[citation needed], In 1864, Rockefeller married Laura Celestia "Cettie" Spelman (18391915), daughter of Harvey Buell Spelman and Lucy Henry. WebHow did John Rockefeller gain his wealth? [88] He and all of the other stockholders received proportionate shares in each of the 34 companies. Rockefeller's operative, Lamont Montgomery Bowers,[93] remained in the background. [134], Rockefeller died of arteriosclerosis on May 23, 1937, less than two months shy of his 98th birthday,[135] at "The Casements", his home in Ormond Beach, Florida. I want to make 'em sharp." The overproducing of oil and the developing of new markets caused the price of oil to fluctuate wildly. By 1901 he began wearing toupes and by 1902, his mustache disappeared. Tarbell's father had been driven out of the oil business during the "South Improvement Company" affair. John D. Rockefeller founded the Standard Oil Company, which dominated the oil industry and was the first great U.S. business trust. John D. Rockefeller was remembered for his wealth and for the aggressive competitive practices of the Standard Oil Company. Johann Peter Rockenfeller (baptized September 27, 1682, in the Protestant church of Rengsdorf) immigrated in 1723 from Altwied (today a district of Neuwied, Rhineland-Palatinate) with three children to North America and settled down in Germantown, Pennsylvania. Many people were impacted in a negative way and his business tactics were not always ethical. Early in his life, he regularly went with his siblings and mother Eliza to the local Baptist churchthe Erie Street Baptist Church (later the Euclid Avenue Baptist Church)an independent Baptist church which eventually came to associate with the Northern Baptist Convention (19071950; modern American Baptist Churches USA). [125] Through this, he supported work in the social studies; this was later absorbed into the Rockefeller Foundation. 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. WebJohn D. Rockefeller. Though he had long maintained a policy of active silence with the press, he decided to make himself more accessible and responded with conciliatory comments such as "capital and labor are both wild forces which require intelligent legislation to hold them in restriction." [62] The railroad, seeing Standard's incursion into the transportation and pipeline fields, struck back and formed a subsidiary to buy and build oil refineries and pipelines. Under the protection of the National Guard, some miners returned to work and some strikebreakers, imported from the eastern coalfields, joined them as Guard troops protecting their movements. His business hurt many of his workers and many other small businesses with the monopoly that he created. He moved with his family to Moravia, New York, and, in 1851, to Oswego, New York, where he attended Oswego Academy. 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. [115] In keeping with the historic missions of the Baptists, it was especially active in supporting black schools in the South. 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. 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. It added its own pipelines, tank cars, and home delivery network. In 1862, a barrel (42 gallons) of oil dropped in value from $4.00 to 35 cents. [10] His foundations pioneered developments in medical research and were instrumental in the near-eradication of hookworm[11] and yellow fever[12] in the United States. This touched off a firestorm of protest from independent oil well owners, including boycotts and vandalism, which led to the discovery of Standard Oil's part in the deal. Standard Oil adapted by developing a European presence, expanding into natural gas production in the U.S., and then producing gasoline for automobiles, which until then had been considered a waste product. Rockefeller entered the fledgling Oil industry in 1863, by investing in a factory in Cleveland, Ohio. In 1972 Congress honored his contributions by creating a memorial parkway between Yellowstone and Grand Teton national parks, which bears his name. Much of his giving was church-related. It endowed Johns Hopkins School of Hygiene and Public Health,[114] the first of its kind. [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. Rockefeller finally gave up his dream of controlling all the world's oil refining; he admitted later, "We realized that public sentiment would be against us if we actually refined all the oil. If they refused his offer, he told them he would run them into bankruptcy and then cheaply buy up their assets at auction. [138], Biographer Ron Chernow wrote of Rockefeller:[139], What makes him problematicand why he continues to inspire ambivalent reactionsis that his good side was every bit as good as his bad side was bad. Pennsylvania revoked the cartel's charter, and non-preferential rates were restored for the time being. [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. He also had a deep love of music and dreamed of it as a possible career. [71] Its share of world oil refining topped out above 90% but slowly dropped to about 80% for the rest of the century. It drew masses to various Protestant churchesespecially Baptist onesand urged believers to follow such ideals as hard work, prayer, and good deeds to build "the Kingdom of God on Earth." They thus established the first major U.S. trust and set a pattern of organization for other monopolies. The Rockefeller wealth, distributed as it was through a system of foundations and trusts, continued to fund family