John D. Rockefeller
John Davis Rockefeller was born on July 8th, 1839, in Richfield, New York. He moved with his family to Cleveland, Ohio when he was 14 years old. He started a number of small businesses as a teenager and landed his first office job at the age of 16 as an assistant book-keeper with Hewitt and Tuttle, a small produce commission company.
Growing Interest In Oil
In the early 1860s, Rockefeller began to take an interest in the oil industry and decided to start an oil refinery near Cleveland. He opened up his first refinery in 1863 and within two years, it was the largest within the region. It didn't take long before Rockefeller gave his full attention to this industry.
By 1870, the company continued to grow enormously, and as a result, Rockefeller and a few of his associates decided to incorporate it as the Standard Oil Company. It greatly prospered because of the economic conditions and Rockefeller's motivation to create high profits. Soon, it began to buy out its competition to eliminate any challenges to its growth. This type of business practice became known as horizontal integration.
Within two years, Rockefeller's company soon controlled a majority of the refineries in the Cleveland area. Because of its great size, Standard Oil was able to receive favorable deals with the railroads to ship its oil. However, Rockefeller knew he had to have alternative ways of getting his product to the expanding market if he was to succeed, so he started purchasing and developing pipelines and terminals. As a result, he was able to control almost every aspect of his business and became a growing power in the oil industry.
Within a decade of incorporating the business, Standard Oil had a large market share of the oil business in the U.S., and Rockefeller was able to oversee it all. Rockefeller had done what many considered impossible, create one of the first American monopolies.
By 1870, the company continued to grow enormously, and as a result, Rockefeller and a few of his associates decided to incorporate it as the Standard Oil Company. It greatly prospered because of the economic conditions and Rockefeller's motivation to create high profits. Soon, it began to buy out its competition to eliminate any challenges to its growth. This type of business practice became known as horizontal integration.
Within two years, Rockefeller's company soon controlled a majority of the refineries in the Cleveland area. Because of its great size, Standard Oil was able to receive favorable deals with the railroads to ship its oil. However, Rockefeller knew he had to have alternative ways of getting his product to the expanding market if he was to succeed, so he started purchasing and developing pipelines and terminals. As a result, he was able to control almost every aspect of his business and became a growing power in the oil industry.
Within a decade of incorporating the business, Standard Oil had a large market share of the oil business in the U.S., and Rockefeller was able to oversee it all. Rockefeller had done what many considered impossible, create one of the first American monopolies.
Sherman Antitrust Act
With Rockefeller's motives and his growing empire, the public and US government started to take notice. In response, Congress passed the Sherman Antitrust Act in 1890 which forbid monopolies from being created. Two years later following the act, the Ohio Supreme Court stated Standard Oil was a monopoly and stood in violation of the laws in Ohio.
As a result, Rockefeller dissolved his company into separate companies and allowed each to run under the Standard logo; although Rockefeller no longer had direct control over his company, he was still able to oversee a lot of the operations and continue his power as an oil tycoon.
As a result, Rockefeller dissolved his company into separate companies and allowed each to run under the Standard logo; although Rockefeller no longer had direct control over his company, he was still able to oversee a lot of the operations and continue his power as an oil tycoon.
Leaving a Legacy
Rockefeller was a devoted Baptist and philanthropist. He believed in giving a large amount of his wealth away in order to better society. Some of his greatest contributions included: helping to pay for the creation of the University of Chicago in 1892; giving money to help create the Rockefeller Institute of Medical Research(Rockefeller University) in New York; and donating to the Rockefeller Foundation. In total, he gave away more that $530 million away of his wealth to various charities and community projects.
Rockefeller passed away on May 23, 1937 in Ormond Beach, Florida, but his legacy will always live on and be remembered as one of America's leading businessmen who helped shape the U.S. into what it is today.
Rockefeller passed away on May 23, 1937 in Ormond Beach, Florida, but his legacy will always live on and be remembered as one of America's leading businessmen who helped shape the U.S. into what it is today.