In the late 1800’s and early 1900’s, John Davison Rockefeller was a dominant figure in the oil industry. Despite his ruthless reputation as a business tycoon, he founded the Standard Oil Company and became America’s first billionaire. However, Rockefeller showed his generosity by giving away more than half of his fortune to charitable causes.
Furthermore, Rockefeller’s philanthropic efforts indirectly benefited smaller businesses by prompting the U.S. government to implement new laws and regulations for overseeing the activities of the Standard Oil Company. This not only transformed the oil industry but also made significant contributions to various American charities.
Rockefeller was born on July 8, 1839 in Richford, New York (J.D.R. J.D.R. Page n.p.). He married Laura C. Spelman (1839-1915) on September 8, 1864 (Rockefeller Family and Associates n.p.). His mother, Eliza Davison Rockefeller, played a significant role in shaping his religious beliefs and philanthropy as she taught him the values of hard work, saving, and giving to charities (J.D.R. J.D.R. Page n.p.). Rockefeller’s father, William Avery Rockefeller, was a doctor who claimed to cure cancers for a fee (J.D.R. J.D.R. Page n.p.). Rockefeller and Laura had five children, including their son John Davison Rockefeller Jr. (1874-1960), who carried on his father’s legacy and transformed the Rockefeller name into a respected one (Rockefeller Family and Associates n.p.). John D. Rockefeller passed away on May 23, 1937 in Ormond, Florida after retiring from the oil industry in 1911 (J.D.R. Encyclopedia of World Biography Vol. 13 228).
Rockefeller went to Folsom’s Commercial College for a duration of ten weeks, during which he engaged in the study of single and double entry bookkeeping, penmanship, commercial history, mercantile customs, banking, and exchange as means to enhance his employability (J.D.R. J.D.R. Page n.p.). Subsequently, he did not pursue any other form of education beyond his time at Folsom’s Commercial College.
The most significant person in Rockefeller’s life during his childhood was his mother, who also taught him about his religion (Bill Bell n.p.). At the age of twelve, Rockefeller lent fifty dollars to a local farmer with a seven percent interest rate and realized that letting money work for him was more profitable than working his entire life (J.D.R. J.D.R. Page n.p.). Charging interest on his money earned him more income than the amount he had loaned out, and this led him to invest in stocks, always holding a larger share than anyone else (J.D.R. J.D.R. Page n.p.). Rockefeller’s first real job was as an assistant bookkeeper, where his hard work mentality and honesty granted him numerous responsibilities (J.D.R. J.D.R. Page n.p.). Due to his poverty as a child, Rockefeller always exerted great effort to acquire anything he wanted, which greatly benefited him when searching for employment. Being raised in a Baptist family, Rockefeller became a deeply religious man and regularly contributed money to the church (J.D.R. J.D.R. Page n.p.). From the age of twenty, he would give ten percent of his income to his church (Roger Draper n.p.). Furthermore, he even paid off the mortgage of the Euclid Avenue Baptist Church after suffering a heart attack one day before his death (Bill Bell n.p.).
According to Bill Bell, Rockefeller had a passion for both accumulating and donating money throughout his business and retired life. Starting in 1859 with Maurice Cark, Rockefeller entered the grain industry before moving on to oil refining during its emergence. In 1871, he participated in the South Improvement Company Scheme as a means of countering opposition from Pennsylvania’s oil producers. However, this plan, along with the Refiner’s pool, was deemed illegal by the Pennsylvania Legislature. Ida Tarbell, daughter of Franklin Tarbell and Rockefeller’s rival, published “History of the Standard Oil Company” in 1904 where she portrayed him as a malicious figure. In her book, she exposed numerous secrets and strategies employed by Rockefeller in his business transactions. Consequently, public perception of Rockefeller greatly declined after the book’s release due to many seeing him as a ruthless and intimidating businessman. Despite this setback, Rockefeller managed to achieve his childhood dream of amassing $100,000 and ultimately became America’s first billionaire.
