For financiers, Rockefeller's biography is a role model, because he was the richest man of the 20th century. Having worked his way up from accountant to corporate owner, Rockefeller made a fortune with big amount zeros. At the same time, John was an example not only in financial success, but also in charity.
Birth
Rockefeller's biography begins in 1839, when he was born in the city of Richford. William, the father of the future millionaire, worked in different areas: lent money, traded timber, etc. Thanks to his appetite for risk, he managed to amass a small capital ($3,100), part of which was used to purchase a plot of land. William prudently invested the other part in several enterprises. He told little John about his investments, explaining the specifics of doing business.
First earnings
John Rockefeller, whose biography will be discussed in this article, earned his first money at the age of 7. He raised turkeys for sale and dug up potatoes from his neighbors. John recorded all his income in small notepad. Having saved $50 by the age of 13, the future oil magnate lent it to a farmer at 8% per annum. At the age of 16, having completed courses in accounting, he went in search of work. Six weeks of searching were unsuccessful. Finally, John got a job at Hewitt and Tuttle as an accounting assistant. Working 16 hours a day, Rockefeller quickly established himself as a professional, and was soon offered the vacant managerial position. True, they began to pay three times less than his predecessor. John quit... It was the first and last time when he was employed.
Own company
Further, Rockefeller's biography leads us to 1857, when the future oil magnate opened a joint business with Maurice Clark. The partners were lucky: it broke out Civil War with the southern states. The US government needed tons of biscuits, tobacco, sugar and meat, as well as hundreds of thousands of rifles, uniforms and millions of cartridges. To fulfill these orders, there was little starting capital, and John decided to take out a loan. The likelihood of refusal was high, but Rockefeller went to the director of the bank and frankly told everything. Sincerity young man impressed the banker and the loan was approved.
Standard Oil
John Rockefeller's history as an oil tycoon began in 1865. At that time, everything was illuminated and kerosene itself was obtained from oil. John immediately realized the prospects of this business and began its production, opening the Standard Oil company. When the business began to generate income, Rockefeller began buying up other oil companies. By 1880, through numerous mergers, Standard Oil owned 95% of the oil market. Didn't even change the situation. The millionaire simply split Standard Oil into 34 small companies, each of which he owned a controlling stake.
Charity
Rockefeller's biography is filled not only with financial victories. He is the largest philanthropist in American history. At the beginning of the twentieth century, John handed over the management of the business to reliable partners, and he himself was only involved in charity work. In 1905, he donated $100 million to the church, and by the end of his life he had given away more than half a billion.
John Davison Rockefeller, photo
John Rockefeller is the richest and most successful person in human history.
His fortune was $318.3 billion (at 2007 dollar exchange rates). He was 74 years old and at the peak of his wealth, with a fortune of 1.53% of the American economy, America's first billionaire.
« I never knew who I would be in this life, but I always knew that I was born for something more“- this is what John Davison Rockefeller said, according to the recollections of his beloved grandson David.
As a young man, John Davison Rockefeller ( John Davison Rockefeller abbreviated as DDR) said that he has 2 dreams in life: the first is to earn $100,000, and the second is to live to be 100 years old. He was 2 years and 2 months short of goal 2, but he made his first dream come true with tremendous success.
John with his son
Rockefeller was born into a poor family
Full name: John Davidson Rockefeller Sr. ( he later had a son with the same name) was born on July 8, 1839 in New York State, USA, and died in 1937, having lived ninety-eight (98) years.
His father, William Avery "Big Bill" Rockefeller was a lazy man who spent most his time, thinking about how to avoid physical labor. John's mother Louise (Eliza), a self-employed farmer, was a very devout Baptist, and was often in poverty because her husband was constantly away for long periods of time and she constantly had to save on everything. However, thanks to the influence of his mother Louise and the devout Baptist John D., he grew up to be quite a hardworking guy.
- His mother was a terribly devout Baptist, so from childhood she instilled in John the idea that he needed to work hard and constantly save.
