[80] He went on a massive buying spree acquiring leases for crude oil production in Ohio, Indiana, and West Virginia, as the original Pennsylvania oil fields began to play out. "I wanted to go in the army and do my part," Rockefeller said. [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. Within two years it is the largest refinery in the area. 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. [117] He founded the Rockefeller Sanitary Commission in 1909,[114] an organization that eventually eradicated the hookworm disease,[118] which had long plagued rural areas of the American South. [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. Alternate titles: John Davison Rockefeller. [27] As Rockefeller's wealth grew, so did his giving, primarily to educational and public health causes, but also for basic science and the arts. During the next decade, kerosene became commonly available to the working and middle classes. [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. 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. 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. Born in upstate New York, Rockefeller entered the oil business by investing in a Cleveland, Ohio refinery in 1863. A good measure, pressed down, shaken together and running over, will be poured into your lap. John D. Rockefeller (1839-1937), founder of the Standard Oil Company, became one of the worlds wealthiest men and a major philanthropist. It endowed Johns Hopkins School of Hygiene and Public Health,[114] the first of its kind. A major New York refiner, Charles Pratt and Company, headed by Charles Pratt and Henry H. Rogers, led the opposition to this plan, and railroads soon backed off. 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. Both sides purchased substantial arms and ammunition. However, he did not intend to eliminate competition entirely. These included, among many others, Continental Oil, which became Conoco, now part of ConocoPhillips; Standard of Indiana, which became Amoco, now part of BP; Standard of California, which became Chevron; Standard of New Jersey, which became Esso (and later, Exxon), now part of ExxonMobil; Standard of New York, which became Mobil, now part of ExxonMobil; and Standard of Ohio, which became Sohio, now part of BP. Learn about John D. Rockefeller's historic-preservation of early American history at Williamsburg. Later in life he turned his attention to charity. [citation needed], Rockefeller, aged 86, wrote the following words to sum up his life:[144]. By the end of the 1870s, Standard was refining over 90% of the oil in the U.S.[60] Rockefeller had already become a millionaire ($1million is equivalent to $28million[37] in 2021 dollars).[61]. 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. [73], Although 85% of world crude production was still coming from Pennsylvania in the 1880s, oil from wells drilled in Russia and Asia began to reach the world market. The price of the refined oil in 1863 was around $13 a barrel, with a profit margin of around $5 to $8 a barrel. [45], A market existed for the refined oil in the form of kerosene. Webrmond Beach, Fla., May 23.--John D. Rockefeller Sr., who wanted to live until July 9, 1939, when he would have rounded out a century of life, died at 4:05 A.M. here today at The Casements, his Winter home, a little more than two years and a month from his cherished goal. [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. [33] He worked long hours and delighted, as he later recalled, in "all the methods and systems of the office. He and Carnegie gave form and impetus through their charities to the work of Abraham Flexner, who in his essay "Medical Education in America" emphatically endowed empiricism as the basis for the US medical system of the 20th century. 186365 Rockefeller builds his first oil refinery, near Cleveland. Money making was considered by him a "God-given gift".[101]. He truly believed in the biblical principle found in Luke 6:38, "Give, and it will be given to you. 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, in full John Davison Rockefeller, (born July 8, 1839, Richford, New York, U.S.died May 23, 1937, Ormond Beach, Florida), American industrialist and philanthropist, founder of the Standard Oil Company, which dominated the oil industry and was the first great U.S. business trust. [55], Part of this scheme was the announcement of sharply increased freight charges. On this Wikipedia the language links are at the top of the page across from the article title. A state agency created by Governor Carlson, offered work to unemployed miners building roads and doing other useful projects. Much of his giving was church-related. He wrote and published his memoirs beginning in 1908. 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. 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. 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. It acquired pipelines and terminal facilities, purchased competing refineries in other cities, and vigorously sought to expand its markets in the United States and abroad. 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. 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. [57] While competitors may have been unhappy, Rockefeller's efforts did bring American consumers cheaper kerosene and other oil by-products. That fact enabled the company to negotiate with railroads for favoured rates on its shipments of oil. [50], In 1866, William Rockefeller Jr., John's brother, built another refinery in Cleveland and brought John into the partnership. [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. [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. Rockefeller envisioned pipelines as an alternative transport system for oil and began a campaign to build and acquire them. 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. [142] According to his New York Times obituary, "it was estimated after Mr. Rockefeller retired from business that he had accumulated close to $1,500,000,000 out of the earnings of the Standard Oil trust and out of his other investments. [44] This created an oil-drilling glut, with thousands of speculators attempting to make their fortunes. [44] In the kerosene industry, the company replaced the old distribution system with its own vertical system. 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. He quickly found success as it became the largest refinery in the area, and Standard Oil had gained an aura of invincibility, always prevailing against competitors, critics, and political enemies. 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). But they had never played fair, and that ruined their greatness for me." WebJohn D. Rockefeller was the richest man of his time but, used his wealth to improve our country. If they refused his offer, he told them he would run them into bankruptcy and then cheaply buy up their assets at auction. "John D. Rockefeller: Oil Baron and Philanthropist." A. D. John. Standard's most potent weapons against competitors were underselling, differential pricing, and secret transportation rebates. 