Early life John Davison Rockefeller was born on July 8, 1839 in Richford, New York. When he was around 14 years old, him and his family moved to Cleveland, Ohio. Not too long after arriving, his father abandoned him and his family. At a very young age, Rockefeller demonstrated characteristics that later helped him become successful. His obsession with tidiness, order, and precision. At age 16 he attained his first real official job as an assistant bookkeeper for Hewitt an Tuttle. September 26 was the day he considered that he first entered the business world. when he was just 20, he opened his first business. There he served as a commission merchant for hay, meats, and grains. Within the first year, his business grossed $450,000. In 1864 he married Black Gold Rush …show more content…
Rockefeller noticed profitable potential in oil. Cleveland was an ideal place for oil industries due the availability of transportation like railroads. The problem was that it was too risky, so he went and researched what was the most efficient way to harvest oil and refine it for Kerosene. In 1863 he invested $4000 into his first refinery. the problem came when several cases appeared where families were killed in sudden combustions with kerosene fueled lamps. In these times Kerosene was in high demand, and several small businesses were transporting this highly dangerous liquid. He went back to research ways to calm down public fear, and successfully refined kerosene in the safest and most efficient way. This was the clear distinction between him and his competitors. He then went to introduce his products and ideas to a group of
Rockefeller was America’s first billionaire, and he was the true epitome of capitalism. Rockefeller was your typical rags-to-riches businessman, and at the turn of the twentieth century, while everyone else in the working class was earning ten dollars max every week, Rockefeller was earning millions. There has been much discussion as to whether Rockefeller’s success was due to being a “robber baron”, or as a “captain of industry”. By definition, a robber baron was an industrialist who exploited others in order to achieve personal wealth, however, Rockefeller’s effect on the economy and the lives of American citizens has been one of much impact, and deserves recognition. He introduced un-seen techniques that greatly modified the oil industry. During the mid-nineteenth century, there was a high demand for kerosene. In the refining process from transforming crude oil to kerosene, many wastes were produced. While others deemed the waste useless, Rockefeller turned it into income by selling them. He turned those wastes into objects that would be useful elsewhere, and in return, he amassed a large amount of wealth. He sold so much “waste” that railroad companies were desperate to be a part of his company. However, Rockefeller demanded rebates, or discounted rates, from the railroad companies, when they asked to be involved with his business. By doing so, Rockefeller was able to lower the price of oil to his customers, and pay low wages to his workers. Using these methods,
Rockefeller even wrote in a letter to a partner, "we must remember we are refining oil for the poor man and he must have it cheap and good" (83).
Rockefeller was the co-founder of the stand Oil Company. His wealth grew and became the world’s richest man. By the early 1880s, he dominated the oil business with his Standard Oil Company, in which he accounted thirty percent of. In the overall U.S. refineries and pipelines, his company accounted for around ninety percent. John D. Rockefeller was also a major philanthropist.
None of the competition knew what the rates were for the rebates or the rates that Rockefeller was paying the railroad. This made it hard for the competition to keep up with the Standard Oil Company. The consequences led to many oil companies being secretly bought out by Rockefeller. All in all, 25 companies surrendered to Rockefeller's relentless expansion, which was 20% of the oil industry in America.... ...
John Augustus Sutter was born in Baden, Switzerland on the 15th of February in 1803. Sutter is the reason for the California Gold Rush that began in 1848. Sutter had a fort called “New Helvetia” beginning in 1842 that ended quickly in 1844. A man named James Wilson Marshall was planning to build John Sutter a water-powered sawmill, when he came across flakes of gold in the American River near Coloma, California in the Sierra Nevada Mountains. This Discovery happened on January 24th in 1848 causing the town to have no till afterwards. Once the discovery got out it was soon the center for merchants and miners. In John Sutter’s earlier years, he claimed to have had a military background being a captain in the Royal Swiss Guard to the French King.
Many people consider Rockefeller a robber of industry because of his forcible ways of gaining his monopolies. Rockefeller was fond of buying out small and large competitors. If the competitors refused to sell they often found Rockefeller cutting the prices of his Standard Oil or in the worst cases, their factories mysteriously blowing up. Rockefeller was obsessed with controlling the oil market and used many of undesirable tactics to flush his competitors out of the market. Rockefeller was also a master of the rebate game. He was one of the most dominant controllers of the railroads. He was so good at the rebate that at some times he skillfully commanded the rail road to pay rebates to his standard oil company on the traffic of other competitors. He was able to do this because his oil traffic was so high that he could make or break a section of a railroad a railroad company by simply not running...
