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Henry Morrison Flagler (January 2, 1830 – May 20, 1913) was an American
industrialist A business magnate, also known as a tycoon, is a person who has achieved immense wealth through the ownership of multiple lines of enterprise. The term characteristically refers to a powerful entrepreneur or investor who controls, through per ...
and a founder of
Standard Oil Standard Oil Company, Inc., was an American oil production, transportation, refining, and marketing company that operated from 1870 to 1911. At its height, Standard Oil was the largest petroleum company in the world, and its success made its co- ...
, which was first based in Ohio. He was also a key figure in the development of the Atlantic coast of
Florida Florida is a state located in the Southeastern region of the United States. Florida is bordered to the west by the Gulf of Mexico, to the northwest by Alabama, to the north by Georgia, to the east by the Bahamas and Atlantic Ocean, and ...
and founder of the Florida East Coast Railway. He is also known as a founder of the cities of
Miami Miami ( ), officially the City of Miami, known as "the 305", "The Magic City", and "Gateway to the Americas", is a coastal metropolis and the county seat of Miami-Dade County in South Florida, United States. With a population of 442,241 at ...
and Palm Beach, Florida.


Early life and education

Flagler was born in Hopewell, New York. His father was Isaac Flagler, a
Presbyterian Presbyterianism is a part of the Reformed tradition within Protestantism that broke from the Roman Catholic Church in Scotland by John Knox, who was a priest at St. Giles Cathedral (Church of Scotland). Presbyterian churches derive their n ...
minister and great-grandson of Zacharra Flegler, whose family had emigrated from the German Palatinate region to Holland in 1688. Zacharra worked in England for several years before moving to
Dutchess County, New York Dutchess County is a county in the U.S. state of New York. As of the 2020 census, the population was 295,911. The county seat is the city of Poughkeepsie. The county was created in 1683, one of New York's first twelve counties, and later or ...
, in 1710. His grandson Solomon changed the spelling of the surname to Flagler and passed it on to his 11 children. Flagler's mother was Elizabeth Caldwell Harkness Flagler, Isaac's third wife and a widow who had a stepson,
Stephen V. Harkness Stephen Vanderburgh Harkness (November 18, 1818 – March 6, 1888) was an American businessman based in Cleveland, Ohio. He invested as a silent partner with John D. Rockefeller, Sr. in the founding of Standard Oil and served as a director of St ...
, and a son, Daniel M. Harkness, from her marriage to deceased widower David Harkness of Milan, Ohio. Flagler attended local schools through eighth grade. His half-brother Daniel had left Hopewell to live and work with his paternal uncle Lamon G. Harkness, who had a store in
Republic, Ohio Republic is a village in Seneca County, Ohio, United States. The population was 549 at the 2010 census. History In 1834, Sidney Smith hired R.M. Shoemaker of Cincinnati to survey a new town at the corners of sections 15, 16, 21, and 22 in Scip ...
. He recruited Henry Flagler to join him, and the youth went to Ohio at age 14, where he started work in 1844 at a salary of US$5 per month plus room and board. By 1849, Flagler was promoted to the sales staff at a salary of $40 per month. He later joined Daniel in a grain business started with his uncle Lamon in Bellevue, Ohio. In 1862, Flagler and his brother-in-law Barney Hamlin York (1833–1884) founded the Flagler and York Salt Company, a
salt Salt is a mineral composed primarily of sodium chloride (NaCl), a chemical compound belonging to the larger class of salts; salt in the form of a natural crystalline mineral is known as rock salt or halite. Salt is present in vast quant ...
mining and production business in
Saginaw, Michigan Saginaw () is a city in the U.S. state of Michigan and the seat of Saginaw County. The city of Saginaw and Saginaw County are both in the area known as Mid-Michigan. Saginaw is adjacent to Saginaw Charter Township and considered part of Greate ...
. He found that salt mining required more technical knowledge than he had and struggled in the industry during the Civil War. The company collapsed when the war undercut commercial demand for salt. Flagler returned to Bellevue having lost his initial $50,000 investment and an additional $50,000 he had borrowed from his father-in-law and Daniel. Flagler believed that he had learned a valuable lesson: invest in a business only after thorough investigation.


