John D. Rockefeller
John D. Rockefeller was an American industrialist and philanthropist who founded the Standard Oil Company and became one of the wealthiest people in history. He was the first billionaire in the United States.
Early Life and Education
Rockefeller was born in Richford, New York, in 1839. His father was a travelling salesman of patent medicines and his mother was a strict and devout woman.
The family moved to Cleveland, Ohio, and Rockefeller attended the local schools. He took a course in bookkeeping and found work as an assistant bookkeeper at the age of sixteen.
He saved his earnings carefully and lent money at interest. He entered the produce commission business and made a profit during the Civil War.
The Founding of Standard Oil
Rockefeller entered the oil business in 1863 with the construction of a refinery in Cleveland. He and his partners bought out the competitors and formed the Standard Oil Company in 1870.
He pursued a strategy of the horizontal integration, buying out the competing refineries, and of the vertical integration, controlling the pipelines and the distribution. The company came to control almost all of the refining capacity of the country.
He negotiated the favourable freight rates with the railroads and obtained the rebates on the shipments of the competitors. The practices were criticised and led to the public outcry.
The company was broken up by the Supreme Court of the United States in 1911 under the antitrust law. The successors of the company became the major oil corporations of the world.
The Philanthropy
Rockefeller retired from the management of the company in 1897 and devoted himself to the philanthropy. He founded the University of Chicago in 1890 with a large donation.
He founded the Rockefeller Institute for Medical Research in 1901, which became the first biomedical research centre in the United States. He also founded the Rockefeller Foundation in 1913.
The foundation funded the public health and the medical education throughout the world. It supported the research that led to the development of the yellow fever vaccine.
He funded the education of the African American students and the general education board. He gave away more than half of his fortune in his lifetime.
The Legacy
Rockefeller was a devout Baptist and a member of the congregation of the Euclid Avenue Baptist Church. He attended the services regularly and supported the church.
He died in 1937 at the age of ninety-seven in Ormond Beach, Florida. He was buried in the Lake View Cemetery in Cleveland.
His descendants continued the tradition of the philanthropy and the public service. His grandson Nelson Rockefeller served as the vice president of the United States.
He is remembered as one of the most successful and the most controversial business figures of the industrial age. The foundation that bears his name remains one of the largest in the world.
The Early Career
Rockefeller entered the oil business in 1863 with the construction of a refinery in Cleveland. He and his partners formed the Standard Oil Company in 1870.
He pursued the strategy of buying out the competitors and of controlling the distribution. The company came to dominate the refining capacity of the country.
He negotiated the favourable freight rates with the railroads. The practices were criticised and led to the public outcry.
The Business Practices
Rockefeller used the rebates and the drawbacks to undercut the competitors. The company controlled the pipelines and the terminals.
He defended the practices as the efficient organisation of the industry. He argued that the consolidation reduced the cost of the oil for the consumers.
The Supreme Court broke up the company in 1911 under the antitrust law. The successors became the major oil corporations of the world.
The Education and the Family
Rockefeller attended the local schools in Cleveland. He took a course in bookkeeping and found work as an assistant bookkeeper.
He married Laura Spelman in 1864 and the couple had five children. The family became one of the most prominent in the United States.
His son John D. Rockefeller Jr. continued the tradition of the philanthropy. The family name is associated with the universities, the foundations, and the public institutions.
The Products and the Innovation
Rockefeller founded the Standard Oil Company in 1870. The company came to control almost all of the refining capacity of the country.
He pursued the horizontal and the vertical integration. He controlled the pipelines, the refineries, and the distribution.
He negotiated the favourable freight rates with the railroads. The company reduced the cost of the oil for the consumers.
The Leadership and the Strategy
Rockefeller retired from the management of the company in 1897. He devoted himself to the philanthropy.
He founded the University of Chicago and the Rockefeller Institute for Medical Research. He founded the Rockefeller Foundation in 1913.
He gave away more than half of his fortune in his lifetime. He died in 1937 at the age of ninety-seven.
See also
- Standard Oil
- Philanthropy
- Antitrust law
- Industrialisation
References
- ↑ Chernow, Ron. Titan: The Life of John D. Rockefeller, Sr. New York: Random House, 1998.
- ↑ Nevins, Allan. Study in Power: John D. Rockefeller, Industrialist and Philanthropist. New York: Scribner, 1953.
- ↑ Fosdick, Raymond B. The Story of the Rockefeller Foundation. New York: Harper, 1952.
- ↑ Hidy, Ralph W. and Hidy, Muriel E. Pioneering in Big Business. New York: Harper, 1955.