John D. Rockefeller was an American businessman during the nineteenth and twentieth century who went on to become the wealthiest individual in history during that time, accumulating over one billion dollars. Rockefeller was the son of a con artist and a devout Baptist who grew up in New York and Cleveland. Rockefeller made his fortune by founding the Standard Oil Company and dominating the oil industry. Not only did Rockefeller somewhat revolutionize the petroleum industry, he also helped to define the practice of modern philanthropy by donating large sums of his massive wealth to various charitable organizations.
Rockefeller founded the Standard Oil Company is June of 1870 along with his brother William and a man named Henry Flagler, but
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John was the company’s president and largest shareholder. John worked hard to ensure that standard Oil was the number one petroleum and kerosene company on the market. He bought out rival oil refineries and he developed distributing and marketing companies that would help sell his products around the globe.
“By the close of 1869, Rockefeller, Andrews, and Flagler has outstripped all competition in Cleveland.” The competition that Rockefeller was not able to eliminate by simply buying them out were eventually eliminated or minimized by other means. The business magnate made deals with the railroad companies that transported majority of the United States’ oil, to transport Standard Oil for a much cheaper price than the competition, in return Rockefeller would give the railroad companies a cut of his profits. With the savings Rockefeller accumulated from his railroad deal he was able to afford to sell his oil at a much cheaper price, generating more business from customers who were looking for the best deals on their oil. The few remaining competitors could not compete with Rockefeller’s oil prices while still managing to pay the regular railroad fees. Many of the competitors were forced …show more content…
to give in and become part of Rockefeller’s monopoly or to simply keep trying and eventually go bankrupt due to lack of sales. Rockefeller practiced both horizontal and vertical integration, he bought out all his rivals and merged them into his own company which is considered horizontal, however he also went on to control the pipelines, railroads, and retail outlets which is considered vertical because he aimed to control the raw materials that he knew his competitors would need to be successful, forcing them to have to do business with Rockefeller under his terms which usually led to them giving in to his demands. I personally approve of Rockefeller’s business strategies.
As a man that came from humble backgrounds he did everything in his power to ensure that his business became successful. In order to be successful in the business world it is necessary to be cut throat, the companies that Standard Oil bought out would have most likely done the same thing to Standard Oil given the opportunity or if necessity be. Rockefeller was just ensuring that the business that he was putting all his effort into would go as far as possible. If Rockefeller did not use all of his tactics he would not have become the richest man in the world at the time and one of the richest in human history. Another reason I agree with the methods Rockefeller used to pursue his fortune is because he did not go about it in a malicious manner, he was not a money and power hungry tycoon, he was just a hard worker that wanted to go far in life. I believe this is why he donated a lot of his money to charity because his goal was not to just accumulate money but to simply be successful, comfortable, and to ensure the comfort of
others. Rockefeller began his philanthropic tradition with his very first paycheck, which he donated ten percent of to his church. He went on to donate about half of his over a billion dollar fortune to mostly educational and public health causes but he also made donations to science and the arts. Rockefeller’s donations led to research that resulted in vaccines and treatments for illnesses such as yellow fever, hookworm, malaria, and meningitis. His donations to education helped fund a college for African- American women which later became Spelman College, he also funded the establishment of Rockefeller University, the University of Chicago, and the Central Philippine University. John D. Rockefeller was more than a business tycoon, he was a strategic businessman who knew exactly what he wanted out of his company and did everything in his power to ensure that he was able to obtain what he wanted. He worked hard to eliminate any competition that stood in his way, while also buying out and making deals with the railroad companies and the companies who provided the raw materials necessary to produce kerosene. Although his business tactics may portray Rockefeller as a ruthless, money hungry, monopolizing monster, he was actually far from that. He was a man who was highly religious and a lover of the arts and sciences. He sought to help people advance in life and used a large amount of his money to better the lives of the public through education, health, and art. He strived to give everyone the opportunity to make their lives as successful as possible, just like he did for himself and his company.
Rockefeller even wrote in a letter to a partner, "we must remember we are refining oil for the poor man and he must have it cheap and good" (83).
