BRAND NEW STATE chapter The Economy The Fat Years Key Themes Multicultural Heritage Wild West shows re-create the lives of Indians and cowboys during territorial days for twentieth-century audiences. Commerce and Economic Development Agriculture grows larger in scale and more commercial. The discover of new fields leads to a boom in the oil and gas industry. Individual and Family Life Some Oklahomans, especially those in the oil business, create large fortunes and share some of their wealth with their community and state. Objectives •Describe how the Wild West shows turned Indian culture and cowboy life into show business •Describe the causes of the economic boom in cattle, cotton, wheat, and oil production in Oklahoma •Compare and contrast the agricultural empire of the 101 Ranch with the oil empire of E. W. Marland Key Terms 308 19 •agribusiness •cotton belt •brood stock •cotton gins •tannery •cotton presses •Hereford •mural Overview Oklahomans make a living and create wealth mainly from what they grow in the soil or drill for in the ground. Production and profits soar as more Hereford cattle are raised on bigger ranches, more acres are planted in cotton and wheat, and more oil wells are drilled. Builders of commercial empires assume that fertile soils and high prices for their products will last. I n 1870, Colonel George Washington Miller sold his share of his family’s Kentucky plantation and headed west. He took with him all that was left of his original fortune: 20,000 pounds of bacon. He intended to take it to California, but he never got that far. Instead he traded some of the bacon to Texas cattlemen for 400 longhorns. He traded the rest for a lease on several thousand acres of grassland from Oklahoma’s Ponca Indians. After hiring a few Texas cowboys to tend the herd, Colonel Miller grazed the cattle on his new ranch, southwest of present Ponca City. To keep his cowboys’ minds on work, Colonel Miller named the ranch for a San Antonio saloon known for the hangovers it gave its customers. Thus was born an Oklahoma legend: the 101 Ranch. In the first decades of Oklahoma’s statehood, the 101 Ranch in Kay County became a legend. Called a “fabulous empire,” it was known to presidents, kings, and common folk around the world. Although much of its operation was unique, most of the ranch’s success was due to the new state’s economy. But, first, the story of the 101. Key People and Events 1903 Miller Brothers 101 Ranch begins transformation into the state’s first “agribusiness” 1919 Cushing and Drumright oil fields provide one-fifth of all U.S. oil output 1920s Cotton, wheat, and cattle businesses are booming 309 chapter 19 uniT 5 The 101 By the time Colonel George Miller died in 1903, the 101 covered more than 50,000 acres and produced an income of $500,000 a year. Its greatest days, however, lay ahead. Under the direction of the colonel’s three sons—Joseph, Zack, and George—the ranch grew until it reached 135,000 acres. By then, the 101 was more than a cattle ranch. In fact, by the 1920s it was the first—and certainly the largest—agribusiness in the world, even though the word “agribusiness” had not been invented yet. Decades before giant corporations transformed American agriculture, the 101 Ranch had 18 departments, each with its own manager. Cattle raising was just one department, and these cattle were not mangy longhorns. They were some of the world’s finest beef cattle, including prize-blooded stock that regularly won national championships as the best of their breeds. In another department, the colonel’s sons crossbred Arabian stallions with native mares to yield excellent polo ponies that sold for up to $1,000 each. Hogs also were produced in typical Miller fashion. From a brood stock (animals kept for breeding) of purebred Durocs worth $75,000, the 101 was processing 20,000 hogs per year in the late 1920s. Huge flocks of geese, chickens, and turkeys added their thousands to annual sales. Meanwhile, the colonel’s early experiments in field crops became a major operation under his sons. Each year, the Miller brothers planted over 15,000 acres in cereals. The two main crops—wheat and corn—each yielded more than 200,000 bushels per year. Many of the grain crops were hybrid varieties developed by Joe Miller. So superior were their qualities that the state agricultural college (now Oklahoma State University) required its students to spend two weeks at the 101 to observe the growing crops. Some ranch departments became entire industries, with ranch workers doing all the jobs related to the products. A meat-packing plant processed the ranch’s livestock. An adjoining tannery turned hides into leather, which was used by the saddle shop next door. A creamery produced dairy goods, which the ranch delivered in its own refrigerated trucks, fueled by its own gasoline, which was made at its own refinery from oil coming from its own wells and pumped at its own filling station. A steady stream of visitors purchased ranch-made products at the ranch-run general store. Others dined on ranch-produced foods at the ranch-owned cafe. Sales from the 101 Ranch industries totaled more than $1.6 million for the five-year period that ended in 1929. Combined with crop sales and oil production, gross income for the ranch exceeded $3 million over the same period. Economic success was just one element of the 101’s legend. What established its international fame was its Taken from the top of the ranch’s headquarters—called the White House—this photograph shows most (but not all) of the 101 Ranch buildings. 