In 1877, Standard clashed with Thomas A. Scott, the president of the Pennsylvania Railroad, Standard's chief hauler. 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. "[34] He was particularly adept at calculating transportation costs, which served him well later in his career. 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." "[22] Unshackled by conventional morality, he led a vagabond existence and returned to his family infrequently. [18] Religion was a guiding force throughout his life and he believed it to be the source of his success. 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. After the war, he donated land for the United Nations headquarters, a gift that figured prominently in the decision to [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). 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. Born in upstate New York, Rockefeller entered the oil business by investing in a Cleveland, Ohio refinery in 1863. Bowers was relieved of duty and Wellborn restored to control in 1915, then industrial relations improved. WebJohn D. Rockefeller was the richest man of his time but, used his wealth to improve our country. 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. Pennsylvania revoked the cartel's charter, and non-preferential rates were restored for the time being. Public hostility toward monopolies, of which Standard was the best known, caused some countries to enact anti-monopoly laws. [120] He gave $182million to the foundation,[107] which focused on public health, medical training, and the arts. That is, two years after the dissolution of Standard Oil. [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. 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). 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. 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. The union was forced to discontinue strike benefits in February 1915. His philosophy of giving was founded upon biblical principles. To critics Rockefeller replied, "In a business so large as ours some things are likely to be done which we cannot approve. His company and business practices came under criticism, particularly in the writings of author Ida Tarbell . He truly believed in the biblical principle found in Luke 6:38, "Give, and it will be given to you. 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. Bill once bragged, "I cheat my boys every chance I get. 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. [14][15][16] He was a devout Northern Baptist and supported many church-based institutions. 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. John D. Rockefeller (1839-1937), founder of the Standard Oil Company, became one of the worlds wealthiest men and a major philanthropist. 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. [109] Rockefeller also gave considerable donations to Denison University[110] and other Baptist colleges. Public hostility toward monopolies, of which Standard was the best known, caused some countries to enact anti-monopoly laws. 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. 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." 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. [94] Rockefeller denied any responsibility and minimized the seriousness of the event. [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. [115] Rockefeller also provided financial support to such established eastern institutions as Yale, Harvard, Columbia, Brown, Bryn Mawr, Wellesley and Vassar. 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). [citation needed], In 1864, Rockefeller married Laura Celestia "Cettie" Spelman (18391915), daughter of Harvey Buell Spelman and Lucy Henry. The Spelman Family, Rockefeller's in-laws, along with John Rockefeller were ardent abolitionists before the Civil War and were dedicated to supporting the Underground Railroad. [77] In 1887, Congress created the Interstate Commerce Commission which was tasked with enforcing equal rates for all railroad freight, but by then Standard depended more on pipeline transport. The family relocated to Strongsville, a town near Cleveland, Ohio, in 1853, and six years laterafter attending and later dropping out of Clevelands Central High School, taking a single business class at Folsom Mercantile College, and working as a bookkeeperRockefeller established his first enterprise, a commission business dealing in hay, grain, meats, and other goods. In 1902, an audit showed Rockefeller was worth about $200millioncompared to the total national GDP of $24billion then. Ohio was especially vigorous in applying its state antitrust laws, and finally forced a separation of Standard Oil of Ohio from the rest of the company in 1892, the first step in the dissolution of the trust. "[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. [9] His fortune was mainly used to create the modern systematic approach of targeted philanthropy through the creation of foundations that had a major effect on medicine, education, and scientific research. All the fortune that I have made has not served to compensate me for the anxiety of that period. 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 In the aftermath of that battle, the Commonwealth of Pennsylvania indicted Rockefeller in 1879 on charges of monopolizing the oil trade, starting an avalanche of similar court proceedings in other states and making a national issue of Standard Oil's business practices. 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. [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. [107] His wife Laura Spelman Rockefeller, was dedicated to civil rights and equality for women. 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. [85], Rockefeller and his son continued to consolidate their oil interests as best they could until New Jersey, in 1909, changed its incorporation laws to effectively allow a re-creation of the trust in the form of a single holding company. Alternate titles: John Davison Rockefeller. In 1881 Rockefeller and his associates placed the stock of Standard of Ohio and its affiliates in other states under the control of a board of nine trustees, with Rockefeller at the head. 