PDF Summary:The Big Rich, by Bryan Burrough

Throughout the early and mid-20th century, four influential Texas oil tycoon families—the Hunts, Cullens, Murchisons, and Richardsons—amassed vast fortunes from the state's booming petroleum industry. The Big Rich by Bryan Burrough chronicles the meteoric rise of this exclusive group, dubbed "The Big Four," as they transitioned from humble beginnings into economic juggernauts with lavish lifestyles and significant political clout.

The book explores how technological innovations and geological discoveries transformed the Texas oil industry, fueling the prosperity of these four families. It also delves into their growing right-wing political influence and role in shaping modern conservative ideologies in opposition to the federal government's expanded reach under President Franklin D. Roosevelt's New Deal policies.

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During the economic downturn of the Depression, it was solely the wealthiest magnates, often referred to as the Big Four, who could sustain their petroleum extraction ventures.

Bryan Burrough portrays the intense and unparalleled pursuit of oil in East Texas, marked by a zealous haste to tap into the oil reserves, despite cautions from specialists and regulators regarding the risk of depleting crucial subterranean pressure, which could ruin the field if the oil was depleted too swiftly. He underscores that the principle of obtaining resources on a first-come, first-served basis intensified the already aggressive competition for those resources. Boring into the ground close to the edge of a neighboring property might result in the extraction of an oil quantity that matches or surpasses the volume harvested from the territory directly beneath the well's contractual area. Once you had possession of something, it stayed with you. However, for those invested in the continuous steadiness of the industry, especially major corporations and principal players like Hunt, these tactics threatened to unsettle oil income streams for an extended period.

Efforts to limit oil production, known as "proration," sparked significant legal and political battles during 1931 and 1932, primarily involving major oil companies and smaller operators who often lacked the financial means to suspend their output in anticipation of rising prices. The author, Bryan Burrough, highlights the challenges faced by the Texas Railroad Commission, the regulatory body for the oil sector in Texas, which frequently grappled with inefficiency and corruption issues. Proration truly worked when the regulation of production was in the hands of the oil producers themselves.

Burrough credits the adherence to legal standards among the oil tycoons of East Texas to the stringent measures implemented by Governor Ross Sterling, who once led Humble Oil. In August 1931, to counter what he perceived as a blatant challenge to the state's power, Sterling declared a state of military rule and sent the National Guard with orders to halt activity within the oil-producing regions. Burrough underscores that the pause in drilling activities for three weeks resulted in the departure of many minor oil firms from the sector, and the notably reduced output limits set when operations resumed marked the start of the decline for numerous additional firms. Hunt, along with a group of prominent figures, benefited significantly from Sterling's aggressive tactics. They took advantage of their initial large-scale land purchases, prospering due to diminished competition and the opportunity to exploit their petroleum reserves during a period when government regulations had fixed oil prices.

The remarkable increase in oil production was largely enabled by the introduction of innovative technologies such as pipelines and the seismograph, especially in the area known as East Texas.

The emergence of the oil industry in East Texas marked a pivotal and transformative period for the budding sector and the state of Texas. In the early 1930s, the discovery of a vast oil field significantly enhanced the industry's ability to detect and supply crude to the commercial sphere. The uncovering of oil reserves in East Texas spanned a much broader area compared to the isolated Spindletop discovery twenty years earlier, with additional reserves being identified as far as five to ten miles beyond the initially projected boundaries of the petroleum-abundant zones. Technological advancements, especially in equipment capable of emitting sound waves into the ground to disclose underground structures, enabled oil producers to accurately identify potential drilling sites, and skilled teams could reach the desired depth of around three thousand feet under the surface of the earth in merely 9 or 10 days. Burrough emphasizes the contrast between these businesses and the original Spindletop wells, which necessitated a considerable amount of time and a large quantity of fluid to ensure the drilling process was managed effectively.