Rockefeller was primarily based in Ohio and New Jersey, with offices in New York (J.D.R.J.D.R.Page n.p.). Samuel Andrews joined Rockefeller’s firm in 1863, and within two years they bought out Maurice Clark, who owned Cleveland’s largest refinery along with Rockefeller (J.D.R.Encyclopedia of World Biography vol.13 226). Rockefeller believed that partnering with Andrews would increase profits and expand their customer base. In 1866, he appointed his brother William as the Manager of Atlantic Coast trade and kerosene export for a firm in New York City (J.D.R.Tycoons and Entrepreneurs 212). This decision was made because Rockefeller wanted to entrust someone he personally knew and trusted to handle his operations. To prevent dishonest employees from hindering his success, Rockefeller brought in Henry Flagler as a partner in 1867 (J.D.R.Tycoons and Entrepreneurs 212). Adding more partners helped distribute responsibility and reduce liability. In 1870, Rockefeller, along with William Rockefeller, Flagler, Andrews, Stephen Harkness, and O.B. Jennings founded Standard Oil; however, it was Rockefeller who held the largest stake at thirty percent (J.D.R.J.D.R.Page n.p.). This significant share resulted from his role as the founder and his understanding of stock profitability. By 1879, he controlled almost all other refineries, making Standard Oil responsible for refining 90% of America’s oil.Rockefeller’s primary focus was on the growth and success of his company. To achieve this, he made use of various resources within the company such as tank cars, ships, docking facilities, barrel-making plants, draying services, depots, warehouses,and pipelines rather than relying on external parties. This not only helped in avoiding unnecessary expenses but also reflected Rockefeller’s meticulous planning to minimize waste.
By owning all the necessary materials for running a large business, Rockefeller revolutionized business practices. Standard Oil expanded its operations by entering foreign markets in Europe, Asia,and Latin America and venturing into crude oil refining. These strategic moves brought the company close to achieving a monopoly status.
However, as Rockefeller’s power grew, rumors started circulating about his business practices. He was often portrayed as a cold-hearted money lover due to these allegations. Surprisingly enough, this portrayal accurately depicted him at that time.
Andrew Carnegie and John Rockefeller were two prominent figures in the late 19th century. In 1896, they struck a deal to avoid competition in their respective industries. Carnegie agreed to stay away from the oil industry, while Rockefeller promised not to venture into steel (J.D.R. Encyclopedia of World Biography vol. 13 227). This agreement granted them a monopoly and allowed them to set prices as they pleased. The formation of the Standard Trust further solidified their wealth, with an official value of $70,000,000, although its actual worth reached $200,000,000 (J.D.R. J.D.R. Page n.p.). Meanwhile, Rockefeller started donating large sums of money to various charitable causes, eventually giving away over half a billion dollars (J.D.R. Tycoons and Entrepreneurs 213).
Rockefeller’s rivals were furious when, between 1877-1878, non-Standard companies paid $1.44 per barrel of oil, while Standard paid only $0.80 per barrel. This advantage led to the elimination of his competitors (J.D.R. J.D.R. Page n.p.). By acquiring oil at a significantly lower cost than other companies, Rockefeller achieved the ability to offer lower prices and drive out his competition. Ultimately, Rockefeller was on the path to establishing a monopoly as the sole oil refining company.
Rockefeller established the Sanitary Commission, which contributed to increased awareness of public health, particularly addressing the issue of Hookworm Disease in the southern regions (Rockefeller Family and Associates n.p.). His concern for the well-being of the public is evident, despite prevailing perceptions. Before his death, he generously donated over $80 million to the University of Chicago and played a significant role in its establishment (J.D.R. Encyclopedia Britannica n.p.). Despite his extensive philanthropy and contributions to various causes, Rockefeller faced criticism from those who held a negative opinion of him, stating that:
“…colluded with railroads to secure advantageous shipping rates, clandestinely purchased certain competitors and forced others out of business solely to control the oil supply. Whenever a new rival emerged to threaten Standard Oil, Rockefeller deliberately reduced prices with the explicit intention of undermining their financial viability.” (Teresa McUsic n.p.).
