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. Articles from Britannica Encyclopedias for elementary and high school students. [citation needed], Rockefeller created the Rockefeller Foundation in 1913[119] to continue and expand the scope of the work of the Sanitary Commission,[114] which was closed in 1915. Standard's most potent weapons against competitors were underselling, differential pricing, and secret transportation rebates. [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. 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. 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Rockefeller, now found in the Cleveland Western Historical Society, This page was last edited on 8 February 2023, at 14:21. It endowed Johns Hopkins School of Hygiene and Public Health,[114] the first of its kind. Public hostility toward monopolies, of which Standard was the best known, caused some countries to enact anti-monopoly laws. [121] It also built the Peking Union Medical College in China into a notable institution. 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. Pratt's son, Charles Millard Pratt, became secretary of Standard 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. 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. [126], Rockefeller became well known in his later life for the practice of giving dimes to adults and nickels to children wherever he went. Rockefeller had entered the raucous oil business during the Civil War, when oil often sold for a dollar a gallon. It added its own pipelines, tank cars, and home delivery network. On April 20, 1914, a general fire-fight occurred between strikers and troops, which was antagonized by the troops and mine guards. [115] In keeping with the historic missions of the Baptists, it was especially active in supporting black schools in the South. 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. But it is the assertion that the Standard magnates gained their wealth by appropriating "the property of others" that most challenges our attention. The Paris Rothschilds jumped into the fray providing financing. [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. In 1899 these companies were brought back together in a holding company, Standard Oil Company (New Jersey), which existed until 1911, when the U.S. Supreme Court declared it in violation of the Sherman Antitrust Act and therefore illegal. [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. The companies' combined net worth rose fivefold and Rockefeller's personal wealth jumped to $900million. [57] While competitors may have been unhappy, Rockefeller's efforts did bring American consumers cheaper kerosene and other oil by-products. On Gates' advice, Rockefeller became one of the first great benefactors of medical science. [14][15][16] He was a devout Northern Baptist and supported many church-based institutions. In 1867, Henry Morrison Flagler became a partner, and the firm of Rockefeller, Andrews & Flagler was established. I only know he conceived the idea. [7][pageneeded][8][b], Rockefeller spent much of the last 40 years of his life in retirement at Kykuit, his estate in Westchester County, New York, defining the structure of modern philanthropy, along with other key industrialists such as steel magnate Andrew Carnegie. He supported the incorporation of repealing the 18th amendment into the Republican party platform. In 1862, a barrel (42 gallons) of oil dropped in value from $4.00 to 35 cents. 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. Rockefeller had entered the raucous oil business during the Civil War, when oil often sold for a dollar a gallon. Control was passed from the Iowa Group[91] to Gould and Rockefeller interests in 1903 with Gould in control and Rockefeller and Gates representing a minority interests. My life has been one long, happy holiday; Public hostility toward monopolies, of which Standard was the best known, caused some countries to enact anti-monopoly laws. In 1882, Rockefeller's lawyers created an innovative form of corporation to centralize their holdings, giving birth to the Standard Oil Trust. 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. 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. [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. Consequently, Rockefeller became the country's first billionaire, with a fortune worth nearly 2% of the national economy. 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. Standard Oil was the first great business trust in the United States. [75] Additional fields were discovered in Burma and Java. The capital expenditures for a refinery at that time were small around $1,000 to $1,500 and requiring only a few men to operate. [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. Likewise, it became one of the largest shippers of oil and kerosene in the country. A. D. John. [55], Part of this scheme was the announcement of sharply increased freight charges. Omissions? He truly believed in the biblical principle found in Luke 6:38, "Give, and it will be given to you. His General Education Board made a dramatic impact by funding the recommendations of the Flexner Report of 1910. 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. From the different reports and the different historians opinions, I feel that Rockefeller and his business negatively impacted society. There was destitution in the coalfields. 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. The overproducing of oil and the developing of new markets caused the price of oil to fluctuate wildly. [63], Standard countered, held back its shipments, and, with the help of other railroads, started a price war that dramatically reduced freight payments and caused labor unrest. 