Henry Morrison Flagler
Encyclopedia
Henry Morrison Flagler was an American tycoon
, real estate
promoter, railroad
developer and partner of John D. Rockefeller
in Standard Oil
. He was a key figure in the development of the eastern coast of Florida
along the Atlantic Ocean and was founder of what became the Florida East Coast Railway
. He is known as the father of Miami, Florida
and also founded Palm Beach, Florida
.
and was the son of Elizabeth Caldwell Morrison Harkness and the Rev. Isaac Flagler, a Presbyterian minister. His mother was the widow of Dr. David Harkness of Milan, Ohio
who had been a widower when they married. David Harkness and his first wife were the parents of Stephen V. Harkness
whose business success enabled him to invest substantially with Henry Flagler in the Standard Oil company.
Henry Flagler received an eighth grade education before leaving home at 14 to work in his uncle's store, Lamon G. Harkness and Company, in Bellevue, Ohio
at a salary of US$5 per month plus room and board
. By 1849, Flagler was promoted to sales staff of the company at a salary of $400 per month. He eventually 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
caused a drop in the demand for salt and the Flagler and York Salt Company collapsed. Heavily in debt, Flagler returned to Bellevue. He had lost his initial $50,000 investment and an additional $50,000 he borrowed from his father-in-law and Dan Harkness. Flagler felt he had learned a valuable lesson: Only invest in a business after thorough investigation.
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. By the mid-1860s, Cleveland 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.
In 1867, Rockefeller, needing capital for his new venture, approached Flagler. Flagler obtained $100,000 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. By 1872, it led the American oil refining industry, producing 10000 oilbbl/d. In 1885, Standard Oil
moved its corporate headquarters to New York City.
Standard Oil
had the same principal owners that Rockefeller, Andrews and Flagler had, give or take a few business associates: one of whom was John D. Rockefeller
's brother, William. Standard Oil
monopolized quickly and took America by storm. Although Standard Oil was a partnership, Flagler was credited as the brain behind the booming oil refining business. According to Edwin Lefevre, in "Flagler and Florida" from Everybody's Magazine, XXII (February, 1910) p. 183, "When John D. Rockefeller
was asked if the Standard Oil
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."
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. 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." 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. 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 $42,882,650.00 (U.S) from: Indiana, Kentucky, New Jersey, New York and Ohio. As well as the highest capitalization, totaling $26,000,000 (U.S). The history of American oil refining begins with Henry Morrison Flagler, and his business associate and friend, John D. Rockefeller
, as they built the biggest, most prosperous and monopolizing oil empire of their time: Standard Oil
.
for the winter with his first wife, Mary (née Harkness) Flagler, who was quite ill. Two years after she died in 1881, he married again. Ida Alice (née Shourds) Flagler had been a caregiver
for Mary Flagler. 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
had just finished building Villa Zorayda
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 León Hotel
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
.
The Ponce de León Hotel
, now part of Flagler College
, 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, Flagler 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
. His personal dedication to the state of Florida was demonstrated when he began construction on his private residence, Kirkside, in St. Augustine.
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 Breakers Hotel Complex
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 rethink his original decision. Sixty miles south, the town 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, including Julia Tuttle
, who he had met in Cleveland, Ohio
and who ran a trading post on the Miami River
, the Florida East Coast Canal and Transportation Company, and the Boston and Florida Atlantic Coast Land Company.
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.
Flagler's railroad, the Florida East Coast Railway
, reached Biscayne Bay
by 1896. 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
". In 1897, Flagler opened the exclusive Royal Palm Hotel
there. He became known as the Father of Miami, Florida.
Flagler's second wife, the former Ida Alice Shourds, had been institutionalized for mental illness since 1895. In 1901, the Florida Legislature
passed a bill that made incurable insanity grounds for divorce, opening the way for Flagler to remarry. Judge Minor S. Jones of Florida's 7th Judicial Circuit presided over the divorce. On August 24 of that year, Flagler married his third wife, Mary Lily Kenan, 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
, which also had designed the New York Public Library and the Pan American Exposition, which were built in the same year as Whitehall. Built in 1902 as a wedding present to Mary Lily and Florida's first museum, Whitehall was a 60,000-square-foot (5,600 m²) winter retreat that established the Palm Beach "season" for the wealthy of America's Gilded Age
.