- The Rockefellers moved to the New World in the 18th century and gradually moved north to Michigan. Things are piled into a creaking ox-cart, Rockefeller's grandfather holds the reins, his wife and children trail behind, swallowing road dust. They stopped in Richford, New York, where John Rockefeller would be born in 1839.
- He became a “devil” as a child. His dry, skin-covered face, eyes devoid of shine and thin pale lips greatly frightened those around him. In fact, he was quite sensitive and emotional, he just seemed to hide all his feelings in the farthest pocket of his soul. Few people knew what John really was like.
In young age
Education
At the age of 13, John went to school in Richford. In his autobiography, he wrote that it was difficult for him to study and he had to study hard to complete his lessons. Rockefeller successfully graduated from high school and entered Cleveland College, where he taught accounting and the basics of commerce, but soon came to the conclusion that three-month accounting courses and a thirst for activity would bring much more than years of college, so he left it.
Starting a business and how you got rich
Business was part of John's family upbringing. As a child, he would buy a pound of candy, divide it into small piles, and sell it to his sisters for a small markup. And at the age of seven he raised turkeys and sold them to his neighbors. He lent the $50 he earned from this to a neighboring farmer at 7% per annum.
In 1853, the Rockefeller family moved to Cleveland. Since John Rockefeller was one of the eldest children in the family, at the age of 16 he went looking for work.
John began his career in 1855 at the age of 16 as an accountant at the Cleveland trading firm Gevit & Tettl with a salary of first $5 and then $25 a week.
With my first wages Rockefeller acquires a good accounting book. In it he writes down all his income and expenses, paying attention to even the smallest details.
He, like Morgan, was of military age when the Civil War broke out in the United States. And both bought their way out of military service for $300 (in the North of the country this was a common practice for those with means).
Having gained what he considered to be sufficient experience and saving $800, John left the company in 1858 to open a partnership called Clark & Rockefeller, a small grocery firm typical of the era of small business.
In the early 1860s, Rockefeller went out of business and organized new company- Rockefeller & Andrews, focusing on oil refining and kerosene trading, and continued to grow.
Then several more firms joined it, and in 1870 they founded the Standard Oil Company, with a capital of $1 million, which, with the help of successful business decisions and some predatory and illegal actions, became a giant monopoly.
At its height, Standard Oil had about 90% of the refined petroleum (kerosene) market in the United States (in the beginning, Standard Oil's products were not particularly interesting oil industry, the gasoline produced by those refineries was dumped in rivers because it was considered worthless).
In 1910, 55 years after Rockefeller earned his first $5, he became the world's first dollar billionaire. “Through perseverance, anything - right or wrong, good or bad - will be achieved,” said Rockefeller.
In 1911 Supreme Court declared Standard Oil a monopoly under the Sherman Antitrust Act, and the Standard Oil Company was divided.
The corporation was divided into 30 small companies with different boards and directors, in which John Rockefeller retained controlling interests. By this time, John Rockefeller had long since retired from the management of the company, but still had a huge percentage of the shares. He received at least $3 million annually from this business.
Oil prices are the secret to success
Since crude oil is essentially worthless without distillation, hundreds of refineries have sprung up at the other end of the pipeline (and this is true. Under Henry Ford there were 240 automakers, of which three remain - Ford, Chrysler and General Motors).
In Cleveland, Rockefeller's Standard Oil was just one of 26 refineries struggling to survive in a very shaky, single-supplier market.
In the 1960s, the price of crude oil fluctuated from 13 dollars per barrel to 10 cents. In fact, Rockefeller was not the first to appreciate the economic potential of the new industry, since the resulting kerosene could heat houses and light the streets of rapidly growing American cities.
The cheaper it cost the refiner to deliver oil from the field to the refinery and from the refinery to the market and consumer, the greater the margin with which he could play.
Rockefeller did both with success.
In early 1872, having entered into a union called the South Import Company, Rockefeller entered into a pact with three railroad companies (Pennsylvania, New York Central and Erie): they received the lion's share all oil transportation.