Business and Standard Oil

After the failure of his salt business in Saginaw, Flagler returned to Bellevue in 1866 and reentered the
grain A grain is a small, hard, dry fruit ( caryopsis) – with or without an attached hull layer – harvested for human or animal consumption. A grain crop is a grain-producing plant. The two main types of commercial grain crops are cereals and legum ...
business as a commission merchant with the Harkness Grain Company. During this time he worked to pay back his stepbrother. Through this business, Flagler became acquainted with John D. Rockefeller, who worked as a commission agent with Hewitt and Tuttle for the Harkness Grain Company. By the mid-1860s,
Cleveland Cleveland ( ), officially the City of Cleveland, is a city in the United States, U.S. U.S. state, state of Ohio and the county seat of Cuyahoga County, Ohio, Cuyahoga County. Located in the northeastern part of the state, it is situated along ...
had become the center of the oil refining industry in America and Rockefeller left the grain business to start his own oil refinery. Rockefeller worked in association with chemist and inventor Samuel Andrews. Needing capital for his new venture, Rockefeller approached Flagler in 1867. Flagler's stepbrother
Stephen V. Harkness Stephen Vanderburgh Harkness (November 18, 1818 – March 6, 1888) was an American businessman based in Cleveland, Ohio. He invested as a silent partner with John D. Rockefeller, Sr. in the founding of Standard Oil and served as a director of St ...
invested $100,000 (equivalent to $ in ) on the condition that Flagler be made a partner. The Rockefeller, Andrews & Flagler partnership was formed with Flagler in control of Harkness' interest. The partnership eventually grew into the
Standard Oil Standard Oil Company, Inc., was an American oil production, transportation, refining, and marketing company that operated from 1870 to 1911. At its height, Standard Oil was the largest petroleum company in the world, and its success made its co- ...
Corporation. It was Flagler's idea to use the rebate system to strengthen the firm's position against competitors and the transporting enterprises alike. Flagler was in a special position to make those deals due to his connections as a grain merchant. Equivalent to a 15% discount, they put Standard Oil in position to significantly undercut other oil refineries. By 1872, it led the American oil refining industry, producing . In 1877, Flagler and his family moved to
New York City New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
, which was becoming the center of commerce in the U.S.. In 1885, Standard Oil moved its corporate headquarters to New York City to the iconic 26 Broadway location. By the end of the
American Civil War The American Civil War (April 12, 1861 – May 26, 1865; also known by Names of the American Civil War, other names) was a civil war in the United States. It was fought between the Union (American Civil War), Union ("the North") and t ...
, Cleveland was one of the five main refining centers in the U.S. (besides
Pittsburgh Pittsburgh ( ) is a city in the Commonwealth (U.S. state), Commonwealth of Pennsylvania, United States, and the county seat of Allegheny County, Pennsylvania, Allegheny County. It is the most populous city in both Allegheny County and Wester ...
, New York City,
Philadelphia Philadelphia, often called Philly, is the largest city in the Commonwealth of Pennsylvania, the sixth-largest city in the U.S., the second-largest city in both the Northeast megalopolis and Mid-Atlantic regions after New York City. Since ...
, and the region in northwestern
Pennsylvania Pennsylvania (; ( Pennsylvania Dutch: )), officially the Commonwealth of Pennsylvania, is a state spanning the Mid-Atlantic, Northeastern, Appalachian, and Great Lakes regions of the United States. It borders Delaware to its southeast, ...
where most of the oil originated). By 1869, there was three times more kerosene refining capacity than needed to supply the market, and the capacity remained in excess for many years. In June 1870, Flagler and Rockefeller formed Standard Oil of Ohio, which rapidly became the most profitable refiner in Ohio. Standard Oil grew to become one of the largest shippers of oil and kerosene in the country. The railroads were fighting fiercely for traffic and, in an attempt to create a cartel to control freight rates, formed the
South Improvement Company The South Improvement Company was a short lived Pennsylvania corporation founded in late 1871 which existed until the state of Pennsylvania suspended its charter on April 2, 1872. It was created by major railroad and oil interests, and was widely ...
in collusion with Standard and other oil men outside the main oil centers. The cartel received preferential treatment as a high-volume shipper, which included not just steep rebates of up to 50% for their product but also rebates for the shipment of competing products. Part of this scheme was the announcement of sharply increased freight charges. This touched off a firestorm of protest from independent oil well owners, including boycotts and vandalism, which eventually led to the discovery of Standard Oil's part in the deal. A major New York refiner, Charles Pratt and Company, headed by Charles Pratt and
Henry H. Rogers Henry Huttleston Rogers (January 29, 1840 – May 19, 1909) was an American industrialist and financier. He made his fortune in the oil refining business, becoming a leader at Standard Oil. He also played a major role in numerous corporations a ...
, led the opposition to this plan, and railroads soon backed off. Pennsylvania revoked the cartel's charter, and non-preferential rates were restored for the time being. Undeterred, though vilified for the first time by the press, Flagler and Rockefeller continued with their self-reinforcing cycle of buying competing refiners, improving the efficiency of operations, pressing for discounts on oil shipments, undercutting competition, making secret deals, raising investment pools, and buying rivals out. In less than four months in 1872, in what was later known as "The Cleveland Conquest" or "The Cleveland Massacre", Standard Oil had absorbed 22 of its 26 Cleveland competitors. Eventually, even former antagonists Pratt and Rogers saw the futility of continuing to compete against Standard Oil: in 1874, they made a secret agreement with their old nemesis to be acquired. Pratt and Rogers became Flagler and Rockefeller's partners. Rogers, in particular, became one of Flagler and Rockefeller's key men in the formation of the Standard Oil Trust. Pratt's son,
Charles Millard Pratt Charles Millard Pratt (November 2, 1855 – November 27, 1935) was an American oil industrialist, educator, and philanthropist. As the eldest son of industrialist Charles Pratt, in 1875 he began working at Charles Pratt and Company, soon beco ...
, became Secretary of Standard Oil. For many of the competitors, Flagler and Rockefeller had merely to show them the books so they could see what they were up against and make them a decent offer. If they refused the offer, Flagler and Rockefeller told them they would run them into bankruptcy and then cheaply buy up their assets at auction. Flagler and Rockefeller saw themselves as the industry's saviors, "an angel of mercy" absorbing the weak and making the industry as a whole stronger, more efficient, and more competitive. Standard was growing horizontally and vertically. It added its own pipelines, tank cars, and home delivery network. It kept oil prices low to stave off competitors, made its products affordable to the average household, and, to increase market penetration, sometimes sold below cost if necessary. It developed over 300 oil-based products from tar to paint to Vaseline petroleum jelly to chewing gum. By the end of the 1870s, Standard was refining over 90% of the oil in the U.S. In 1877, Standard clashed with
Thomas A. Scott Thomas Alexander Scott (December 28, 1823 – May 21, 1881) was an American businessman, railroad executive, and industrialist. In 1861, President Abraham Lincoln appointed him to serve as U.S. Assistant Secretary of War, and during the America ...
the president of the Pennsylvania Railroad, its chief hauler. Flagler and Rockefeller had envisioned the use of pipelines as an alternative transport system for oil and began a campaign to build and acquire them. The railroad, seeing Standard's incursion into the transportation and pipeline fields, struck back and formed a subsidiary to buy and build oil refineries and pipelines.This subsidiary, the
Empire Transportation Company The Empire Transportation Company was a multimodal freight transportation company founded and operated by Joseph D. Potts in 1865. It owned a small fleet of boats on the Great Lakes which collected grain and produce which were then delivered to Er ...
, which Joseph D. Potts created in 1865 and also ran, owned other assets including a small fleet of ships on the
Great Lakes The Great Lakes, also called the Great Lakes of North America, are a series of large interconnected freshwater lakes in the mid-east region of North America that connect to the Atlantic Ocean via the Saint Lawrence River. There are five lakes ...
. Standard countered and held back its shipments and, with the help of other railroads, started a price war that dramatically reduced freight payments and caused labor unrest as well. Flagler and Rockefeller eventually prevailed and the railroad sold all its oil interests to Standard. But in the aftermath of that battle, in 1879 the Commonwealth of Pennsylvania indicted Flagler and Rockefeller on charges of monopolizing the oil trade, starting an avalanche of similar court proceedings in other states and making a national issue of Standard Oil's business practices. The
New York State Legislature The New York State Legislature consists of the two houses that act as the state legislature of the U.S. state of New York: The New York State Senate and the New York State Assembly. The Constitution of New York does not designate an officia ...
's Hepburn Committee in 1879 conducted hearings in response to the complaints of local merchants that were not involved in the oil trade in order to investigate railroad rebate practices. The committee ultimately discovered the previously unknown scope of Standard Oil's business interests.