By 1905, Flagler decided that his Florida East Coast Railway should be extended from Biscayne Bay to Key West
, a point 128 miles (206 km) past the end of the Florida peninsula. At the time, Key West was Florida's most populous city, and it was also the United States' closest deep water port
to the canal
that the U.S. government
proposed to build in Panama
. Flagler wanted to take advantage of additional trade with Cuba
and Latin America as well as the increased trade with the west that the Panama Canal
would bring. In 1912, the Florida Overseas Railroad
was completed to Key West. Over thirty years, Flagler had invested about $50 million in railroad, home, and hotel construction and gave 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."
in St. Augustine alongside his first wife, Mary Harkness; daughter, Jenny Louise; and granddaughter, Marjorie. Only his son Harry 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 to actually be a child born out of wedlock.
When looking back at Flagler's life after his death on May 20, 1913, 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, 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
; 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 Henry Flagler was unveiled in Key West near where the Over-Sea Railroad once terminated. Also, on July 28, 2006, a statue of Henry Flagler was unveiled on the southeast steps of Miami's Dade County Courthouse, located on Miami's Flagler Street.
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 Florida East Coast Railway 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, was born in North Carolina
; the top-ranked Kenan-Flagler Business School
at the University of North Carolina at Chapel Hill
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.
Business magnate
A business magnate, sometimes referred to as a capitalist, czar, mogul, tycoon, baron, oligarch, or industrialist, is an informal term used to refer to an entrepreneur who has reached prominence and derived a notable amount of wealth from a particular industry .-Etymology:The word magnate itself...
, real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
promoter, railroad
Rail transport
Rail transport is a means of conveyance of passengers and goods by way of wheeled vehicles running on rail tracks. In contrast to road transport, where vehicles merely run on a prepared surface, rail vehicles are also directionally guided by the tracks they run on...
developer and partner of 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...
in 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...
. He was a key figure in the development of the eastern coast of Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
along the Atlantic Ocean and was founder of what became the Florida East Coast Railway
Florida East Coast Railway
The Florida East Coast Railway is a Class II railroad operating in the U.S. state of Florida; in the past, it has been a Class I railroad.Built primarily in the last quarter of the 19th century and the first decade of the 20th century, the FEC was a project of Standard Oil principal Henry Morrison...
. He is known as the father of Miami, Florida
Miami, Florida
Miami is a city located on the Atlantic coast in southeastern Florida and the county seat of Miami-Dade County, the most populous county in Florida and the eighth-most populous county in the United States with a population of 2,500,625...
and also founded Palm Beach, Florida
Palm Beach, Florida
The Town of Palm Beach is an incorporated town in Palm Beach County, Florida, United States. The Intracoastal Waterway separates it from the neighboring cities of West Palm Beach and Lake Worth...
.
Upbringing and education
Henry Flagler was born in Hopewell, New YorkHopewell, New York
Hopewell is a town in Ontario County, New York, United States. The population was 3,346 at the 2000 census.The Town of Hopewell is in the north central part of the county, east of the City of Canandaigua.-History:...
and was the son of Elizabeth Caldwell Morrison Harkness and the Rev. Isaac Flagler, a Presbyterian minister. His mother was the widow of Dr. David Harkness of Milan, Ohio
Milan, Ohio
Milan is a village in Erie and Huron counties in the U.S. state of Ohio. The population was 1,445 at the 2000 census.The Erie County portion of Milan is part of the Sandusky Metropolitan Statistical Area, while the Huron County portion is part of the Norwalk Micropolitan Statistical Area.-History...
who had been a widower when they married. David Harkness and his first wife were the parents of 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:...
whose business success enabled him to invest substantially with Henry Flagler in the Standard Oil company.
Henry Flagler received an eighth grade education before leaving home at 14 to work in his uncle's store, Lamon G. Harkness and Company, in Bellevue, Ohio
Bellevue, Ohio
Bellevue is a city in Erie, Huron, Sandusky and Seneca counties in the U.S. state of Ohio. The population was 8,193 at the 2000 census. The National Arbor Day Foundation has designated Bellevue as a Tree City USA....
at a salary of US$5 per month plus room and board
Room and board
Room and board describes a situation where, in exchange for money, labor or other considerations, a person is provided with a place to live as well as meals on a comprehensive basis...
