These estimates are based on looking at the fraction of GDP which he controlled and adjusting for current US GDP; they are not based on adjusting for the CPI. He also had a deep love of music and dreamed of it as a possible career. [20] Religion was a guiding force throughout his life and he believed it to be the source of his success. [50], Undeterred, though vilified for the first time by the press, Rockefeller continued with his self-reinforcing cycle of buying the least efficient competing refiners, improving the efficiency of his operations, pressing for discounts on oil shipments, undercutting his competition, making secret deals, raising investment pools, and buying rivals out. "[24] Unshackled by conventional morality, he led a vagabond existence and returned to his family infrequently. The ability to deal with people is as purchasable a commodity as sugar or coffee and I will pay more for that ability than for any other under the sun. Nine trustees, including Rockefeller, ran the 41 companies in the trust. At the turn of the century, when the average workerearned $8 to $10 per week, Rockefellerwas worth millions. [citation needed], His mother was deeply religious and disciplined, and had a major influence on him in religious matters. He said later, "Her judgment was always better than mine. [11] His fortune was mainly used to create the modern systematic approach of targeted philanthropy through the creation of foundations that had a major effect on medicine, education, and scientific research. What is the medical term for movement away from the midline of the body? Among his activities, he funded the establishment of the University of Chicago and the Rockefeller Institute for Medical Research (now Rockefeller University). Whatever conclusions can be drawn, Rockefeller's impact … 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. [19] For advice, he relied closely on his wife Laura Spelman Rockefeller with whom he had five children. His personal wealth jumped to over $900,000,000 at the time Standard Oil was broken up. In September 1855, when Rockefeller was sixteen, he got his first job as an assistant bookkeeperworking for a small produce commission firm in Cleveland called Hewitt & Tuttle. Striking miners were forced to abandon their homes in company towns and lived in tent cities erected by the union, such as the tent city at Ludlow, a railway stop north of Trinidad.[95]. His father was a merchant who traveled across the Midwest and Northeastern portions of the United States. Senator JAY ROCKEFELLER John D. Rockefeller’s Great Grandson. [130], Rockefeller's fourth main philanthropy, the Laura Spelman Rockefeller Memorial Foundation, was created in 1918. In the end it turned out that the individual segments of the company were worth more than the entire company was when it was one entity — the sum of the parts were worth more than the whole – as shares of these doubled and tripled in value in their early years. [25] In between the births of Lucy and John, Bill and his mistress and housekeeper Nancy Brown had a daughter named Clorinda who died young. Sold by his heirs in 1939, it was purchased by the city in 1973 and now serves as a cultural center and is the community's best-known historical structure. The refinery was directly owned by Andrews, Clark & Company, which was composed of Clark & Rockefeller, chemist Samuel Andrews, and M. B. Clark's two brothers. In 1902, an audit showed Rockefeller was worth about $200 million—compared to the total national GDP of $24 billion then. [37] Rockefeller received $16 a month for his three-month apprenticeship. I would have deplored the necessity which compelled the officers of the company to resort to such measures to supplement the State forces to maintain law and order." Rockefeller's wealth soared as kerosene and gasoline grew in importance, and he became the richest person in the country, controlling 90% of all oil in the United States at his peak. Flagler expanded it to accommodate 600 guests and the hotel soon became one in a series of Gilded Age hotels catering to passengers aboard Flagler's Florida East Coast Railway. By the end of the American Civil War, Cleveland was one of the five main refining centers in the U.S. (besides Pittsburgh, Pennsylvania, New York, and the region in northwestern Pennsylvania where most of the oil originated). The cartel offered preferential treatment as a high-volume shipper, which included not just steep discounts/rebates of up to 50% for their product but rebates for the shipment of competing products. [140], His wealth continued to grow significantly (in line with U.S. economic growth) as the demand for gasoline soared, eventually reaching about $900 million on the eve of the First World War, including significant interests in banking, shipping, mining, railroads, and other industries. Throughout his life, Bill was notorious for shady schemes. [81] He went on a massive buying spree acquiring leases for crude oil production in Ohio, Indiana, and West Virginia, as the original Pennsylvania oil fields began to play out. The Rockefellers are worth $11 billion today. Does Hermione die in Harry Potter and the cursed child? [citation needed], In 