Monopoly

Standard Oil gradually gained almost complete control of oil refining and marketing in the United States through horizontal integration. In the kerosene industry, Standard Oil replaced the old distribution system with its own vertical system. It supplied kerosene by tank cars that brought the fuel to local markets, and tank wagons then delivered to retail customers, thus bypassing the existing network of wholesale jobbers. Despite improving the quality and availability of kerosene products while greatly reducing their cost to the public (the price of kerosene dropped by nearly 80% over the life of the company), Standard Oil's business practices created intense controversy. Standard's most potent weapons against competitors were underselling, differential pricing, and secret transportation rebates. The firm was attacked by journalists and politicians throughout its existence, in part for these monopolistic methods, giving momentum to the antitrust movement. By 1880, according to the ''
New York World The ''New York World'' was a newspaper published in New York City from 1860 until 1931. The paper played a major role in the history of American newspapers. It was a leading national voice of the Democratic Party. From 1883 to 1911 under pub ...
'', Standard Oil was "the most cruel, impudent, pitiless, and grasping monopoly that ever fastened upon a country." To the critics Flagler and Rockefeller replied, "In a business so large as ours... some things are likely to be done which we cannot approve. We correct them as soon as they come to our knowledge." At that time, many legislatures had made it difficult to incorporate in one state and operate in another. As a result, Flagler and Rockefeller and their associates owned dozens of separate corporations, each of which operated in just one state; the management of the whole enterprise was rather unwieldy. In 1882, Flagler and Rockefeller's lawyers created an innovative form of corporation to centralize their holdings, giving birth to the Standard Oil Trust. The " trust" was a corporation of corporations, and the entity's size and wealth drew much attention. Nine trustees, including Rockefeller, ran the 41 companies in the trust. The public and the press were immediately suspicious of this new legal entity, and other businesses seized upon the idea and emulated it, further inflaming public sentiment. Standard Oil had gained an aura of invincibility, always prevailing against competitors, critics, and political enemies. It had become the richest, biggest, most feared business in the world, seemingly immune to the boom and bust of the business cycle, consistently racking up profits year after year. Its vast American empire included 20,000 domestic wells, 4,000 miles of pipeline, 5,000 tank cars, and over 100,000 employees. Its share of world oil refining topped out above 90% but slowly dropped to about 80% for the rest of the century. In spite of the formation of the trust and its perceived immunity from all competition, by the 1880s Standard Oil had passed its peak of power over the world oil market. Flagler and Rockefeller finally gave up their dream of controlling all the world's oil refining. Rockefeller admitted later, "We realized that public sentiment would be against us if we actually refined all the oil." Over time foreign competition and new finds abroad eroded his dominance. In the early 1880s, Flagler and Rockefeller created one of their most important innovations. Rather than try to influence the price of crude oil directly, Standard Oil had been exercising indirect control by altering oil storage charges to suit market conditions. Flagler and Rockefeller then decided to issue certificates against oil stored in Standard Oil's pipelines. These certificates became traded by speculators, thus creating the first oil-futures market which effectively set spot market prices from then on. The National Petroleum Exchange opened in Manhattan in late 1882 to facilitate the oil futures trading. Even though 85% of world crude production was still coming from Pennsylvania wells in the 1880s, overseas drilling in Russia and Asia began to reach the world market.
Robert Nobel Robert Hjalmar Nobel ( , ; 4 August 1829 – 7 August 1896) was a Swedish businessman, industrialist and investor. He was the founder of Branobel, and a pioneer in the Russian oil industry. Biography Robert Nobel was born in Maria Magdalena pa ...
had established his own refining enterprise in the abundant and cheaper Russian oil fields, including the region's first pipeline and the world's first oil tanker. The Paris Rothschilds jumped into the fray providing financing. Additional fields were discovered in Burma and Java. Even more critical, the invention of the light bulb gradually began to erode the dominance of kerosene for illumination. But Standard Oil adapted, developing its own European presence, expanding into
natural gas Natural gas (also called fossil gas or simply gas) is a naturally occurring mixture of gaseous hydrocarbons consisting primarily of methane in addition to various smaller amounts of other higher alkanes. Low levels of trace gases like carbon d ...
production in the U.S., then into gasoline for automobiles, which until then had been considered a waste product. Standard Oil moved its headquarters to New York City, at 26 Broadway, and Flagler and Rockefeller became central figures in the city's business community. In 1887, Congress created the
Interstate Commerce Commission The Interstate Commerce Commission (ICC) was a regulatory agency in the United States created by the Interstate Commerce Act of 1887. The agency's original purpose was to regulate railroads (and later trucking) to ensure fair rates, to elimina ...
, which was tasked with enforcing equal rates for all railroad freight, but by then Standard depended more on pipeline transport. More threatening to Standard's power was the
Sherman Antitrust Act The Sherman Antitrust Act of 1890 (, ) is a United States antitrust law which prescribes the rule of free competition among those engaged in commerce. It was passed by Congress and is named for Senator John Sherman, its principal author. ...
of 1890, originally used to control unions, but later central to the breakup of the Standard Oil trust. Ohio was especially vigorous in applying its state anti-trust laws, and finally forced a separation of Standard Oil of Ohio from the rest of the company in 1892, the first step in the dissolution of the trust. Upon his ascent to the presidency, Theodore Roosevelt initiated dozens of suits under the Sherman Antitrust Act and coaxed reforms out of Congress. In 1901, U.S. Steel, now controlled by
J. Pierpont Morgan John Pierpont Morgan Sr. (April 17, 1837 – March 31, 1913) was an American financier and investment banker who dominated corporate finance on Wall Street throughout the Gilded Age. As the head of the banking firm that ultimately became know ...
, having bought Andrew Carnegie's steel assets, offered to buy Standard's iron interests as well. A deal brokered by Henry Clay Frick exchanged Standard's iron interests for U.S. Steel stock and gave Rockefeller and his son membership on the company's board of directors. One of the most effective attacks on Flagler and Rockefeller and their firm was the 1905 publication of ''
The History of the Standard Oil Company ''The History of the Standard Oil Company'' is a 1904 book by journalist Ida Tarbell. It is an exposé about the Standard Oil Company, run at the time by oil tycoon John D. Rockefeller, the richest figure in American history. Originally serializ ...
,'' by Ida Tarbell, a leading muckraker. She documented the company's espionage, price wars, heavy-handed marketing tactics, and courtroom evasions. Although her work prompted a huge backlash against the company, Tarbell claims to have been surprised at its magnitude. "I never had an animus against their size and wealth, never objected to their corporate form. I was willing that they should combine and grow as big and wealthy as they could, but only by legitimate means. But they had never played fair, and that ruined their greatness for me." Tarbell's father had been driven out of the oil business during the
South Improvement Company The South Improvement Company was a short lived Pennsylvania corporation founded in late 1871 which existed until the state of Pennsylvania suspended its charter on April 2, 1872. It was created by major railroad and oil interests, and was widely ...
affair. Flagler and Rockefeller began a publicity campaign to put the company and themselves in a better light. Though Flagler and Rockefeller had long maintained a policy of active silence with the press, they decided to make themselves more accessible and responded with conciliatory comments such as "capital and labor are both wild forces which require intelligent legislation to hold them in restriction." Flagler and Rockefeller continued to consolidate their oil interests as best they could until New Jersey, in 1909, changed its incorporation laws to effectively allow a re-creation of the trust in the form of a single
holding company A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...
. Rockefeller retained his nominal title as president until 1911 and he kept his stock. At last in 1911, the
Supreme Court of the United States The Supreme Court of the United States (SCOTUS) is the highest court in the federal judiciary of the United States. It has ultimate appellate jurisdiction over all U.S. Federal tribunals in the United States, federal court cases, and over Stat ...
found Standard Oil Company of New Jersey in violation of the
Sherman Antitrust Act The Sherman Antitrust Act of 1890 (, ) is a United States antitrust law which prescribes the rule of free competition among those engaged in commerce. It was passed by Congress and is named for Senator John Sherman, its principal author. ...
. By then the trust still had a 70% market share of the refined oil market but only 14% of the U.S. crude oil supply. The court ruled that the trust originated in illegal monopoly practices and ordered it to be broken up into 34 new companies. These included, among many others, Continental Oil, which became Conoco, now part of ConocoPhillips; Standard of Indiana, which became
Amoco Amoco () is a brand of fuel stations operating in the United States, and owned by BP since 1998. The Amoco Corporation was an American chemical and oil company, founded by Standard Oil Company in 1889 around a refinery in Whiting, India ...
, now part of BP; Standard of California, which became
Chevron Chevron (often relating to V-shaped patterns) may refer to: Science and technology * Chevron (aerospace), sawtooth patterns on some jet engines * Chevron (anatomy), a bone * '' Eulithis testata'', a moth * Chevron (geology), a fold in rock la ...
; Standard of New Jersey, which became Esso (and later, Exxon), now part of ExxonMobil; Standard of New York, which became Mobil, now part of ExxonMobil; and Standard of Ohio, which became Sohio, now part of BP. Pennzoil and Chevron have remained separate companies.