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. [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. 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." 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. John Davison Rockefeller Sr. (July 8, 1839 May 23, 1937) was an American business magnate and philanthropist. WebBy 1858, Rockefeller had more responsibilities at Hewitt & Tuttle. [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. Born in upstate New York, Rockefeller entered the oil business by investing in a Cleveland, Ohio refinery in 1863. His business hurt many of his workers and many other small businesses with the monopoly that he created. 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. 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. Rockefeller was also given the duties of collecting debts when Hewitt instructed him to do so. 2001. I was willing that they should combine and grow as big and wealthy as they could, but only by legitimate means. Strikebreakers (called "scabs") were threatened and sometimes attacked. In full retirement at age 63, Rockefeller earned over $58million in investments in 1902. Grandson Laurance Spelman Rockefeller became a conservationist. Due to reduced demand for coal, resulting from an economic downturn, many of CF&I's coal mines never reopened and many men were thrown out of work. [84] Although her work prompted a huge backlash against the company, Tarbell stated she was surprised at its magnitude. [citation needed], His mother was deeply religious and disciplined, and had a major influence on him in religious matters. 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. He had an elder sister named Lucy and four younger siblings: William Jr., Mary, and twins Franklin (Frank) and Frances. August 2, 1896 An article documents Rockefellers life and his rise to wealth, from poverty to possessing millions of dollars. [82], Upon his ascent to the presidency, Theodore Roosevelt initiated dozens of suits under the Sherman Antitrust Act and coaxed reforms out of Congress. In 1884, Rockefeller provided major funding for Atlanta Baptist Female Seminary in Atlanta for African-American women, which became Spelman College. There was no one to take my place. "John D. Rockefeller: Oil Baron and Philanthropist." [115] In keeping with the historic missions of the Baptists, it was especially active in supporting black schools in the South. [64] Rockefeller was under great strain during the 1870s and 1880s when he was carrying out his plan of consolidation and integration and being attacked by the press. [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. 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. 187072 WebJohn D. Rockefeller was the richest man of his time but, used his wealth to improve our country. 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. [57] While competitors may have been unhappy, Rockefeller's efforts did bring American consumers cheaper kerosene and other oil by-products. 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). ", Rockefeller was an abolitionist who voted for President Abraham Lincoln and supported the then-new Republican Party. 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. [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. 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 1892 the Ohio Supreme Court held that the Standard Oil Trust was a monopoly in violation of an Ohio law prohibiting monopolies. For these reasons, Rockefeller and other heads of monopolistic companies were called robber barons by their critics. He quickly found success as it became the largest refinery in the area, and [44] This created an oil-drilling glut, with thousands of speculators attempting to make their fortunes. Furthermore, Rockefeller gained enormous influence over the railroad industry which transported his oil around the country. 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. He came to associate the church with charity. "[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]. [127], Rockefeller supported the passage of the 18th Amendment, which banned alcohol in the United States. [126], Rockefeller became well known in his later life for the practice of giving dimes to adults and nickels to children wherever he went. [3][4] Rockefeller was born into a large family in Upstate New York that moved several times before eventually settling in Cleveland. Most failed, but those who struck oil did not even need to be efficient. Billionaire John D. Rockefeller (July 8, 1839 to May 23, 1937) continues to rank as one of the richest men in modern times. [33] He worked long hours and delighted, as he later recalled, in "all the methods and systems of the office. Rockefeller believed in the Efficiency Movement, arguing that: "To help an inefficient, ill-located, unnecessary school is a waste it is highly probable that enough money has been squandered on unwise educational projects to have built up a national system of higher education adequate to our needs, if the money had been properly directed to that end. Rockefeller had entered the raucous oil business during the Civil War, when oil often sold for a dollar a gallon. Rockefeller then ordered the issuance of certificates against oil stored in its pipelines. 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. As a result, Rockefeller and his associates owned dozens of separate corporations, each of which operated in just one state; the management of the whole enterprise was rather unwieldy. He was advised primarily by Frederick Taylor Gates[103] after 1891,[104] and, after 1897, also by his son. Seldom has history produced such a contradictory figure. Our editors will review what youve submitted and determine whether to revise the article. [42] As he said, "God gave me money", and he did not apologize for it. If they refused his offer, he told them he would run them into bankruptcy and then cheaply buy up their assets at auction. [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. Barrels that cost $2.50 each ended up only $0.96 when Rockefeller bought the wood and had them built for himself. 