1864, Rockefeller married Laura Celestia "Cettie" Spelman (1839–1915), daughter of Harvey Buell Spelman and Lucy Henry. [53][54] Rockefeller, Andrews & Flagler was the predecessor of the Standard Oil Company. It developed over 300 oil-based products from tar to paint to petroleum jelly to chewing gum. – John D. Rockefeller. Standard Oil quoted a price for crude oil that was 20% below the market price, then stalled on payments to the desperate oil producers. Udo Hielscher: Historische amerikanische Aktien, p. 68 - 74, Laughlin, Rosemary. He was buried in Lake View Cemetery in Cleveland. "[32], When he was a boy, his family moved to Moravia, New York, and to Owego, New York, in 1851, where he attended Owego Academy. He paid higher than market wages, citing that it would end up slashing costs in the long run. In the aftermath, Rockefeller's control over the oil industry was somewhat reduced but over the next 10 years, the breakup also proved immensely profitable for him. However, his mother was more influential in his upbringing and beyond, while he distanced himself further and further from his father as his life progressed. [131] Through this, he supported work in the social studies; this was later absorbed into the Rockefeller Foundation. Rockefeller retained his nominal title as president until 1911 and he kept his stock. [44] As he said, "God gave me money", and he did not apologize for it. [116] The foundation helped in World War I war relief,[128] and it employed William Lyon Mackenzie King of Canada to study industrial relations. A Baptist preacher once encouraged him to "make as much money as he could, and then give away as much as he could". In opposition to Carnegie Steel, John D. Rockefeller instead chose to pay his workers very well, typically above market rate, as he saw this would save money in the long run. From the time the idea came about in 1929 until the completion in 1940, Rockefeller Center created economic prosperity, initiated by John D. Rockefeller, creating a city within a city. RAGS TO REFINERIES In 1839, John Davison Rockefeller is born into a poor Cleveland family. Rockefeller prevailed and the railroad sold its oil interests to Standard. Back in 1915, John D. Rockefeller Jr. was called to testify before the Commission on Industrial Relations about a brutal strike at one of his family’s mines in Colorado. It supplied kerosene by tank cars that brought the fuel to local markets, and tank wagons then delivered to retail customers, thus bypassing the existing network of wholesale jobbers. What is the difference between the Shark Rotator powered lift away and the professional lift away? Annual gifting. [c] Oil was used throughout the country as a light source until the introduction of electricity, and as a fuel after the invention of the automobile. He gave money to the Union cause, as did many rich Northerners who avoided combat. The Rockefellers lived in Strongsville and then Parma, before settling in Cleveland in 1853. As a young boy he sells sweets to local children to help his family as his father, a conman known as ‘Devil Bill’, doesn’t. The Supreme Court ruled in 1911 that Standard Oil must be dismantled for violation of federal antitrust laws. The capital expenditures for a refinery at that time were small - around $1,000 to $1,500 and requiring only a few men to operate. [129], In the 1920s, the Rockefeller Foundation funded a hookworm eradication campaign through the International Health Division. John D. Rockefeller spent his money in unique ways. "[51] He was well-positioned to take advantage of postwar prosperity and the great expansion westward fostered by the growth of railroads and an oil-fueled economy. Before 1870, oil light was only for the wealthy, provided by expensive whale oil. [29] His church was later affiliated with the Northern Baptist Convention, which formed from American Baptists in the North with ties to their historic missions to establish schools and colleges for freedmen in the South after the American Civil War. For with the measure you use, it will be measured to you. In 1901, he founded the Rockefeller Institute for Medical Research[120] in New York City. On April 20, 1914, a general fire-fight occurred between strikers and troops, which was antagonized by the troops and mine guards. The United States Commission on Industrial Relations conducted extensive hearings, singling out John D. Rockefeller Jr. and the Rockefellers' relationship with Bowers for special attention. [64] The railroad, seeing Standard's incursion into the transportation and pipeline fields, struck back and formed a subsidiary to buy and build oil refineries and pipelines. Large sums of his fortune were donated to causes like medical research, but to assume that David Rockefeller … Rockefeller later commented:[55]. "[85] He began a publicity campaign to put his company and himself in a better light. Though he had long maintained a policy of active silence with the press, he decided to make himself more accessible and responded with conciliatory comments such as "capital and labor are both wild forces which require intelligent legislation to hold them in restriction." A major New York refiner, Charles Pratt and Company, headed