Flagler's contributions

When Flagler envisioned successes in the oil industry, he and Rockefeller started building their fortune in refining oil in Cleveland, Ohio. Cleveland became very well known for oil refining, as, "More and more crude oil was shipped from the oil regions to Cleveland for the refining process because of transportation facilities and the aggressiveness of the refiners there. It was due largely to the efforts of Henry M. Flagler and John D. Rockefeller." Flagler and Rockefeller worked hard for their company to achieve such prominence. Henry explained: "We worked night and day, making good oil as cheaply as possible and selling it for all we could get."Sammons, Sandra Wallus. ''Henry Flagler, Builder of Florida.'' Sarasota, Florida: Pineapple Press Inc, 2010, p. 4. Not only did Flagler and Rockefeller's Standard Oil company become well known in
Ohio Ohio () is a U.S. state, state in the Midwestern United States, Midwestern region of the United States. Of the List of states and territories of the United States, fifty U.S. states, it is the List of U.S. states and territories by area, 34th-l ...
, they expanded to other states, as well as gained additional capital in purchasing smaller oil refining companies across the nation. According to Allan Nevins, in ''John D. Rockefeller'' (p 292), "Standard Oil was born as a big enterprise, it had cut its teeth as a partnership and was now ready to plunge forward into a period of greater expansion and development. It soon was doing one tenth of all the petroleum business in the United States. Besides its two refineries and a barrel plant in Cleveland, it possessed a fleet of tank cars and warehouses in the oil regions as well as warehouses and tanks in New York." By 1892, Standard Oil had a monopoly over all oil refineries in the United States. In an overall calculation of America's oil refineries' assets and capital, Standard Oil surpassed all. Standard Oil's combined assets equalled approximately $42,882,650 (equivalent to $ in ) in Indiana, Kentucky, New Jersey, New York and Ohio. Standard Oil also had the highest capitalization, totaling $26,000,000 (equivalent to $ in ). The history of American oil refining begins with Flagler and Rockefeller, as they built the biggest, most prosperous and monopolizing oil empire of their time:
Standard Oil Standard Oil Company, Inc., was an American oil production, transportation, refining, and marketing company that operated from 1870 to 1911. At its height, Standard Oil was the largest petroleum company in the world, and its success made its co- ...
. Although Standard Oil was a partnership, Flagler was credited as the brain behind the booming oil refining business. "When John D. Rockefeller was asked if the
Standard Oil Standard Oil Company, Inc., was an American oil production, transportation, refining, and marketing company that operated from 1870 to 1911. At its height, Standard Oil was the largest petroleum company in the world, and its success made its co- ...
company was the result of his thinking, he answered, 'No, sir. I wish I had the brains to think of it. It was Henry M. Flagler.'" Flagler served as an active part of Standard Oil until 1882, when he stepped back to take a secondary role at Standard Oil. He served as a vice president through 1908 and was part of ownership until 1911.