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. Corrections? Rockefeller envisioned pipelines as an alternative transport system for oil and began a campaign to build and acquire them. WebJohn D. Rockefeller was the richest man of his time but, used his wealth to improve our country. By 1869 there was triple the kerosene refining capacity than needed to supply the market, and the capacity remained in excess for many years. In 1901, U.S. Steel, then controlled by J. Pierpont Morgan, having bought Andrew Carnegie's steel assets, offered to buy Standard's iron interests as well. 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. [citation needed], Pratt and Rogers became Rockefeller's partners. Rockefeller prevailed and the railroad sold its oil interests to Standard. But by 1932, Rockefeller felt disillusioned by prohibition because of its failure to discourage drinking and alcoholism. The oldest existing building on Spelman's campus, Rockefeller Hall, is named after him. The overproducing of oil and the developing of new markets caused the price of oil to fluctuate wildly. Rockefeller entered the fledgling Oil industry in 1863, by investing in a factory in Cleveland, Ohio. In 1901, he founded the Rockefeller Institute for Medical Research[114] in New York City. [86] The court ruled that the trust originated in illegal monopoly practices and ordered it to be broken up into 34 new companies. 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. [27] His church was later affiliated with the Northern Baptist Convention, which formed from American Baptists in the North with ties to their historic missions to establish schools and colleges for freedmen in the South after the American Civil War. 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. Tarbell's father had been driven out of the oil business during the "South Improvement Company" affair. 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. His company and business practices came under criticism, particularly in the writings of author Ida Tarbell . He moved with his family to Moravia, New York, and, in 1851, to Oswego, New York, where he attended Oswego Academy. 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. Whale oil had become too expensive for the masses, and a cheaper, general-purpose lighting fuel was needed. Much of his giving was church-related. [13], Rockefeller was also the founder of the University of Chicago and Rockefeller University and funded the establishment of Central Philippine University in the Philippines. Within two years it is the largest refinery in the area. WebJohn D. Rockefeller. Sensing the commercial potential of the expanding oil production in western Pennsylvania in the early 1860s, he built his first oil refinery, near Cleveland, in 1863. He admitted that he had made no attempt to bring the militiamen to justice. Few miners actually belonged to the union or participated in the strike call, but the majority honored it. [47], While other refineries would keep the 60% of oil product that became kerosene, but dump the other 40% in rivers and massive sludge piles,[48] Rockefeller used the gasoline to fuel the refinery, and sold the rest as lubricating oil, petroleum jelly and paraffin wax, and other by-products. Continuing to apply his work ethic and efficiency, Rockefeller quickly expanded the company to be the most profitable refiner in Ohio. 187072 However, his mother was more influential in his upbringing and beyond, while he distanced himself further and further from his father as his life progressed. He quickly found success as it became the largest refinery in the area, and He has been widely considered the wealthiest American of all time[1][2] and the richest person in modern history. 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. Learn about John D. Rockefeller's historic-preservation of early American history at Williamsburg. Second son Nelson Aldrich Rockefeller was Republican governor of New York and the 41st Vice President of the United States. 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. It had become the richest, biggest, most feared business in the world, seemingly immune to the boom and bust of the business cycle, consistently making profits year after year. 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. [129][130] It would be Rockefeller's winter home during the latter part of his life. Public hostility toward monopolies, of which Standard was the best known, caused some countries to enact anti-monopoly laws. The companies' combined net worth rose fivefold and Rockefeller's personal wealth jumped to $900million. He instinctively realized that orderliness would only proceed from centralized control of large aggregations of plant and capital, with the one aim of an orderly flow of products from the producer to the consumer. [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. On Gates' advice, Rockefeller became one of the first great benefactors of medical science. [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. Standard Oils questionable ethics were also taken to task by American journalist Ida Tarbell in her 19-part expos and commentary called The History of the Standard Oil Company, which was released in installments by McClures Magazine between 1902 and 1904. Rockefeller liked the Ormond Beach area so much that after four seasons at the hotel, he bought an estate in Ormond Beach called The Casements. WebTwo things about the oil industry, however, bothered Rockefeller right from the start: the appalling waste and the fluctuating prices. [citation needed] During church service, his mother would urge him to contribute his few pennies to the congregation. 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. [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. Likewise, it became one of the largest shippers of oil and kerosene in the country.