. By 1849, Flagler was promoted to sales staff of the company at a salary of $400 per month. He eventually left Bellevue and founded the Flagler and York Salt Company, a salt
Salt
In chemistry, salts are ionic compounds that result from the neutralization reaction of an acid and a base. They are composed of cations and anions so that the product is electrically neutral...
mining and production business in Saginaw, Michigan
Saginaw, Michigan
Saginaw is a city in the U.S. state of Michigan and the seat of Saginaw County. The city of Saginaw was once a thriving lumber town and manufacturing center. Saginaw and Saginaw County lie in the Flint/Tri-Cities region of Michigan...
in 1862 with his brother-in-law Barney York. By 1865, the end of the American Civil War
American Civil War
The American Civil War was a civil war fought in the United States of America. In response to the election of Abraham Lincoln as President of the United States, 11 southern slave states declared their secession from the United States and formed the Confederate States of America ; the other 25...
caused a drop in the demand for salt and the Flagler and York Salt Company collapsed. Heavily in debt, Flagler returned to Bellevue. He had lost his initial $50,000 investment and an additional $50,000 he borrowed from his father-in-law and Dan Harkness. Flagler felt he had learned a valuable lesson: Only invest in a business after thorough investigation.
Business and Standard Oil
After the failure of his salt business in Saginaw, Flagler returned to Bellevue and reentered the grainCereal
Cereals are grasses cultivated for the edible components of their grain , composed of the endosperm, germ, and bran...
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. By the mid-1860s, Cleveland 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.
In 1867, Rockefeller, needing capital for his new venture, approached Flagler. Flagler obtained $100,000 from family member 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:...
on the condition that Flagler be made a partner. The Rockefeller, Andrews & Flagler
Rockefeller, Andrews & Flagler
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...
partnership was formed with Flagler in control of Harkness' interest. The partnership eventually grew into 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...
Corporation. It was Flagler's idea to use the rebate
Rebate (marketing)
A rebate is an amount paid by way of reduction, return, or refund on what has already been paid or contributed. It is a type of sales promotion marketers use primarily as incentives or supplements to product sales. The mail-in rebate is the most common...
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
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...
in position to outcompete other oil refineries. By 1872, it led the American oil refining industry, producing 10000 oilbbl/d. In 1885, 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...
moved its corporate headquarters to New York City.
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...
had the same principal owners that Rockefeller, Andrews and Flagler had, give or take a few business associates: one of whom was 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...
's brother, William. 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...
monopolized quickly and took America by storm. Although Standard Oil was a partnership, Flagler was credited as the brain behind the booming oil refining business. According to Edwin Lefevre, in "Flagler and Florida" from Everybody's Magazine, XXII (February, 1910) p. 183, "When 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...
was asked if 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 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."
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. 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." Not only did Flagler and Rockefeller's 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 become well known in Ohio
Ohio
Ohio is a Midwestern state in the United States. The 34th largest state by area in the U.S.,it is the 7th‑most populous with over 11.5 million residents, containing several major American cities and seven metropolitan areas with populations of 500,000 or more.The state's capital is Columbus...
, 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
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...
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
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...
surpassed all. Standard Oil's combined assets equalled approximately $42,882,650.00 (U.S) from: Indiana, Kentucky, New Jersey, New York and Ohio. As well as the highest capitalization, totaling $26,000,000 (U.S). The history of American oil refining begins with Henry Morrison Flagler, and his business associate and friend, 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...
, as they built the biggest, most prosperous and monopolizing oil empire of their time: 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...
.
Florida: resort hotels and railroads
In 1876 on the advice of his physician, Flagler traveled to JacksonvilleJacksonville, Florida
Jacksonville is the largest city in the U.S. state of Florida in terms of both population and land area, and the largest city by area in the contiguous United States. It is the county seat of Duval County, with which the city government consolidated in 1968...
for the winter with his first wife, Mary (née Harkness) Flagler, who was quite ill. Two years after she died in 1881, he married again. Ida Alice (née Shourds) Flagler had been a caregiver
Caregiver
Caregiver may refer to:* Caregiver or carer - an unpaid person who cares for someone requiring support due to a disability, frailty, mental health problem, learning disability or old age...
for Mary Flagler. 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 W. Smith
Franklin Webster Smith was an 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 proposed transforming Washington, D.C...
had just finished building Villa Zorayda
Villa Zorayda
Villa Zorayda at 83 King Street in St. Augustine, Florida was inspired by the 12th-century Moorish Alhambra Palace in Granada, Spain. It was built by the eccentric Boston millionaire Franklin W. Smith in 1883 as his private home in St. Augustine, Florida, United States. On September 23, 1993, it...