Florida: resort hotels and railroads

When Flagler's first wife Mary (née Harkness) fell sick, his physician recommended they travel to Jacksonville for the winter to escape the brutal conditions of the North. For the first time, Flagler was able to experience the warm, sunny atmosphere of Florida. Two years after his first wife died in 1881, he married again. Ida Alice (née Shourds) Flagler had been a
caregiver A caregiver or carer is a paid or unpaid member of a person's social network who helps them with activities of daily living. Since they have no specific professional training, they are often described as informal caregivers. Caregivers most commo ...
for Mary. After their wedding, the couple traveled to Saint Augustine. Flagler found the city charming, but the hotel facilities and transportation systems inadequate.
Franklin W. Smith Franklin Webster Smith (1826–1911) was an American idealistic reformer who made his fortune as a Boston hardware merchant. He was an early abolitionist, defendant in a civilian court-martial in 1864, author, and architectural enthusiast who prop ...
had just finished building
Villa Zorayda Villa Zorayda (also known as the Zorayda Castle) is a house at 83 King Street in St. Augustine, Florida. Built in 1883 by the eccentric Boston millionaire Franklin W. Smith as his winter home, it was inspired by the 12th-century Moorish Alha ...
and Flagler offered to buy it for his honeymoon. Smith would not sell, but he planted the seed of St. Augustine's and Florida's future in Flagler's mind. Although Flagler remained on the board of directors of Standard Oil, he gave up his day-to-day involvement in the corporation to pursue his interests in Florida. He returned to St. Augustine in 1885 and made Smith an offer. If Smith could raise $50,000, Flagler would invest $150,000 and they would build a hotel together. Perhaps fortunately for Smith, he couldn't come up with the funds, so Flagler began construction of the 540-room
Ponce de Leon Hotel The Ponce de Leon Hotel, also known as The Ponce, was an exclusive luxury hotel in St. Augustine, Florida, built by millionaire developer and Standard Oil co-founder Henry M. Flagler and completed in 1888. The hotel was designed in the Spanish ...
by himself, but spent several times his original estimate. Smith helped train the masons on the mixing and pouring techniques he used on Zorayda. Realizing the need for a sound transportation system to support his hotel ventures, Flagler purchased short line railroads in what would later become known as the Florida East Coast Railway. He used convict leasing — "a method undertaken by the Southern States to replace the economic setup of slavery" — to modernize the existing railroads, allowing them to accommodate heavier loads and more traffic. His next project was the Ponce de Leon Hotel, now part of Flagler College. He invested with the guidance of Dr. Andrew Anderson, a native of St. Augustine. After many years of work, it opened on January 10, 1888, and was an instant success. This project sparked Flagler's interest in creating a new "American Riviera." Two years later, he expanded his Florida holdings. He built a railroad bridge across the St. Johns River to gain access to the southern half of the state and purchased the Hotel Ormond, just north of Daytona. He also built the Alcazar Hotel as an overflow hotel for the Ponce de Leon Hotel. The Alcazar is today the
Lightner Museum The Lightner Museum is a museum of antiques, mostly American Gilded Age pieces, housed within the historic Hotel Alcazar building in downtown St. Augustine. This 1887 Spanish Renaissance Revival style building is listed on the National Register ...
, next to the
Casa Monica Hotel The Casa Monica Hotel is a historic hotel located in St. Augustine, Florida, in the United States. It was originally named Casa Monica, then Cordova Hotel, then Alcazar Annex, and now has its original name again. The Casa Monica Hotel is one of t ...
in St. Augustine that Flagler bought from
Franklin W. Smith Franklin Webster Smith (1826–1911) was an American idealistic reformer who made his fortune as a Boston hardware merchant. He was an early abolitionist, defendant in a civilian court-martial in 1864, author, and architectural enthusiast who prop ...
. His personal dedication to the state of Florida was demonstrated when he began construction on his private residence, Kirkside, in St. Augustine. An immense engineering effort was required to cut through the wilderness and marsh from St. Augustine to Palm Beach. The state provided incentive in the form of for every mile () of track constructed. Flagler completed the 1,100-room Royal Poinciana Hotel on the shores of Lake Worth in Palm Beach and extended his railroad to its service town, West Palm Beach, by 1894, founding Palm Beach and West Palm Beach. The Royal Poinciana Hotel was at the time the largest wooden structure in the world. Two years later, Flagler built the Palm Beach Inn (renamed The Breakers in 1901), overlooking the Atlantic Ocean in Palm Beach. Flagler originally intended West Palm Beach to be the terminus of his railroad system, but in 1894 and 1895, severe freezes hit the area, causing Flagler to reconsider. south, the area today known as Miami was reportedly unharmed by the freeze. To further convince Flagler to continue the railroad to Miami, he was offered land in exchange for laying rail tracks from private landowners, the Florida East Coast Canal and Transportation Company, and the Boston and Florida Atlantic Coast Land Company. The land owners were Julia Tuttle, whom he had met in Cleveland, Ohio, and William Brickell, who ran a trading post on the Miami River. Such incentive led to the development of Miami, which was an unincorporated area at the time. Flagler encouraged fruit farming and settlement along his railway line and made many gifts to build hospitals, churches and schools in Florida. By 1896, Flagler's railroad, the Florida East Coast Railway, reached Biscayne Bay. Flagler dredged a channel, built streets, instituted the first water and power systems, and financed the city's first newspaper, ''The Metropolis''. When the city was incorporated in 1896, its citizens wanted to honor the man responsible for its growth by naming it "Flagler". He declined the honor, persuading them to use an old Indian name, " Mayaimi". Instead, an artificial island was constructed in Biscayne Bay called