philanthropic, commercial, and, eventually, political aspirations throughout the 20th century. On Gates' advice, Rockefeller became one of the first great benefactors of medical science. [67] By 1880, according to the New York World, Standard Oil was "the most cruel, impudent, pitiless, and grasping monopoly that ever fastened upon a country". Much of Rockefeller's duties involved negotiating with barge canal owners, ship captains, and freight agents. A devout Northern Baptist, Rockefeller would read the Bible daily, attend prayer meetings twice a week and even led his own Bible study with his wife. American industrialist John D. Rockefeller built his first oil refinery near Cleveland and in 1870 incorporated the Standard Oil Company. He ran it until 1897 and remained its largest shareholder. From the different reports and the different historians opinions, I feel that Rockefeller and his business negatively impacted society. "[43] At that time, the Federal government was subsidizing oil prices, driving the price up from $.35 a barrel in 1862 to as high as $13.75. [129][130] It would be Rockefeller's winter home during the latter part of his life. [66], The firm was attacked by journalists and politicians throughout its existence, in part for these monopolistic methods, giving momentum to the antitrust movement. His business hurt many of his workers and many other small businesses with the monopoly that he created. Bill once bragged, "I cheat my boys every chance I get. Rockefeller then ordered the issuance of certificates against oil stored in its pipelines. Rockefeller entered the fledgling Oil industry in 1863, by investing in a factory in Cleveland, Ohio. Bowers was relieved of duty and Wellborn restored to control in 1915, then industrial relations improved. John D. Rockefeller (1839-1937), founder of the Standard Oil Company, became one of the worlds wealthiest men and a major philanthropist. During church service, his mother would urge him to contribute his few pennies to the congregation. After the war, he donated land for the United Nations headquarters, a gift that figured prominently in the decision to [108] John and Laura donated money and supported the Atlanta Baptist Female Seminary whose mission was in line with their faith based beliefs. In 1862, a barrel (42 gallons) of oil dropped in value from $4.00 to 35 cents. "[105], Rockefeller and his advisers invented the conditional grant, which required the recipient to "root the institution in the affections of as many people as possible who, as contributors, become personally concerned, and thereafter may be counted on to give to the institution their watchful interest and cooperation".[106]. 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. [90] Analysis of the company's operations by John D. Rockefeller, Jr. showed a need for substantially more funds which were provided in exchange for acquisition of CF&I's subsidiaries such as the Colorado and Wyoming Railway Company, the Crystal River Railroad Company, and possibly the Rocky Mountain Coal and Iron Company. [94][95] Costs to both mine operators and the union were high. As a percentage of the United States' GDP, no other American fortuneincluding those of Bill Gates or Sam Waltonwould even come close. Critics found his writing to be sanitized and disingenuous and thought that statements such as "the underlying, essential element of success in business are to follow the established laws of high-class dealing" seemed to be at odds with his true business methods. 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." [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. During the next decade, kerosene became commonly available to the working and middle classes. He quickly found success as it became the largest refinery in the area, and Pennzoil and Chevron have remained separate companies. We were in a new business, and if I had not stayed it must have stoppedand with so many dependent on it. 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." Born in upstate New York, Rockefeller entered the oil business by investing in a Cleveland, Ohio refinery in 1863. WebTwo things about the oil industry, however, bothered Rockefeller right from the start: the appalling waste and the fluctuating prices. Public hostility toward monopolies, of which Standard was the best known, caused some countries to enact anti-monopoly laws. "[143] By the time of his death in 1937, Rockefeller's remaining fortune, largely tied up in permanent family trusts, was estimated at $1.4billion, while the total national GDP was $92billion. 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). That orderly, economic, efficient flow is what we now, many years later, call 'vertical integration' I do not know whether Mr. Rockefeller ever used the word 'integration'. In these negotiations, he learned that posted transportation rates that were believed to be fixed could be altered depending on conditions and timing of freight and through the use of rebates to preferred shippers. 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. [3][4] Rockefeller was born into a large family in Upstate New York that moved several times before eventually settling in Cleveland. During his first year, he received $31 a month, which was increased to $50 a month. 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. In association with his son, John D. Rockefeller, Jr., he created major philanthropic institutions, including the Rockefeller Institute for Medical Research (renamed Rockefeller University) in New York City (1901), the General Education Board (1902), and the Rockefeller Foundation (1913). Furthermore, Rockefeller gained enormous influence over the railroad industry which transported his oil around the country. 