310 the story of oklahoma chapter 19 uniT 5 began. But in the first years of statehood, ranching became more specialized, scientific, and managed. In short, it became more commercial. One sign of this change was the swift disappearance of livestock directly descended from the original Spanish stocks. Scrawny, half-wild longhorns gave way to modern, boxy breeds with fat bellies that barely cleared the ground. The most popular new breed was the Hereford. Of British origin, Herefords began to replace longhorns and other “scrub cattle” just after statehood. By the First World War, cattlemen like J. K. and Henry C. The 101’s company store and office. Like other headquarters buildings, this one was Hitch in the Panhandle raised hardly destroyed in a fire, leaving only the foundation. any cattle but Herefords. Soon central Oklahoma was known nationally as Hereford Heaven. Wild West show. The show re-created (and glamorized) One reason for the success of commercial ranching was western life as it had been before manufacturing and that in large portions of the state the land was perfect modern agriculture—that is, before there was anything for grazing. In particular, the short-grass prairie in westlike the 101 Ranch itself. Indian powwows, dances, and ern Oklahoma was ideal country for ranching. Its rolling, buffalo hunts were staged, and perfectly dressed cow- treeless expanses, covered with native grasses, fed fenced boys showed off riding and roping skills. cattle just as richly as they had fattened roaming buffalo. The show toured the nation and much of the world. In the east, the lush bluestem grass of Osage County proIn its peak years during the 1920s, the Miller Brothers’ vided some of the best cattle range anywhere. No wonder 101 Ranch Wild West Show added about $800,000 to the the county has long been a leader in the nation’s beef proranch’s annual income. It also added greatly to the 101’s duction and a place where cattle still greatly outnumber people. legend and to the public’s notion of life in the West. Although the 101’s story is unusual or even unique, it points to several aspects of Oklahoma’s economy during King Cotton and Queen Wheat the prosperous first years of statehood. The success of both the ranch and the state rested on Oklahomans’ imagina- Other regions of Oklahoma proved to be just as hospitive use of nature’s resources. Wealth first took the form of table to early economic development. Soils in far eastraw materials pulled from nature’s grip. But the real story ern Oklahoma—especially in the Ozark and Ouachita lay in what Oklahomans did with those resources in those regions—are slightly acidic and have a high clay content. early years. In time, that story would prove to be as tragic In addition, the climate tends to be milder than in the rest as it once had been fabulous. of Oklahoma, and the area receives much more rainfall than the central or western parts do. In those ways, eastern Oklahoma is more like the southeastern United States Hereford Heaven than the Midwest or the Great Plains. Indeed, most of its The Miller brothers were not the only Sooners to use original non-Indian settlers came from southern states like living animals to turn grass and water into food and Texas, Arkansas, and Louisiana. In time, their portion of wealth. Raising livestock had been an important part of Oklahoma became part of the South’s traditional “cotton the area’s economy since the earliest Spanish explorers kingdom.” introduced cattle and horses, and a few Indian families Of course, cotton had been grown in the area since had large ranches even before non-Indian settlement members of the Five Tribes brought it with them from the economy : the fat years 311 The Stars of the 101 The Indians who worked in the Miller Brothers’ 101 Ranch Wild West Show came largely from Pine Ridge, South Dakota, and usually wintered at Inceville, California. Many of the performers in the show had once been cowboys. Two of the most famous cowboy stars were Bill Pickett and Yakima Canutt. Like many of the real, working cowboys, Bill Pickett was black. Skills that he had developed over years of working cattle and horses were the basis of his act. One particular talent became his trademark: the ability to ride beside a running steer, throw himself onto the animal, and toss it to the ground. This maneuver is know as steer wrestling in modern rodeos, and