Flagler Monument Island Flagler Memorial Island is an uninhabited artificial island of South Beach in the city of Miami Beach in Biscayne Bay, Florida. A high obelisk with allegorical sculptures at its base stands as a monument to Miami pioneer Henry M. Flagler, and wa ...
. In 1897, Flagler opened the exclusive Royal Palm Hotel on the north bank of the Miami River where it overlooked Biscayne Bay. He became known as the Father of Miami, Florida. Flagler's second wife, the former Ida Alice Shourds, was declared insane by Flagler's friend Dr. Anderson in 1896 and was institutionalized on and off starting that year. At the same time, he began to have an affair with
Mary Lily Kenan Mary Lily Kenan Flagler Bingham (1867–1917) was an American philanthropist and heiress who became notorious when she married one of the richest men of the Gilded Age. Mary Lily outlived her first husband, Henry Flagler, inherited his huge fortun ...
; by 1899, newspapers began to openly question whether the two were having an affair. That year he reportedly gave her more than $1 million in jewelry. In 1901, Flagler bribed the Florida Legislature and Governor to pass a law that made incurable insanity grounds for divorce, opening the way for Flagler to remarry. Flagler was the only person to be divorced under the law before it was repealed in 1905. A spouse's mental incapacity was later restored by the legislature as a grounds for dissolution of marriage, and remains the law of Florida today. On August 24, 1901, 10 days after his divorce, Flagler married Mary Lily at her family's plantation,
Liberty Hall Liberty Hall ( ga, Halla na Saoirse), in Dublin, Ireland, is the headquarters of the Services, Industrial, Professional, and Technical Union (SIPTU). Designed by Desmond Rea O'Kelly, it was completed in 1965. It was for a time the tallest ...
, and the couple soon moved into their new Palm Beach estate, Whitehall, a 55-room beaux arts home designed by the New York-based firm of
Carrère and Hastings Carrère and Hastings, the firm of John Merven Carrère ( ; November 9, 1858 – March 1, 1911) and Thomas Hastings (March 11, 1860 – October 22, 1929), was one of the outstanding American Beaux-Arts architecture firms. Located in New York City ...
, which also had designed the New York Public Library and the
Pan-American Exposition The Pan-American Exposition was a World's Fair held in Buffalo, New York, United States, from May 1 through November 2, 1901. The fair occupied of land on the western edge of what is now Delaware Park, extending from Delaware Avenue to Elmwood ...
. Built in 1902 as a wedding present to Mary Lily, Whitehall (now the
Flagler Museum Whitehall is a 75-room, 100,000 square foot Gilded Age mansion open to the public in Palm Beach, Florida in the United States. Completed in 1902, it is a major example of neoclassical Beaux Arts architecture designed by Carrère and Hastings fo ...
) was a 60,000-square-foot (5,600 m²) winter retreat that established the Palm Beach "season" of about 8–12 weeks, for the wealthy of America's
Gilded Age In United States history, the Gilded Age was an era extending roughly from 1877 to 1900, which was sandwiched between the Reconstruction era and the Progressive Era. It was a time of rapid economic growth, especially in the Northern and Wes ...
. By 1905, Flagler decided that his Florida East Coast Railway should be extended from Biscayne Bay to Key West, a point past the end of the Florida peninsula. At the time, Key West was Florida's most populous city, with a population of 20,000, and it was also the United States' deep water
port A port is a maritime facility comprising one or more wharves or loading areas, where ships load and discharge cargo and passengers. Although usually situated on a sea coast or estuary, ports can also be found far inland, such as H ...
closest to the
canal Canals or artificial waterways are waterways or engineered channels built for drainage management (e.g. flood control and irrigation) or for conveyancing water transport vehicles (e.g. water taxi). They carry free, calm surface f ...
that the U.S. government proposed to build in
Panama Panama ( , ; es, link=no, Panamá ), officially the Republic of Panama ( es, República de Panamá), is a transcontinental country spanning the southern part of North America and the northern part of South America. It is bordered by Co ...
. Flagler wanted to take advantage of additional trade with
Cuba Cuba ( , ), officially the Republic of Cuba ( es, República de Cuba, links=no ), is an island country comprising the island of Cuba, as well as Isla de la Juventud and several minor archipelagos. Cuba is located where the northern Caribb ...
and Latin America as well as the increased trade with the west that the
Panama Canal The Panama Canal ( es, Canal de Panamá, link=no) is an artificial waterway in Panama that connects the Atlantic Ocean with the Pacific Ocean and divides North and South America. The canal cuts across the Isthmus of Panama and is a condui ...
would bring. In 1912, the Florida Overseas Railroad was completed to Key West. Over 30 years, Flagler had invested about $50 million in railroad, home and hotel construction and had made donations to suffering farmers after the freeze in 1894. When asked by the president of Rollins College in Winter Park about his philanthropic efforts, Flagler reportedly replied, "I believe this state is the easiest place for many men to gain a living. I do not believe any one else would develop it if I do not..., but I do hope to live long enough to prove I am a good business man by getting a dividend on my investment."