In exchange, Standard Oil was given preferential railroad rates while its refining competitors were crushed with punitive prices. In addition to his enormous price advantages, Rockefeller received detailed information about competitors' shipments from the shippers and carriers union (South Improvement Company), which greatly helped in undermining their prices.
Time to work is the secret to success
Rockefeller knows that God blesses the righteous, and turns his life into a constant feat - he comes to work at 6.30 in the morning, and leaves so late that he has to promise himself to finish his accounting no later than ten in the evening.
John's favorite game
Daily practice of his favorite game - golf - provided the necessary stay at fresh air and the sun. He did not forget about indoor games, reading and other beneficial activities.
A successful marriage is the secret of success
The above fully applies to Rockefeller’s wife. Before marrying a young promising businessman, Laura Celestina Spelman, who can hardly be called a beauty, was school teacher and was distinguished by exceptional piety. They met during Rockefeller's short student days, but got married only 9 years later. The girl attracted John's attention with her piety, practicality of mind and the fact that she reminded him of his mother. According to Rockefeller himself, without Laura’s advice, he would have “remained poor.”
State of the Rockefeller clan at the end of the 19th century
In addition to the oil business, which brought in $3 million annually, the businessman owned 16 railway and 6 steel companies, 9 real estate firms, 6 shipping companies, 9 banks and 3 orange groves.
« I believe that the purpose of any person on earth is to honestly take for himself everything he can, and just as honestly give everything he can.“- this is how John formulated his life credo.
At age 16, Rockefeller began working as an accountant and philanthropist.
Rockefeller was always a philanthropist; he gave 10% of his income from his very first salary to charity. As his wealth grew, so did his contributions to charity.
« Grandfather was not interested in purchasing Scottish or French castles; he was disgusted by the thought of buying art or yachts", says David Rockefeller.
In 1908, John wrote and published a book called "Memoirs", which outlined Rockefeller's 12 Golden Rules.
When John Davison started, his fortune was in the thousands of dollars, and all the money went into business. Now that he had hundreds of millions, it was time for charitable charity.
Fifty thousand letters came to Rockefeller a month asking for help; whenever possible, he answered them and sent checks to people.
- He helped found the University of Chicago with $35 million, established scholarships, paid pensions - all this was paid for by the consumer, whom Rockefeller forced to pay for kerosene and gasoline as much as Standard Oil needed.
- In 1901, he founded the New York Institute for Medical Research (from 1965 - Rockefeller University), in 1903 - the Council for Universal Education, in 1913 - the Rockefeller Foundation, in 1918 - the Laura Spelman Foundation (in honor of his wife - helping children and social sciences).
- The total amount of his philanthropic donations amounted to more than $700 million.
- Half of America dreamed of extracting more money from John Davison Rockefeller. The other half was ready to lynch him. Rockefeller was getting old. The passions seething around him got on his nerve.
In all the places where the aged Rockefeller appeared, he handed out handfuls of five- and ten-cent coins from his pockets to everyone around him. And he always took a supply of them with him.
John gave birth to four daughters and one son - John Davison Rockefeller Jr. (born in Cleveland, Ohio, in 1874, died on May 11, 1960 during a winter vacation in Arizona), who continued his father's work ( the youngest had six children, and his five sons, representing the third generation of the Rockefeller dynasty, also became famous in the fields of business, finance and philanthropy).
John Sr. died in 1937 at the age of 98, with a fortune of US$1.4 billion (1937 par) or 1.54% of US GDP, but before his death he gave away half of his accumulated wealth, founding a philanthropic organization that continues to give money for charity, to this day.
John Davison Rockefeller Sr.:
Today, articles whose topic is business are extremely popular. Answers to many questions could be given by John Davison Rockefeller, whose biography teaches perseverance, patience, confidence, and diligence.
Indeed, John Rockefeller has become a legend for our generation. Almost every person today knows his “12 golden rules”. Despite the fact that they were invented quite a long time ago, these rules remain relevant today.
At the time of John's birth (July 8, 1839), the Rockefeller family lived in New York State. John Davison Rockefeller's father spent most of his time partying and having fun with women of dubious reputation; he was far from involved in raising his son.