the 101’s Bill Pickett invented it. But his version had an unusual element. While twisting the steer’s horns, Pickett would sink his teeth into the steer’s lips. That confused and scared the animal, so Pickett could throw it down more easily. Yakima Canutt was already a rodeo champion when he joined the 101, and his riding skills made him one of the show’s main attractions. In 1914, while the show was touring England, Canutt and the other performers suddenly found themselves stranded. The British had declared war on Germany, and they confiscated the show’s horses for use by the British army. The show split up for the rest of the war. Canutt went to Hollywood, working as a stuntman and sometimes as a movie actor. As an actor, he became good friends with Marion Morrison, a former football player for the University of Southern California. Morrison wanted to be an actor too, and he especially wanted to play cowboys in the movies. But Morrison had no idea of how to ride a horse or even how to walk like a real westerner. It was the 101’s Yakima Canutt who showed him how to ride and how to walk with a cowboy’s rolling stride. 312 the story of oklahoma The 101’s legendary showman Bill Pickett. When Marion Morrison changed his name to John Wayne, he remembered the lessons. Everyone who has seen “the Duke” play a cowboy has been touched by a small piece of the legacy of Oklahoma’s 101 Ranch Wild West Show. chapter 19 uniT 5 At least one generation of Oklahomans (and probably others) had their ideas of the Old West defined by the Miller brothers’ Wild West show. their southern homelands. But, as with ranching, the early years of statehood saw a vast expansion of the crop. In 1925, Oklahomans were planting a record high of 5,396,000 acres in cotton—more than one-fourth of all cropland in the state and a much higher proportion in the eastern and southern counties. In fact, during the 1920s only Texas and Mississippi grew more cotton than Oklahoma. In that way the old Indian Territory continued to resemble southern states, while much of the former Oklahoma Territory was like the Midwest and the Great Plains. The soils and climate in central and western Oklahoma had less in common with Texas and Mississippi than with Kansas or Nebraska. Settlers in that part of Oklahoma were also more likely to have come from states like Kansas and Nebraska—where wheat, not cotton, ruled. Particularly in north-central Oklahoma, wheat growers could benefit from the experience of their neighbors to the north. By the turn of the century, Kansans had learned— mainly through costly trial and error—that the most productive type of wheat was a hard winter variety known as Turkey Red. The variety had come from southwestern Russia. German Mennonites who had grown it there brought it with them when they immigrated to Kansas and some communities in Oklahoma. In both states, Turkey Red proved its superiority, particularly in surviving very cold winters during its growing season. As was true of cotton, wheat production increased greatly in the early years of statehood. By 1919, just a dozen years after Oklahoma entered the Union, Sooner farmers were cultivating 4,718,000 acres in wheat and harvesting more than 66,000,000 bushels a year. Only Kansas, which devoted much more acreage to the crop, produced more. The agricultural boom continued through the 1920s. Low cotton prices in the decade’s early years caused some talk of farmers deliberately holding down production to keep prices up. The talk remained mostly that, however: just talk. The reality was that eastern Oklahoma’s cotton growers, many of whom did not own the land they farmed, had little choice but to work even harder to produce more to sell for less. In western Oklahoma, particularly in the three Panhandle counties, not even the talk was negative. Seldom was heard a discouraging word as farmers rushed to profit from nature’s abundance and humankind’s latest technologies. Several years of plentiful rain combined with cheap new farming gear—such as the gasoline-powered tractor and the one-way disc plow— the economy : the fat years 313 chapter 19 uniT 5 By the 1920s, wheat waved over—and ruled over—much of western Oklahoma. Even before gasoline-powered tractors became common, wheat crops demanded expensive machinery and heavy seasonal labor. to cause a “great plow-up.” Every year, tens of thousands of acres of native grasses were plowed under and destroyed permanently. In their place came broad, flat fields bearing tiny seeds expected to grow into amber waves of wheat. Not all early Oklahomans made their living from farms, but most shared one thing with the Miller brothers—their living ultimately depended on what they could wring from the soil. Entire communities across the state existed to service the farms and farmers of their immediate locales. Towns like McAlester and Ardmore were in the cotton belt (a large area of the country where cotton was the main crop). Their cotton gins, cotton presses, and cottonseed companies depended on the harvests of the surrounding countryside. (A gin is a machine that separates the cotton fiber from the seed. A press then compacts the clean raw cotton into bales for shipping.) So, too, did the merchants. Their sales rose and fell with the income earned (and spent) by their cotton-growing neighbors. Likewise, communities such as Perry and Woodward prospered as their grain towers and cattle sale lots bustled with the yield from nearby fields and pastures. Even Oklahoma City owed much of its prosperity to businesses like the Oklahoma National Stockyards, the Wilson and Company packing plant, and the Oklahoma Cotton Exchange. 