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 León Hotel
Ponce de León Hotel
The Ponce de León Hotel was an exclusive hotel in St. Augustine, Florida, built by millionaire developer and Standard Oil co-founder Henry M. Flagler and completed in 1888. The Hotel Ponce de Leon was designed in the Spanish Renaissance style by the New York architects John Carrere and Thomas...
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
Florida East Coast Railway
The Florida East Coast Railway is a Class II railroad operating in the U.S. state of Florida; in the past, it has been a Class I railroad.Built primarily in the last quarter of the 19th century and the first decade of the 20th century, the FEC was a project of Standard Oil principal Henry Morrison...
.
The Ponce de León Hotel
Ponce de León Hotel
The Ponce de León Hotel was an exclusive hotel in St. Augustine, Florida, built by millionaire developer and Standard Oil co-founder Henry M. Flagler and completed in 1888. The Hotel Ponce de Leon was designed in the Spanish Renaissance style by the New York architects John Carrere and Thomas...
, now part of Flagler College
Flagler College
Flagler College, is a private four-year liberal arts college in St. Augustine, Florida, USA and celebrated its 40th anniversary in 2008.The college has been named in recent years by US News & World Report as one of the southeast region's best comprehensive liberal arts colleges, and is included on...
, 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, Flagler expanded his Florida holdings. He built a railroad bridge across the St. Johns River
St. Johns River
The St. Johns River is the longest river in the U.S. state of Florida and its most significant for commercial and recreational use. At long, it winds through or borders twelve counties, three of which are the state's largest. The drop in elevation from the headwaters to the mouth is less than ;...
to gain access to the southern half of the state and purchased the Hotel Ormond, just north of Daytona
Daytona Beach, Florida
Daytona Beach is a city in Volusia County, Florida, USA. According to 2008 U.S. Census Bureau estimates, the city has a population of 64,211. Daytona Beach is a principal city of the Deltona – Daytona Beach – Ormond Beach, Florida Metropolitan Statistical Area, which the census bureau estimated had...
. His personal dedication to the state of Florida was demonstrated when he began construction on his private residence, Kirkside, in St. Augustine.
Flagler completed the 1,100-room Royal Poinciana Hotel
Royal Poinciana Hotel
The Royal Poinciana Hotel was a Gilded Age hotel in Palm Beach, Florida, United States. Enlarged twice and doubling in size each time, it became the largest wooden structure in the world, with 1,700 employees and accommodations for 2,000 guests...
on the shores of Lake Worth
Lake Worth Lagoon
The Lake Worth Lagoon is a lagoon located in Palm Beach County, Florida. It runs parallel to the coast, and is separated from the Atlantic Ocean by barrier beaches, including Palm Beach Island. The lagoon is connected to the Atlantic Ocean by two permanent, man-made inlets.-Geography:Lake Worth...
in Palm Beach
Palm Beach, Florida
The Town of Palm Beach is an incorporated town in Palm Beach County, Florida, United States. The Intracoastal Waterway separates it from the neighboring cities of West Palm Beach and Lake Worth...
and extended his railroad to its service town, West Palm Beach
West Palm Beach, Florida
West Palm Beach, is a city located on the Atlantic coast in southeastern Florida and is the most populous city in and county seat of Palm Beach County, the third most populous county in Florida with a 2010 population of 1,320,134. The city is also the oldest incorporated municipality in South Florida...
, 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 Breakers Hotel Complex
Breakers Hotel
The Breakers Hotel is an historic hotel in Palm Beach, Florida, United States. First known as The Palm Beach Inn, it was opened on January 16, 1896 by Henry Flagler, an oil, real estate and railroad tycoon, to accommodate travelers on his Florida East Coast Railway...
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 rethink his original decision. Sixty miles south, the town 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, including Julia Tuttle
Julia Tuttle
Julia DeForest Tuttle, was an entrepreneur, citrus farmer and businesswoman who was largely responsible for, and the original owner of, the land upon which Miami, Florida, was built...
, who he had met in Cleveland, Ohio
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...
and who ran a trading post on the Miami River
Miami River (Florida)
The Miami River is a river in the United States state of Florida that drains out of the Everglades and runs through the Downtown and the city of Miami. The long river flows from the terminus of the Miami Canal at Miami International Airport to Biscayne Bay...
, the Florida East Coast Canal and Transportation Company, and the Boston and Florida Atlantic Coast Land Company.
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.