But the mother invested a piece of herself in raising her son. John Davison Rockefeller often recalled that it was his mother and the priest who instilled in the boy the basic principles of life from childhood. His statements about labor and economy had something like this meaning:
“Life is constant work. But the main thing is not only to earn money, you need to be able to save - this will help you save what you earn.”
John Rockefeller's fortune at the time of his death was estimated at $1.4 billion. If we translate this figure, taking into account inflation, then in 2006 Rockefeller's fortune would be equal to $192 billion! Surprised by this figure, you immediately remember the “12 golden rules” of business.
Interesting facts from childhood - first steps into business
The legendary man, multimillionaire, carried the principles laid down in childhood throughout his entire life. They, in a slightly adjusted form, later became part of his “12 golden rules”.
Some educators may find this fact disgusting from the entrepreneur’s childhood that John Davison Rockefeller, as a very young child, bought some candies with the money he was given for the holidays, and then sold them individually to his sisters. Of course, in his “business” the basic law of entrepreneurship was in force - surplus value. And the money became many times more.
So, not from books, but through practice, John learned to “make money”, studied the basic economic principles trade. And it was then that the boy came up with an axiom: buying in bulk means saving.
And the indignation of teachers condemning a child who sells candy to his own sisters at more than the purchase price can be extinguished with arguments:
- Candy is not an essential item that girls could not survive without.
- They bought sweets from the girl’s brother, perhaps because they were too lazy to go to the store themselves.
- Wanting to save money, the sisters took one candy from John at a time, naively believing that they would spend less this way, that is, they did not know how to think globally.
Later, after reaching the age of seven, John decided not only to resell what he bought, but also began to produce the goods himself. He raised turkeys on his yard, which he sold at a profit to his neighbors. What is not a commendable business? And, as a result, the emergence of one of the business rules: any work brings income.
But the future entrepreneur, the famous John Davison Rockefeller, “put the capital proceeds of 50 dollars into growth” by lending it to a neighbor. From this enterprise the boy received another 7% per annum. This is how another one of the businessman’s rules was born: “Money should not lie idle - it must constantly “work”, generating income!”
The hidden soulfulness of a multimillionaire philanthropist
In fact, John was not such a "cracker". His sensitive and vulnerable soul, capable of torment and worry, is evidenced by the fact that on the day of his sister’s death, the boy ran away from everyone and, falling face down on the ground, lay there all day.
As an adult, John Davison Rockefeller continued to be sensitive and responsive. Having accidentally learned that one of his former classmates was in great need due to the death of her breadwinner-husband, he awarded her a pension. True, in his youth John felt a feeling of affection for this girl, but things did not go further than that.
And the entire biography of the multimillionaire is replete with good deeds. Thanks to his mother, he grew up deeply religious and He constantly donated 10% of his profits to those in need..
In addition to regularly paying tithes to the church - a tenth of the profits - John Davison Rockefeller is building in the country Spelman College, the University of Chicago, Rockefeller University, the Rockefeller Institute for Medical Research, and the Museum of Modern Art. Many monasteries owe their appearance to the philanthropist and the richest man in the world.
Having founded the Rockefeller Foundation, the businessman donated large sums to the development of medicine and education. The history of the fight against yellow fever contains pages written by Rockefeller - he financed many projects in this area. Meanwhile, John Davison Rockefeller demands that all his good deeds be kept secret from the public. Part of the profit - John Davison Rockefeller is building Spelman College, the University of Chicago, Rockefeller University, the Rockefeller Institute for Medical Research, and the Museum of Modern Art in the country. Many monasteries owe their appearance to the philanthropist and the richest man in the world.
Rockefeller descendants continue the tradition of philanthropy, taking an active part in charitable and political activities. One of the 12 “golden” rules derived by Rockefeller is the law of “tithe”.
A negative example is also an example
From his childhood, Rockefeller derived several more rules that became guiding principles in his adult life. The first is based on a healthy lifestyle. Looking at his drinking father, wasting his years dissolutely, at his mother suffering from this, Rockefeller completely abandoned alcohol and smoking.