Burrough highlights the creative solutions driven by the need to transport large volumes of oil from the wooded regions of East Texas to the Gulf Coast's refining facilities, a task initially accomplished by utilizing rail tank cars. The advancement led to the development of pioneering pipeline infrastructures that could carry millions of barrels each day, a significant expansion from the initial networks established in the early 1900s.

During the 1950s, the oil sector in Texas underwent a period of prosperity, resulting in increasingly lavish lifestyles.

Between 1936 and 1956, following the discovery of oil in East Texas, the Big Four families fortified their business ventures, broadened their family connections, and began to enjoy the significant comforts brought on by their newfound prosperity. Following World War II, Texas became the focal point of America's rapidly expanding oil industry, propelling clans such as the Hunts, Cullens, Murchisons, and Richardsons to prominence and altering the country's understanding of wealth.

Attention turned to the Big Four along with other affluent Texans upon the emergence of claims that H.L. Hunt had become the wealthiest individual globally.

During the 1930s and into the early 1940s, the quartet of influential families managed to conduct their affairs with minimal public attention. The immense wealth and opulent lifestyles of Texas oil magnates were acknowledged, but remained mostly unnoticed by the general public, as the spotlight of the media was directed towards the Great Depression, international disputes, and other major occurrences, except for those associated with the oil sector and regional Texas press. The circumstances changed markedly with the approach of 1948. In that year, Burrough notes, Texas seized the spotlight in prominent national publications like Life and Fortune magazines, igniting two decades of heightened focus on its substantial economic growth. The term "The Big Rich" initially captured the nation's interest when a well-known financial magazine introduced it.

The media's proclamation of H. L. Hunt as the wealthiest person on the planet significantly impacted the Big Four and the wider Texas Oil industry. During this era, America's traditional upper class, including prominent families such as the Mellons and Rockefellers, and especially the Du Ponts, were increasingly shunning public attention, a trend stemming from deep-seated class animosity that originated in Roosevelt's time and continued after the war. The gambler from Arkansas who took up residence in an opulent Dallas home, which he whimsically dubbed Mount Vernon, unintentionally set the standard for modern oil tycoons, known for their lavish lifestyles that include private havens, sprawling estates, and ownership of significant sports teams, and for their high-profile connections with movie stars, as well as their propensity to wager large amounts in late-night card games. Hunt's image frequently appeared in magazine stories that emphasized the opulent and unique lifestyle of Texans, leading editors from prominent publications to scour Texas annually in pursuit of featuring stories about the state's oil tycoons.

Clint Murchison's transformation of Matagorda Island into the opulent Hacienda Acuna signaled the beginning of a period characterized by opulent country retreats.

Clint Murchison was instrumental in shaping the extravagant and unique culture of Texas Oil, marked by lavish homes and private ranches; however, his associations with polarizing individuals such as Joe McCarthy and participation in controversial matters led to the waning of this same movement. Murchison, who hailed from the prosperous region of East Texas, was more transparent about his wealth than either H.L. Hunt or Roy Cullen. He was a pioneer in ostentatious displays of wealth, as the inaugural oil magnate in the nation to possess a personal aircraft, indulging in luxury automobiles, and in 1937, he acquired Matagorda Island, establishing the state's most opulent ranch sanctuary. Wealthy Texans, including Richardson, swiftly adopted this trend.

During a fishing trip, Murchison stumbled upon his greatest achievement: a sprawling 75,000-acre property situated amidst the harsh mountainous terrain of Mexico's northern region. Constructing Acuna took two years, throughout which Murchison brought in building materials, workers, and a vast collection of antiques from Europe and the East Coast, initially using donkeys and later on, after an airstrip was established on an adjacent elevation, private planes were employed for transport.

Murchison invested a great deal of effort into his retreats, turning Matagorda and Acuna into top-notch locations for outdoor activities and, notably, for card games. At Murchison's habitual Saturday night gatherings at both properties, the stakes frequently included substantial monetary bets, along with pledges of payment and ownership documents for oil assets, attracting a diverse array of business magnates and political figures from across the nation as the years went by. Several individuals pondered if the owner of Matagorda and Acuna, who might soon claim the title of America's richest individual, could help them further their careers. Murchison's status as the most prominent oil tycoon in Texas, which stemmed not only from his wealth but also from his distinctive openness with journalists—a characteristic that distinguished him markedly from the less communicative Hunt and Roy Cullen—would lead to his most significant political trouble, his association with the contentious McCarthy.

Glenn McCarthy's construction of the Shamrock Hotel stood as an emblem of Texas's post-war ambitions and ignited a broad intrigue in the prosperity derived from the oil sector.

Glenn McCarthy's meteoric rise to prominence and subsequent swift fall from grace in the 1940s epitomizes the story of a Texas oil tycoon, marked by boldness and a lack of refinement. Originating from modest beginnings near Spindletop, his life story includes moments where he was photographed alongside famous personalities such as Howard Hughes and film stars, ultimately leading to his feature on the cover of Time magazine. Among the most prominent quartet of oil magnates, McCarthy was distinguished by his bold confidence, his tendency to boldly forecast his future successes in the public eye—a trait not commonly found among the usually understated oil barons—and for his grandiose aspirations, which were most famously realized through the creation of the lavish Shamrock Hotel, a symbol of Houston's growing wealth.

Burrough emphasizes McCarthy's skill in creating captivating displays, recognizing that influencing the public's perception was equally important as possessing tangible oil assets or financial documents, which he leveraged by making statements to the press and organizing extravagant events. Consequently, during an era when features on Texas oil magnates in newspapers and magazines were uncommon, McCarthy, by his own designs, emerged for a period as the most prominent Texan. The grand opening of the Shamrock in 1949 represented the height of his talent for creating grand spectacles, drawing the gaze of the entire country as McCarthy, who owned a movie studio, flew in numerous Hollywood stars using specially chartered planes and private train cars. The chaotic scene, with crowds packing the entrance hall, a malfunctioning announcement system adding to the confusion, and angry participants storming the platform to get their food, became a defining moment symbolizing the opulent and chaotic display that was a hallmark of Texas in that period.

Sid Richardson accumulated an impressive array of artwork and exerted political clout, all the while leading a discreet life on his private retreat, St. Joseph's Island.

Sid Richardson, depicted by Burrough as the nation's most affluent person, accumulated his wealth while keeping a discreet presence, unlike Glenn McCarthy. Richardson lived quietly, rarely appearing in the media, and his infrequent public remarks often blended simple maxims with stories of questionable veracity. From his early years, Richardson understood the significance of cultivating relationships and a good reputation, skillfully building bonds with influential individuals including presidents and political leaders, while also maintaining solid ties with the people who managed his ranch operations and operated his transportation. A member of the influential quartet played a pivotal role in elevating Lyndon Johnson, who would later become known as the "oil president" of the United States, to a position of prominence, an ascent that was later chronicled in Robert Caro's "The Master of the Senate."

Richardson's wealth rapidly escalated after he struck oil in the Keystone Field of West Texas in 1937. Johnson shrewdly anticipated how the financial influence of Texas oil tycoons could shape his political journey and, in an unexpected maneuver, blocked Roosevelt's effort to prolong the service of the reform-minded economist Leland Olds as the leader of the Federal Power Commission. Despite facing significant opposition from progressives like Eleanor Roosevelt, Johnson's unyielding strategy of accusing Olds of communism and persuading his Senate colleagues to reject Olds' appointment strengthened his connections with the affluent Texas oil sector. Richardson, acquainted with Roosevelt and consequently familiar with Eisenhower through Roosevelt's offspring, played a crucial but subtle role in providing financial backing for Johnson's political campaign. His political donations were frequently hidden, making it challenging to differentiate his financial support from that provided by other prominent individuals in the petroleum sector, including Clint Murchison, who had a strong relationship with Johnson.

Richardson, conversely, utilized his wealth in more understated methods, channeling substantial funds into the political campaign for reelection of the future president and concealing the contributions with assistance from him by using a network of corporate partnerships and property deals, a tactic that would later be recognized in Washington as a hallmark of "Texas-style" political donations. Johnson's rise to a position of unmatched power in Congress, where he took on the role of Senate Majority Leader, was largely due to his skillful coordination of Texas oil tycoons' lobbying endeavors and their secret operations. Richardson's influence in the Texas oil sector eclipsed that of his contemporaries, leading to his substantial but often disregarded effort to replace Vice President Richard Nixon with Robert B. Anderson on the Republican ticket in 1956.

The quartet of oil tycoons, commonly known as the Big Four, often traveled to remote ranches via private aircraft, which improved their capacity to engage in commerce with eastern entrepreneurs.

The author adeptly weaves stories of private aircraft ownership in mid-20th century Texas into a broader narrative that depicts the evolution of an early 20th-century isolated frontier town into a cosmopolitan center of international significance following World War II. Before the 1930s, Burrough notes that the vast expanse of Texas played a crucial role in business and political dealings, with entrepreneurs looking to engage in dealings with New York counterparts often enduring a multi-day train trip.

The rise of private aviation in the 1930s began as a way for oil tycoons to reach remote oil deposits and eventually transformed the limitations of travel, particularly in Texas, where rapid access to extensive oil reserves and isolated ranches was crucial for the booming oil industry following World War II. Clint Murchison was a trailblazer in adopting luxurious private aircraft, making his first purchase in the early 1930s, and not long after, Sid Richardson obtained a similar mode of transport.

During the 1950s, Texas oil magnates saw the possession of a private plane as a status symbol of their aspirations and achievements, a practice once linked to titans of industry such as Howard Hughes. Their affluence and sway on a national level were largely molded by this element, which was also instrumental in forging and sustaining alliances and transactions between Texas oil tycoons and the essential financial centers in New York, as well as with the governing circles in Washington.

The 1956 Suez Crisis significantly strengthened the economic position of the Big Four as they faced growing challenges from Middle Eastern oil producers.

Burrough emphasizes the colossal fortunes accumulated by the quartet of influential families, which stemmed from their role in the expansion of the natural gas sector following the war—a sector they were instrumental in establishing during the 1920s and 1930s by locating and supplying methane-laden natural gas for home heating and industrial power on the East Coast and in California. Initially resistant to the wartime pipelines backed by the government, Hunt, Murchison, and Richardson eventually gained a considerable portion of the natural gas distribution network facilitated by these pipelines. The growth of the natural gas industry in some ways mirrored the wider difficulties faced by the Texas oil sector, including the emergence of low-cost oil from the Middle East that was plentifully discovered during the 1940s and 1950s. Burrough describes the difficulties encountered by Texas oil producers in 1956 who were working hard to stay competitive in an international market that was overflowing with oil supplies, particularly from nations like Saudi Arabia and Kuwait.

The obstruction of the Suez Canal by Egypt in 1956 provided a temporary period of relief for the four principal oil tycoons because it caused a rise in the cost of oil from all producers not under OPEC's control. Burrough notes that the Suez Crisis would mark a pivotal moment with lasting implications on the trajectory of Texas's oil sector. As energy demand in the West was about to significantly decrease due to energy conservation measures in response to increasing prices and the economic deceleration of the 1960s, the Suez years signified the final chance for American oil to dominate global pricing. Nevertheless, this dominance was put to the test as oil output in Texas waned, culminating in a critical change in direction for the industry caused by the 1973 embargo by Arab nations.

Other Perspectives

• The significant wealth of the oil tycoons may have overshadowed the contributions of smaller oil producers and workers who also played critical roles in the development of the Texas oil industry.
• The narrative may underplay the environmental impact of the oil industry in Texas, including land degradation, water contamination, and air pollution.
• The focus on the success of the Big Four might overlook the economic disparities and labor struggles that were also part of the oil industry's history.
• The depiction of anti-trust legislation as wholly beneficial may not consider the potential negative effects on market efficiency or the possible stifling of competition in some cases.
• The emphasis on the role of Texas oil in the post-World War I surge may not fully acknowledge the concurrent global developments in the oil industry.
• The portrayal of the Big Four's accumulation of wealth during the Depression could be critiqued for not sufficiently addressing the broader social and economic hardships of the era.
• The narrative might overemphasize the innovation of individuals like Roy Cullen without considering the collective advancements in technology and knowledge that contributed to the industry's progress.
• The story of Sid Richardson could be seen as romanticizing the rugged individualism of oil prospectors without sufficient critique of the speculative nature of the industry and its financial risks.
• The account of Clint Murchison's financial acumen might not fully explore the ethical considerations of his business practices.
• The focus on H.L. Hunt's deal-making prowess may not critically examine the broader implications of such deals on market fairness and competition.
• The narrative's celebration of technological advancements in oil production may not adequately address the potential for increased exploitation and depletion of natural resources.
• The portrayal of the 1950s as a period of prosperity due to the oil sector might not consider the economic volatility and the bust cycles that affected many in the industry.
• The attention given to the wealth and lifestyles of the Big Four could be criticized for glamorizing excess and ignoring the socioeconomic inequalities of the time.
• The depiction of the Suez Crisis as beneficial to the Big Four's economic position may not fully consider the complex geopolitical consequences of the event on global oil politics and the economies of other nations.

The political influence and activities wielded by the quartet of prominent families, including their participation in extremely conservative political movements.

This section of the narrative explores the profound influence that the wealthy oil magnates exerted on the political landscape of Texas, which included backing ultra-conservative causes and participating in standard political endeavors, emphasizing their dedication to propagating extreme right-wing beliefs throughout the nation, as evidenced by Hunt's Facts Forum, and their escalating dedication to supporting individuals in politics, like Lyndon Johnson, who could promote the Texan oil industry's agenda on a national scale. Burrough wraps up the section with a chapter that centers on a pivotal legislative moment in 1956 related to natural gas, underscoring the increasing influence wielded by Texas oil tycoons in the political landscape of the United States, while also signaling the beginning of persistent obstacles they would encounter.

In Texas, ultra-conservative ideologies started to gain traction.

Burrough argues that the emergence of modern conservative thought in Texas can be traced back to two significant events: the growth of federal power with Franklin Roosevelt's New Deal, which many Texans saw as an overreach into state governance and the liberty of business, and the discovery of large oil deposits in the 1930s, especially in the eastern region of the state, which endowed wealthy oil barons with the resources necessary to challenge Roosevelt's initiatives. The resulting political movement was not, initially, explicitly partisan. Many Texas oil tycoons, recognized for their right-leaning ideologies, steadfastly pledged allegiance to the Democratic Party, the sole party engaged in state politics during that era. Burrough argues that the emergence of the Republican Party in Texas can be attributed to a shift in beliefs, primarily due to the influence of deeply conservative oil tycoons during the 1930s and 1940s, which had a significant impact on the political dynamics within the state and, to some degree, across the entire nation.

John Henry Kirby, in collaboration with Vance Muse, played a crucial role in promoting a political agenda that prioritized corporate interests, stood against labor and communist beliefs, and maintained the policy of racial segregation.

Burrough delves into the rise of Texas oil tycoons such as Roy Cullen and H.L. Hunt, tracing their path to political prominence back to the unsuccessful 1936 gubernatorial campaign of Eugene Talmadge in Georgia, which marked an early confrontation by conservative southern Democrats against Franklin Roosevelt's dominance in the presidency. Cullen and Hunt initiated their political activities in the late 1930s, but they were not the first to do so, since a group of wealthy Texans, including timber and oil magnate John Henry Kirby, had previously laid the foundation for what Burrough characterizes as modern Texas conservatism.

In the 1930s, Kirby and his one-time publicist Vance Muse became well-known for their involvement in secretive organizations that championed business agendas while standing against labor unions and communism, actions now seen as racially driven and aimed at undermining Roosevelt's goals. These organizations – the Sentinels of the Republic, the Texas Election Managers Association, the Texas Taxpayers Association, the Texas Tax Relief Association, the Order of American Patriots - represented a business-oriented counterpart to the Klan, mainly consisting of businessmen, with Kirby standing out as a member whose ties with prominent oil dynasties like those of Cullen and Murchison grew increasingly important as these tycoons augmented their fortunes and sway.

Kirby and Muse's initial pursuit of Talmadge's backing, coupled with their subsequent backing of Louisiana Governor Huey Long and Talmadge again, convinced many Texas oil tycoons of the need to create a more organized and lasting opposition to Roosevelt and the creeping advance of socialism. Burrough emphasizes that the financial backing stemming from the oil-rich region of East Texas was crucial for future endeavors, yet it took the Big Four families between fifteen and twenty years to fully grasp the scope of power their newfound wealth granted them.

Texans who held conservative beliefs saw the growth in federal government power during Franklin Roosevelt's New Deal as a threat to their traditional lifestyle.

Burrough depicts the hostility that Texas harbored against Roosevelt as being unparalleled in intensity across the nation. Indeed, the deeply rooted conservative values within the Lone Star State, marked by strong resistance to both communism and unionization, support for the spirit of enterprise and religious values, and opposition to governmental intrusion, stem from the efforts initiated by Roosevelt to transform the United States into a major industrial force. The oil tycoons, later to gain fame as the Big Four, worked with the belief that their workforce would stay submissive, poorly educated, and largely independent, a perspective influenced by the entrenched class structures typical of Southern culture. The Roosevelts implemented policies aimed at improving the lives of the poor, African Americans, and other disenfranchised communities, which Burrough describes in his work.

Other Perspectives

• The political influence of the quartet of families may not have been monolithic, and there could have been diversity in their political views and actions.
• Participation in conservative movements by these families might have been driven by a variety of motivations, not solely ideology, such as economic self-interest or regional cultural alignment.
• The traction of ultra-conservative ideologies in Texas could also be attributed to broader national and cultural trends, not just the influence of oil tycoons.
• The emergence of modern conservative thought in Texas might have had roots in longstanding Texan cultural values, independent of the New Deal and oil discoveries.
• The alignment of Texas oil tycoons with the Democratic Party could reflect the historical complexity of political affiliations, which do not always align with contemporary political party ideologies.
• The rise of the Republican Party in Texas might have been influenced by a range of factors, including demographic changes and national political shifts, in addition to the actions of conservative oil tycoons.
• The political agenda of John Henry Kirby and Vance Muse might be seen in a different light when considering the historical context of their actions, including prevailing attitudes and norms of their time.
• The secretive organizations might have had a broader membership and set of goals than solely promoting a business agenda and could have included civic-minded objectives.
• The view of federal government power growth as a threat might have been shared by a broader segment of the population, reflecting a general skepticism of centralized authority rather than a uniquely Texan conservative stance.
• The hostility against Franklin Roosevelt in Texas could be understood as part of a larger debate on federalism and states' rights that was not unique to Texas.
• The conservative values in Texas might be seen as part of a broader American tradition of valuing individualism and skepticism of government intervention.
• The belief in maintaining a certain workforce structure by oil tycoons could be challenged by noting efforts by some industry leaders to improve worker conditions and invest in community development.
• Roosevelt's policies, while aimed at improving the lives of many, could be critiqued for their effectiveness, unintended consequences, or the extent to which they actually addressed the needs of the disenfranchised.