The Gilded Age refers to a period in which things were fraudulent and deceitful; the surface was clinquant while underneath that lustrous coat laid corruption. During the Gilded Age companies recruited to corrupt methods to further increase profits, leading to an increase in power, rapid economic prosperity, and domination of industries, leading to monopolistic corporations. As a result, antitrust laws to regulate business began to emerge in the late 19th and early 20th century known as the Progressive Era. Among these companies was Standard Oil, which was founded in 1870 by John D. Rockefeller; in 1880, Standard Oil was responsible for refining 90 percent of America’s oil and between 1880-1910, dominating the oil industry (Marshall). The lack of intervention from the government and regulations impeding monopolistic practices allowed Standard Oil to
Rockefeller was the son of a trader, and began in the oil company when he was 20. He knew this was the area to invest in, because coal was being replaced by oil in the power industries. By 1870, he had his first oil business, called the Standard Oil Company. Like Carnegie, Rockefeller used horizontal integration and within two years, he had also created a monopoly. He made more money because he paid his workers extremely low wages and treated them poorly. Unlike Carnegie who offered his workers benefits and stock options, Rockefeller gave his workers poor conditions and even abused them at times. Even though Rockefeller was a philanthropist and gave a lot of his money away, that does not make up for how he treated other people and put people out of business to become wealthy. He is best known for a robber baron because he simply used his power to destroy other businesses. He did whatever he could to control the oil industry, even if that meant stepping on others on the way to his success. He reduced the costs of his company, and he was then able to drive other companies out of business, which is how he became one of the richest men in history.
John D. Rockefeller as a Robber Baron A "robber baron" was someone who employed any means necessary to enrich themselves at the expense of their competitors. Did John D. Rockefeller fall into that category or was he one of the "captains of industry", whose shrewd and innovative leadership brought order out of industrial chaos and generated great fortunes that enriched the public welfare through the workings of various philanthropic agencies that these leaders established? In the early 1860s Rockefeller was the founder of the Standard Oil Company, who came to epitomize both the success and excess of corporate capitalism. His company was based in northwestern Pennsylvania. A major question historians have disagreed on has been whether or not John D. Rockefeller was a so-called "robber baron".
Many people consider Rockefeller a robber of industry because of his forcible ways of gaining his monopolies. Rockefeller was fond of buying out small and large competitors. If the competitors refused to sell they often found Rockefeller cutting the prices of his Standard Oil or in the worst cases, their factories mysteriously blowing up. Rockefeller was obsessed with controlling the oil market and used many of undesirable tactics to flush his competitors out of the market. Rockefeller was also a master of the rebate game. He was one of the most dominant controllers of the railroads. He was so good at the rebate that at some times he skillfully commanded the rail road to pay rebates to his standard oil company on the traffic of other competitors. He was able to do this because his oil traffic was so high that he could make or break a section of a railroad a railroad company by simply not running...
Rockefeller was a Robber Baron for the simple reason that he was greedy and selfish. He has treated his workers horribly and did use his money for others. He used aggressive tactics to get to where he was.
These industrialists are the pillars of the American society due to the successful outcomes of their hard works. Andrew Carnegie and John D. Rockefeller were both born in an underprivileged families. Andrew Carnegie and John D. Rockefeller became the breadwinner of the family at a young age. They both worked hard despite of being born to a
Let us first look at Mr. Andrew Carnegie. Carnegie was a mogul in the steel industry. Carnegie developed a system known as the vertical integration. This method basically cut out the ‘middle man’. Carnegie bought his own iron and coal mines (which were necessities in producing steel) because purchasing these materials from independent companies cost too much and was insufficient for Carnegie’s empire. This hurt his competitors because they still had to pay for raw materials at much higher prices. Unlike Carnegie, John D. Rockefeller integrated his oil business from top to bottom. Rockefeller’s system was considered a ‘horizontal’ integration. This meant that he followed one product through all phases of the production process, i.e. Rockefeller had control over the oil from the moment it was drilled to the moment it was sold to the consu...
