After the war, he donated land for the United Nations headquarters, a gift that figured prominently in the decision to Before 1870, oil light was only for the wealthy, provided by expensive whale oil. From the different reports and the different historians opinions, I feel that Rockefeller and his business negatively impacted society. 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. [36], As a youth, Rockefeller reportedly said that his two great ambitions were to make $100,000 (equivalent to $2.91million[37] in 2021 dollars) and to live 100 years. The commercial oil business was then in its infancy. [89] Gould, via Frederick Taylor Gates, Rockefeller's financial adviser, brought John D. Rockefeller in to help finance the loan. 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. But they had never played fair, and that ruined their greatness for me." By 1882 Standard Oil had a near monopoly on the oil business in the United States. That is, two years after the dissolution of Standard Oil. 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. He would describe the University of Chicago as "the best investment I ever made." 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. His company and business practices came under criticism, particularly in the writings of author Ida Tarbell . WebIn the 1860s John D. Rockefeller took note of the expansion of oil production in western Pennsylvania and built an oil refinery near Cleveland, Ohio, in 1863. 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. [66], The firm was attacked by journalists and politicians throughout its existence, in part for these monopolistic methods, giving momentum to the antitrust movement. [14][15][16] He was a devout Northern Baptist and supported many church-based institutions. In 1862, a barrel (42 gallons) of oil dropped in value from $4.00 to 35 cents. [110] The foundation helped in World War I war relief,[122] and it employed William Lyon Mackenzie King of Canada to study industrial relations. Tar was used for paving, naphtha shipped to gas plants. 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. "[68], At that time, many legislatures had made it difficult to incorporate in one state and operate in another. 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. Many people were impacted in a negative way and his business tactics were not always ethical. In 1862, a barrel (42 gallons) of oil dropped in value from $4.00 to 35 cents. 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). Many people were impacted in a negative way and his business tactics were not always ethical. 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 1972 Congress honored his contributions by creating a memorial parkway between Yellowstone and Grand Teton national parks, which bears his name. [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". If we absorb them, it surely will bring up another. 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. Rockefeller had entered the raucous oil business during the Civil War, when oil often sold for a dollar a gallon. During the next decade, kerosene became commonly available to the working and middle classes. Rogers, in particular, became one of Rockefeller's key men in the formation of the Standard Oil Trust. In 1870 Rockefeller established the Standard Oil Company. [101] Later in his life, Rockefeller recalled: "It was at this moment, that the financial plan of my life was formed". "[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. Furthermore, Rockefeller gained enormous influence over the railroad industry which transported his oil around the country. 187072 "[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 Ohio businessman John D. Rockefeller entered the oil industry in the 1860s and in 1870, and founded Standard Oil with some other business partners. WebJohn D. Rockefeller was the richest man of his time but, used his wealth to improve our country. Our editors will review what youve submitted and determine whether to revise the article. [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. [citation needed], In 1864, Rockefeller married Laura Celestia "Cettie" Spelman (18391915), daughter of Harvey Buell Spelman and Lucy Henry. By then the trust still had a 70% market share of the refined oil market but only 14% of the U.S. crude oil supply. "[101], Rockefeller would support Baptist missionary activity, fund universities, and heavily engage in religious activities at his Cleveland, Ohio, church. US Gross Domestic Product 19131939 Stuck on Stupid: U.S. Economy. [127], Rockefeller supported the passage of the 18th Amendment, which banned alcohol in the United States. [76], Standard Oil moved its headquarters to New York City at 26 Broadway, and Rockefeller became a central figure in the city's business community. American industrialist John D. Rockefeller built his first oil refinery near Cleveland and in 1870 incorporated the Standard Oil Company. [44] Likewise, Rockefeller's refineries hired their own plumbers, cutting the cost of pipe-laying in half. 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. American industrialist John D. Rockefeller built his first oil refinery near Cleveland and in 1870 incorporated the Standard Oil Company. 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. [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. 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. 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. Pennsylvania revoked the cartel's charter, and non-preferential rates were restored for the time being. His father was of English and German descent, while his mother was of Ulster Scot descent. [3][4] Rockefeller was born into a large family in Upstate New York that moved several times before eventually settling in Cleveland. Both sides purchased substantial arms and ammunition. There was destitution in the coalfields. John D. Rockefeller (1839-1937), founder of the Standard Oil Company, became one of the worlds wealthiest men and a major philanthropist. WebTwo things about the oil industry, however, bothered Rockefeller right from the start: the appalling waste and the fluctuating prices. 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. 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. 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. Born in upstate New York, Rockefeller entered the oil business by investing in a Cleveland, Ohio refinery in 1863. [53], On January 10, 1870, Rockefeller abolished the partnership of Rockefeller, Andrews & Flagler,[54] forming Standard Oil of Ohio. 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. [45], A market existed for the refined oil in the form of kerosene. He followed his father's advice to "trade dishes for platters" and always get the better part of any deal. Fourth son Winthrop Aldrich Rockefeller served as Republican Governor of Arkansas. Grandson Laurance Spelman Rockefeller became a conservationist. 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] Rockefeller revolutionized the petroleum industry and, through corporate and technological innovations, was instrumental in both widely disseminating and drastically reducing the production cost of oil. [39] Rockefeller went steadily ahead in business from there, making money each year of his career. The price of the refined oil in 1863 was around $13 a barrel, with a profit margin of around $5 to $8 a barrel. John D. Rockefeller was remembered for his wealth and for the aggressive competitive practices of the Standard Oil Company. [98][99], The name Rockenfeller refers to the now-abandoned village of Rockenfeld in the district of Neuwied. [69] The "trust" was a corporation of corporations, and the entity's size and wealth drew much attention. He became an assistant bookkeeper at age 16 and went into several business partnerships beginning at age 20, concentrating his business on oil refining. But it is the assertion that the Standard magnates gained their wealth by appropriating "the property of others" that most challenges our attention. 