Rockefeller’s competitors frequently discussed him in order to draw attention to his activities and encourage government intervention against large corporations. His dominance in the oil refining sector prompted state legislatures and Congress to enact anti-monopoly legislation, with the goal of dismantling his control (J.D.R. Tycoons and Entrepreneurs 212). Rockefeller had a substantial societal influence by implementing new laws and regulations that affected the operations of major corporations.
Rockefeller’s influence on America remains evident today. In 1902, he established the General Education Board and, with his son John D. Rockefeller Jr., donated land for Rockefeller Center in New York City. Many companies, including NBC, still operate there (J.D.R.and J.D.R.Jr.Encyclopedia of World Biography vol.13 226-228). They also created the Rockefeller Institute for Medical Research in 1901, later renamed Rockefeller University in New York. Additionally, they founded the University of Chicago in 1892 (J.D.R.Tycoons and Entrepreneurs 213). These universities have played a vital role in advancing medical research and finding disease cures. Furthermore, Rockefeller contributed to various present-day companies such as Mobil Oil, Amoco, Chevron, Exxon, Chesebrough-Pond’s, Pennzoil, and Union Tank Car Company (Roger Draper n.p.). His commitment to global well-being is evident through the establishment of the Rockefeller Foundation. The institutions he established continue to make significant contributions to philanthropy, science, medicine and public health (Rockefeller Family and Associates n.p.).Rockefeller’s philanthropic endeavors extended to supporting prominent institutions like Yale University, Harvard University, Columbia University, Brown University, Spellman College, Bryn Mawr College, Wellesly College, and Vassar College through financial assistance (Roger Draper n.p.). Additionally, he provided aid to YMCAs, YWCAs, the Palisades Interstate Park Commission, and missionary organizations. Furthermore, Rockefeller offered support to the victims of the San Francisco Earthquake and backed the Anti-Saloon League. Moreover, he established Rockefeller parks in Cleveland as part of his charitable efforts. Therefore, Rockefeller’s significant contributions connected him with various charities and companies associated with his previous business venture Standard Oil. Ultimately, his actions not only influenced American industry but also set an admirable precedent for giving back (Source: Rockefeller Family and Associates n.p.).
John D. Rockefeller, by monopolizing American industry, brought about significant changes despite the corrupt nature of his empire. However, he used his wealth for the greater good by funding colleges and research institutes which made discoveries benefiting the general population with cures for common ailments. As Rockefeller aged, his philanthropy increased as he generously contributed to various causes. At his death, Rockefeller’s net worth was $26 million with ownership of one share of Standard Oil valued at $43.94. In conclusion, Rockefeller’s life exemplified the “rags to riches” narrative where relentless pursuit of goals through hard work and determination is depicted.
Bibliography
Bill, Bell. “Titan, by Ron Chernow; Random ($30). (Originated from New York Daily News).” Knight/Tribune News Service27 May 1998: p527K2422.
The author of the Encyclopedia of World Biography is Paula K. Byers. It was published by Gale Publishing in 1998 and consists of 18 volumes.
Draper, Roger. “Titan The Life of John D. Rockefeller, Sr. (book review).” Find Articles. 5 October 1998. 3pp. 25 October 2000.
According to the MacMillian Profiles book titled “Rockefeller, John D.,” the author provides information about the life and achievements of John D. Rockefeller. The book was published by Simon and Schuster in 1998 and can be found on page 211 to 213.
The source “Biography describes hardball of monopoly building, dismantling” by McUsic, Teresa, originated from p527K2463. Knight Ridder Newspapers. It was published on the Knight-Ridder/Tribune News Service on May 27, 1998, on page p527K2463.
The Rockefeller Family and Associates provide information about John D. Rockefeller in their September 1997 publication. This information can be found at the Rockefeller Archive Center and was accessed on October 23, 2000 via the www.rockefeller.edu/archive.ctr/jdrsrbio.html.
Additional information about John D. Rockefeller can be found in the Encyclopedia Britannica’s 1991 edition under the entry “Rockefeller, John D.”
