John D. Rockefeller & The Standard Oil Partners: Flagler and Harkness

When we think of the massive wealth and industrial power of the Gilded Age, John D. Rockefeller and Standard Oil often come to mind first. However, the creation of this unprecedented monopoly was not a solo endeavor. The establishment of Standard Oil relied heavily on the strategic partnership of two other key figures: Henry M. Flagler and Stephen V. Harkness.

The Bellevue Connection

The roots of this massive empire can be traced back to the town of Bellevue, Ohio, which is midway between Toledo and Cleveland.

It was here that Stephen V. Harkness, Daniel M. Harkness, and Henry Flagler worked together in the grain and distilling business.

Daniel M. Harkness’s grain and distillery complex in Bellevue, Ohio

During this time, they conducted business with a young John D. Rockefeller, who was working as a grain merchant in nearby Cleveland. This early commercial relationship laid the groundwork for what would become a historic, world-changing partnership. Here’s an excerpt from JD Rockefeller’s autobiography “Random Reminiscences of Men and Events ,BY JOHN D. ROCKEFELLER” , which he wrote primarily for family and friends to document his experiences.

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.

In the year 1867, the firms of William Rockefeller & Co., Rockefeller & Andrews, Rockefeller & Co., and S. V. Harkness and H. M. Flagler united in forming the firm of Rockefeller, Andrews & Flagler.

Editor’s Note: Then in 1870 the 5 founding partners formed Standard Oil to bring in more investors and expand the company further.

The relationship between the founders and the connection to Bellevue, Ohio.

Daniel Harkness was a half brother to both Henry Flagler and Stephen V. Harkness. Daniel and Henry shared a mother, Elizabeth Caldwell Morrison, and Daniel and Stephen Harkness shared a father, Dr. David Harkness. There were also other Harkness relatives in Bellevue, Ohio, including brothers of Dr. David Harkness, Dr. Lamon G. Harkness and Dr. William G. Harkness. Henry and Daniel married two of Dr. L. G. Harkness’s daughters, Mary (Henry) and Isabella (Daniel).

A Test of Loyalty: The Refinery Fire

Stephen V. Harkness served as a crucial Ohio-based venture capitalist, providing the financial backbone for the establishment of Standard Oil. However, his value to Rockefeller went far beyond his initial investment. Shortly after Standard Oil was founded, a devastating fire burned down a major Standard Oil refinery. JD Rockefeller remembered this and included it early in his autobiography, on page 18: ” Random Reminiscences of Men and Events ,BY JOHN D. ROCKEFELLER”. Henry Flagler is mentioned in his autobiography 9 times and Stephen V. Harkness twice. Here is an excerpt:

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.

In a true showing of partnership and loyalty, Stephen Harkness offered Rockefeller whatever financial resources he had to keep the operation running. While Rockefeller ultimately found other funds to rebuild, he never forgot this gesture. Rockefeller always remembered that Harkness was there to firmly back him up when he needed it most.

The Foundation of a Monopoly

Alongside Harkness’s steadfast financial backing, Henry Flagler officially founded Standard Oil side by side with Rockefeller. Rockefeller developed immense respect and deep affection for both men. He relied on Harkness’s silent but unshakeable capital to weather early industrial crises, while depending on Flagler’s bold, imaginative thinking to organize the business. Together, this trio navigated the chaotic early days of the oil boom, transforming a regional refining operation into an absolute industrial powerhouse.

Robber Baron – Yes or No?

Did the Gilded Age have robber barons? Certainly, much like the current era.