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. Standard's most potent weapons against competitors were underselling, differential pricing, and secret transportation rebates. In 1892 the Ohio Supreme Court held that the Standard Oil Trust was a monopoly in violation of an Ohio law prohibiting monopolies. John Davison Rockefeller Sr. (July 8, 1839 May 23, 1937) was an American business magnate and philanthropist. Burton Folsom Jr. has noted: [H]e sometimes gave tens of thousands of dollars to Christian groups, while, at the same time, he was trying to borrow over a million dollars to expand his business. He bought a residence in 1884 on 54th Street near the mansions of other magnates such as William Henry Vanderbilt. [124], Rockefeller's fourth main philanthropy, the Laura Spelman Rockefeller Memorial Foundation, was created in 1918. WebAfter dropping out of high school, taking one business class at Folsom Mercantile College, and working as a bookkeeper, Rockefeller establishes his first business, which supplies goods such as hay, grain, and meats. [citation needed] In February 1865, in what was later described by oil industry historian Daniel Yergin as a "critical" action, Rockefeller bought out the Clark brothers for $72,500 (equivalent to $1million[37] in 2021 dollars) at auction and established the firm of Rockefeller & Andrews. Barrels that cost $2.50 each ended up only $0.96 when Rockefeller bought the wood and had them built for himself. The daily management of the trust was turned over to John Dustin Archbold and Rockefeller bought a new estate, Pocantico Hills, north of New York City, turning more time to leisure activities including the new sports of bicycling and golf. In 1862, a barrel (42 gallons) of oil dropped in value from $4.00 to 35 cents. "[48], Instead of wanting to eliminate them, Rockefeller saw himself as the industry's savior, "an angel of mercy" absorbing the weak and making the industry as a whole stronger, more efficient, and more competitive. [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. He admitted that he had made no attempt to bring the militiamen to justice. [110] The foundation helped in World War I war relief,[122] and it employed William Lyon Mackenzie King of Canada to study industrial relations. In 1884, Rockefeller provided major funding for Atlanta Baptist Female Seminary in Atlanta for African-American women, which became Spelman College. 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. Founded by John D. Rockefeller, Jr. (1839-1937), the Standard Oil Company is one of the world's richest corporations. [86] The court ruled that the trust originated in illegal monopoly practices and ordered it to be broken up into 34 new companies. These certificates became traded by speculators, thus creating the first oil-futures market which effectively set spot market prices from then on. The United States Commission on Industrial Relations conducted extensive hearings, singling out John D. Rockefeller Jr. and the Rockefellers' relationship with Bowers for special attention. In 1870 Rockefeller established the Standard Oil Company. He would describe the University of Chicago as "the best investment I ever made." 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. [29] He later stated, "From the beginning, I was trained to work, to save, and to give. Philanthropy Roundtable - Biography of John Rockefeller Sr. John D. Rockefeller - Children's Encyclopedia (Ages 8-11), John D. Rockefeller - Student Encyclopedia (Ages 11 and up). [41] While his brother Frank fought in the Civil War, Rockefeller tended his business and hired substitute soldiers. Most failed, but those who struck oil did not even need to be efficient. WebAfter dropping out of high school, taking one business class at Folsom Mercantile College, and working as a bookkeeper, Rockefeller establishes his first business, which supplies goods such as hay, grain, and meats. If we absorb them, it surely will bring up another. Billionaire John D. Rockefeller (July 8, 1839 to May 23, 1937) continues to rank as one of the richest men in modern times. 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. [79], In the 1890s, Rockefeller expanded into iron ore and ore transportation, forcing a collision with steel magnate Andrew Carnegie, and their competition became a major subject of the newspapers and cartoonists. The National Petroleum Exchange opened in Manhattan in late 1882 to facilitate the trading of oil futures. John D. Rockefeller was an American business magnate and philanthropist. US Gross Domestic Product 19131939 Stuck on Stupid: U.S. Economy. 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." [112][113][16][14][15], Rockefeller's General Education Board, founded in 1903,[114] was established to promote education at all levels everywhere in the country. 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. But it is the assertion that the Standard magnates gained their wealth by appropriating "the property of others" that most challenges our attention. I only know he conceived the idea. He came to associate the church with charity. [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. [123], In the 1920s, the Rockefeller Foundation funded a hookworm eradication campaign through the International Health Division. [44] In the kerosene industry, the company replaced the old distribution system with its own vertical system. 