Alleged use of convict leasing and debt peonage

Flagler allegedly used convicts leased from Florida prison camps, the majority of them African-American, to clear land for the Royal Palm Hotel in Miami and to build the Florida East Coast Railway from West Palm Beach to Miami and the rail extension to Key West. He also used labor agencies to bring around 4,000 new immigrants to Florida who contracted to work until their transportation costs had been paid off. Due to the harsh working and living conditions in the railway construction camps, many workers became victims of debt slavery. When the Department of Justice prosecuted four Flagler employment agents in 1908 for "conspiracy to hold workmen in peonage and slavery," the Flagler-owned The Florida Times-Union and other Florida newspapers depending on the Times-Union for material or owned by Flagler published articles to "influence juries and public opinion." The judge instructed the jury to find them not guilty because the "prosecution had failed to prove 'an agreement of minds with evil intent to conspire'." A congressional investigation in 1909 concluded that "there had been little immigrant peonage in the South and none in the ... ailway campscamps in the Keys. Congress concluded that newspapers in Florida and across the South spread the deceitful news against Flagler." According to historian Joe Knetsch, reformers and muckrakers exaggerated charges of peonage regarding construction of the Florida East Coast Railway in 1893 to 1909. Flager and his lawyers defeated all legal challenges and neither the company or its employees were ever convicted in court. However there were many reports harsh working conditions and forced indebtedness to the company, and malfeasance by labor agents who hired men for the railway. Knetsch concludes that "Flagler in fact provided health care for his employees and was a far better employer than the press alleged."


Death and legacy

In March 1913, Flagler fell down a flight of marble stairs at Whitehall. He never recovered and died in Palm Beach of his injuries on May 20, 1913 at 83 years of age. At 3 p.m. on the day of the funeral, May 23, 1913, every engine on the Florida East Coast Railway stopped wherever it was for ten minutes as a tribute to Flagler. It was reported that people along the railway line waited all night for the passing of the funeral train as it traveled from Palm Beach to St. Augustine. Flagler was entombed in the Flagler family mausoleum at Memorial Presbyterian Church in St. Augustine alongside his first wife, Mary Harkness; daughter, Jenny Louise; and granddaughter, Marjorie. Only his son
Harry Harkness Flagler Harry Harkness Flagler (December 2, 1870 - June 30, 1952) was president of the Philharmonic Symphony Society of New York and the National Orchestral Association. Biography He was born in Cleveland, Ohio on December 2, 1870, to Henry Morrison F ...
survived of the three children by his first marriage in 1853 to Mary Harkness. A large portion of his estate was designated for a "niece" who was said actually to be a child born out of wedlock. When looking back at Flagler's life, after Flagler's death, George W. Perkins, of J.P. Morgan & Co., reflected, "But that any man could have the genius to see of what this wilderness of waterless sand and underbrush was capable and then have the nerve to build a railroad here, is more marvelous than similar development anywhere else in the world." Miami's main east-west street is named
Flagler Street Flagler Street is a main east–west road in Miami. Flagler Street is the latitudinal baseline that divides all the streets on the Miami-Dade County grid plan as north or south streets (the east-west division is along Miami Avenue). Flag ...
and is the main shopping street in
Downtown Miami Downtown Miami is the urban city center of Miami, Florida. The city's greater downtown region consists of the Central Business District, Brickell, the Historic District, Government Center, the Arts & Entertainment District, and Park West. ...
. There is also a monument to him on
Flagler Monument Island Flagler Memorial Island is an uninhabited artificial island of South Beach in the city of Miami Beach in Biscayne Bay, Florida. A high obelisk with allegorical sculptures at its base stands as a monument to Miami pioneer Henry M. Flagler, and wa ...
in Biscayne Bay in
Miami Miami ( ), officially the City of Miami, known as "the 305", "The Magic City", and "Gateway to the Americas", is a coastal metropolis and the county seat of Miami-Dade County in South Florida, United States. With a population of 442,241 at ...
; Flagler College and
Flagler Hospital Flagler Hospital, based in unincorporated St. Johns County, Florida (with a St. Augustine address), is a not-for-profit facility established in 1889. The organization offers "Centers of Excellence" in bariatrics, heart, cancer, maternity, orthoped ...
are named after him in St. Augustine. Flagler County, Florida,
Flagler Beach, Florida Flagler Beach is a city in Flagler County in the U.S. state of Florida. The population was 4,484 at the 2010 census. Flagler Beach is part of the Deltona–Daytona Beach–Ormond Beach, FL metropolitan statistical area. It is named for oil ty ...
and Flagler, Colorado are also named for him. Whitehall, Palm Beach, is open to the public as the Henry Morrison Flagler Museum; his private railcar No. 91 is preserved inside a Beaux Arts pavilion built to look like a 19th-century railway palace. On February 24, 2006, a statue of Flagler was unveiled in Key West near the spot where the Over-Sea Railroad once terminated. Also, on July 28, 2006, a statue of Flagler was unveiled on the southeast steps of Miami's Dade County Courthouse, located on Miami's
Flagler Street Flagler Street is a main east–west road in Miami. Flagler Street is the latitudinal baseline that divides all the streets on the Miami-Dade County grid plan as north or south streets (the east-west division is along Miami Avenue). Flag ...
. The Overseas Railroad, also known as the Key West Extension of the Florida East Coast Railway, was heavily damaged and partially destroyed in the Labor Day Hurricane of 1935. The railroad was financially unable to rebuild the destroyed sections, so the roadbed and remaining bridges were sold to the State of Florida, which built the Overseas Highway to Key West, using much of the remaining railway infrastructure. Flagler's third wife, Mary Lily Kenan Flagler Bingham was born in
North Carolina North Carolina () is a U.S. state, state in the Southeastern United States, Southeastern region of the United States. The state is the List of U.S. states and territories by area, 28th largest and List of states and territories of the United ...
. The top-ranked Kenan-Flagler Business School at the
University of North Carolina at Chapel Hill A university () is an institution of higher (or tertiary) education and research which awards academic degrees in several academic disciplines. Universities typically offer both undergraduate and postgraduate programs. In the United State ...
is named for Flagler and his wife, who was an early benefactor of UNC along with her family and descendants. After Flagler's death, she married an old friend, Robert Worth Bingham, who used an inheritance from her to buy the Louisville Courier-Journal newspaper. The Bingham-Flagler marriage (and questions about her death or possible murder) figured prominently in several books that appeared in the 1980s, when the Bingham family sold the newspaper in the midst of great acrimony. Control of the Flagler fortune largely passed into the hands of Mary Lily Kenan's family of sisters and brother, who survived into the 1960s.Walter E. Campbell, ''Across Fortune’s Tracks: A Biography of William Rand Kenan, Jr.'' (UNC Press, 1996)