And one more rule of life was “gifted” to him by his father. Having seen enough of him, the boy hated the wild lifestyle. That's how it worked " negative example" - Rockefeller was faithful husband, a good father.
But John also owed the most important of the basic rules of business to his father. An excerpt from his quote reads: “He often bargained with me and bought various services from me. He taught me how to buy and sell. My father was simply “training” me to get rich!”
Businessmen are not born - they are raised
The biography of the millionaire also contains information about family life. Having once married Laura Celestina Spelman, Rockefeller remained faithful to her all his life. The following quotes from his statements about her have reached us: “Without her advice, I would never have gotten rich, I would have remained poor.”
The married couple raised four children together: three girls and a son. Upbringing in the family was original, today we would say creative. It had many similarities with his “12 golden rules.”
Of course, the main principle of organizing children's lives was work. But, instilling hard work, Rockefeller interested the kids financially. Children received a few cents for killing a fly, sharpening a pencil, practicing music, or getting a good grade at school. My father paid special attention to working in the garden beds.
The second on the list of rules for raising children is to teach them to be unpretentious. For example, Rockefeller awarded those kids who lived for a day without giving up candy.
The third rule worth mentioning is instilling precision, accuracy, and responsibility in children. Children were fined for being late to the table, failure to complete any instructions, or disobedience.
Rockefeller created a miniature likeness in his home for his children. market economy. Daughter Laura played the role of “company director”. Each child in the family kept his own account book, wrote reports, and kept a balance sheet.
Rockefeller believed that developing the ability to save correctly is a step towards achieving success. No wonder one of his 12 famous “golden rules” is the point about proper savings.
Biographical information
The description of the life of a multimillionaire is the story of his success and enrichment. The following statements of a multimillionaire are known: “Not only with your hands, but also with your head.”
John Rockefeller did not finish college. Upon reaching his sixteenth birthday, he decided to go to work. After completing a three-month accounting course, young John Rockefeller began looking for work in Cleveland, where they then lived with the whole family.
The search story only received a positive outcome a month and a half later: the trading company Hewitt and Tuttle hired Rockefeller as an assistant accountant.
Later, he was offered the position of chief accountant there, but Rockefeller was offended by the fact that his salary was supposed to be many times lower than what his predecessor received. As a proud man who values his work, John Rockefeller refused.
Rockefeller never worked for people again. He began to work only for himself, and therefore achieved great success. And there's a quote in The 12 Golden Rules that says this directly.
The American Civil War broke out from 1861-1865. At this time, John Rockefeller became Clark's partner. By supplying pork, flour, salt and other products to the warring army, the partners amassed some capital.
The discovery of oil deposits near Cleveland was a turning point for them. By 1864, John Rockefeller and Clark were involved in the purchase and sale of Pennsylvania oil. After a year, Rockefeller decided to devote his entire business to this area, but he failed to get Clark’s consent. Clark, a conservative man, was afraid of “burning out.” Then, for $72,500, John bought his partner’s share in the joint business and plunged headlong into the oil business.
Rockefellers today merged their fortune with the Rothschilds - another richest dynasty. But they never stop doing charity work, because their father bequeathed this in the “12 Golden Rules.” And today, descendants honor the behests of their ancestor, who managed to turn from a simple dropout student into a multimillionaire.
If you want to be rich, be it!
The “12 golden rules” for business success are widely known. A person who decides to achieve the goal of getting rich must know, understand and accept them. In fact, these rules are quotes from the statements of a multimillionaire.
- Work less for people. The more you work for yourself, the faster you become poor. The word "work" has the root "slave".
- The right way to save money is to take a step towards success. Buy products where it is cheaper or in bulk, prepare a list of what you need in advance, purchase products according to the list.
- If you are poor, start doing business. If you don’t have a penny at all, then you should open a business right now, without delaying for a minute.
- The path to success, the road to great wealth, passes through passive income.
- Dream of earning at least $50,000 a month, and possibly more.
