Random Reminiscences of Men and Events
and so at my suggestion I turned banker for him, and in the end he
took out his principal with a very handsome profit. It is a pleasure
to testify even at this late date to his great kindness and faith in
me.
STICKING TO BUSINESS PRINCIPLES
Mr. Handy trusted me because he believed we would conduct our young
business on conservative and proper lines, and I well remember about
this time an example of how hard it is sometimes to live up to what
one knows is the right business principle. Not long after our concern
was started our best customer--that is, the man who made the largest
consignments--asked that we should allow him to draw in advance on
current shipments before the produce or a bill of lading were actually
in hand. We, of course, wished to oblige this important man, but I,
as the financial member of the firm, objected, though I feared we
should lose his business.
The situation seemed very serious; my partner was impatient with me
for refusing to yield, and in this dilemma I decided to go personally
to see if I could not induce our customer to relent. I had been
unusually fortunate when I came face to face with men in winning their
friendship, and my partner's displeasure put me on my mettle. I felt
that when I got into touch with this gentleman I could convince him
that what he proposed would result in a bad precedent. My reasoning
(in my own mind) was logical and convincing. I went to see him, and
put forth all the arguments that I had so carefully thought out. But
he stormed about, and in the end I had the further humiliation of
confessing to my partner that I had failed. I had been able to
accomplish absolutely nothing.
Naturally, he was very much disturbed at the possibility of losing our
most valued connection, but I insisted and we stuck to our principles
and refused to give the shipper the accommodation he had asked. What
was our surprise and gratification to find that he continued his
relations with us as though nothing had happened, and did not again
refer to the matter. I learned afterward that an old country banker,
named John Gardener, of Norwalk, O., who had much to do with our
consignor, was watching this little matter intently, and I have ever
since believed that he originated the suggestion to tempt us to do
what we stated we did not do as a test, and his story about our firm
stand for what we regarded as sound business principles did us great
good.
About this time I began to go out and solicit business--a branch of
work I had never before attempted. I undertook to visit every person
in our part of the country who was in any way connected with the kind
of business that we were engaged in, and went pretty well over the
states of Ohio and Indiana. I made up my mind that I could do this
best by simply introducing our firm, and not pressing for immediate
consignments. I told them that I represented Clark & Rockefeller,
commission merchants, and that I had no wish to interfere with any
connection that they had at present, but if the opportunity offered we
should be glad to serve them, etc., etc.
To our great surprise, business came in upon us so fast that we hardly
knew how to take care of it, and in the first year our sales amounted
to half a million dollars.
Then, and indeed for many years after, it seemed as though there was
no end to the money needed to carry on and develop the business. As
our successes began to come, I seldom put my head upon the pillow at
night without speaking a few words to myself in this wise:
"Now a little success, soon you will fall down, soon you will be
overthrown. Because you have got a start, you think you are quite a
merchant; look out, or you will lose your head--go steady." These
intimate conversations with myself, I am sure, had a great influence
on my life. I was afraid I could not stand my prosperity, and tried to
teach myself not to get puffed up with any foolish notions.
My loans from my father were many. Our relations on finances were a
source of some anxiety to me, and were not quite so humorous as they
seem now as I look back at them. Occasionally he would come to me and
say that if I needed money in the business he would be able to loan
some, and as I always needed capital I was glad indeed to get it, even
at 10 per cent. interest. Just at the moment when I required the
money most he was apt to say:
"My son, I find I have got to have that money."
"Of course, you shall have it at once," I would answer, but I knew
that he was testing me, and that when I paid him, he would hold the
money without its earning anything for a little time, and then offer
it back later. I confess that this little discipline should have done
me good, and perhaps did, but while I concealed it from him, the truth
is I was not particularly pleased with his application of tests to
discover if my financial ability was equal to such shocks.
INTEREST AT 10 PER CENT.
These experiences with my father remind me that in the early days
there was often much discussion as to what should be paid for the use
of money. Many people protested that the rate of 10 per cent. was
outrageous, and none but a wicked man would exact such a charge. I was
accustomed to argue that money was worth what it would bring--no one
would pay 10 per cent., or 5 per cent., or 8 per cent. unless the
borrower believed that at this rate it was profitable to employ it. As
I was always the borrower at that time, I certainly did not argue for
paying more than was necessary.
Among the most persistent and heated discussions I ever had were those
with the dear old lady who kept the boarding-house where my brother
William and I lived when we were away from home at school. I used to
greatly enjoy these talks, for she was an able woman and a good
talker, and as she charged us only a dollar a week for board and
lodging, and fed us well, I certainly was her friend. This was about
the usual price for board in the small towns in those days, where the
produce was raised almost entirely on the place.