314 the story of oklahoma The Oil Boom Even the wealth produced from the animals and the crops that grew on Oklahoma’s soils paled before the income from the oil that gushed from beneath the surface. In 1897, only 10 years before statehood, Oklahoma had produced its first commercial oil well, the Nellie Johnstone No. 1. Northwest of present Bartlesville, the well met an unfortunate end. Seeking to warm themselves, ice skaters built a fire on the banks of the nearby Caney River. The fire ignited seepage from the well, which collapsed in a flash of fire and confusion. But Oklahoma’s passion for oil and the wealth it could earn remained as strong as ever. Over the next few years that passion focused on one oil field and then another. Each discovery seemed to surpass all those before. South of Tulsa, near the community of Red Fork, a large field was tapped in 1901. It erased all memories of the Nellie Johnstone. Four years later, a well on the little farm of Ida Glenn opened the fabulous Glenn Pool. That oil field was large enough to make Oklahoma the nation’s leading oil-producing state from the moment it entered the Union, barely two years later. That was only the beginning. In 1912, Aaron Drumright drilled a successful well near the tiny town of Cushing. Others developed his oil field while the original pioneer PROFILES Frank Faucett Phillips, 1873–1950 Born in Nebraska and reared near Creston, Iowa, Frank Phillips knew nothing but farming until he was fourteen years of age. Then he tried his hand at barbering. By the time he was 24, he owned two shops in Creston and marketed successfully a tonic said to cure baldness. He was also married to Jane Gibson, the lovely daughter of the town’s foremost banker. Phillips soon became a business associate of his father-in-law. Specifically, he sold bonds to finance construction of a municipal convention center in Chicago. He was so successful at it that he financed his first oil ventures in Bartlesville. In 1905 he moved there with his wife and son. In partnership with his brother, Lee Eldas, he struck oil just north of Bartlesville in the well known as Anna Anderson No. 1 in September. It was the first of 81 successive productive wells, most of which were on leases in the world-famous Osage reservation just west of Bartlesville. For a time, the Phillips brothers toyed with the idea of making banking their primary investment, thinking that it would be more secure than wildcatting for oil. But the increased demand for oil and the resulting higher prices induced by World War I changed their plans. In 1917 they merged their existing oil operations into the Phillips Petroleum Company with 17 employees and $3 million in assets. Producing and marketing “Phillips 66” gasoline and other products, the company had increased the value of those assets to $50 million five years later. By the time of his death in 1950, they had increased to $625 million and the number of employees had grown to 17,000. Phillips made Bartlesville his home and corporate headquarters. As the community’s leading citizen, he also enriched it by establishing the world-famous Woolaroc Museum and Wildlife Preserve on 3,700 acres just southwest of the town. The museum presents unique collections of western art and artifacts; Native American pottery, baskets, beads, blankets, and cultural art; historical displays; and one of the most complete collections of Colt firearms. Its art collections include works by Frederic Remington, Charles M. Russell, William R. Leigh, Frank Tenney Johnson, and Thomas Moran. The preserve is home to more than 30 varieties of native and exotic animals and birds. Woolaroc also features The Lodge, the country home of Frank and Jane Phillips. Unlike many other oil tycoons, Frank Phillips was widely recognized for his civic work. Among the honors of which he was especially proud were admittance to the Oklahoma Hall of Fame in 1939; bestowal of the Silver Buffalo, the highest award presented by the Boy Scouts of America; and adoption by the Osage Tribe with the name Wah-Shah-She Hluah-Ke-He-Kah (Osage Eagle Chief). Sources: Dan B. Wimberly, “Phillips, Frank Faucett (1873–1950),” Encyclopedia of Oklahoma History & Culture (Web ed.; c. 2007) (accessed May 15, 2012). Woolaroc Museum and Wildlife Preserve (c. 