Flagler's railroad, the Florida East Coast Railway
Florida East Coast Railway
The Florida East Coast Railway is a Class II railroad operating in the U.S. state of Florida; in the past, it has been a Class I railroad.Built primarily in the last quarter of the 19th century and the first decade of the 20th century, the FEC was a project of Standard Oil principal Henry Morrison...
, reached Biscayne Bay
Biscayne Bay
Biscayne Bay is a lagoon that is approximately 35 miles long and up to 8 miles wide located on the Atlantic coast of South Florida, United States. It is usually divided for purposes of discussion and analysis into three parts: North Bay, Central Bay, and South Bay. Its area is...
by 1896. 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
Mayaimi
The Mayaimi were a Native American people who lived around Lake Okeechobee in Florida from the beginning of the Common Era until the 17th or 18th century. The group took their name from the lake, which was then called Mayaimi, which meant "big water" in the language of the Mayaimi, Calusa, and...
". In 1897, Flagler opened the exclusive Royal Palm Hotel
Royal Palm Hotel (Miami)
The Royal Palm Hotel was a large resort hotel built by well-known railroad magnate Henry Flagler in Miami, Florida. Opening its doors in 1897, the Royal Palm Hotel was one of the first area hotels in Miami. Five stories tall with a sixth-floor salon, the Royal Palm Hotel featured the city's first...
there. He became known as the Father of Miami, Florida.
Flagler's second wife, the former Ida Alice Shourds, had been institutionalized for mental illness since 1895. In 1901, the Florida Legislature
Florida Legislature
The Florida State Legislature is the term often used to refer to the two houses that act as the state legislature of the U.S. state of Florida. The Florida Constitution states that "The legislative power of the state shall be vested in a legislature of the State of Florida," composed of a Senate...
passed a bill that made incurable insanity grounds for divorce, opening the way for Flagler to remarry. Judge Minor S. Jones of Florida's 7th Judicial Circuit presided over the divorce. On August 24 of that year, Flagler married his third wife, Mary Lily Kenan, 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
Carrère and Hastings, the firm of John Merven Carrère and Thomas Hastings , located in New York City, was one of the outstanding Beaux-Arts architecture firms in the United States. The partnership operated from 1885 until 1911, when Carrère was killed in an automobile accident...
, which also had designed the New York Public Library and the Pan American Exposition, which were built in the same year as Whitehall. Built in 1902 as a wedding present to Mary Lily and Florida's first museum, Whitehall was a 60,000-square-foot (5,600 m²) winter retreat that established the Palm Beach "season" for the wealthy of America's Gilded Age
Gilded Age
In United States history, the Gilded Age refers to the era of rapid economic and population growth in the United States during the post–Civil War and post-Reconstruction eras of the late 19th century. The term "Gilded Age" was coined by Mark Twain and Charles Dudley Warner in their book The Gilded...
.
By 1905, Flagler decided that his Florida East Coast Railway should be extended from Biscayne Bay to Key West
Key West, Florida
Key West is a city in Monroe County, Florida, United States. The city encompasses the island of Key West, the part of Stock Island north of U.S. 1 , Sigsbee Park , Fleming Key , and Sunset Key...
, a point 128 miles (206 km) past the end of the Florida peninsula. At the time, Key West was Florida's most populous city, and it was also the United States' closest deep water port
Port
A port is a location on a coast or shore containing one or more harbors where ships can dock and transfer people or cargo to or from land....
to the canal
Canal
Canals are man-made channels for water. There are two types of canal:#Waterways: navigable transportation canals used for carrying ships and boats shipping goods and conveying people, further subdivided into two kinds:...
that the U.S. government
Federal government of the United States
The federal government of the United States is the national government of the constitutional republic of fifty states that is the United States of America. The federal government comprises three distinct branches of government: a legislative, an executive and a judiciary. These branches and...
proposed to build in Panama
Panama
Panama , officially the Republic of Panama , is the southernmost country of Central America. Situated on the isthmus connecting North and South America, it is bordered by Costa Rica to the northwest, Colombia to the southeast, the Caribbean Sea to the north and the Pacific Ocean to the south. The...
