Random Reminiscences of Men and Events

fully equipped, and having to build up a plant for storing and transporting in a new field where we were totally unprepared. These are some of the things which make the whole oil trade a perilous one, but we had with us a group of courageous men who recognized the great principle that a business cannot be a great success that does not fully and efficiently accept and take advantage of its opportunities. How often we discussed those trying questions! Some of us wanted to jump at once into big expenditures, and others to keep to more moderate ones. It was usually a compromise, but one at a time we took these matters up and settled them, never going as fast as the most progressive ones wished, nor quite so carefully as the conservatives desired, but always made the vote unanimous in the end. THE JOY OF ACHIEVEMENT The part played by one of my earliest partners, Mr. H.M. Flagler, was always an inspiration to me. He invariably wanted to go ahead and accomplish great projects of all kinds, he was always on the active side of every question, and to his wonderful energy is due much of the rapid progress of the company in the early days. It was to be expected of such a man that he should fulfil his destiny by working out some great problems at a time when most men want to retire to a comfortable life of ease. This would not appeal to my old friend. He undertook, single handed, the task of building up the East Coast of Florida. He was not satisfied to plan a railroad from St. Augustine to Key West--a distance of more than six hundred miles, which would have been regarded as an undertaking large enough for almost any one man--but in addition he has built a chain of superb hotels to induce tourists to go to this newly developed country. Further than this, he has had them conducted with great skill and success. This one man, by his own energy and capital, has opened up a vast stretch of country, so that the old inhabitants and the new settlers may have a market for their products. He has given work to thousands of these people; and, to crown all, he has undertaken and nearly completed a remarkable engineering feat in carrying his road on the Florida Keys into the Atlantic Ocean to Key West, the point set out for years ago. Practically all this has been done after what most men would have considered a full business life, and a man of any other nationality situated as he was would have retired to enjoy the fruits of his labour. I first knew Mr. Flagler as a young man who consigned produce to Clark & Rockefeller. He was a bright and active young fellow full of vim and push. About the time we went into the oil business Mr. Flagler established himself as a commission merchant in the same building with Mr. Clark, who took over and succeeded the firm of Clark & Rockefeller. A little later he bought out Mr. Clark and combined his trade with his own. Naturally, I came to see more of him. The business relations which began with the handling of produce he consigned to our old firm grew into a business friendship, because people who lived in a comparatively small place, as Cleveland was then, were thrown together much more often than in such a place as New York. When the oil business was developing and we needed more help, I at once thought of Mr. Flagler as a possible partner, and made him an offer to come with us and give up his commission business. This offer he accepted, and so began that life-long friendship which has never had a moment's interruption. It was a friendship founded on business, which Mr. Flagler used to say was a good deal better than a business founded on friendship, and my experience leads me to agree with him. For years and years this early partner and I worked shoulder to shoulder; our desks were in the same room. We both lived on Euclid Avenue, a few rods apart. We met and walked to the office together, walked home to luncheon, back again after luncheon, and home again at night. On these walks, when we were away from the office interruptions, we did our thinking, talking, and planning together. Mr. Flagler drew practically all our contracts. He has always had the faculty of being able to clearly express the intent and purpose of a contract so well and accurately that there could be no misunderstanding, and his contracts were fair to both sides. I can remember his saying often that when you go into an arrangement you must measure up the rights and proprieties of both sides with the same yardstick, and this was the way Henry M. Flagler did. One contract Mr. Flagler was called upon to accept which to my surprise he at once passed with his O.K. and without a question. We had concluded to purchase the land on which one of our refineries was built and which was held on a lease from John Irwin, whom we both knew well. Mr. Irwin drew the contract for the purchase of this land on the back of a large manila envelope that he picked up in the office. The description of the property ran as such contracts usually do until it came to the phrase "the line runs south to a mullen stalk," etc. This seemed to me a trifle indefinite, but Mr. Flagler said: "It's all right, John. I'll accept that contract, and when the deed comes in, you will see that the mullen stalk will be replaced by a proper stake and the whole document will be accurate and shipshape." Of course it turned out exactly as he said it would. I am almost tempted to say that some lawyers might sit at his feet and learn things about drawing contracts good for them to know, but perhaps our legal friends might think I was partial, so I won't press the point. Another thing about Mr. Flagler for which I think he deserves great credit was that in the early days he insisted that, when a refinery was to be put up, it should be different from the flimsy shacks which it was then the