David Libby
Mr. Jordan
HUSH
11/5/18
John Davison Rockefeller was a very very rich man. He is considered one of the richest people in the world. Many believed he got rich on the backs of his employees at Standard Oil co. For the most part, that is correct, many employees were paid very little and they had to do dangerous jobs that could take away limbs, depending on the job you were able to get. But it’s not like he was the only one, the majority of factories and businesses treated their workers terribly. But there is a lot more to John D. Rockefeller than just being rich, the story of how he got there is quite interesting and it shows how he learned to be a good businessman.
John D. Rockefeller was born into a family that was not rich nor poor on July 8, 1839. He started working when he was 16 as an assistant bookkeeper with Hewitt & Tuttle. “By the age of 20, Rockefeller, who'd thrived at his job, ventured out on his own with a business partner, working as a commission merchant in hay, meats, grains and other goods. At the close of the company's first year in business, it had grossed $450,000. ” ("John D. Rockefeller Biography") “…Rockefeller sensed an opportunity in the oil business in the early 1860s. With oil production ramping up in western Pennsylvania, Rockefeller decided that establishing an oil refinery near Cleveland, a short distance from Pittsburgh, would be a good business move. In 1863, he opened his first refinery, and within two years it was the largest in the area. ” ("John D. Rockefeller Biography") Seeing how the business was doing quite well, Rockefeller turned his attention to the oil business. In 1870, Rockefeller created the Standard Oil Company. “Which immediately prospered, thanks to favorable economic/industry conditions and Rockefeller’s drive to streamline the company’s operations and keep margins high. ” ("John D. Rockefeller Biography") “Standard’s moves were so quick and sweeping that it controlled the majority of refineries in the Cleveland area within two years.” ("John D. Rockefeller Biography") And because of that power of controlling the refinery’s in the area, he made deals with railroad companies so that he could ship his oil. He constructed pipelines for transport as well to maximize his transportation abilities. In terms of controlling the market entirely, he went as far to buy acres of land to prevent other companies from laying their own pipes.
“In just over a decade since Standard Oil was incorporated, it had a near monopoly of the oil business in the U.S. and consolidated each division under one giant corporate umbrella, with Rockefeller overseeing all of it.” ("John D. Rockefeller Biography") “Congress jumped into the fray with both feet in 1890 with the Sherman Antitrust Act…” ("John D. Rockefeller Biography") It was so powerful that the Ohio Supreme Court decided that it was a monopoly, and it violated Ohio state law. But Rockefeller liked being a step ahead, so he split up the corporation himself and allowed those other companies to be run by other people. “The overall hierarchy remained chiefly in place, though, and Standard’s board maintained control of the web of spun-off companies.” ("John D. Rockefeller Biography")
Rockefeller was a devout Baptist and donated to charities using his wealth. “His money helped pay for the creation of the University of Chicago (1892), to which he gave more than $80 million before his death.” ("John D. Rockefeller Biography") Additionally, he helped fund the Rockefeller Institute for Medical Research.
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