2012), http://www.woolaroc.org/ (accessed May 15, 2012). the economy : the fat years 315 chapter 19 uniT 5 The well drilled on the farm of Mary Sudik was forever known as the Wild Mary Sudik. For 11 days in 1930, it gushed oil uncontrollably. When the wind was right (or wrong), it sent showers of oil on students heading to class at the University of Oklahoma, nearly 20 miles south. spent his own energies creating a town to service that field. Oklahoma thereby gained a new city, Drumright. By 1919, the state also had gained the legendary Cushing-Drumright Field. That single field was producing nearly one-fifth of all the oil sold in the United States, or about 3 percent of the oil produced on the planet. The decade that began the next year produced the greatest discoveries of all: Oklahoma City, Burbank, Tonkawa, Three Sands, Seminole. Each year, the 1920s roared with the name of yet another, even more astonishing Oklahoma oil field. During the 1920s, these and other, lesser fields yielded nearly 2 billion barrels of petroleum, and Oklahoma’s natural gas production over those years was nearly 2.5 trillion cubic feet. The official estimate of the value of Oklahoma’s oil and gas production over those 10 years was $3,587,139,500—a fourth of the money earned from every American source of oil and gas during the Roaring Twenties. The Marland Empire The tale of one Oklahoma oilman is as symbolic as that of the Miller brothers and their 101 Ranch. His name was Ernest Whitworth Marland, and he drilled his first successful Oklahoma oil well just north of the 101 in 1911. After that, he formed his own company—Marland Oils— but it was just the beginning. Over the next few years, 316 the story of oklahoma Oilman and charity donor E. W. Marland was also a sportsman. A polo fan, Marland was said to hire and promote executives on the basis of their skills as horsemen. Many Ponca City homes now sit on his old polo fields. chapter 19 uniT 5 Marland’s drilling crews opened vast new fields, and his wells pumped millions of barrels of oil. He sold some to outside companies (a single deal with Standard Oil of New Jersey yielded Marland $60,000 every 24 hours), and the rest he refined himself. Beneath green triangular signs bearing his name, Marland gas stations filled car tanks with Marland gasoline, refined at the Marland refinery from Marland crude oil, pumped from Marland wells and carried in Marland pipelines. Ponca City was headquarters for his far-flung empire, and Marland made it a city worthy of an empire’s capital. With Japanese gardeners, he planted exotic trees, shrubs, and flowers along wide boulevards that he designed. Between those boulevards he built fine homes for his employees, and even finer ones for his executives—his “lieutenants,” Marland liked to call them. He gave the city its hospital, its high school, its library, and even its golf course and polo field. Every church that asked him for money got it. When the University of Oklahoma needed to build a student union and a new sports stadium, Marland’s money bought those too. In 1928, he launched his grandest building project yet—a mansion that would outshine even the one that he already occupied on Grand Avenue in Ponca City. Outside, there would be polo stables and fields, kennels for hounds imported to chase imported foxes, three lakes, and a swimming pool big enough to hold a house. Surrounding it all were 300 acres of Oklahoma prairie that had been changed to look like the grounds of England’s Hampton Court Palace and France’s Palace of Versailles. The mansion’s interior—all 55 rooms, 15 bathrooms, and 3 kitchens of it—resembled the Davanzati Palace in Italy. Its social center was a large ballroom that opened onto the grounds. Winding across the ballroom ceiling, a mural (painting on a wall or ceiling) told the history of Kay County from the earliest times until 1928, when the mansion was completed. An internationally famous artist, Vincent Maragliotti, and three assistants took more than a year to complete the mural. Neither Maragliotti nor any of his helpers spoke a word of English, but that was all right. Money did the talking. So it was as the 1920s ended. Barely two decades after statehood, and not even two generations since the first land runs, Oklahomans had made their lands produce. Indian ceremonies and trail drives across unbroken prai- The internationally famous artist Vincent Maragliotti painted this mural on canvas. Then he and his assistants glued the canvas to this vaulted ceiling on the second floor of the Marland Mansion, completed in 1928. ries had been glamorized as entertainment, but they were things of the past. In the present, cattlemen ran large herds on the same land. In the present, wheat growers busily plowed up virgin land, killing native grasses, to plant rows of tiny seeds covered with a thin layer of dust. In the present, cotton growers plowed more acres to grow more cotton. The present was the 101 Ranch and Marland Oil. In 1929, not many