- Money comes to you through other people. Communication and goodwill make people rich. An unsociable person rarely becomes rich.
- Poor surroundings and unsuccessful people drag you along with you into poverty and failure. You need to surround yourself with winners and optimists.
- Don’t come up with an excuse for the possibility of postponing the first step towards achieving your goal - there is none.
- Study the biographies and thoughts of the world's richest people who have achieved success. The life story of a successful person will help fulfill everyone’s desires - that’s the meaning of this quote.
- Dreams are the most important thing in your life. The main thing is to dream and believe that dreams will come true. A person begins to die when he stops dreaming.”
- Help people not for money, but from the bottom of your heart. Give 10% of profits to charity." That is, every person should help those in need. This is evidenced by the success story of John Rockefeller.
- Create a business system and enjoy your earned money." The meaning of this quote is that a person should work in order to live happily, and not stupidly accumulate wealth.
These rules are called “golden” because they contain such quotes from the sayings of the first richest man in the world that have great value for everyone to this day.
Plan
Introduction
1 Biography
1.1 Early years
1.2 Career
1.3 Charitable activities
1.4 Family
Bibliography
Introduction
John Davison Rockefeller John Davison Rockefeller; July 8, 1839 (18390708), Richford, New York - May 23, 1937, Ormond Beach, Florida) - American entrepreneur, philanthropist, the first “dollar” billionaire in human history.
In 1870, he founded the Standard Oil Company and ran it until his official retirement in 1897. Standard Oil was founded in Ohio as a partnership of John Rockefeller, his brother William Rockefeller, Henry Flager, Jabez Bostwick, chemist Samuel Andreus and one non-voting partner, Stephen Harkens. As the demand for kerosene and gasoline soared, Rockefeller's wealth also increased, and he became the richest man in the world at the time, with a net worth of US$1.4 billion (1937 par) or 1.54% of US GDP at the time of his death. Adjusted for inflation, the NYTimes estimates his wealth to be around US$192 billion in 2006 equivalent.
Rockefeller was one of the greatest philanthropists in the United States, the founder of the Rockefeller Foundation, who donated large sums to medical research, education, in particular, to the fight against yellow fever. He also founded the University of Chicago and Rockefeller University. Rockefeller was a devout Baptist and donated part of his income to support church institutions throughout his life. He always preached healthy image life and complete failure from alcohol and smoking. He had four daughters and one son, who inherited the management of the Rockefeller Foundation.
1. Biography
1.1. early years
Rockefeller was the second child of six children in the family of German Protestants William Aver Rockefeller (10/13/1810-05/11/1906) and Eliza Davison (09/12/1813-03/28/1889). He was born in Richford, New York. His father was first a lumberjack, and then a traveling merchant who called himself a “botanical doctor” and sold various elixirs and was rarely at home. According to the recollections of neighbors, John's father was considered strange person who try to avoid hard physical labor, although they have a good sense of humor. By nature, William was a risk-taker, which helped him build up the small capital that allowed him to buy land plot for $3100. However, risk-taking coexisted with foresight, so part of the capital was invested in various enterprises. Eliza, John's mother, was a homemaker, a very devout Baptist, and often in poverty because her husband was constantly away for long periods of time and she constantly had to economize on everything. She tried not to pay attention to reports of strangeness and adultery husband
John Rockefeller recalled that his father early years told him about the enterprises in which he participated, explained the principles of doing business. John wrote about his father: “He often bargained with me and bought various services from me. He taught me how to buy and sell. My father simply “trained” me to get rich!”
When John was seven years old, he began feeding turkeys for sale and earned extra money by digging potatoes for his neighbors. All results commercial activities he recorded it in his little book. He invested all the money he earned in a porcelain piggy bank, and already at the age of 13 he lent $50 to a farmer he knew at the rate of 7.5% per annum. His father's upbringing was continued by his mother, from whom he learned hard work and discipline. Since the family was large, and William Rockefeller’s enterprises did not always end successfully, she often had to save. “I was brought up on the principle: work and save,” said John Rockefeller.