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 an American business magnate and philanthropist. [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. The Supreme Court ruled in 1911 that Standard Oil must be dismantled for violation of federal antitrust laws. What were John D. Rockefellers accomplishments? He said later, "Her judgment was always better than mine. [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. The oldest existing building on Spelman's campus, Rockefeller Hall, is named after him. WebBy 1858, Rockefeller had more responsibilities at Hewitt & Tuttle. Few miners actually belonged to the union or participated in the strike call, but the majority honored it. [40] In their first and second years of business, Clark & Rockefeller netted $4,400 (on nearly half a million dollars in business) and $17,000 worth of profit, respectively, and their profits soared with the outbreak of the American Civil War when the Union Army called for massive amounts of food and supplies. 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. [83] He also had a deep love of music and dreamed of it as a possible career. 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. [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 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). "[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. [42] As he said, "God gave me money", and he did not apologize for it. 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. During church service, his mother would urge him to contribute his few pennies to the congregation. "[22] Unshackled by conventional morality, he led a vagabond existence and returned to his family infrequently. He was advised primarily by Frederick Taylor Gates[103] after 1891,[104] and, after 1897, also by his son. She also put up with his philandering and his double life, which included bigamy. On Gates' advice, Rockefeller became one of the first great benefactors of medical science. [66], The firm was attacked by journalists and politicians throughout its existence, in part for these monopolistic methods, giving momentum to the antitrust movement. 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. "[101], Rockefeller would support Baptist missionary activity, fund universities, and heavily engage in religious activities at his Cleveland, Ohio, church. [81] Amid the frenetic expansion, Rockefeller began to think of retirement. All the fortune that I have made has not served to compensate me for the anxiety of that period. WebJohn D. Rockefeller. [17] For advice, he relied closely on his wife Laura Spelman Rockefeller with whom he had five children. 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. Rockefeller had entered the raucous oil business during the Civil War, when oil often sold for a dollar a gallon. 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." He was buried in Lake View Cemetery in Cleveland.[136]. [69] The "trust" was a corporation of corporations, and the entity's size and wealth drew much attention. 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'. [94], The casualties suffered at Ludlow mobilized public opinion against the Rockefellers and the coal industry. WebBy 1858, Rockefeller had more responsibilities at Hewitt & Tuttle. Pennsylvania revoked the cartel's charter, and non-preferential rates were restored for the time being. 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. The overproducing of oil and the developing of new markets caused the price of oil to fluctuate wildly. His company and business practices came under criticism, particularly in the writings of author Ida Tarbell. [18] Religion was a guiding force throughout his life and he believed it to be the source of his success. 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. Public hostility toward monopolies, of which Standard was the best known, caused some countries to enact anti-monopoly laws. His General Education Board made a dramatic impact by funding the recommendations of the Flexner Report of 1910. Rockefeller had entered the raucous oil business during the Civil War, when oil often sold for a dollar a gallon. 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. John D Rockefeller was a businessman who emerged as one of the men with largest fortune in history. Rockefellers benefactions during his lifetime totaled more than $500 million. [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. "But it was simply out of the question. 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. [115] In keeping with the historic missions of the Baptists, it was especially active in supporting black schools in the South. [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. 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. He even gave dimes as a playful gesture to wealthy men, such as tire mogul Harvey Firestone. Rockefeller later commented:[53]. In 1870 Rockefeller and a few associates, a group that included American financier Henry M. Flagler, incorporated the Standard Oil Company (Ohio). Rockefeller said, "It was the day that determined my career. John Davison Rockefeller Sr. (July 8, 1839 May 23, 1937) was an American business magnate and philanthropist. His company and business practices came under criticism, particularly in the writings of author Ida Tarbell . 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. [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. Grandchildren Abigail Aldrich "Abby" Rockefeller and John Davison Rockefeller III became philanthropists. WebHow did John Rockefeller gain his wealth? 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. The camp was burned, resulting in 15 women and children, who hid in tents at the camp, being burned to death. 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. [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. 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. From the different reports and the different historians opinions, I feel that Rockefeller and his business negatively impacted society. [86], In 1902, facing cash flow problems, John Cleveland Osgood turned to George Jay Gould, a principal stockholder of the Denver and Rio Grande, for a loan. It added its own pipelines, tank cars, and home delivery network. By the time he was twenty, his charity exceeded ten percent of his income. They had four daughters and one son together. 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). He followed his father's advice to "trade dishes for platters" and always get the better part of any deal. [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. Likewise, it became one of the largest shippers of oil and kerosene in the country. [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.