John D. Rockefeller and other members of his family produced the fuel that powered America and Europe. In fact, 85% of the world's kerosene supply was produced in a company of Rockefeller's in Pennsylvania. J.P. Morgan, a giant in finance was equally successful by capitalizing small businesses and taking private corporations public. His genius for investing and financing was known world-wide. Because of Morgan and investors like him the American economy grew at a rate that the world had not seen before. His "Gentlemen's Agreement" brought stability to a railroad industry that was unstable because of it's incredible growth. The agreement regulated rates, settled disputes and imposed fines for companies that did not abide by the terms of their contracts. J.P. Morgan helped create a centralized banking system and paved the way for what was to become The Federal Reserve. Henry Ford a corporate giant in transportation built the Ford Motor Company and
However, the reason Rockefeller controlled 90% is because of a company that basically appeared from nowhere and had some actual competition for Standard Oil and actually surprised Rockefeller. The company was known as the Tidewater Pipe-line Company, it started by building a pipeline from north Pennsylvania to Williamsport. Rockefeller tried to acquire the company but in the end it ended up as Standard only competition with Tidewater controlling 10% of the oil refining market. This was however of not a large concern to Standard as they were developing products besides oil from Vaseline to candy.
James B. Weaver was a populist party candidate in 1892, in his speech ‘The Call to Action’ he referenced the Oatmeal trust of 1887. This trust decided to close part of its mills that “stood idle” and raise the price of oatmeal by a dollar. This business integration took jobs of former employees and raised prices unfairly, cutting corners by producing only seven million barrels of wheat. This tactic isn’t fair to consumers or workers, and it’s unfair. Ida Tarbell, an investigative journalist focused her attention on John D. Rockefeller's company ‘Standard Oil’ and composed the ‘History of Standard Oil Company’. According to Tarbell Standard Oil created a ”remarkable scheme” which competitors couldn’t fight for very long. Standard Oil demanded cheaper rates on their moved oil or ‘rebates’ from railroad companies. This unfair tactic allowed Standard Oil to lower their prices dramatically which would eventually decrease competition. What Tarbell alluded to in her piece was that when a monopoly is achieved over the industry, Standard Oil would be able to raise prices without refutation. William Vanderbilt, the son of the 19th century industrialist Cornelius Vanderbilt conducted an interview on the railroads constructed during his father's’ era. According to Vanderbilt, the businesses that
...ichest men in the world, monopolizing the oil industry, which played an important role in shaping the economy. In today’s oil business Rockefeller’s effect can still be seem in business strategies, values, and competitive logic. The oil business is now structured and very competitive. It also plays many important roles in the economy.
Rockefeller was America’s first billionaire, and he was the true epitome of capitalism. Rockefeller was your typical rags-to-riches businessman, and at the turn of the twentieth century, while everyone else in the working class was earning ten dollars max every week, Rockefeller was earning millions. There has been much discussion as to whether Rockefeller’s success was due to being a “robber baron”, or as a “captain of industry”. By definition, a robber baron was an industrialist who exploited others in order to achieve personal wealth, however, Rockefeller’s effect on the economy and the lives of American citizens has been one of much impact, and deserves recognition. He introduced un-seen techniques that greatly modified the oil industry. During the mid-nineteenth century, there was a high demand for kerosene. In the refining process from transforming crude oil to kerosene, many wastes were produced. While others deemed the waste useless, Rockefeller turned it into income by selling them. He turned those wastes into objects that would be useful elsewhere, and in return, he amassed a large amount of wealth. He sold so much “waste” that railroad companies were desperate to be a part of his company. However, Rockefeller demanded rebates, or discounted rates, from the railroad companies, when they asked to be involved with his business. By doing so, Rockefeller was able to lower the price of oil to his customers, and pay low wages to his workers. Using these methods,
Numerous families living in small town America lost their income because of Standard Oil and forced hardship upon many. The legacy of John D. Rockefeller shall always live on as he has permanently shaped how this country looks. He has funded huge advancements in the fields of education and medicine along with starting the events to end lassiez-faire economics. The petroleum industry changed greatly during his career thanks to his research and completely new business methods were thought up of by him, some still in practice today.
Standard Oil Company, which refined 90 percent of the oil produced in America by 1880.