At the age of 13, John went to school in Richford. In his autobiography, he wrote: “It was difficult for me to study; in order to prepare my homework, I had to study hard.” Rockefeller successfully graduated from high school and entered Cleveland College, where he taught accounting and the basics of commerce, but soon came to the conclusion that three-month accounting courses and a thirst for activity would bring much more than years of college. He leaves college and plunges headlong into practice.
1.2. Career
Rockefeller was a hardworking, purposeful and devout Christian, for which his partners nicknamed him “Deacon.”
In 1853, the Rockefeller family moved to Cleveland. Since John Rockefeller was the eldest child in the family, already at the age of 16 he went to look for work. By that time, he already knew mathematics quite well, and even completed a three-month course in accounting in Cleveland. However, finding a job was not so easy. Six weeks of searching were in vain. Until John was finally hired as an accounting assistant at Hewt Tuttle. Hugh Tuttle was involved in real estate and sea transport. It is worth noting that this was such a time that for the first three months Rockefeller studied rather than worked. Those. I did everything completely free. Thanks to his aptitude for mathematics, he rose to the position of accountant.
However, Rockefeller truly enjoyed his studies. He started his work day at 6:30 am and ended later than 10 pm. Studying at Hewitt and Tuttle gave the future oil tycoon a lot. John Rockefeller, in general, quickly established himself as a competent professional. And as soon as the manager of Hewitt and Tuttle left his post, John was immediately appointed in his place. True, his salary was set at $600. This greatly offended Rockefeller, since his predecessor received 2000. John left the company. This was his first and last work for hire.
Just at this time, the English entrepreneur John Maurice Clark was looking for a partner with a capital of $2000 to create a joint business. At that time, Rockefeller had saved $800; he borrowed the remaining amount from his father at 10% per annum, and on April 27, 1857, he became a junior partner at Clark and Rochester. The Clark and Rochester trading house traded in hay, grain, meat and other goods.
Rockefeller was lucky - the southern states declared secession from the Union and the civil war began. The federal government needed hundreds of thousands of uniforms and rifles, millions of cartridges, tons of meat, sugar, tobacco and biscuits. Starting capital$4,000 was not enough to fulfill these orders; a loan was needed. However, the company was young, and banks preferred not to take risks. Rockefeller took upon himself the need to negotiate with the bank, but was 90% sure of refusal. John still came to the director of the bank and frankly, without hiding anything, told what was the matter. The businessman's sincerity impressed the bank director, and he agreed to give a loan.
As a result, Rockefeller made good money and could afford to start a family. He married Laura Celestina Spelman, whom he met while still a student. A devout teacher like her husband, Laura Spelman also had a practical mind. Rockefeller once remarked: “Without her advice, I would have remained a poor man.”
After some time, Rockefeller came across a real gold mine: in the evening, in all houses, from the palaces of Vanderbilt and Carnegie to the shacks of Chinese emigrants, kerosene lamps were lit, and kerosene, as you know, is made from oil. Rockefeller's companion Maurice Clark said: "John believed in only two things on earth - the Baptist faith and oil."
In 1870, John Rockefeller met a chemist (name unknown), who told him about kerosene. Thus the Standard Oil Company was founded. Rockefeller began searching for oil. At the beginning of his activity, the future billionaire noticed that the entire oil business was some kind of chaotic machine. He understood that only by putting things in order would he be able to think about some kind of commercial success. This is what he and his partner did. To begin with, the company's charter was created. In order to motivate employees, Rockefeller initially decided to refuse wages, rewarding them with shares. He believed that thanks to this they would work more actively, because they would consider themselves part of the company. Yes and them final income will depend on the success of the business.
The business began to generate income, and Rockefeller began to slowly buy up others oil companies. One at a time, small enterprises that could not cost too much. This strategy did not sit well with many Americans. Rockefeller negotiated with railroad companies to regulate transport prices, thus Standard Oil received lower prices than its competitors: it paid 10 cents for transporting a barrel of oil, while its competitors paid 35 cents, and the difference of 25 cents from each barrel went into Rockefeller’s pocket. Competitors could not resist him, Rockefeller gave them a choice: unite with him or go bankrupt. Most of them chose to join Standard Oil in exchange for a share of shares.