This estimable lady was violently opposed to loaners obtaining high
rates of interest, and we had frequent and earnest arguments on the
subject. She knew that I was accustomed to make loans for my father,
and she was familiar with the rates secured. But all the arguments in
the world did not change the rate, and it came down only when the
supply of money grew more plentiful.
I have usually found that important alterations in public opinion in
regard to business matters have been of slow growth along the line of
proved economic theory--very rarely have improvements in these
relationships come about through hastily devised legislation.
One can hardly realize how difficult it was to get capital for active
business enterprises at that time. In the country farther west much
higher rates were paid, which applied usually to personal loans on
which a business risk was run, but it shows how different the
conditions for young business men were then than now.
A NIMBLE BORROWER
Speaking of borrowing at the banks reminds me of one of the most
strenuous financial efforts I ever made. We had to raise the money to
accept an offer for a large business. It required many hundreds of
thousands of dollars--and in cash--securities would not answer. I
received the message at about noon and had to get off on the
three-o'clock train. I drove from bank to bank, asking each president
or cashier, whomever I could find first, to get ready for me all the
funds he could possibly lay hands on. I told them I would be back to
get the money later. I rounded up all of our banks in the city, and
made a second journey to get the money, and kept going until I secured
the necessary amount. With this I was off on the three-o'clock train,
and closed the transaction. In these early days I was a good deal of
a traveller, visiting our plants, making new connections, seeing
people, arranging plans to extend our business--and it often called
for very rapid work.
RAISING CHURCH FUNDS
When I was but seventeen or eighteen I was elected as a trustee in the
church. It was a mission branch, and occasionally I had to hear
members who belonged to the main body speak of the mission as though
it were not quite so good as the big mother church. This strengthened
our resolve to show them that we could paddle our own canoe.
Our first church was not a very grand affair, and there was a mortgage
of $2,000 on it which had been a dispiriting influence for years.
The holder of the mortgage had long demanded that he should be paid,
but somehow even the interest was barely kept up, and the creditor
finally threatened to sell us out. As it happened, the money had been
lent by a deacon in the church, but notwithstanding this fact, he felt
that he should have his money, and perhaps he really needed it.
Anyhow, he proposed to take such steps as were necessary to get it.
The matter came to a head one Sunday morning, when the minister
announced from the pulpit that the $2,000 would have to be raised, or
we should lose our church building. I therefore found myself at the
door of the church as the congregation came and went.
As each member came by I buttonholed him, and got him to promise to
give something toward the extinguishing of that debt. I pleaded and
urged, and almost threatened. As each one promised, I put his name and
the amount down in my little book, and continued to solicit from every
possible subscriber.
This campaign for raising the money which started that morning after
church, lasted for several months. It was a great undertaking to raise
such a sum of money in small amounts ranging from a few cents to the
more magnificent promises of gifts to be paid at the rate of
twenty-five or fifty cents per week. The plan absorbed me. I
contributed what I could, and my first ambition to earn more money was
aroused by this and similar undertakings in which I was constantly
engaged.
But at last the $2,000 was all in hand and a proud day it was when the
debt was extinguished. I hope the members of the mother church were
properly humiliated to see how far we had gone beyond their
expectations, but I do not now recall that they expressed the surprise
that we flattered ourselves they must have felt.
The begging experiences I had at that time were full of interest. I
went at the task with pride rather than the reverse, and I continued
it until my increasing cares and responsibilities compelled me to
resign the actual working out of details to others.
CHAPTER III
THE STANDARD OIL COMPANY
It would be surprising if in an organization which included a great
number of men there should not be an occasional employee here and
there who acted, in connection with the business or perhaps in
conducting his own affairs, in a way which might be criticized. Even
in a comparatively small organization it is wellnigh impossible to
restrain this occasional man who is over-zealous for his own or his
company's advancement. To judge the character of all the members of a
great organization or the organization itself by the actions of a few
individuals would be manifestly unfair.
It has been said that I forced the men who became my partners in the
oil business to join with me. I would not have been so short-sighted.
If it were true that I followed such tactics, I ask, would it have
been possible to make of such men life-long companions? Would they
accept, and remain for many years in positions of the greatest trust,
and finally, could any one have formed of such men, if they had been
so browbeaten, a group which has for all these years worked in loyal
harmony, with fair dealing among themselves as well as with others,
building up efficiency and acting in entire unity? This powerful