Let us first look at Mr. Andrew Carnegie. Carnegie was a mogul in the steel industry. Carnegie developed a system known as the vertical integration. This method basically cut out the ‘middle man’. Carnegie bought his own iron and coal mines (which were necessities in producing steel) because purchasing these materials from independent companies cost too much and was insufficient for Carnegie’s empire. This hurt his competitors because they still had to pay for raw materials at much higher prices. Unlike Carnegie, John D. Rockefeller integrated his oil business from top to bottom. Rockefeller’s system was considered a ‘horizontal’ integration. This meant that he followed one product through all phases of the production process, i.e. Rockefeller had control over the oil from the moment it was drilled to the moment it was sold to the consu...
John D. Rockefeller and other members of his family produced the fuel that powered America and Europe. In fact, 85% of the world's kerosene supply was produced in a company of Rockefeller's in Pennsylvania. J.P. Morgan, a giant in finance was equally successful by capitalizing small businesses and taking private corporations public. His genius for investing and financing was known world-wide. Because of Morgan and investors like him the American economy grew at a rate that the world had not seen before. His "Gentlemen's Agreement" brought stability to a railroad industry that was unstable because of it's incredible growth. The agreement regulated rates, settled disputes and imposed fines for companies that did not abide by the terms of their contracts. J.P. Morgan helped create a centralized banking system and paved the way for what was to become The Federal Reserve. Henry Ford a corporate giant in transportation built the Ford Motor Company and
To begin the look at Rockefeller’s life, let’s look back to his birth. John D. Rockefeller was born on July 8th, 1839 to Eliza and William Avery Rockefeller in Richmond, New York and was the eldest of his other 4 siblings; Lucy, William Jr., Mary and Franklin. John’s parents could easi...
...ichest men in the world, monopolizing the oil industry, which played an important role in shaping the economy. In today’s oil business Rockefeller’s effect can still be seem in business strategies, values, and competitive logic. The oil business is now structured and very competitive. It also plays many important roles in the economy.
What do you think of when you hear the term “Gold Rush”? The 1849 gold rush in California?
How would feel to be a multimillionaire in just a couple years, but you have to get the Klondike in Alaska. Many people took this challenge either making their fortune or coming up more broke than they already were. The Klondike Gold Rush played a major role in shaping peoples lives and a time in American history. My paper consists of 3 main topics: first, what people had to go through to get there; second, the harsh conditions they had to endure when they got there; and lastly, the striking at rich part or if at all they did get rich.
California, the place to turn cant’s into cans and dreams into plans. The same situation and scenarios apply to today and even over one hundred and sixty five years ago. Then and now are not so different, people are thriving or failing from the land of plenty, supplying themselves with knowledge, wealth, or skill to either spread their wings and take flight or crash and burn. Each state in the United States of America has a correlating nickname to either why it’s famous or an explanation of its history. California’s state name is The Golden State, and going all the way back to 1849 is why this was such an influential time for California and all of America. This is the period of the Gold Rush. Reasons why this event was so impeccable, to the development of California, are the years leading up to the discovery, the first findings, the journey, and so much more.
Rockefeller was the son of a trader, and began in the oil company when he was 20. He knew this was the area to invest in, because coal was being replaced by oil in the power industries. By 1870, he had his first oil business, called the Standard Oil Company. Like Carnegie, Rockefeller used horizontal integration and within two years, he had also created a monopoly. He made more money because he paid his workers extremely low wages and treated them poorly. Unlike Carnegie who offered his workers benefits and stock options, Rockefeller gave his workers poor conditions and even abused them at times. Even though Rockefeller was a philanthropist and gave a lot of his money away, that does not make up for how he treated other people and put people out of business to become wealthy. He is best known for a robber baron because he simply used his power to destroy other businesses. He did whatever he could to control the oil industry, even if that meant stepping on others on the way to his success. He reduced the costs of his company, and he was then able to drive other companies out of business, which is how he became one of the richest men in history.
Numerous families living in small town America lost their income because of Standard Oil and forced hardship upon many. The legacy of John D. Rockefeller shall always live on as he has permanently shaped how this country looks. He has funded huge advancements in the fields of education and medicine along with starting the events to end lassiez-faire economics. The petroleum industry changed greatly during his career thanks to his research and completely new business methods were thought up of by him, some still in practice today.