custom to build. Everyone was so afraid that the oil would disappear and that the money expended in buildings would be a loss that the meanest and cheapest buildings were erected for use as refineries. This was the sort of thing Mr. Flagler objected to. While he had to admit that it was possible the oil supply might fail and that the risks of the trade were great, he always believed that if we went into the oil business at all, we should do the work as well as we knew how; that we should have the very best facilities; that everything should be solid and substantial; and that nothing should be left undone to produce the finest results. And he followed his convictions of building as though the trade was going to last, and his courage in acting up to his beliefs laid strong foundations for later years. There are a number of people still alive who will recall the bright, straightforward young Flagler of those days with satisfaction. At the time when we bought certain refineries at Cleveland he was very active. One day he met an old friend on the street, a German baker, to whom he had sold flour in years gone by. His friend told him that he had gone out of the bakery business and had built a little refinery. This surprised Mr. Flagler, and he didn't like the idea of his friend investing his little fortune in a small plant which he felt sure would not succeed. But at first there seemed nothing to do about it. He had it on his mind for some days. It evidently troubled him. Finally he came to me and said: "That little baker man knows more about baking than oil refining, but I'd feel better if we invited him to join us--I've got him on my conscience." I of course agreed. He talked to his friend, who said he would gladly sell if we would send an appraiser to value his plant, which we did, and then there arose an unexpected difficulty. The price at which the plant was to be purchased was satisfactory, but the ex-baker insisted that Mr. Flagler should advise him whether he should take his pay in cash or Standard Oil certificates at par. He told Mr. Flagler that if he took it in cash it would pay all his debts, and he would be glad to have his mind free of many anxieties; but if Mr. Flagler said the certificates were going to pay good dividends, he wanted to get into and keep up with a good thing. It was rather a hard proposition to put up to Mr. Flagler, and at first he declined to advise or express any opinion, but the German stuck to him and wouldn't let him shirk a responsibility which in no way belonged to him. Finally Mr. Flagler suggested that he take half the amount in cash and pay 50 per cent. on account of his debts, and put the other half in certificates, and see what happened. This he did, and as time went on he bought more certificates, and Mr. Flagler never had to apologize for the advice he gave him. I am confident that my old partner gave this affair as much time and thought as he did to any of his own large problems, and the incident may be taken as a measure of the man. THE VALUE OF FRIENDSHIPS But these old men's tales can hardly be interesting to the present generation, though perhaps they will not be useless if even tiresome stories make young people realize how, above all other possessions, is the value of a friend in every department of life without any exception whatsoever. How many different kinds of friends there are! They should all be held close at any cost; for, although some are better than others, perhaps, a friend of whatever kind is important; and this one learns as one grows older. There is the kind that when you need help has a good reason just at the moment, of course, why it is impossible to extend it. "I can't indorse your note," he says, "because I have an agreement with my partners not to." "I'd like to oblige you, but I can explain why at the moment," etc., etc. I do not mean to criticize this sort of friendship; for sometimes it is a matter of temperament; and sometimes the real necessities are such that the friend cannot do as he would like to do. As I look back over my friends, I can remember only a few of this kind and a good many of the more capable sort. One especial friend I had. His name was S.V. Harkness, and from the first of our acquaintance he seemed to have every confidence in me. One day our oil warehouses and refinery burned to the ground in a few hours--they were absolutely annihilated. Though they were insured for many hundred thousands of dollars, of course, we were apprehensive about collecting such a large amount of insurance, and feared it might take some time to arrange. That plant had to be rebuilt right away, and it was necessary to lay the financial plans. Mr. Harkness was interested with us in the business, and I said to him: "I may want to call upon you for the use of some money. I don't know that we shall need it, but I thought I'd speak to you in advance about it." He took in the situation without much explaining on my part. He simply heard what I had to say and he was a man of very few words. "All right, J.D., I'll give you all I've got." This was all he said, but I went home that night relieved of anxiety. As it turned out, we received the check of the Liverpool, London & Globe Insurance Company for the full amount before the builders required the payments; and while we didn't need his money, I never shall forget the whole-souled way in which he offered it. And this sort of experience was not, I am grateful to say, rare with me. I was always a great borrower in my early days; the business was active and growing fast, and the banks seemed very willing to loan me the money. About this time, when our great fire had brought up some new conditions, I was studying the situation to see what our cash requirements would be. We were accustomed to prepare for financial emergencies long before we needed the funds.