. Flagler wanted to take advantage of additional trade with Cuba
Cuba
The Republic of Cuba is an island nation in the Caribbean. The nation of Cuba consists of the main island of Cuba, the Isla de la Juventud, and several archipelagos. Havana is the largest city in Cuba and the country's capital. Santiago de Cuba is the second largest city...
and Latin America as well as the increased trade with the west that the Panama Canal
Panama Canal
The Panama Canal is a ship canal in Panama that joins the Atlantic Ocean and the Pacific Ocean and is a key conduit for international maritime trade. Built from 1904 to 1914, the canal has seen annual traffic rise from about 1,000 ships early on to 14,702 vessels measuring a total of 309.6...
would bring. In 1912, the Florida Overseas Railroad
Overseas Railroad
The Overseas Railroad was an extension of the Florida East Coast Railway to Key West, a city of almost 30,000 inhabitants located 128 miles beyond the end of the Florida peninsula...
was completed to Key West. Over thirty years, Flagler had invested about $50 million in railroad, home, and hotel construction and gave to suffering farmers after the freeze in 1894. When asked by the president of Rollins College
Rollins College
Rollins College is a private, coeducational liberal arts college located in Winter Park, Florida , along the shores of Lake Virginia....
in Winter Park
Winter Park, Florida
Winter Park is a suburban city in Orange County, Florida, United States. The population was 24,090 at the 2000 census. According to the U.S. Census Bureau's 2006 estimates, the city had a population of 28,083. It is part of the Orlando–Kissimmee Metropolitan Statistical Area...
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."
Death and heritage
In 1913, Flagler fell down a flight of marble stairs at Whitehall. He never recovered from the fall and died in Palm Beach of his injuries on May 20 at 83 years of age. He was entombed in the Flagler family mausoleum at Memorial Presbyterian ChurchMemorial Presbyterian Church
The Memorial Presbyterian Church is an historic church located a 36 Valencia Street in St. Augustine, Florida. The church was built in 1889 by business tycoon and St...
in St. Augustine alongside his first wife, Mary Harkness; daughter, Jenny Louise; and granddaughter, Marjorie. Only his son Harry 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 to actually be a child born out of wedlock.
When looking back at Flagler's life after his death on May 20, 1913, George W. Perkins, of J.P. Morgan & Co.
J.P. Morgan & Co.
J.P. Morgan & Co. was a commercial and investment banking institution based in the United States founded by J. Pierpont Morgan and commonly known as the House of Morgan or simply Morgan. Today, J.P...
, 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, and is the main shopping street in Downtown Miami
Downtown Miami
Downtown Miami is an urban residential neighborhood, and the central business district of Miami, Miami-Dade County, and South Florida in the United States...
. There is also a monument to him on Flagler Monument Island
Flagler Monument Island
Flagler Memorial Island is an artificial island that was built in 1920 along with the other Venetian Islands of Miami and Miami Beach, Florida, complete with a monument visible from the Flamingo Hotel in Miami Beach. A high obelisk with allegorical sculptures at its base stands as a monument to...
in Biscayne Bay
Biscayne Bay
Biscayne Bay is a lagoon that is approximately 35 miles long and up to 8 miles wide located on the Atlantic coast of South Florida, United States. It is usually divided for purposes of discussion and analysis into three parts: North Bay, Central Bay, and South Bay. Its area is...
in Miami; Flagler College
Flagler College
Flagler College, is a private four-year liberal arts college in St. Augustine, Florida, USA and celebrated its 40th anniversary in 2008.The college has been named in recent years by US News & World Report as one of the southeast region's best comprehensive liberal arts colleges, and is included on...
and Flagler Hospital
Flagler Hospital
Flagler Hospital, based in St. Augustine, Florida, is a not-for-profit facility established in 1889. The organization has received numerous accolades and offers "Centers of Excellence" in bariatrics, heart, cancer, maternity, orthopedics and sinus....
are named after him in St. Augustine. Flagler County, Florida
Flagler County, Florida
Flagler County was created in 1917 from portions of Saint Johns and Volusia counties. It was named for Henry Morrison Flagler, a famous railroad builder who built the Florida East Coast Railway. Bunnell is the county seat of Flagler County....
, Flagler Beach, Florida
Flagler Beach, Florida
Flagler Beach is a city in Flagler and Volusia counties in the U.S. state of Florida. The population was 4,954 at the 2000 census, with an estimated population of 5,228 in 2004.Flagler Beach is part of the Palm Coast Metropolitan Statistical Area...
and Flagler, Colorado
Flagler, Colorado
Flagler is a Statutory Town in Kit Carson County, Colorado, United States. The population was 612 at the 2000 census.The town was established in 1888 as a small settlement near the then-new Rock Island Railroad, named Malowe after Rock Island Railroad attorney M. A. Lowe...
are also named for him. Whitehall, Palm Beach, is open to the public as the Henry Morrison Flagler Museum
Flagler Museum
Flagler Museum, also known as Whitehall, is a 55-room mansion open to the public in Palm Beach, Florida in the United States. The building is listed on the National Register of Historic Places.-History:...
