SECRET OF " STANDARD OIL.”

Gisborne Times, Volume XXVII, Issue 2515, 31 May 1909, Page 4

SECRET OF " STANDARD OIL.”

REMINISCENCES BY MR J. D ROCKEFELLER.

In his random reminiscences in the

‘•World’s Work” Mr J. D. Rockefeller describes the way lie came to organise a firm to refine and deal in oil. In iB6O the firm of Clark and Rockefeller was dissolved, and the firm of Rockefeller and Andrews established, having purchased the old business for £14,500. Gradually there was organised the (Standard Oil Company, with a capital of £200,000. He ascribes the success of the Stndard Oil Company to its consistent policy of making the volume of its business large through the merit and cheapness of its products. It hasspared no expense in utilising the best and most efficient method of manufacture. It has sought for the best superintendents and workmen, and paid the best wages. He goes on to say:'

“We educated our own men; wo trained many of them from boyhood; we strove to "keep them loyal by providing them full scope for their ability ; they were given opportunities to buy stock, and the company itself helped them to finance their purchases. I may say that the company has been in ail its history a most happy association of busy people.” The dividends of the Standard Oil Company run up to 40 per cent on the capital stock of twenty millions sterling. The capital stock could be raised several hundred per cent- without a penny of over-capitalisation or ‘‘water.”' Tlie increase in the value of the company’s possessions has been natural and absolutely normal, he says. In speaking of the real beginning of the Standard Oil Company, he insists that it was not so much the consolidation of the firms, hut the coming together of the men who had the combined brain power to do the work, which was the essential thing. “It is not merely capital and ‘plants' and strictly material things which make up a business, but the character of the men behiud these things, their personalities and abilities. These are the. essentials to be reckoned with.” He disclaims very emphatically certain allegations of having bought pro-''M-ty from a widow for less than its value. On the question of rebates, he admits that the Standard Oil Company 6(1 receive from railways prior to 1880, but received no advantages for which it did not''give comuensaiion. Tlie reason for rebates was that such was the railway’s method of business. The profits of. the company did not come from advantages given by railways.