See also

*
Standard Oil Standard Oil Company, Inc., was an American oil production, transportation, refining, and marketing company that operated from 1870 to 1911. At its height, Standard Oil was the largest petroleum company in the world, and its success made its co- ...
* Florida East Coast Railway * Mary Flagler Cary *
St. Augustine, Florida St. Augustine ( ; es, San Agustín ) is a city in the Southeastern United States and the county seat of St. Johns County on the Atlantic coast of northeastern Florida. Founded in 1565 by Spanish explorers, it is the oldest continuously inhabi ...
::*
Casa Monica Hotel The Casa Monica Hotel is a historic hotel located in St. Augustine, Florida, in the United States. It was originally named Casa Monica, then Cordova Hotel, then Alcazar Annex, and now has its original name again. The Casa Monica Hotel is one of t ...
- purchased by Flagler and renamed Cordova ::*
Ponce de León Hotel The Ponce de Leon Hotel, also known as The Ponce, was an exclusive luxury hotel in St. Augustine, Florida, built by millionaire developer and Standard Oil co-founder Henry M. Flagler and completed in 1888. The hotel was designed in the Spanish ...
- Built by Flagler ::* The Alcazar Hotel now the
Lightner Museum The Lightner Museum is a museum of antiques, mostly American Gilded Age pieces, housed within the historic Hotel Alcazar building in downtown St. Augustine. This 1887 Spanish Renaissance Revival style building is listed on the National Register ...
::* Flagler Memorial Presbyterian Church St. Augustine, FL * Palm Beach, Florida ::* Royal Poinciana Hotel ::* Whitehall now Henry Morrison Flagler Museum ::*
Breakers Hotel The Breakers Palm Beach is a historic, Renaissance Revival style luxury hotel with 538 rooms. It is located at 1 South County Road in Palm Beach, Florida. Early history First known as The Palm Beach Inn, the original hotel was opened on January ...
*
Miami Miami ( ), officially the City of Miami, known as "the 305", "The Magic City", and "Gateway to the Americas", is a coastal metropolis and the county seat of Miami-Dade County in South Florida, United States. With a population of 442,241 at ...
::*
Royal Palm Hotel (Miami) The Royal Palm Hotel was a large resort hotel built by railroad magnate Henry Flagler in Miami, Florida. Opened on January 16, 1897, the Royal Palm Hotel was one of the first hotels in the Miami area. It sat on the north bank of the Miami River w ...
*
Flagler Beach, Florida Flagler Beach is a city in Flagler County in the U.S. state of Florida. The population was 4,484 at the 2010 census. Flagler Beach is part of the Deltona–Daytona Beach–Ormond Beach, FL metropolitan statistical area. It is named for oil ty ...
* Flagler, Colorado * List of railroad executives


References


Bibliography

* * * * * Knetsch, Joe. "The Peonage Controversy and the Florida East Coast Railway," ''Tequesta'' (1999), Vol. 59, pp 5–28. * * * * * *


Further reading

*
online
* Noted by the author as the official history of the Florida East Coast Railway. * Graham, Thomas. "Henry M. Flagler's Hotel Ponce de León." ''Journal of Decorative and Propaganda Arts'' (1998): 97-111. [ * Graham, Thomas. ''Mr. Flagler’s St. Augustine'' (University Press of Florida, 2014)
online
* Keys, Leslee F. ''Hotel Ponce de Leon: The Rise, Fall, and Rebirth of Flagler’s Gilded Age Palace'' (University Press of Florida, 2015
online
* * Mendez, Jesus. "1892-A Year of Crucial Decisions in Florida", ''Florida Historical Quarterly'', Summer 2009, Vol. 88 Issue 1, pp 83–106, focus on Flager's aggressive urban development of the city of St. Augustine, his improvement of the local railroad networks between several Florida communities, and negotiations regarding international government trade policies and regulations. * * Ossman, Laurie; Ewing, Heather (2011). ''Carrère and Hastings, The Masterworks''. Rizzoli USA. .


External links


Henry Flagler biography

History of The Breakers Hotel

Flagler College


exhibit of Henry Flagler's private railroad car (Florida East Coast No.90)
Photo of Flagler and his wife

Ohio Historical Marker 5-39
located in Bellevue, Ohio *

by Ida Tarbell
Railroad Bells
a
A History of Central Florida Podcast
{{DEFAULTSORT:Flagler, Henry 1830 births 1913 deaths 19th-century American railroad executives American hoteliers American businesspeople in the oil industry American railway entrepreneurs 20th-century American railroad executives American real estate businesspeople American city founders Businesspeople from Florida Businesspeople from Michigan Businesspeople from New York (state) Florida pioneers Harkness family History of Key West, Florida History of Miami Businesspeople from Cleveland People from Bellevue, Ohio People from Hopewell, New York People from Palm Beach, Florida People from Saginaw, Michigan People from St. Augustine, Florida Standard Oil West Palm Beach, Florida American Presbyterians Gilded Age Florida East Coast Railway American people of German descent Flagler family