dinary banking, such as other
depositors have. It buys and sells its own exchange; and these
dealings, extending over many years, have made its bills of exchange
acceptable all over the world.

CHARACTER THE ESSENTIAL THING

In speaking of the real beginning of the Standard Oil Company, it
should be remembered that it was not so much the consolidation of the
firms in which we had a personal interest, but the coming together of
the men who had the combined brain power to do the work, which was the
actual starting-point. Perhaps it is worth while to emphasize again
the fact that it is not merely capital and "plants" and the strictly
material things which make up a business, but the character of the men
behind these things, their personalities, and their abilities; these
are the essentials to be reckoned with.

Late in 1871, we began the purchase of some of the more important of
the refinery interests of Cleveland. The conditions were so chaotic
and uncertain that most of the refiners were very desirous to get out
of the business. We invariably offered those who wanted to sell the
option of taking cash or stock in the company. We very much preferred
to have them take the stock, because a dollar in those days looked as
large as a cart-wheel, but as a matter of business policy we found it
desirable to offer them the option, and in most cases they were even
precipitate in their choice of the cash. They knew what a dollar would
buy, but they were very sceptical in regard to the possibilities of
resurrecting the oil business and giving any permanent value to these
shares.

These purchases continued over a period of years, during which many
of the more important refineries at Cleveland were bought by the
Standard Oil Company. Some of the smaller concerns, however, continued
in the business for many years, although they had the same opportunity
as others to sell. There were always, at other refining points which
were regarded as more favourably located than Cleveland, many
refineries in successful operation.

THE BACKUS PURCHASE

All these purchases of refineries were conducted with the utmost
fairness and good faith on our part, yet in many quarters the stories
of certain of these transactions have been told in such form as to
give the impression that the sales were made most unwillingly and only
because the sellers were forced to make them by the most ruthless
exertion of superior power. There was one transaction, v