people thought about what all that livestock, plowing, and planting would mean for the future. But then, not many people knew that the Miller brothers’ 101 Ranch was deep in debt or that E. W. Marland’s empire—his brand-new mansion included— was being built on borrowed money. They thought the future would take care of itself. They were wrong. the economy : the fat years 317 The Fabulous Osage Hills The Osage tribe conducted its business from this building in downtown Pawhuska. The Osages benefited greatly in the oil boom days because they had retained their mineral rights as a tribe. In 1872, the U.S. government forced a deal on the Osages. For the tribe’s land in Kansas, the United States would pay $8.5 million. Then the Osages would pay $1 million of that for new lands along the western edge of the Cherokee Nation. It was one of the best real estate deals in American history, one of the few in which the Indians came out indisputably ahead. The land that the Osages bought ran from present Bartlesville west to what is now Ponca City. From the Kansas border, their land extended south to the Arkansas River and present Tulsa. Totaling 1.5 million acres, its most distinguishing characteristic was its rolling hills. At the time, the Osages looked at those hills and saw their chief value. “The white man will not come to this land,” one of their leaders said. “The white man does not like country where there are hills, and he will not come. This will be a good place for my people.” It proved to be a false prophecy. Whites did come. Initially, they came because of the lush bluestem 318 the story of oklahoma prairies that covered those hills and fed their cattle. Later, other whites came because geologists had told them that those hills indicated that huge lakes of oil lay beneath them. The oilmen were right, and the Osages became instantly wealthy. Among Oklahoma’s Indian nations, only the Osages had kept the mineral rights to their allotments. The 2,229 Indians on the official tribal rolls of 1906 received the surface rights to individual allotments of 658 acres each, but the rights to everything underground remained tribal property. Whatever value might lie there was to be divided equally among the 2,229 Osages and their descendants. Like Oklahoma’s other Indians, most individual Osages quickly lost their personal allotments. But they have never lost the underground wealth of all of Osage County. Particularly in the 1920s, the Osages’ tribal property generated incredible wealth. After E. W. Marland discovered oil beneath the farm of Bertha Hickman in 1920, the rush was on. By the decade’s end, Osage oil had created more wealth than all of the Old West’s famous gold rushes combined. And much of that wealth fell to a tiny band of Indians. Oilmen bid millions of dollars for “bonuses,” paying money up front just for the right to seek oil. Much of the bidding took place on the lawn of the county courthouse at Pawhuska beneath a spreading tree forever know as the Million Dollar Elm. There on June 22, 1924, for example, a crowd that included America’s top oilmen gathered as auctioneer Colonel E. Walters called for bids to drill on Osage land. “Colonel” was his name, not his title, and he came from just down the road, at Skeedee, Oklahoma. When his gavel slammed down for the last time that day, he had sold drilling rights for a total of almost $11 million—for which he received his customary fee, a crisp $10 bill. The rest of the money went to the Osages, and even more millions were collected as royalties when the oilmen’s drilling bits pierced the 33-square-mile lake of oil beneath the hills. Every dime was divided equally among the 2,229 original Osages and their heirs. By 1925, the sum equaled an annual income of $65,000 for a typical family of five. Oklahoma’s Osage Indians were suddenly the richest people on earth. Stories soon spread about the Indians’ use of the money. Many liked fancy cars, and in 1925 the most expensive car produced in American cost $8,500— which was not much with $65,000 to spend every year. Stories were told of Indians who would buy a fine car, drive it until it ran out of gas, and then replace it with another. Many such stories certainly were made up—tales told to discredit the idea that the Osages in any way deserved their good fortune. Nonetheless, some stories were true. One involved an Osage woman who, on a single day in 1927 spent $12,000 for a fur coat, $3,000 for a diamond ring, $12,800 for some real estate in Florida, $7,000 for new furniture, and $600 to ship it to California. Her purchases totaled $35,400. On that day, for that woman at least, those rolling hills proved to be very good. Beneath this elm tree on the lawn of the Osage County Courthouse in Pawhuska, oilmen bid millions of dollars for the right to drill for oil on tribal lands. To this day, the tree is known as the Million Dollar Elm. the economy : the fat years 319
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