by Charles Pratt and Henry H. Rogers, led the opposition to this plan, and railroads soon backed off. “When a man has accumulated a sum of money within the law,” old John D. intoned, “the people no longer have any right to share in the earnings resulting from the accumulation.” The people felt … [40], In 1859, Rockefeller went into the produce commission business with a partner, Maurice B. Clark, and they raised $4,000 ($113,822 in 2019 dollars) in capital. By 1870, Rockefeller and new partners were operating two oil refineries in Cleveland, then the major oil refining center of the country. He would describe the University of Chicago as “the best investment I ever made.” He also gave a grant to the American Baptist Missionaries foreign mission board, the American Baptist Foreign Mission Society in establishing Central Philippine University, the first Baptist and second American university in Asia, in 1905 in the heavily Catholic Philippines.[118][119][18][16][17]. [97] When testifying on the Ludlow Massacre, and asked what action he would have taken as Director, John D. Rockefeller Jr. stated, "I would have taken no action. We correct them as soon as they come to our knowledge. In 1867, Henry Morrison Flagler became a partner, and the firm of Rockefeller, Andrews & Flagler was established. In 1866, William Rockefeller Jr., John's brother, built another refinery in Cleveland and brought John into the partnership. [87], In 1902, facing cash flow problems, John Cleveland Osgood turned to George Jay Gould, a principal stockholder of the Denver and Rio Grande, for a loan. [55], On January 10, 1870, Rockefeller abolished the partnership of Rockefeller, Andrews & Flagler,[56] forming Standard Oil of Ohio. That is, two years after the dissolution of Standard Oil, US Gross Domestic Product 1913-1939 Stuck on Stupid Us Economy. Great-grandson John Davison "Jay" Rockefeller IV served from 1985 until 2015 as a Democratic Senator from West Virginia after serving as governor of West Virginia,[105] and another Winthrop served as Lieutenant Governor of Arkansas for a decade. John D. Rockefeller was a well-known philanthropist who founded the Standard Oil Company in 1870. [91] Analysis of the company's operations by John D. Rockefeller, Jr. showed a need for substantially more funds which were provided in exchange for acquisition of CF&I's subsidiaries such as the Colorado and Wyoming Railway Company, the Crystal River Railroad Company, and possibly the Rocky Mountain Coal and Iron Company. [31] He later stated, "From the beginning, I was trained to work, to save, and to give. All the fortune that I have made has not served to compensate me for the anxiety of that period. HIS DAD PRETENDED TO BE A DOCTOR. The annual gift tax exclusion for 2019 is $15,000 (or $30,000 for spouses splitting gifts), per donee. [67] Despite improving the quality and availability of kerosene products while greatly reducing their cost to the public (the price of kerosene dropped by nearly 80% over the life of the company), Standard Oil's business practices created intense controversy. [38], As a youth, Rockefeller reportedly said that his two great ambitions were to make $100,000 (equivalent to $2.74 million[39] in 2019 dollars) and to live 100 years. [35] He worked long hours and delighted, as he later recalled, in "all the methods and systems of the office. His General Education Board made a dramatic impact by funding the recommendations of the Flexner Report of 1910. [74], Although 85% of world crude production was still coming from Pennsylvania in the 1880s, oil from wells drilled in Russia and Asia began to reach the world market. John D. Rockefeller treated his workers pretty well. He came to associate the church with charity. At the turn of the century, when the average worker earned $8 to $10 per week, Rockefeller was worth millions. His personal wealth was 900 million in 1913 worth 21 billion dollars adjusted for inflation in 2016. Rockefeller gave $80 million to the University of Chicago[117] under William Rainey Harper, turning a small Baptist college into a world-class institution by 1900. [114] John and Laura donated money and supported the Atlanta Baptist Female Seminary whose mission was in line with their faith based beliefs. Economic historian Robert Whaples warns against ignoring the secrets of his business success: [R]elentless cost cutting and efficiency improvements, boldness in betting on the long-term prospects of the industry while others were willing to take quick profits, and impressive abilities to spot and reward talent, delegate tasks, and manage a growing empire. One of Flagler's guests at the Ormond Hotel was his former business partner John D. Rockefeller, who first stayed at the hotel in 1914. Standard Oil was the first great business trust in the United States. In 1884, Rockefeller provided major funding for Atlanta Baptist Female Seminary in Atlanta for African-American women, which became Spelman College. Copyright 2020 FindAnyAnswer All rights reserved. Business, he . He was an excellent debater and expressed himself precisely. [83], Upon his ascent to the presidency, Theodore Roosevelt initiated dozens of suits under the Sherman Antitrust Act and