Changes

'''John D. Rockefeller''' (John Davison Rockefeller, Sr.) (1839 – 1937) was a leading American industrialist, financier, philanthropist and founder of a powerful family of bankers and politicians.  He revolutionized the oil industry and defined the structure of modern philanthropy. He was one of the two or three most prominent businessmen and philanthropists of the [[Progressive Era]], and captured its spirit of [[Efficiency movement|efficiency]].  From childhood, Rockefeller strongly believed that his purpose in life was to make as much money as possible, and then to use it wisely to improve the lot of mankind. In 1862, Rockefeller founded the [[Standard Oil Company]] and ran it until he retired in the late 1890s. He kept his stock and as gasoline grew in importance, his wealth soared and he became the world's richest man and first billionaire.

'''John D. Rockefeller''' (John Davison Rockefeller, Sr.) (1839 – 1937) was a leading American industrialist, financier, philanthropist and founder of a powerful family of bankers and politicians.  He revolutionized the oil industry and defined the structure of modern philanthropy. He was one of the two or three most prominent businessmen and philanthropists of the [[Progressive Era]], and captured its spirit of [[Efficiency movement|efficiency]].  From childhood, Rockefeller strongly believed that his purpose in life was to make as much money as possible, and then to use it wisely to improve the lot of mankind. In 1862, Rockefeller founded the [[Standard Oil Company]] and ran it until he retired in the late 1890s. He kept his stock and as gasoline grew in importance, his wealth soared and he became the world's richest man and first billionaire.

===Standard Oil===

===Standard Oil===

Having outgrown the partnership form of organization, Rockefeller incorporated '''Standard Oil Company of Ohio''' in early 1870 with 10,000 shares of $100 par value, of which Rockefeller held 2,667.

Having outgrown the partnership form of organization, Rockefeller incorporated '''Standard Oil Company of Ohio''' in early 1870 with 10,000 shares of $100 par value, of which Rockefeller held 2,667.

Undeterred, Rockefeller continued with his self-reinforcing cycle of buying competing refiners, improving the efficiency of his operations, pressing for discounts on oil shipments, undercutting his competition, and buying them out. In six weeks in 1872, Standard Oil had absorbed 22 of its 26 Cleveland competitors.  Eventually, even his former antagonists, Pratt and Rogers saw the futility of continuing to compete against Standard Oil, and in 1874, they made a secret agreement with their old nemesis to be acquired.  Pratt and Rogers became Rockefeller's partners.  Rogers, in particular, became one of Rockefeller's key men in the formation of the Standard Oil Trust.  Pratt's son, Charles Millard Pratt) became Secretary of Standard Oil.

Undeterred, Rockefeller continued with his self-reinforcing cycle of buying competing refiners, improving the efficiency of his operations, pressing for discounts on oil shipments, undercutting his competition, and buying them out. In six weeks in 1872, Standard Oil had absorbed 22 of its 26 Cleveland competitors.  Eventually, even his former antagonists, Pratt and Rogers saw the futility of continuing to compete against Standard Oil, and in 1874, they made a secret agreement with their old nemesis to be acquired.  Pratt and Rogers became Rockefeller's partners.  Rogers, in particular, became one of Rockefeller's key men in the formation of the Standard Oil Trust.  Pratt's son, Charles Millard Pratt) became Secretary of Standard Oil.

For many of his competitors, Rockefeller had merely to show them his books so they could see what they were up against, then make them a decent offer.  If they refused his offer, he told them he would run them into bankruptcy, then cheaply buy up their assets at auction.  Most capitulated.

For many of his competitors, Rockefeller had merely to show them his books so they could see what they were up against, then make them a decent offer.  If they refused his offer, he told them he would run them into bankruptcy, then cheaply buy up their assets at auction.  Most capitulated.

