Part 1, Chapter 2 Summary

Early in 1865 two partners in a bustling Cleveland refinery were engaged in one of their frequent disputes. This time John D. Rockefeller surprised Maurice Clark by accepting his offer to dissolve the partnership, and bought him out for $72,000. After Drake's breakthrough, they had concentrated on oil refinery. Rockefeller improved the quality of his products and took the first steps towards integrating supply and distribution, to insulate his business from market volatility and to improve its competitive position. With a head for figures and clear vision, Rockefeller mastered every aspect of the new industry. In 1867, he teamed with Henry Flagler, who hated "unbridled competition" and believed that cooperation among producers was key to minimizing risk. They formed Standard Oil Company in 1870 as a joint stock company intent on consolidating all refiners into one giant combination. Flagler formed arrangements with railroads to extracting...