coaxed reforms out of Congress. John D. Rockefeller was born on July 8, 1839, at Richford, New York. Biography Reference Center, EBSCO, United States Department of Labor: Bureau of Labor Statistics - historical inflation calculator, United States Commission on Industrial Relations, Carnegie Foundation for the Advancement of Teaching, Johns Hopkins School of Hygiene and Public Health, Learn how and when to remove this template message, 10 Things You May Not Know About John D. Rockefeller, "Giving It Away, Then and Now - The New York Times", Weekly Centralian Link (June 15, 2018) - CPU holds Faculty and Staff Conference 2018, "The Philanthropists: John D. Rockefeller - Tim Challies", "John D. Rockefeller | Biography, Facts, & Death", "People & Events: John D. Rockefeller Senior, 1839–1937", "Militia slaughters strikers at Ludlow, Colorado", "John D. Rockefeller Sr. and family timeline", "John D Rockefeller:Infinitely Ruthless, Profoundly Charitable", "The Richest Man In History: Rockefeller is Born", "The 19th century swami who influenced Rockefeller, Tesla and J.D. At last in 1911, the Supreme Court of the United States found Standard Oil Company of New Jersey in violation of the Sherman Antitrust Act. Rockefeller Gifts Total $530,853,632. There was destitution in the coalfields. Even more critical, the invention of the light bulb gradually began to erode the dominance of kerosene for illumination. [115] Rockefeller also gave considerable donations to Denison University[116] and other Baptist colleges. It kept oil prices low to stave off competitors, made its products affordable to the average household, and, to increase market penetration, sometimes sold below cost. Or should he be demonized as a "robber baron." Who gave away more money Rockefeller or Carnegie? Friends praised him as "kindly, gentle, and sweet," while journalists condemned him for being "ruthless as a whirlwind." "[45] At that time, the Federal government was subsidizing oil prices, driving the price up from $.35 a barrel in 1862 to as high as $13.75. [23] Bill was first a lumberman and then a traveling salesman who identified himself as a "botanic physician" who sold elixirs, described by locals as "Big Bill" and "Devil Bill. "John D. Rockefeller: Oil Baron and Philanthropist." Seldom has history produced such a contradictory figure. [82] Amid the frenetic expansion, Rockefeller began to think of retirement. In these negotiations, he learned that posted transportation rates that were believed to be fixed could be altered depending on conditions and timing of freight and through the use of rebates to preferred shippers. 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."[136]. John D. Rockefeller always treated his employees with fairness and generosity. [8] That was his peak net worth, and amounts to US$418 billion (in 2019 dollars; inflation-adjusted). By 1869 there was triple the kerosene refining capacity than needed to supply the market, and the capacity remained in excess for many years. Who did John D Rockefeller donate his money to? Early in his life, he regularly went with his siblings and mother Eliza to the local Baptist church—the Erie Street Baptist Church (later the Euclid Avenue Baptist Church)—an independent Baptist church which eventually came to associate with the Northern Baptist Convention (1907–1950; modern American Baptist Churches USA). [66] Rockefeller was under great strain during the 1870s and 1880s when he was carrying out his plan of consolidation and integration and being attacked by the press. He wrote and published his memoirs beginning in 1908. He admitted that he had made no attempt to bring the militiamen to justice. [46] In the kerosene industry, the company replaced the old distribution system with its own vertical system. In total Rockefeller donated about $550 million. In one instance in 1913, Harvey Pratt Judson, an educational man owned by Rockefeller, made it clear that he and Rockefeller did not believe there should be a minimum wage.They believed that “every man and woman, boy and girl gets … He was advised primarily by Frederick Taylor Gates[107] after 1891,[108] and, after 1897, also by his son. This campaign used a combination of politics and science, along with collaboration between healthcare workers and government officials to accomplish its goals. Rockefeller founded the Standard Oil Company in 1870. Rockefeller's General Education Board, founded in 1903,[120] was established to promote education at all levels everywhere in the country. Second son, Nelson Aldrich Rockefeller, was Republican governor of New York and the 41st Vice President of the United States. "I never had an animus against their size and wealth, never objected to their corporate form. Rockefeller was also considered a supporter of capitalism based on a perspective of social Darwinism, and he was quoted often as saying, "The growth of a large business is merely a survival of the fittest". John D. Rockefeller: Robber Baron By: Alex Ernst, Josh Murphy, James Long, and Miguel Garchitorena How he treated workers Rockefeller did infact treat his workers fairly Pay was reasonable, and conditions were not harsh However, this was not purely out of the goodness of his