One of the most effective attacks on Rockefeller and his firm was the 1904 publication of ''The History of the Standard Oil Company,'' by [[Ida Tarbell]].  Tarbell was a leading [[muckraker]]. Although her work prompted a huge backlash against the company, Tarbell claims to have been surprised at its magnitude.  “I never had an animus against their size and wealth, never objected to their corporate form.  I was willing that they should combine and grow as big and wealthy as they could, but only by legitimate means.  But they had never played fair, and that ruined their greatness for me.”  (Tarbell's father had been driven out of the oil business during the South Improvement Company affair.)

One of the most effective attacks on Rockefeller and his firm was the 1904 publication of ''The History of the Standard Oil Company,'' by [[Ida Tarbell]].  Tarbell was a leading [[muckraker]]. Although her work prompted a huge backlash against the company, Tarbell claims to have been surprised at its magnitude.  “I never had an animus against their size and wealth, never objected to their corporate form.  I was willing that they should combine and grow as big and wealthy as they could, but only by legitimate means.  But they had never played fair, and that ruined their greatness for me.”  (Tarbell's father had been driven out of the oil business during the South Improvement Company affair.)

 

Ohio was especially vigorous in applying its state anti-trust laws, and finally forced a separation of Standard Oil of Ohio from the rest of the company in 1892, leading to the dissolution of the trust.  Rockefeller continued to consolidate his oil interests as best as he could until New Jersey, in 1899, changed its incorporation laws to effectively allow a re-creation of the trust in the form of a single holding company.  At its peak, Standard Oil had about 90% of the market for kerosene products.

Ohio was especially vigorous in applying its state anti-trust laws, and finally forced a separation of Standard Oil of Ohio from the rest of the company in 1892, leading to the dissolution of the trust.  Rockefeller continued to consolidate his oil interests as best as he could until New Jersey, in 1899, changed its incorporation laws to effectively allow a re-creation of the trust in the form of a single holding company.  At its peak, Standard Oil had about 90% of the market for kerosene products.

Rockefeller believed in the [[Efficiency Movement]], arguing that

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."<ref>

:"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."<ref>[Rockefeller, 168]</ref>

He and his advisors invented the conditional grant that required the recipient to "root the institution in the affections of as many people as possible who, as contributors, become personally concerned, and thereafter may be counted on to give to the institution their watchful interest and coöperation."<ref>[Rockefeller p 183]</ref>

He and his advisors invented the conditional grant that required the recipient to "root the institution in the affections of as many people as possible who, as contributors, become personally concerned, and thereafter may be counted on to give to the institution their watchful interest and coöperation."<ref>[Rockefeller p 183]</ref>

==Legacy==

==Legacy==

[[Image:John_d_rockefeller.jpg|thumb|200px|John D. Rockefeller's painting by [[John Singer Sargent]] in 1917]]

[[File:Rockefellergrave.JPG|right|thumb|200px| A 70-foot obelisk marks his grave. The structure was created by sculptor Joseph Carabelli.]]

 

He died on May 23, 1937, 26 months shy of his 100th birthday. Rockefeller is buried in Lake View Cementery, Cleveland, Ohio. Visitors to the gravesite often place dimes at the base of the stone, perhaps hoping that their money will increase as Rockefeller's did. <ref>[http://cleveland.about.com/od/clevelandattractions/ss/lakeview_2.htm Lake View Cemetery - John D. Rockefeller's Grave, About.com]</ref>

He died on May 23, 1937, 26 months shy of his 100th birthday.

Rockefeller had a long and controversial career in industry followed by a long career in philanthropy.  His image is an amalgam of all of these experiences and the many ways he was viewed by his contemporaries.  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.  They also include politicians and writers, some of whom served Rockefeller's interests, and some of whom built their careers by fighting Rockefeller and the "[[robber baron]]s."

Rockefeller had a long and controversial career in industry followed by a long career in philanthropy.  His image is an amalgam of all of these experiences and the many ways he was viewed by his contemporaries.  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.  They also include politicians and writers, some of whom served Rockefeller's interests, and some of whom built their careers by fighting Rockefeller and the "[[robber baron]]s."