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. In 1884, Rockefeller provided major funding for Atlanta Baptist Female Seminary in Atlanta for African-American women, which became Spelman College. [50], In 1866, William Rockefeller Jr., John's brother, built another refinery in Cleveland and brought John into the partnership. Mr. Rockefeller financed the construction of museums in Mesa Verde, Grand Canyon, and Yellowstone national parks. 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. Tarbell's father had been driven out of the oil business during the "South Improvement Company" affair. In February 1914, a substantial portion of the troops were withdrawn, but a large contingent remained at Ludlow. He bought a residence in 1884 on 54th Street near the mansions of other magnates such as William Henry Vanderbilt. During church service, his mother would urge him to contribute his few pennies to the congregation. I want to make 'em sharp." 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. WebJohn D. Rockefeller. It endowed Johns Hopkins School of Hygiene and Public Health,[114] the first of its kind. [124], Rockefeller's fourth main philanthropy, the Laura Spelman Rockefeller Memorial Foundation, was created in 1918. Updates? In total Rockefeller donated about $530million. "[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. 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. [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. His business hurt many of his workers and many other small businesses with the monopoly that he created. [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. [citation needed], His mother was deeply religious and disciplined, and had a major influence on him in religious matters. [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. WebBy 1858, Rockefeller had more responsibilities at Hewitt & Tuttle. Second son Nelson Aldrich Rockefeller was Republican governor of New York and the 41st Vice President of the United States. Omissions? The Paris Rothschilds jumped into the fray providing financing. 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. 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. In 1870 Rockefeller established the Standard Oil Company. That fact enabled the company to negotiate with railroads for favoured rates on its shipments of oil. 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. 187072 In 1853, his family moved to Strongsville, Ohio, and he attended Cleveland's Central High School, the first high school in Cleveland and the first free public high school west of the Alleghenies. He even gave dimes as a playful gesture to wealthy men, such as tire mogul Harvey Firestone. Continuing to apply his work ethic and efficiency, Rockefeller quickly expanded the company to be the most profitable refiner in Ohio. [citation needed], Pratt and Rogers became Rockefeller's partners. 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. 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. He also had a deep love of music and dreamed of it as a possible career. 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. 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. Rockefeller later commented:[53]. From the different reports and the different historians opinions, I feel that Rockefeller and his business negatively impacted society. 186365 Rockefeller builds his first oil refinery, near Cleveland. John D. Rockefeller (1839-1937), founder of the Standard Oil Company, became one of the worlds wealthiest men and a major philanthropist. [21] William Sr. was first a lumberman and then a traveling salesman who identified himself as a "botanic physician" who sold elixirs, described by locals as "Big Bill" and "Devil Bill. Rockefeller called her "Miss Tarbarrel" in private but held back in public saying only, "not a word about that misguided woman. [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. I was early taught to work as well as play, Public hostility toward monopolies, of which Standard was the best known, caused some countries to enact anti-monopoly laws. Rockefeller then ordered the issuance of certificates against oil stored in its pipelines. [81] Amid the frenetic expansion, Rockefeller began to think of retirement. The overproducing of oil and the developing of new markets caused the price of oil to fluctuate wildly. 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. Founded by John D. Rockefeller, Jr. (1839-1937), the Standard Oil Company is one of the world's richest corporations. In 1902, an audit showed Rockefeller was worth about $200millioncompared to the total national GDP of $24billion then. Clark initiated the idea of the partnership and offered $2,000 towards the goal. In 1901, he founded the Rockefeller Institute for Medical Research[114] in New York City. Rockefeller attended Baptist churches every Sunday; when traveling he would often attend services at African-American Baptist congregations, leaving a substantial donation. [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. Osgood left the company in 1904 and devoted his efforts to operating competing coal and coke operations. He made possible the founding of the University of Chicago and endowed major philanthropic institutions. [33] He worked long hours and delighted, as he later recalled, in "all the methods and systems of the office. John D. Rockefeller was remembered for his wealth and for the aggressive competitive practices of the Standard Oil Company. Rockefeller had entered the raucous oil business during the Civil War, when oil often sold for a dollar a gallon. This incident brought unwanted national attention to Colorado. 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. His philosophy of giving was founded upon biblical principles. 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. 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. The union was forced to discontinue strike benefits in February 1915. [94] Rockefeller denied any responsibility and minimized the seriousness of the event. 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. During his first year, he received $31 a month, which was increased to $50 a month. Learn about John D. Rockefeller's historic-preservation of early American history at Williamsburg. 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. Rockefeller founded the Standard Oil Company in 1870. From the different reports and the different historians opinions, I feel that Rockefeller and his business negatively impacted society. 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. My life has been one long, happy holiday; [82], Upon his ascent to the presidency, Theodore Roosevelt initiated dozens of suits under the Sherman Antitrust Act and coaxed reforms out of Congress. After the war, he donated land for the United Nations headquarters, a gift that figured prominently in the decision to 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. She also put up with his philandering and his double life, which included bigamy. She documented the company's espionage, price wars, heavy-handed marketing tactics, and courtroom evasions. 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).