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. Rockefeller called her "Miss Tarbarrel" in private but held back in public saying only, "not a word about that misguided woman. Rockefeller's charitable giving began with his first job as a clerk at age 16, when he gave six percent of his earnings to charity, as recorded in his personal ledger. His hair never grew back, but other health complaints subsided as he lightened his workload. This campaign used a combination of politics and science, along with collaboration between healthcare workers and government officials to accomplish its goals. He paid towards the freedom of two slaves[102] and donated to a Roman Catholic orphanage. What was John D. Rockefeller remembered for? 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. 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. Even with the high costs of freight transportation and a government levy during the Civil War (the government levied a tax of twenty cents a gallon on refined oil), profits on the refined product were large. From the different reports and the different historians opinions, I feel that Rockefeller and his business negatively impacted society. Both sides purchased substantial arms and ammunition. He truly believed in the biblical principle found in Luke 6:38, "Give, and it will be given to you. Within two years it is the largest refinery in the area. Consequently, Rockefeller became the country's first billionaire, with a fortune worth nearly 2% of the national economy. A devout Baptist, Rockefeller turned his attention increasingly during the 1890s to charities and benevolence; after 1897 he devoted himself completely to philanthropy. Rockefeller evaded the decision by dissolving the trust and transferring its properties to companies in other states, with interlocking directorates so that the same nine men controlled the operations of the affiliated companies. "I never had an animus against their size and wealth, never objected to their corporate form. [109] Rockefeller also gave considerable donations to Denison University[110] and other Baptist colleges. Seldom has history produced such a contradictory figure. [33] He worked long hours and delighted, as he later recalled, in "all the methods and systems of the office. Rockefeller had entered the raucous oil business during the Civil War, when oil often sold for a dollar a gallon. In the aftermath, Rockefeller's control over the oil industry was somewhat reduced, but over the next 10 years the breakup proved immensely profitable for him. 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. [48], Undeterred, though vilified for the first time by the press, Rockefeller continued with his self-reinforcing cycle of buying the least efficient competing refiners, improving the efficiency of his operations, pressing for discounts on oil shipments, undercutting his competition, making secret deals, raising investment pools, and buying rivals out. Even more critical, the invention of the light bulb gradually began to erode the dominance of kerosene for illumination. "I wanted to go in the army and do my part," Rockefeller said. 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. John D Rockefeller was a businessman who emerged as one of the men with largest fortune in history. WebIn 1973 Rockefeller founded the Trilateral Commission, a private international organization designed to confront the challenges posed by globalization and to encourage greater cooperation between the United States and its principal allies (Canada, Japan, and the countries of western Europe). 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. They write new content and verify and edit content received from contributors. But they had never played fair, and that ruined their greatness for me." Rockefeller was also considered a supporter of capitalism based on a perspective of social Darwinism, and he was quoted often as saying, "The growth of a large business is merely a survival of the fittest". 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. Public hostility toward monopolies, of which Standard was the best known, caused some countries to enact anti-monopoly laws. 186365 Rockefeller builds his first oil refinery, near Cleveland. For many of his competitors, Rockefeller had merely to show them his books so they could see what they were up against and then make them a decent offer. Second son Nelson Aldrich Rockefeller was Republican governor of New York and the 41st Vice President of the United States. Continuing to apply his work ethic and efficiency, Rockefeller quickly expanded the company to be the most profitable refiner in Ohio. [82], Upon his ascent to the presidency, Theodore Roosevelt initiated dozens of suits under the Sherman Antitrust Act and coaxed reforms out of Congress. On April 20, 1914, a general fire-fight occurred between strikers and troops, which was antagonized by the troops and mine guards. On this Wikipedia the language links are at the top of the page across from the article title. These contemporaries include his former competitors, many of whom were driven to ruin, but many others of whom sold out at a profit (or a profitable stake in Standard Oil, as Rockefeller often offered his shares as payment for a business), and quite a few of whom became very wealthy as managers as well as owners in Standard Oil.

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