Rockefeller, John Davison (1839-1937), was a famous American businessman. He made a fortune in the petroleum industry and later became famous for his philanthropy (charity). He was one of the wealthiest individuals of his time and a symbol of big business in the United States. Many people have criticized the business methods Rockefeller used in developing his vast industrial empire. But his contributions to the welfare of humanity also form an important part of his record.
Early life.
Rockefeller, the son of a peddler, was born in Richford, New York, near Ithaca, on July 8, 1839. When he was 14 years old, his family moved to Cleveland. After attending high school and taking several business classes, Rockefeller became a clerk and bookkeeper at a commission house, a firm that sells goods for others on commission. He soon formed a partnership to establish his own commission house. With two partners, Rockefeller entered the oil-refining business in 1863.
The Standard Oil Company,
established in 1870, grew out of Rockefeller, Andrews & Flagler, a partnership owned by Rockefeller, his younger brother William, and some associates. With Rockefeller as its president and largest stockholder, Standard Oil developed the world’s largest oil refineries and drove down the cost of refining oil. Standard Oil soon owned the chief refineries in Cleveland, New York City, Philadelphia, and Pittsburgh. Rockefeller and his associates also bought oil-producing lands, built tank cars and pipelines, and created an organization to market their products. Rockefeller’s dealings with railroads involved rebates and other types of privileged treatment. See Rebate .
By 1879, Standard Oil controlled 90 percent of U.S. oil refining and much of the nation’s oil shipping. In 1882, Rockefeller and his associates transferred the stock of all their companies to the newly formed Standard Oil Trust. This transfer of control helped unify the management of the operations and reduce administrative difficulties. However, the vastness of Rockefeller’s holdings caused the Ohio Supreme Court to dissolve the Standard Oil Trust in 1892. In 1899, the Standard Oil Company (New Jersey), a holding company, replaced the trust. In 1911, the Supreme Court of the United States ordered the firm to dissolve. See Antitrust laws ; Standard Oil Company ; Holding company .
Reputation and philanthrophy.
As Rockefeller’s wealth and power grew, he attracted heated public criticism. Former rivals accused him of selling below cost and of using ruthless negotiating tactics. Many criticized his efforts to eliminate his competition.
Rockefeller gradually retired from 1895 to 1897, and he devoted the final years of his life to philanthropy. He gave away about $540 million during his lifetime. He gave most of this money to the public through foundations he established himself and through other organizations. Institutions receiving money from Rockefeller included the Rockefeller Foundation, the Rockefeller Institute for Medical Research (later renamed Rockefeller University), the University of Chicago, the General Education Board, and the Laura Spelman Rockefeller Memorial. Rockefeller died on May 23, 1937. See Rockefeller Foundation ; Chicago, University of (History) .
Rockefeller’s descendants.
Several of Rockefeller’s male descendants became well-known figures in business, finance, and philanthropy. Several others became prominent in American politics and government. His only son, John D. Rockefeller, Jr., continued his father’s philanthropic work. John D., Jr., had five sons—John D. III, Nelson, Laurance, Winthrop, and David. John D. III served as chairman of the Rockefeller Foundation from 1952 to 1971. Nelson was governor of New York from late 1958 to 1973 and Vice President of the United States from 1974 to 1977. Laurance was a noted conservationist. Winthrop served as governor of Arkansas from 1967 to 1971. David was chief executive officer of Chase Manhattan Bank from 1969 to 1980. John D. Rockefeller IV, the son of John D. III, served as governor of West Virginia from 1977 to 1985. He served as a member of the U.S. Senate from that state from 1985 to 2015.
