Rockefeller, Andrews & Flagler
Encyclopedia
Rockefeller, Andrews & Flagler was a business concern formed in 1867 in Cleveland, Ohio
which was a predecessor of the Standard Oil
Company. The principals and namesakes were John D. Rockefeller
, William Rockefeller
, Samuel Andrews, and Henry M. Flagler. Flagler’s wife’s uncle, Stephen V. Harkness
made substantial investments, but was a silent partner
and did not take an active role in running the business.
By 1868, Rockefeller, Andrews & Flagler was the largest petroleum
refiner in the world. The partners are credited with recognizing the importance of utilizing and marketing all of the by-products of the refining process, and gaining market and pricing control through shipping rates. Their failed South Improvement Company
scheme in 1871 in secret collusion with the Pennsylvania Railroad
led independent producers to revolt in western Pennsylvania
in early 1872 and earned Rockefeller, the highest profile partner, much bad public opinion.
However, the partners deployed other more successfully calculated and forceful approaches, which included buying out the competition and the formation of the various Standard Oil companies. By 1879, the Standard Oil Company did about 90 percent of the oil refining in the United States
.
Cleveland, Ohio
Cleveland is a city in the U.S. state of Ohio and is the county seat of Cuyahoga County, the most populous county in the state. The city is located in northeastern Ohio on the southern shore of Lake Erie, approximately west of the Pennsylvania border...
which was a predecessor of the Standard Oil
Standard Oil
Standard Oil was a predominant American integrated oil producing, transporting, refining, and marketing company. Established in 1870 as a corporation in Ohio, it was the largest oil refiner in the world and operated as a major company trust and was one of the world's first and largest multinational...
Company. The principals and namesakes were John D. Rockefeller
John D. Rockefeller
John Davison Rockefeller was an American oil industrialist, investor, and philanthropist. He was the founder of the Standard Oil Company, which dominated the oil industry and was the first great U.S. business trust. Rockefeller revolutionized the petroleum industry and defined the structure of...
, William Rockefeller
William Rockefeller
William Avery Rockefeller, Jr. , American financier, was a co-founder with his older brother John D. Rockefeller of the prominent United States Rockefeller family. He was the son of William Avery Rockefeller, Sr. and Eliza Rockefeller.-Youth, education:Rockefeller was born in Richford, New York,...
, Samuel Andrews, and Henry M. Flagler. Flagler’s wife’s uncle, Stephen V. Harkness
Stephen V. Harkness
Stephen Vanderburgh Harkness was an American businessman from Cleveland, Ohio, who invested as a silent partner with oil titan John D. Rockefeller, Sr. in the founding of Standard Oil.-Biography:...
made substantial investments, but was a silent partner
Silent partner
Silent partner may refer to:*An anonymous member of a business partnership, or one uninvolved in management*The Silent Partner, the name of several films*Silent partner , a piece of climbing equipment...
and did not take an active role in running the business.
By 1868, Rockefeller, Andrews & Flagler was the largest petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
refiner in the world. The partners are credited with recognizing the importance of utilizing and marketing all of the by-products of the refining process, and gaining market and pricing control through shipping rates. Their failed South Improvement Company
South Improvement Company
The South Improvement Company was a Pennsylvania corporation in 1871-1872. It was created by major railroad interests, but was widely seen as part of John D. Rockefeller's early efforts to organize and control the oil and natural gas industries in the United States which eventually became Standard...
scheme in 1871 in secret collusion with the Pennsylvania Railroad
Pennsylvania Railroad
The Pennsylvania Railroad was an American Class I railroad, founded in 1846. Commonly referred to as the "Pennsy", the PRR was headquartered in Philadelphia, Pennsylvania....
led independent producers to revolt in western Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
in early 1872 and earned Rockefeller, the highest profile partner, much bad public opinion.
However, the partners deployed other more successfully calculated and forceful approaches, which included buying out the competition and the formation of the various Standard Oil companies. By 1879, the Standard Oil Company did about 90 percent of the oil refining in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
.