Britannica Money (original) (raw)
John D. Rockefeller, 1884.
Encyclopædia Britannica, Inc.
in full:
John Davison Rockefeller
Top Questions
How did John D. Rockefeller get famous?
John D. Rockefeller’s Standard Oil Company acquired pipelines and terminal facilities, purchased competing refineries, and vigorously sought to expand its markets. Those practices enabled the company to negotiate with railroads for favoured rates on its shipments of oil. By 1882 Standard Oil had a near monopoly on the oil business in the United States.
What were John D. Rockefeller’s accomplishments?
John D. Rockefeller founded the Standard Oil Company, which dominated the oil industry and was the first great U.S. business trust. Later in life he turned his attention to charity. He made possible the founding of the University of Chicago and endowed major philanthropic institutions. Rockefeller’s benefactions during his lifetime totaled more than $500 million.
What was John D. Rockefeller remembered for?
John D. Rockefeller was remembered for his wealth and for the aggressive competitive practices of the Standard Oil Company. Public hostility toward monopolies, of which Standard was the best known, caused some countries to enact anti-monopoly laws. For these reasons, Rockefeller and other heads of monopolistic companies were called robber barons by their critics.
John D. Rockefeller (born July 8, 1839, Richford, New York, U.S.—died May 23, 1937, Ormond Beach, Florida) was an American industrialist and philanthropist, founder of the Standard Oil Company, which dominated the oil industry and was the first great U.S. business trust. He is the major historical figure behind the famed Rockefeller family and widely considered the richest American and biggest philanthropist in history.
Rockefeller was the eldest son and second of six children born to traveling physician and snake-oil salesman William (“Big Bill”) Avery Rockefeller and Eliza Davison Rockefeller. He moved with his family to Moravia, New York, and, in 1851, to Oswego, New York, where he attended Oswego Academy. The family relocated to Strongsville, a town near Cleveland, Ohio, in 1853, and six years later—after attending and later dropping out of Cleveland’s Central High School, taking a single business class at Folsom Mercantile College, and working as a bookkeeper—Rockefeller established his first enterprise, a commission business dealing in hay, grain, meats, and other goods. 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. Within two years it was the largest refinery in the area, and thereafter Rockefeller devoted himself exclusively to the oil business.
In 1870 Rockefeller and a few associates, a group that included American financier Henry M. Flagler, incorporated the Standard Oil Company (Ohio). Because of Rockefeller’s emphasis on economical operations, Standard prospered and began to buy out its competitors until, by 1872, it controlled nearly all the refineries in Cleveland. That fact enabled the company to negotiate with railroads for favoured rates on its shipments of oil. 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. 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. They thus established the first major U.S. “trust” and set a pattern of organization for other monopolies. By 1882 Standard Oil had a near monopoly on the oil business in the United States.
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Overview of the first oil pipeline (1879), which attempted to compete with the Standard Oil Company.
Contunico © ZDF Studios GmbH, Mainz; Thumbnail Library of Congress, Washington D.C.; Courtesy of the British Library (composite image)
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). In 1892 the Ohio Supreme Court held that the Standard Oil Trust was a monopoly in violation of an Ohio law prohibiting monopolies. Rockefeller evaded the decision by dissolving the trust and transferring its properties to companies in other states, with interlocking directorates so that the same nine men controlled the operations of the affiliated companies. 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. Standard Oil’s questionable ethics were also taken to task by American journalist Ida Tarbell in her 19-part exposé and commentary called The History of the Standard Oil Company, which was released in installments by McClure’s Magazine between 1902 and 1904.
John D. Rockefeller (left) walking with his son, John D. Rockefeller, Jr., about 1915. Rockefeller, Sr., was an American industrialist and philanthropist and founder of the Standard Oil Company, which dominated the oil industry and was the first great U.S. business trust.
Library of Congress, Washington, D.C. (cph 3a48646)
A devout Baptist, Rockefeller turned his attention increasingly during the 1890s to charities and benevolence; after 1897 he devoted himself completely to philanthropy. He made possible the founding of the University of Chicago in 1892, and by the time of his death—from a heart attack in 1937, shortly before his 98th birthday—he had given it some 35million.Inassociationwithhisson,[JohnD.Rockefeller,Jr.](/biography/John−D−Rockefeller−Jr),hecreatedmajorphilanthropicinstitutions,includingtheRockefellerInstituteforMedicalResearch(renamed[RockefellerUniversity](/topic/Rockefeller−University))in[NewYorkCity](/place/New−York−City)(1901),theGeneralEducationBoard(1902),andthe[RockefellerFoundation](/topic/Rockefeller−Foundation)(1913).Rockefeller’sbenefactionsduringhislifetimetotaledmorethan35 million. In association with his son, John D. Rockefeller, Jr., he created major philanthropic institutions, including the Rockefeller Institute for Medical Research (renamed Rockefeller University) in New York City (1901), the General Education Board (1902), and the Rockefeller Foundation (1913). Rockefeller’s benefactions during his lifetime totaled more than 35million.Inassociationwithhisson,[JohnD.Rockefeller,Jr.](/biography/John−D−Rockefeller−Jr),hecreatedmajorphilanthropicinstitutions,includingtheRockefellerInstituteforMedicalResearch(renamed[RockefellerUniversity](/topic/Rockefeller−University))in[NewYorkCity](/place/New−York−City)(1901),theGeneralEducationBoard(1902),andthe[RockefellerFoundation](/topic/Rockefeller−Foundation)(1913).Rockefeller’sbenefactionsduringhislifetimetotaledmorethan500 million.
John D. Rockefeller, 1930.
Encyclopædia Britannica, Inc.
The Editors of Encyclopaedia BritannicaThis article was most recently revised and updated by Encyclopaedia Britannica.
References
Rockefeller’s life and work are discussed in Grant Segall, John D. Rockefeller: Anointed with Oil (2001); and Susan E. Hamen, John D. Rockefeller: Entrepreneur & Philanthropist (2011). Other treatments of Rockefeller’s life include Allan Nevins, Study in Power: John D. Rockefeller, Industrialist and Philanthropist, 2 vol. (1953); and David Freeman Hawke, John D.: the Founding Father of the Rockefellers (1980). A multifaceted view of Rockefeller is presented in Ron Chernow, Titan: The Life of John D. Rockefeller, Sr. (2013).