —-possibly much more—and to be in receipt of an quintal income of £8,000,000. Mr. IV. D. Rockefeller was credited with a fortune of £20,000,000; Mr. J. H. Flagler, with one of £10,000,000; Mr. H. M. Flagler and J. H. Archbold with £7,000,000 each. In 1907, when the famous action, United States v. Standard Oil Company was tried, Federal Judge Landes imposed a fine of £5,850,000, tho indictment charging tho concern with having violated the Inter-State Commerce Act by passing thoir goods over the railways at less than the legal rate, and by corrupt arrangement with railway companies. Judgment, however, was set aside. During the ton years preceding the judgment Mr. Rockefeller’s dividends,- it was estimated, amounted to about £20,900,000.’ Those of Mr. Flagler, then the second largest holder, would, at the same rate, be over £6,000,000 sterling. Of late years Mr. Flagler devoted his wealth largely to the improvement of the State of Florida, and in this ho sank many, millions of money. But this was part only of his vast enterprises. Ho was famous in America for palatial hotels all over the Southern States, and in these it is said he had laid out more than £20,000,000.