John D. Rockefeller, see John D. Rockefeller . Adjusting for inflation, he is often regarded as the richest person in history.Born poor, Rockefeller believed his riches demonstrated God's endorsement. Rockefeller founded Standard Oil as an Ohio partnership with his brother William along with Henry Flagler, Jabez Bostwick, chemistSamuel Andrews, and a silent partner, Stephen V. Harkness. As kerosene and gasoline grew in importance, Rockefeller's wealth soared and he became the world's richest man and the first American worth more than a billion dollars.
RAGS TO REFINERIES
In 1839, John Davison Rockefeller is born into a poor Cleveland family. 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. He quits school early, becomes a bookmaker, works in dry goods, and bored, determines to risk all. He enters the oil business. He finds prospecting unpredictable and wasteful. He believes refining the crude oil into kerosene, the clear liquid that will light America, is where the money is.
In 1839, John Davison Rockefeller is born into a poor Cleveland family. 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. He quits school early, becomes a bookmaker, works in dry goods, and bored, determines to risk all. He enters the oil business. He finds prospecting unpredictable and wasteful. He believes refining the crude oil into kerosene, the clear liquid that will light America, is where the money is.
In 1863, at just 24, he invests everything into his first refinery. By 27, he’s on the verge of bankruptcy. To not only survive, but thrive, he agrees to meet with the rail road magnate Vanderbilt, hoping to secure competitive transport rates. But Rockefeller narrowly misses his 6:25am train to New York.
The train crashes. Rockefeller would probably have been among the many dead. Already a religious man, he now sees his mission as ordained. When he does meet with Vanderbilt, he promises him 60 barrels a day in exchange for cheap shipping rates.
It’s a risky business; literally. Kerosene explosions are common. In 1870, to alleviate concerns, he creates Standard Oil, guaranteeing uniform quality. Rockefeller becomes the largest producer of refined kerosene in the country.
Rockefeller wants bigger and better shipping rates. He meets with Vanderbilt’s rival, Tom Scott, president of one of the largest rail lines, and his protégée, Andrew Carnegie. An oil and rail cartel is agreed. No paperwork is exchanged. Rockefeller relies on a man’s word.
The train crashes. Rockefeller would probably have been among the many dead. Already a religious man, he now sees his mission as ordained. When he does meet with Vanderbilt, he promises him 60 barrels a day in exchange for cheap shipping rates.
It’s a risky business; literally. Kerosene explosions are common. In 1870, to alleviate concerns, he creates Standard Oil, guaranteeing uniform quality. Rockefeller becomes the largest producer of refined kerosene in the country.
Rockefeller wants bigger and better shipping rates. He meets with Vanderbilt’s rival, Tom Scott, president of one of the largest rail lines, and his protégée, Andrew Carnegie. An oil and rail cartel is agreed. No paperwork is exchanged. Rockefeller relies on a man’s word.
THE PEOPLE VS STANDARD OIL
The Roosevelt court case concludes. It has heard of kickbacks, political bribes, predatory pricing and when all else fails, straightforward intimidation. After 444 witnesses and 12,000 pages of testimony, the court rules that Standard Oil’s unreasonable business practices violate the Sherman Anti Trust Act. Standard Oil has six months to break up.
In its place, 34 smaller companies are formed. These will later become Exxon, Mobil and Chevron but for now, the age of monopoly is over. The defeated Rockefeller is still left with a net worth, in today’s money, of $660 billion.
Before he dies, aged 97, he gives $100 billion of that away.
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