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. His contemporaries described him as reserved, earnest, religious, methodical, and discreet. [5] His personal wealth was estimated in 1913 at $900million, which was almost 3% of the US GDP of $39.1billion that year. These certificates became traded by speculators, thus creating the first oil-futures market which effectively set spot market prices from then on. It developed over 300 oil-based products from tar to paint to petroleum jelly to chewing gum. That fact enabled the company to negotiate with railroads for favoured rates on its shipments of oil. During church service, his mother would urge him to contribute his few pennies to the congregation. WebThe Rockefeller family (/ r k f l r /) is an American industrial, political, and banking family that owns one of the world's largest fortunes.The fortune was made in the American petroleum industry during the late 19th and early 20th centuries by brothers John D. Rockefeller and William A. Rockefeller Jr., primarily through Standard Oil (the [125] Through this, he supported work in the social studies; this was later absorbed into the Rockefeller Foundation. [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". 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). He made possible the founding of the University of Chicago and endowed major philanthropic institutions. 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. Much of Rockefeller's duties involved negotiating with barge canal owners, ship captains, and freight agents. Rockefeller entered the fledgling Oil industry in 1863, by investing in a factory in Cleveland, Ohio. 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. [84] Although her work prompted a huge backlash against the company, Tarbell stated she was surprised at its magnitude. He borrowed heavily, reinvested profits, adapted rapidly to changing markets, and fielded observers to track the quickly expanding industry. Learn about John D. Rockefeller's historic-preservation of early American history at Williamsburg. [45], A market existed for the refined oil in the form of kerosene. [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. American industrialist John D. Rockefeller built his first oil refinery near Cleveland and in 1870 incorporated the Standard Oil Company. Within two years it is the largest refinery in the area. Rockefeller said, "It was the day that determined my career. Mr. Rockefeller financed the construction of museums in Mesa Verde, Grand Canyon, and Yellowstone national parks. WebTwo things about the oil industry, however, bothered Rockefeller right from the start: the appalling waste and the fluctuating prices. The price of the refined oil in 1863 was around $13 a barrel, with a profit margin of around $5 to $8 a barrel. Bowers was relieved of duty and Wellborn restored to control in 1915, then industrial relations improved. 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. Seldom has history produced such a contradictory figure. Updates? In total Rockefeller donated about $530million. In 1972 Congress honored his contributions by creating a memorial parkway between Yellowstone and Grand Teton national parks, which bears his name. Mr. Rockefeller financed the construction of museums in Mesa Verde, Grand Canyon, and Yellowstone national parks. In February 1914, a substantial portion of the troops were withdrawn, but a large contingent remained at Ludlow. They thus established the first major U.S. trust and set a pattern of organization for other monopolies. In 1902, an audit showed Rockefeller was worth about $200millioncompared to the total national GDP of $24billion then. [107] His wife Laura Spelman Rockefeller, was dedicated to civil rights and equality for women. 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. 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). American industrialist John D. Rockefeller built his first oil refinery near Cleveland and in 1870 incorporated the Standard Oil Company. Then he took a ten-week business course at Folsom's Commercial College, where he studied bookkeeping. [120] He gave $182million to the foundation,[107] which focused on public health, medical training, and the arts. He ran it until 1897 and remained its largest shareholder. This was probably the greatest amount of wealth that any private citizen had ever been able to accumulate by his own efforts. Grandson Laurance Spelman Rockefeller became a conservationist. He had an elder sister named Lucy and four younger siblings: William Jr., Mary, and twins Franklin (Frank) and Frances. [88] He and all of the other stockholders received proportionate shares in each of the 34 companies. [6][full citation needed] That was his peak net worth, and amounts to US$24.7billion (in 2021 dollars; inflation-adjusted). [citation needed] The study, an excerpt of which was published in The Atlantic,[13] had been undertaken by the Carnegie Foundation for the Advancement of Teaching. [132], In his 50s Rockefeller suffered from moderate depression and digestive troubles; during a stressful period in the 1890s he developed alopecia, the loss of some or all body hair. Tarbell's father had been driven out of the oil business during the "South Improvement Company" affair. In 1862, a barrel (42 gallons) of oil dropped in value from $4.00 to 35 cents. She also put up with his philandering and his double life, which included bigamy. Learn the history behind Byron Benson's building the world's first oil pipeline (1879), defeating John D. Rockefeller and the Standard Oil Company, This article was most recently revised and updated by, https://www.britannica.com/biography/John-D-Rockefeller, PBS - American Experience - Biography of John D. Rockefeller, Senior, Ohio History Central - Biography of John D. Rockefeller, United States History - Biography of John D. Rockefeller. 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." Founded by John D. Rockefeller, Jr. (1839-1937), the Standard Oil Company is one of the world's richest corporations. [29] He later stated, "From the beginning, I was trained to work, to save, and to give. Fourth son Winthrop Aldrich Rockefeller served as Republican Governor of Arkansas. [94], The casualties suffered at Ludlow mobilized public opinion against the Rockefellers and the coal industry.
