Education
Henry Flagler received an eighth-grade education.
Henry Flagler received an eighth-grade education.
At the age of 14 Henry Flagler joined his half-brother Daniel M. Harkness to work in a store of uncle od Daniel, Lamon G. Harkness and Company, in Republic, Ohio at a salary of USD5 per month plus room and board. By 1849, Flagler was promoted to the sales staff of the company at a salary of USD400 per month. He eventually left Republic and joined Daniel M. Harkness in Bellevue, Ohio in a new grain business started with Lamon G. Harkness in Bellevue. In 1862, Flagler left Bellevue and founded the Flagler and York Salt Company, a salt mining and production business in Saginaw, Michigan in 1862 with his brother-in-law Barney York. By 1865, the end of the American Civil War led to a drop in the demand for salt and the Flagler and York Salt Company collapsed. Henry had lost his initial USD50,000 investment and an additional USD50,000 he borrowed from his father-in-law and Dan Harkness.
After the failure of his salt business in Saginaw, Flagler returned to Bellevue and reentered the grain business as a commission merchant with The Harkness Grain Company. 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.
In 1867, Rockefeller, needing capital for his new venture, approached Flagler. Flagler obtained USD100,000 from family member Stephen V. Harkness 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 Corporation. It was Flagler's idea to use the rebate system to strengthen the firm's position against competitors and the transporting enterprises alike.
Though the refunds issued amounted to no more than fifteen cents on the dollar, they put Standard Oil in position to outcompete other oil refineries. Although Standard Oil was a partnership, Flagler was credited as the brain behind the booming oil refining business.
Henry Flagler dabbled in various businesses aside from building up infrastructure in Florida. When he envisioned successes in the oil industry, he and Rockefeller started building their fortune in refining oil in Cleveland, Ohio. Not only did Flagler and Rockefeller's Standard Oil company become well known in Ohio, they expanded to other states, as well as gained additional capital in purchasing smaller oil refining companies across the nation.
By 1892, Standard Oil had a monopoly over all oil refineries in the United States.
The main Miami east-west street, is named Flagler Street, and is the main shopping street in Downtown Miami. There is also a monument to him on Flagler Monument Island in Biscayne Bay in Miami; Flagler College and Flagler Hospital are named after him in St. Augustine. Flagler County, Florida, Flagler Beach, Florida and Flagler, Colorado are also named for him. Whitehall, Palm Beach, is open to the public as the Henry Morrison Flagler Museum.