Biographer Allan Nevins, answering Rockefeller's enemies, concluded:

Biographer Allan Nevins, answering Rockefeller's enemies, concluded:

:The rise of the Standard Oil men to great wealth was not from poverty. It was not meteor-like, but accomplished over a quarter of a century by courageous venturing in a field so risky that most large capitalists avoided it, by arduous labors, and by more sagacious and farsighted planning than had been applied to any other American industry. The oil fortunes of 1894 were not larger than steel fortunes, banking fortunes, and railroad fortunes made in similar periods. But it is the assertion that the Standard magnates gained their wealth by appropriating "the property of others" that most challenges our attention. We have abundant evidence that Rockefeller's consistent policy was to offer fair terms to competitors and to buy them out, for cash, stock, or both, at fair appraisals; we have the statement of one impartial historian that Rockefeller was decidedly "more humane toward competitors" than Carnegie; we have the conclusion of another that his wealth was "the least tainted of all the great fortunes of his day."<ref>Latham p 104</ref>}}

:The rise of the Standard Oil men to great wealth was not from poverty. It was not meteor-like, but accomplished over a quarter of a century by courageous venturing in a field so risky that most large capitalists avoided it, by arduous labors, and by more sagacious and farsighted planning than had been applied to any other American industry. The oil fortunes of 1894 were not larger than steel fortunes, banking fortunes, and railroad fortunes made in similar periods. But it is the assertion that the Standard magnates gained their wealth by appropriating "the property of others" that most challenges our attention. We have abundant evidence that Rockefeller's consistent policy was to offer fair terms to competitors and to buy them out, for cash, stock, or both, at fair appraisals; we have the statement of one impartial historian that Rockefeller was decidedly "more humane toward competitors" than Carnegie; we have the conclusion of another that his wealth was "the least tainted of all the great fortunes of his day."<ref>Latham p 104</ref>

Biographer Ron Chernow wrote of Rockefeller:

Biographer Ron Chernow wrote of Rockefeller:

:What makes him problematic—and why he continues to inspire ambivalent reactions—-is that his good side was every bit as good as his bad side was bad. Seldom has history produced such a contradictory figure."<ref> Chernow, ''Titan'' </ref>}}

:What makes him problematic—and why he continues to inspire ambivalent reactions—-is that his good side was every bit as good as his bad side was bad. Seldom has history produced such a contradictory figure."<ref> Chernow, ''Titan'' </ref>

Notwithstanding these varied aspects of his public life, Rockefeller may ultimately be remembered simply for the raw size of his wealth.  In 1902, an audit showed Rockefeller was worth about $200 million—compared to the total national wealth that year of $101 billion.  His wealth grew significantly after as the demand for gasoline soared, eventually reaching about $900 million, including significant interests in banking, shipping, mining, railroads, and other industries.  By the time of his death in 1937, Rockefeller's remaining fortune, largely tied up in permanent family trusts, was estimated at $1.4 billion.  Rockefeller's net worth over the last decades of his life would easily place him among the very wealthiest persons in history.  As a percentage of the United States economy, no other American fortune—including Bill Gates or Sam Walton—ever came close.

Notwithstanding these varied aspects of his public life, Rockefeller may ultimately be remembered simply for the raw size of his wealth.  In 1902, an audit showed Rockefeller was worth about $200 million—compared to the total national wealth that year of $101 billion.  His wealth grew significantly after as the demand for gasoline soared, eventually reaching about $900 million, including significant interests in banking, shipping, mining, railroads, and other industries.  By the time of his death in 1937, Rockefeller's remaining fortune, largely tied up in permanent family trusts, was estimated at $1.4 billion.  Rockefeller's net worth over the last decades of his life would easily place him among the very wealthiest persons in history.  As a percentage of the United States economy, no other American fortune—including Bill Gates or Sam Walton—ever came close.