John D. Rockefeller, Sr. was a highly successful and controversial American businessman and investor. He was the founder of the Standard Oil Company, and through his efforts in the oil industry, he was able to secure a monopoly, making him one of the wealthiest men of the 19th century.
John D. Rockefeller’s contributions to philanthropy were significant, but he was also heavily criticized for the strategies he employed to build his fortune. Therefore, he was considered one of the so-called “robber barons”, businessmen with little ethics when it came to doing business.
Rockefeller’s early beginnings in business started at a young age. Born in 1839 in Richford, New York, he soon became interested in the world of business. At the young age of twelve, he loaned $50 to a neighbor at 7% interest, and was immediately impressed by the return on the investment. This was when he realized the potential for wealth that the lending business had to offer.
After working for a time as an accountant for Hewitt and Tuttle in Cleveland, he decided that it was time to start his own business. Along with Maurice Clark, he embarked on a business venture as a commission agent in the agricultural sector. The business was made possible in part by the money his father loaned him at an annual interest rate of 10%.
The business soon began to generate profits. In 1861, the United States was in the midst of a civil war and the government significantly increased its demand for food to supply the troops. This provided substantial commissions for Maurice Clark and John D. Rockefeller, who made $4,400 in profits in their first year as agricultural product commission agents.
The key to Rockefeller’s success was the oil industry. In 1863, in the northwest of the state of Pennsylvania, drilling contractor Edwin Drake discovered a high-quality oil deposit. It was then that chemist Samuel Andrews convinced Rockefeller to invest in the oil sector, creating the Andrews Clark & Co. partnership.
Despite initial setbacks and being forced to take out a loan to continue in the oil business, Rockefeller did not give up. While other companies wasted the byproducts generated in the refining process, Rockefeller’s company made use of all of the crude oil. This enabled them to produce a wide variety of products and lower the costs of refined oil.
Over time, Rockefeller was able to acquire a number of other oil refineries and transportation companies, thus consolidating the industry under the Standard Oil Company. Through a combination of efficient management, innovative business practices and aggressive acquisition strategies, he was able to build Standard Oil into one of the largest and most powerful companies in the world.
Despite being criticized for his business practices and facing numerous legal battles, Rockefeller’s business acumen and determination helped him to achieve immense wealth and success. He was able to use a significant portion of his wealth for philanthropic purposes, leaving a lasting impact on American society. He passed away in 1937, in Ormond Beach, Florida.