; 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 Henry Flagler was unveiled in Key West near where the Over-Sea Railroad once terminated. Also, on July 28, 2006, a statue of Henry Flagler was unveiled on the southeast steps of Miami's Dade County Courthouse, located on Miami's Flagler Street.
The Overseas Railroad
Overseas Railroad
The Overseas Railroad was an extension of the Florida East Coast Railway to Key West, a city of almost 30,000 inhabitants located 128 miles beyond the end of the Florida peninsula...
, also known as the Key West Extension of the Florida East Coast Railway
Florida East Coast Railway
The Florida East Coast Railway is a Class II railroad operating in the U.S. state of Florida; in the past, it has been a Class I railroad.Built primarily in the last quarter of the 19th century and the first decade of the 20th century, the FEC was a project of Standard Oil principal Henry Morrison...
, was heavily damaged and partially destroyed in the Labor Day Hurricane of 1935
Labor Day Hurricane of 1935
The 1935 Labor Day Hurricane was the strongest tropical cyclone of the 1935 Atlantic hurricane season, and one of the most intense hurricanes to make landfall in the United States in recorded history...
. The Florida East Coast Railway 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
Overseas Highway
The Overseas Highway is a highway carrying U.S. Route 1 through the Florida Keys. Large parts of it were built on the former right-of-way of the Overseas Railroad, the Key West Extension of the Florida East Coast Railway. Completed in 1912, the Overseas Railroad was heavily damaged and partially...
to Key West, using much of the remaining railway infrastructure
Infrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...
.
Flagler's third wife, Mary Lily Kenan Flagler, was born in North Carolina
North Carolina
North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...
; the top-ranked Kenan-Flagler Business School
Kenan-Flagler Business School
The Kenan-Flagler Business School is the undergraduate and graduate business school at the University of North Carolina at Chapel Hill. The school offers a Bachelor of Science in Business Administration, Master of Business Administration , MBA for Executives, Master of Accounting, Ph.D., a business...
at the University of North Carolina at Chapel Hill
University of North Carolina at Chapel Hill
The University of North Carolina at Chapel Hill is a public research university located in Chapel Hill, North Carolina, United States...
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
Robert Worth Bingham
Robert Worth Bingham was a politician, judge, newspaper publisher and United States Ambassador to the United Kingdom. He attended the University of North Carolina and University of Virginia but did not graduate. He moved to Louisville in the 1890s and received a law degree from the University of...
, 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.
See also
- Flagler MuseumFlagler MuseumFlagler Museum, also known as Whitehall, is a 55-room mansion open to the public in Palm Beach, Florida in the United States. The building is listed on the National Register of Historic Places.-History:...
- Mary Flagler CaryMary Flagler CaryMary Flagler Cary was heir to part of the Standard Oil fortune and became a notable philanthropist, mainly through the charitable trust established at her death...
- Casa Monica HotelCasa Monica HotelhThe Casa Monica Hotel is a historic hotel located in St. Augustine, Florida, in the United States. The Casa Monica Hotel is one of the oldest hotels in the United States and is a member of the "" National Trust.-History:...
- Flagler Beach, FloridaFlagler Beach, FloridaFlagler Beach is a city in Flagler and Volusia counties in the U.S. state of Florida. The population was 4,954 at the 2000 census, with an estimated population of 5,228 in 2004.Flagler Beach is part of the Palm Coast Metropolitan Statistical Area...
- Flagler, ColoradoFlagler, ColoradoFlagler is a Statutory Town in Kit Carson County, Colorado, United States. The population was 612 at the 2000 census.The town was established in 1888 as a small settlement near the then-new Rock Island Railroad, named Malowe after Rock Island Railroad attorney M. A. Lowe...
Further reading
Noted by the author as the official history of the Florida East Coast Railway.- 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.
- Nolan, David. Fifty Feet in Paradise: The Booming of Florida. Harcourt Brace Jovanovich, 1984.
External links
- Henry Flagler biography
- History of The Breakers Hotel
- Flagler College
- Indiana Transportation Museum 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