THE START OF THE STANDARD OIL COMPANY

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.

The cause leading to the formation of this firm was the desire to
unite our skill and capital in order to carry on a business of greater
magnitude with economy and efficiency in place of the smaller
business that each had heretofore conducted separately. As time went
on and the possibilities became apparent, we found further capital to
be necessary; then we interested others and organized the Standard Oil
Company, with a capital of $1,000,000. Later we saw that more money
could be utilized, found persons who were willing to invest with us,
and increased our capital to $2,500,000, in 1872, and afterward in
1874 to $3,500,000. As the business grew, and markets were obtained at
home and abroad, more persons and capital were added to the business,
and new corporate agencies were obtained or organized, the object
being always the same--to extend our operations by furnishing the best
and cheapest products.

I ascribe the success of the Standard Oil Company to its consistent
policy of making the volume of its business large through the merit
and cheapness of its products. It has spared no expense in utilizing
the best and most efficient method of manufacture. It has sought for
the best superintendents and workmen and paid the best wages. It has
not hesitated to sacrifice old machinery and old plants for new and
better ones. It has placed its manufactories at the points where they
could supply markets at the least expense. It has not only sought
markets for its principal products, but for all possible by-products,