Be that as it may, by 1880, thanks to numerous small and medium-sized mergers, 95% of America's oil production ended up in Rockefeller's hands. Having become a monopolist, he acted according to the rule “it is easier for a monopolist to raise prices than to increase sales.” Standard Oil becomes at this time largest company in the world. True, not for long. In just 10 years, the famous Sherman Act against monopolies will be released. Rockefeller would respond by breaking Standard Oil into 34 small companies (in all of which he would have a controlling interest). Thanks to this law, John Rockefeller becomes even richer than before. By the way, it is worth noting that almost all of the current major oil companies came from Standard Oil. For example, this can be said about such giants as Mobile, Exxon, Chevron and others.
With age, Rockefeller's mind did not change. He ruled his empire with an iron fist: Standard Oil alone brought in three million dollars annually (which would be fifty million today). He owned sixteen railroad companies, six steel companies, nine real estate companies, six shipping companies, nine banks, and three orange groves—all of which produced abundant cash crops.
John Davison Rockefeller is an American entrepreneur who made his fortune by starting from scratch. He founded the Standard Oil company, which took a leading position in the American economy and made its founder the richest man in the world.
Rockefeller was born on July 8, 1839, in Richford, New York, and when he was 16 years old, he and his family moved to Cleveland. He wasn't afraid hard work, and, as a teenager at the age of 16, looked for work in various small companies. His first job was as an accounting assistant at small company Hewitt & Tuttle, engaged in wholesale trade(bought goods for sale on a commission) and sold vegetables for export.
At the age of 20, Rockefeller, who was successful in his job, decided to start a business with another business partner, wholesaler of hay, meat and other goods. At the end of the first year of operation of his company, its gross profits totaled $450,000. Rockefeller was very careful and thoughtful, trying in every possible way to avoid unnecessary risks, but in the early 1860s he noticed that there was an opportunity to open an oil business due to increasing demand for oil. And in 1863 he opened his first oil refinery near Cleveland. Less than 10 years later, Rockefeller, founder of Standard Oil, had almost complete control of all the country's oil refineries.
Standard Oil
As the oil business moved east toward Pennsylvania, Rockefeller followed. By the beginning of the 1880s. he dominated the oil business throughout the country, and his company had a net worth of $55 million. Standard's leadership position was due to the fact that it was closely associated with (or owned) almost every aspect of the business. Under Rockefeller's leadership, the company created its own pipeline system to transport products. She had her own carriages for transportation, and she also bought thousands of hectares of forest for fuel.
In 1882, Rockefeller founded the Standard Oil Trust, a trust company that would serve as a model for the creation of other types of monopolies. Naturally, Rockefeller was appointed head of this company.
But while Rockefeller's power and wealth grew, his public reputation deteriorated. In the early 1800s, the government began enforcing antitrust laws, paving the way for the Sherman Act, which went into effect in 1890.
In 1895, 56-year-old Rockefeller retired from daily involvement in the affairs of Standard Oil and focused on charitable activities. But the new leadership could do little to quell attacks on Rockefeller and his business.
In 1904, Ida Tarbell wrote The History of Standard Oil, a damning book that told the story of Standard Oil's ruthless business practices. In 1911, the corporation was disbanded under the influence of the Sherman Anti-Monopoly Act.
Subsequent years
John Davison Rockefeller contributed a lot of money to charity. In total, he donated $530 million. different directions. His money helped found the University of Chicago, also known as the Rockefeller Institute of Medicine (later The Rockefeller University) in New York, and the Rockefeller Foundation.
His wife Laura and Rockefeller had five children, including their daughter Alice, who died in infancy.
Rockefeller died May 23, 1937, Ormond Beach, Florida. However, his legacy lives on to this day: Rockefeller is considered one of America's leading businessmen, whose achievements influenced the formation of the nation as it is today.
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