Stephen Vanderburgh Harkness (1818-1888) was an Ohio-based American businessman. He played a crucial role in the establishment of Standard Oil, serving as a "Venture Capitalist" alongside John D. Rockefeller, Sr. Harkness continued to contribute to Standard Oil's success as a director until he passed away. His involvement in the company was originally facilitated by his stepbrother, Henry M. Flagler.
Early life
Stephen was born on November 18, 1818, in Fayette, New York, to David M. Harkness and Martha Cook. Sadly, his mother passed away before he turned two, and his father relocated to the Western Reserve region of Northeast Ohio, settling in Milan. It is uncertain whether Stephen accompanied his father to Ohio at that point, or if he remained with his grandfather Stephen Cook in Waterloo, New York. After coming to Ohio, David married for a second time to Elizabeth Ann Caldwell Morrison and had a son named Daniel M. Harkness, who became Stephen's stepbrother.
David died shortly after, in 1825. His widow Elizabeth went back to Seneca County, New York, and stayed with her mother-in-law. She then met and married Isaac Flagler, a Presbyterian minister in Milton, New York. Isaac and Elizabeth had a son together, his name was Henry Morrison Flagler.
Career
Stephen Harkness completed his harness-making apprenticeship in New York at 15 years of age. He then relocated to Bellevue, Ohio to live with his uncle Lamon G. Harkness. Stephen worked in harness making initially but later established a prosperous distillery in Monroeville, Ohio in 1855. He was able to sell a substantial amount of stock before the taxes on wine and liquor were introduced due to his prior knowledge, which led to significant profits. Interestingly, he likely learned this information from his friend Senator John Sherman of Ohio, whose Sherman Anti-Trust Act would later be used to bust the Standard Oil Trust.
In 1864, Stephen partnered with William Halsey Doan to supply crude oil to refineries, which further increased his wealth. During this period the family lived in the Doans Corners area in Cleveland in a large victorian house at the southwest corner of Euclid and Fairmount(e 107). The area was soon called The Village of East Cleveleland.
This success with Doan piqued his interest in the burgeoning oil industry happening in Cleveland. In 1866, he sold his businesses in Monroeville and relocated further in nearer downtown to "Millionaires Row" in Cleveland on Euclid Avenue
There, he established The Euclid Avenue National Bank and served as the president of the Belt Mining Company.
Willoughby Lake House
Stephen also had a lake house in the Cleveland area near Willoughby, Ohio. This house was a fond memory for all of Stephen's children since they could roam around the property and be on the lake often on the Peerless yacht. A great time for kids to enjoy life. More here: Willoughby Lake House.
Stephen Harkness's yacht the Peerless.
The Oil Business
Harkness made significant investments with his stepbrother Henry Flagler and John D. Rockefeller in the precursor to Standard Oil, called Rockefeller, Andrews & Flagler. As a result, he became the company's second-largest shareholder and gained immense wealth. Despite being a silent partner, Harkness held a position on Standard Oil's Board of Directors until his passing in 1888. The Articles of Incorporation for Standard Oil were signed by John D. Rockefeller, Henry M. Flagler, Samuel Andrews, Stephen V. Harkness, and William Rockefeller.
In John D. Rockefeller's autobiography published in 1909, JD shared a story about a major fire that destroyed several buildings, leaving him potentially in need of funds for rebuilding the business. Stephen Harkness came to his aid, saying, "Whatever you need is yours." Rockefeller always remembered this act of loyalty and knew that he had a faithful friend in Stephen Harkness.
Harkness also played a role in the growth of Cleveland, Ohio. He worked together with Charles F. Brush and Rockefeller to construct the Cleveland Arcade, which was among the first enclosed shopping malls in the United States. The design of the arcade was inspired by the Galleria Vittorio Emanuele II in Milan, Italy.
Personal life
In 1842, Stephen Harkness married Laura Osborne. They had three children; two of whom died in their first year. The third lived to the age of 65. Their children were:
Isabella Harkness (1845-1845)
David Harkness (1848-1848)
Lamon Vanderburgh Harkness (1850-1915)
Laura died on August 24, 1852, and was buried in Bellevue, Ohio. Two years after her death, Stephen married Anna M. Richardson. They had three children:
Charles William Harkness (1860-1916)
Florence Harkness (1864-1895)
Edward Stephen Harkness (1874-1940)
On March 6, 1888, Stephen Harkness died aboard his second yacht Twilight while at sea 40 miles off of Punta Gorda, Florida.
Stephen and Anna Harkness are both interred in Cleveland's Lake View Cemetery nearby the plots of the JD Rockefeller family.
Philanthropy
After Stephen's death, his widow Anna M. Harkness established the Commonwealth Fund, a foundation dedicated to the improvement of healthcare.
Under the guidance of their second son, Edward S. Harkness, the foundation made charitable gifts totaling more than $129 million, the equivalent of $2 billion in 2005 dollars.
In addition to building schools and hospitals back in the day, the Harkness fortune lives today in many philanthropic outlets including The Commonwealth Fund, The Pilgrim Fund, and The Louise Harkness and David Sinton Ingalls Foundation. Others include:
