Instead of using his father's method of presence to collect debts, Rockefeller relied on a persistent pestering approach. Rockefeller had only $800 saved up at the time and so borrowed $1,000 from his father, "Big Bill" Rockefeller, at 10 percent interest. [59] Standard was growing horizontally and vertically. [87], Rockefeller, who had rarely sold shares, held over 25% of Standard's stock at the time of the breakup. WebRockefeller revolutionized the petroleum industry and, through corporate and technological innovations, was instrumental in both widely disseminating and drastically reducing the production cost of oil. [129][130] It would be Rockefeller's winter home during the latter part of his life. He complained that he could not stay asleep most nights. By then the trust still had a 70% market share of the refined oil market but only 14% of the U.S. crude oil supply. Standard's most potent weapons against competitors were underselling, differential pricing, and secret transportation rebates. He also gave a grant to the American Baptist Missionaries foreign mission board, the American Baptist Foreign Mission Society in establishing Central Philippine University, the first Baptist and second American university in Asia, in 1905 in the heavily Catholic Philippines. In 1972 Congress honored his contributions by creating a memorial parkway between Yellowstone and Grand Teton national parks, which bears his name. In 1892 the Ohio Supreme Court held that the Standard Oil Trust was a monopoly in violation of an Ohio law prohibiting monopolies. He was an excellent debater and expressed himself precisely. By the time he was twenty, his charity exceeded ten percent of his income. His company and business practices came under criticism, particularly in the writings of author Ida Tarbell. The overproducing of oil and the developing of new markets caused the price of oil to fluctuate wildly. Furthermore, Rockefeller gained enormous influence over the railroad industry which transported his oil around the country. As he grew rich, his donations became more generous, especially to his church in Cleveland; nevertheless, it was demolished in 1925, and replaced with another building.[101]. He truly believed in the biblical principle found in Luke 6:38, "Give, and it will be given to you. [33] He worked long hours and delighted, as he later recalled, in "all the methods and systems of the office. With the help of funds from the Rockefeller Foundation, relief programs were organized by the Colorado Committee on Unemployment and Relief. WebROCKEFELLER, JOHN D. (8 July 1839-23 May 1937), industrialist and philanthropist, rose from his position as an assistant bookkeeper for a Cleveland commission merchant to become one of the wealthiest men in the U.S. through his efforts in developing the STANDARD OIL CO. Born on a farm near Richford, NY. Founded by John D. Rockefeller, Jr. (1839-1937), the Standard Oil Company is one of the world's richest corporations. Bowers was relieved of duty and Wellborn restored to control in 1915, then industrial relations improved. Pratt's son, Charles Millard Pratt, became secretary of Standard Oil. August 2, 1896 An article documents Rockefellers life and his rise to wealth, from poverty to possessing millions of dollars. Today known as Spelman College, the school is an all women Historically Black College or University in Atlanta, Georgia, named after Laura's family. [126], Rockefeller became well known in his later life for the practice of giving dimes to adults and nickels to children wherever he went. He became an assistant bookkeeper at age 16 and went into several business partnerships beginning at age 20, concentrating his business on oil refining. 186365 Rockefeller builds his first oil refinery, near Cleveland. In February 1914, a substantial portion of the troops were withdrawn, but a large contingent remained at Ludlow. Because of Rockefellers emphasis on economical operations, Standard prospered and began to buy out its competitors until, by 1872, it controlled nearly all the refineries in Cleveland. However, he did not intend to eliminate competition entirely. Without her keen advice, I would be a poor man."[40]. At last in 1911, the Supreme Court of the United States found Standard Oil Company of New Jersey in violation of the Sherman Antitrust Act. It was not meteor-like, but accomplished over a quarter of a century by courageous venturing in a field so risky that most large capitalists avoided it, by arduous labors, and by more sagacious and farsighted planning than had been applied to any other American industry. [108] John Rockefeller was impressed by the vision of the school and removed the debt from the school. Rockefeller gave $80million to the University of Chicago[111] under William Rainey Harper, turning a small Baptist college into a world-class institution by 1900. Rockefeller called her "Miss Tarbarrel" in private but held back in public saying only, "not a word about that misguided woman. She documented the company's espionage, price wars, heavy-handed marketing tactics, and courtroom evasions. This was probably the greatest amount of wealth that any private citizen had ever been able to accumulate by his own efforts. Public hostility toward monopolies, of which Standard was the best known, caused some countries to enact anti-monopoly laws. The Ohio businessman John D. Rockefeller entered the oil industry in the 1860s and in 1870, and founded Standard Oil with some other business partners. John D. Rockefeller was remembered for his wealth and for the aggressive competitive practices of the Standard Oil Company. In the end it turned out that the individual segments of the company were worth more than the entire company was when it was one entitythe sum of the parts were worth more than the wholeas shares of these doubled and tripled in value in their early years. [6][full citation needed] That was his peak net worth, and amounts to US$24.7billion (in 2021 dollars; inflation-adjusted). In 1870 Rockefeller established the Standard Oil Company. 2001. Rockefeller envisioned pipelines as an alternative transport system for oil and began a campaign to build and acquire them. American industrialist John D. Rockefeller built his first oil refinery near Cleveland and in 1870 incorporated the Standard Oil Company. Rockefeller prevailed and the railroad sold its oil interests to Standard. [97], Against long-circulating speculations that his family has French roots, genealogists proved the German origin of Rockefeller and traced them back to the early 17th century. His company and business practices came under criticism, particularly in the writings of author Ida Tarbell . [citation needed], In 1864, Rockefeller married Laura Celestia "Cettie" Spelman (18391915), daughter of Harvey Buell Spelman and Lucy Henry. [55], Part of this scheme was the announcement of sharply increased freight charges. Biography Reference Center, EBSCO, United States Department of Labor: Bureau of Labor Statistics historical inflation calculator, United States Commission on Industrial Relations, Carnegie Foundation for the Advancement of Teaching, Johns Hopkins School of Hygiene and Public Health, "John D. Rockefeller: The Richest Man in the World", http://www.usstuckonstupid.com/sos_charts.php#gdp, "Giving It Away, Then and Now The New York Times", Weekly Centralian Link (June 15, 2018) CPU holds Faculty and Staff Conference 2018, "The Philanthropists: John D. Rockefeller Tim Challies", "John D. Rockefeller | Biography, Facts, & Death", "People & Events: John D. Rockefeller Senior, 18391937", "Proceedings of the Special Committee on Railroads, Appointed under a resolution of the Assembly to investigate alleged abuses in the Management of Railroads chartered by the State of New York (Vol. Learn about John D. Rockefeller's historic-preservation of early American history at Williamsburg. Between John and William Jr.'s births, Bill and Nancy had another daughter Cornelia. Public hostility toward monopolies, of which Standard was the best known, caused some countries to enact anti-monopoly laws. Although it always had hundreds of competitors, Standard Oil gradually gained dominance of oil refining and sales as market share in the United States through horizontal integration, ending up with about 90% of the US market. In 1902, an audit showed Rockefeller was worth about $200millioncompared to the total national GDP of $24billion then. The aggressive competitive practices of Standard Oil, which many regarded as ruthless, and the growing public hostility toward monopolies, of which Standard was the best-known, caused some industrialized states to enact antimonopoly laws and led to the passage by the U.S. Congress of the Sherman Antitrust Act in 1890 (see also antitrust law). While every effort has been made to follow citation style rules, there may be some discrepancies. [121] It also built the Peking Union Medical College in China into a notable institution. John Jr.'s youngest son David Rockefeller was a leading New York banker, serving for over 20 years as CEO of Chase Manhattan (now part of JPMorgan Chase). [36], As a youth, Rockefeller reportedly said that his two great ambitions were to make $100,000 (equivalent to $2.91million[37] in 2021 dollars) and to live 100 years. Flagler expanded it to accommodate 600 guests and the hotel soon became one in a series of Gilded Age hotels catering to passengers aboard Flagler's Florida East Coast Railway. [21] William Sr. was first a lumberman and then a traveling salesman who identified himself as a "botanic physician" who sold elixirs, described by locals as "Big Bill" and "Devil Bill. [65] Despite improving the quality and availability of kerosene products while greatly reducing their cost to the public (the price of kerosene dropped by nearly 80% over the life of the company), Standard Oil's business practices created intense controversy. The Paris Rothschilds jumped into the fray providing financing. [78] More threatening to Standard's power was the Sherman Antitrust Act of 1890, originally used to control unions, but later central to the breakup of the Standard Oil trust. Rockefeller's wealth soared as kerosene and gasoline grew in importance, and he became the richest person in the country, controlling 90% of all oil in the United States at his peak. "[72] Over time, foreign competition and new finds abroad eroded his dominance. During the next decade, kerosene became commonly available to the working and middle classes. It added its own pipelines, tank cars, and home delivery network. Rockefellers benefactions during his lifetime totaled more than $500 million. [44] Likewise, Rockefeller's refineries hired their own plumbers, cutting the cost of pipe-laying in half. We correct them as soon as they come to our knowledge. [71], The company's vast American empire included 20,000 domestic wells, 4,000 miles of pipeline, 5,000 tank cars, and over 100,000 employees. American business magnate and philanthropist (18391937), For other people named John D. Rockefeller, see, Business partnership and Civil War service, Strike of 191314 and the Ludlow Massacre. [96] When testifying on the Ludlow Massacre, and asked what action he would have taken as Director, John D. Rockefeller Jr. stated, "I would have taken no action. [3][4] Rockefeller was born into a large family in Upstate New York that moved several times before eventually settling in Cleveland. After the war, he donated land for the United Nations headquarters, a gift that figured prominently in the decision to His personal wealth was 900million in 1913 worth 23.5 billion dollars adjusted for inflation in 2020. In 1882, Rockefeller's lawyers created an innovative form of corporation to centralize their holdings, giving birth to the Standard Oil Trust. [71] Its share of world oil refining topped out above 90% but slowly dropped to about 80% for the rest of the century. While most refiners dumped oil byproducts into nearby rivers, Rockefeller wisely hired research-and-development men to produce waxes, paving materials, and detergents from the seemingly unmarketable sludge that was discarded. Money making was considered by him a "God-given gift".[101]. [46] In this environment of a wasteful boom, the partners switched from foodstuffs to oil, building an oil refinery in 1863 in "The Flats", then Cleveland's burgeoning industrial area. He gave money to the Union cause, as did many rich Northerners who avoided combat. Within two years it is the largest refinery in the area. He followed his father's advice to "trade dishes for platters" and always get the better part of any deal. [citation needed], By the end of the American Civil War, Cleveland was one of the five main refining centers in the U.S. (besides Pittsburgh, Pennsylvania, New York, and the region in northwestern Pennsylvania where most of the oil originated). He has been widely considered the wealthiest American of all time[1][2] and the richest person in modern history. [86] The court ruled that the trust originated in illegal monopoly practices and ordered it to be broken up into 34 new companies. [38], In 1859, Rockefeller went into the produce commission business with a partner, Maurice B. Clark, and they raised $4,000 ($120,637 in 2021 dollars) in capital. WebROCKEFELLER, JOHN D. (8 July 1839-23 May 1937), industrialist and philanthropist, rose from his position as an assistant bookkeeper for a Cleveland commission merchant to become one of the wealthiest men in the U.S. through his efforts in developing the STANDARD OIL CO. Born on a farm near Richford, NY. Omissions? Full of work and full of play The railroads competed fiercely for traffic and, in an attempt to create a cartel to control freight rates, formed the South Improvement Company offering special deals to bulk customers like Standard Oil, outside the main oil centers. I would have deplored the necessity which compelled the officers of the company to resort to such measures to supplement the State forces to maintain law and order." Economic historian Robert Whaples warns against ignoring the secrets of his business success: [R]elentless cost cutting and efficiency improvements, boldness in betting on the long-term prospects of the industry while others were willing to take quick profits, and impressive abilities to spot and reward talent, delegate tasks, and manage a growing empire. [94], The casualties suffered at Ludlow mobilized public opinion against the Rockefellers and the coal industry. WebROCKEFELLER, JOHN D. (8 July 1839-23 May 1937), industrialist and philanthropist, rose from his position as an assistant bookkeeper for a Cleveland commission merchant to become one of the wealthiest men in the U.S. through his efforts in developing the STANDARD OIL CO. Born on a farm near Richford, NY. In 1870 Rockefeller established the Standard Oil Company. In 1972 Congress honored his contributions by creating a memorial parkway between Yellowstone and Grand Teton national parks, which bears his name. Great-grandson John Davison "Jay" Rockefeller IV served from 1985 until 2015 as a Democratic Senator from West Virginia after serving as governor of West Virginia,[100] and another Winthrop served as lieutenant governor of Arkansas for a decade. [70] The public and the press were immediately suspicious of this new legal entity, and other businesses seized upon the idea and emulated it, further inflaming public sentiment. WebTwo things about the oil industry, however, bothered Rockefeller right from the start: the appalling waste and the fluctuating prices. Many people were impacted in a negative way and his business tactics were not always ethical. Rockefeller's operative, Lamont Montgomery Bowers,[93] remained in the background. On this Wikipedia the language links are at the top of the page across from the article title. While traveling the South, he would donate large sums of money to churches belonging to the Southern Baptist Convention, various Black churches, as well as other Christian denominations. [citation needed] [35] Rockefeller received $16 a month for his three-month apprenticeship. [32], In September 1855, when Rockefeller was sixteen, he got his first job as an assistant bookkeeper working for a small produce commission firm in Cleveland called Hewitt & Tuttle. Billionaire John D. Rockefeller (July 8, 1839 to May 23, 1937) continues to rank as one of the richest men in modern times. It was broken up into 34 separate entities, which included companies that became ExxonMobil, Chevron Corporation, and otherssome of which still have the highest level of revenue in the world. [a] Oil was used throughout the country as a light source until the introduction of electricity, and as a fuel after the invention of the automobile. WebIn the 1860s John D. Rockefeller took note of the expansion of oil production in western Pennsylvania and built an oil refinery near Cleveland, Ohio, in 1863. Mr. Rockefeller financed the construction of museums in Mesa Verde, Grand Canyon, and Yellowstone national parks. I, 1879)", "Militia slaughters strikers at Ludlow, Colorado", "Laura Spelman Rockefeller Memorial Foundation", "Text of Rockefeller's Letter to Dr. Butler", "John D. Rockefeller Sr. and family timeline", "John D Rockefeller:Infinitely Ruthless, Profoundly Charitable", "The Richest Man In History: Rockefeller is Born", "Financier's Fortune in Oil Amassed in Industrial Era of 'Rugged Individualism', "Toward a 'Universal Heritage': Education and the Development of Rockefeller Philanthropy, 18841913", Standard Oil Co. of New Jersey v. United States, Standard Oil Co. v. United States (Standard Stations), https://en.wikipedia.org/w/index.php?title=John_D._Rockefeller&oldid=1138196481, American businesspeople in the oil industry, Wikipedia articles needing page number citations from February 2021, Articles with incomplete citations from February 2021, Short description is different from Wikidata, Wikipedia indefinitely semi-protected pages, All Wikipedia articles written in American English, Articles with incomplete citations from May 2021, Wikipedia articles needing page number citations from January 2023, Articles with unsourced statements from October 2016, Articles with unsourced statements from May 2021, Articles with unsourced statements from December 2017, Articles with unsourced statements from September 2016, Articles with unsourced statements from November 2016, Articles with unsourced statements from December 2020, Articles with unsourced statements from April 2020, Pages using Sister project links with wikidata namespace mismatch, Pages using Sister project links with hidden wikidata, Creative Commons Attribution-ShareAlike License 3.0, Alice Rockefeller (July 14, 1869 August 20, 1870), Public Diary of John D. Rockefeller, now found in the Cleveland Western Historical Society, This page was last edited on 8 February 2023, at 14:21. The cartel offered preferential treatment as a high-volume shipper, which included not just steep discounts/rebates of up to 50% for their product but rebates for the shipment of competing products. [101] Later in his life, Rockefeller recalled: "It was at this moment, that the financial plan of my life was formed". John D. Rockefeller was born in Richford, New York, then part of the Burned-over district, a New York state region that became the site of an evangelical revival known as the Second Great Awakening. On this day in 1870, Rockefeller incorporated the company that would make him almost inconceivably rich and, in many ways, begin the modern age of oil. A deal brokered by Henry Clay Frick exchanged Standard's iron interests for U.S. Steel stock and gave Rockefeller and his son membership on the company's board of directors. Public hostility toward monopolies, of which Standard was the best known, caused some countries to enact anti-monopoly laws. John D. Rockefeller and his son, John D. Rockefeller, Jr. Those practices enabled the company to negotiate withrailroadsfor favoured rates on its shipments of oil. [53], On January 10, 1870, Rockefeller abolished the partnership of Rockefeller, Andrews & Flagler,[54] forming Standard Oil of Ohio. In 1862, a barrel (42 gallons) of oil dropped in value from $4.00 to 35 cents. Osgood left the company in 1904 and devoted his efforts to operating competing coal and coke operations. [94] Rockefeller denied any responsibility and minimized the seriousness of the event. He paid towards the freedom of two slaves[102] and donated to a Roman Catholic orphanage. This campaign used a combination of politics and science, along with collaboration between healthcare workers and government officials to accomplish its goals. By 1868, with Rockefeller continuing practices of borrowing and reinvesting profits, controlling costs, and using refineries' waste, the company owned two Cleveland refineries and a marketing subsidiary in New York; it was the largest oil refinery in the world. Born in upstate New York, Rockefeller entered the oil business by investing in a Cleveland, Ohio refinery in 1863. For these reasons, Rockefeller and other heads of monopolistic companies were called robber barons by their critics. "I never had an animus against their size and wealth, never objected to their corporate form. [128], Henry Morrison Flagler, one of the co-founders of Standard Oil along with Rockefeller, bought the Ormond Hotel in 1890, located in Ormond Beach, Florida, two years after it opened. She also put up with his philandering and his double life, which included bigamy. The University of Chicago has long accorded John D. Rockefeller the official designation of "Founder," and that accolade may offer some historical compensation to Rockefeller's more conventional and hostile sobriquet of "robber baron." "[30], When he was a boy, his family moved to Moravia, New York, and to Owego, New York, in 1851, where he attended Owego Academy. John D. had spent a lifetime trying to bury the truth about a relative whose actions threatened the entire empire he had worked so hard to build. US Gross Domestic Product 19131939 Stuck on Stupid: U.S. Economy. Rockefeller revolutionized the petroleum industry and, through corporate and technological innovations, was instrumental in both widely disseminating and drastically reducing the production cost of oil. Due to be drafted to serve the Union in the Civil War in 1863, the 23-year-old Rockefeller did what many men of means had done: He paid for someone to serve in his place. [1] According to some methods of wealth calculation, Rockefeller's net worth over the last decades of his life would easily place him as the wealthiest known person in recent history. [58] Eventually, even his former antagonists, Pratt and Rogers, saw the futility of continuing to compete against Standard Oil; in 1874, they made a secret agreement with Rockefeller to be acquired. From the different reports and the different historians opinions, I feel that Rockefeller and his business negatively impacted society. [citation needed], His mother was deeply religious and disciplined, and had a major influence on him in religious matters. [69] The "trust" was a corporation of corporations, and the entity's size and wealth drew much attention. That is, two years after the dissolution of Standard Oil. He even gave dimes as a playful gesture to wealthy men, such as tire mogul Harvey Firestone. In less than four months in 1872, in what was later known as "The Cleveland Conquest" or "The Cleveland Massacre," Standard Oil absorbed 22 of its 26 Cleveland competitors. Billionaire John D. Rockefeller (July 8, 1839 to May 23, 1937) continues to rank as one of the richest men in modern times. Encyclopaedia Britannica's editors oversee subject areas in which they have extensive knowledge, whether from years of experience gained by working on that content or via study for an advanced degree. The refinery was directly owned by Andrews, Clark & Company, which was composed of Clark & Rockefeller, chemist Samuel Andrews, and M. B. Clark's two brothers. He felt at ease and righteous following Methodist preacher John Wesley's dictum, "gain all you can, save all you can, and give all you can. Rather than try to influence the price of crude oil directly, Standard Oil had been exercising indirect control by altering oil storage charges to suit market conditions. What was John D. Rockefeller remembered for? John D. Rockefeller founded the Standard Oil Company, which dominated the oil industry and was the first great U.S. business trust. It kept oil prices low to stave off competitors, made its products affordable to the average household, and, to increase market penetration, sometimes sold below cost. [28] John did his share of the regular household chores and earned extra money raising turkeys, selling potatoes and candy, and eventually lending small sums of money to neighbors. Due to be drafted to serve the Union in the Civil War in 1863, the 23-year-old Rockefeller did what many men of means had done: He paid for someone to serve in his place. John D Rockefeller was a businessman who emerged as one of the men with largest fortune in history. [108] John and Laura donated money and supported the Atlanta Baptist Female Seminary whose mission was in line with their faith based beliefs. John D. Rockefeller is reported to be the wealthiest man in America with about $150,000,000 and an income of $25,000 per day. He adhered to total abstinence from alcohol and tobacco throughout his life. WebHow did John Rockefeller gain his wealth? By 1882 Standard Oil had a near monopoly on the oil business in the United States. August 2, 1896 An article documents Rockefellers life and his rise to wealth, from poverty to possessing millions of dollars. He made possible the founding of the University of Chicago in 1892, and by the time of his deathfrom a heart attack in 1937, shortly before his 98th birthdayhe had given it some $35 million. John D Rockefeller was a businessman who emerged as one of the men with largest fortune in history. In 1877, Standard clashed with Thomas A. Scott, the president of the Pennsylvania Railroad, Standard's chief hauler. "[49] He was well-positioned to take advantage of postwar prosperity and the great expansion westward fostered by the growth of railroads and an oil-fueled economy. [74] Robert Nobel had established his own refining enterprise in the abundant and cheaper Russian oil fields, including the region's first pipeline and the world's first oil tanker. Nine trustees, including Rockefeller, ran the 41 companies in the trust. He wrote in a letter to Nicholas Murray Butler on June 6, 1932, that his neither Rockefeller nor his parents or his father's father and mother's mother drank alcohol. They would blow holes in the ground and gather up the oil as they could, often leading to creeks and rivers flowing with wasted oil in the place of water. [17] For advice, he relied closely on his wife Laura Spelman Rockefeller with whom he had five children. 187072 Throughout his life, Bill was notorious for conducting schemes. His contemporaries described him as reserved, earnest, religious, methodical, and discreet. Rockefeller attended Baptist churches every Sunday; when traveling he would often attend services at African-American Baptist congregations, leaving a substantial donation. When the Civil War was nearing a close and with the prospect of those war-time profits ending, Clark & Rockefeller looked toward the refining of crude oil. The companies' combined net worth rose fivefold and Rockefeller's personal wealth jumped to $900million. Hostile critics often portrayed Rockefeller as a villain with a suite of bad traitsruthless, unscrupulous and greedyand as a bully who connived his cruel path to dominance. Within two years it is the largest refinery in the area. One of the most effective attacks on Rockefeller and his firm was the 1904 publication of The History of the Standard Oil Company, by Ida Tarbell, a leading muckraker.
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