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1. Rockefeller's Roots: A Legacy of Contradictions

Two men have been supreme in creating the modern world: Rockefeller and Bismarck. One in economics, the other in politics, refuted the liberal dream of universal happiness through individual competition, substituting monopoly and the corporate state, or at least movements toward them.

Conflicting influences. John D. Rockefeller's life was shaped by the stark contrasts of his upbringing. His mother, Lucy Avery, a devout Baptist, instilled in him a strong moral compass and a work ethic, while his father, William Avery Rockefeller, a charismatic con man, taught him the art of deception and the pursuit of wealth by any means. This duality created a complex personality, marked by both piety and ruthlessness.

Family history:

• Rockefeller's German ancestors were farmers and millers who immigrated to America in the 1700s.
• His maternal lineage traced back to Puritan New England, known for its strict morality and industriousness.
• His grandfather, Godfrey, was a feckless man, a cautionary figure against the dangers of drink and lax character.

Early life:

• Born in 1839 in Richford, New York, Rockefeller's early years were marked by instability and his father's frequent absences.
• The family moved to Moravia, then Owego, and finally to Strongsville, Ohio, each move reflecting the father's restless nature.
• These early experiences instilled in Rockefeller a deep-seated need for order, control, and financial security.

2. The Baptist Blueprint: Faith and Fortune

I was trained from the beginning to work and to save. I have always regarded it as a religious duty to get all I could honorably and to give all I could. I was taught that way by the minister when I was a boy.

Evangelical upbringing. Rockefeller's Baptist faith was not merely a Sunday ritual but a guiding force that shaped his worldview and business practices. He internalized the values of thrift, hard work, and self-reliance, viewing the accumulation of wealth as a religious duty, provided it was used for good.

Key Baptist tenets:

• Emphasis on personal responsibility and moral reformation.
• Belief in the possibility of salvation for all, not just a predestined elect.
• Opposition to worldly temptations, such as drinking, dancing, and theater.
• A strong sense of community and the importance of helping others.

The Second Great Awakening:

• The revival movement of the early 1800s, with its emphasis on personal conversion and social reform, deeply influenced Rockefeller's generation.
• The movement linked personal piety with community uplift, fostering a sense of social responsibility among believers.
• Rockefeller's early life was steeped in this atmosphere of religious fervor, which shaped his views on both business and philanthropy.

3. Early Business Lessons: From Flimflam to Finance

He made a practice of never carrying less than $1,000, and he kept it in his pocket. He was able to take care of himself, and was not afraid to carry his money.

Father's influence. William Avery Rockefeller, despite his shady dealings, taught his son valuable lessons about money. He instilled in him a love of cash, a knack for bargaining, and a belief in the importance of keeping meticulous accounts.

Early business ventures:

• As a boy, Rockefeller sold candy to his siblings and raised turkeys for profit, demonstrating an early entrepreneurial spirit.
• His mother, Eliza, taught him thrift and the importance of saving, drilling him in maxims such as "Willful waste makes woeful want."
• His father, though a con man, also taught him the importance of contracts and paying debts promptly.

First job:

• At sixteen, Rockefeller landed a job as an assistant bookkeeper at Hewitt and Tuttle, a commission merchant firm in Cleveland.
• He excelled at accounting, developing a passion for detail and a belief in the power of numbers.
• He learned about the complexities of transportation, trade, and finance, laying the groundwork for his future success.

4. The Rise of Standard Oil: Cooperation or Conspiracy?

What a blessing it was that the idea of cooperation, with railroads, with telegraph lines, with steel companies, with oil companies, came in and prevailed, to take the place of this chaotic condition in which the virtuous academic Know-Nothings about business were doing what they construed to be God’s service in eating each other up.

Early oil industry chaos. The discovery of oil in Pennsylvania led to a boom-and-bust cycle, with overproduction and cutthroat competition threatening the industry's stability. Rockefeller, a keen observer, saw the need for order and cooperation.

Standard Oil's formation:

• In 1863, Rockefeller partnered with Maurice Clark and Samuel Andrews to form an oil refinery in Cleveland.
• He believed that cooperation, not competition, was the key to success in the volatile oil market.
• He sought to create a stable, efficient system that would benefit both producers and consumers.

The South Improvement Company:

• In 1872, Rockefeller joined a secret alliance with railroads to control oil transportation and refining.
• The scheme, known as the South Improvement Company, sparked public outrage and was ultimately abandoned.
• The episode, however, marked the beginning of Rockefeller's relentless pursuit of monopoly power.

5. The Power of the Pipeline: Controlling the Flow

All of those in the business today are doing business along the modern lines, following the plans which we were the first to propose.

Beyond refining. Rockefeller realized that controlling the flow of oil was as important as refining it. He began to invest heavily in pipelines, which offered a more efficient and reliable means of transportation than railroads.

Pipeline dominance:

• Standard Oil's pipeline network gave it a stranglehold on the industry, allowing it to control the supply and price of crude oil.
• The company used its pipeline monopoly to squeeze out competitors and consolidate its power.
• The pipelines also allowed Standard Oil to bypass the railroads, reducing its reliance on them and further consolidating its control.

Strategic advantage:

• By controlling both refining and transportation, Standard Oil could dictate terms to producers and consumers alike.
• The company's integrated system allowed it to achieve economies of scale and reduce costs, making it difficult for competitors to survive.
• Rockefeller's control of the pipeline network was a key factor in his rise to dominance in the oil industry.

6. The Burden of Wealth: Family, Philanthropy, and Public Image

I have always regarded it as a religious duty to get all I could honorably and to give all I could.

Balancing act. As Rockefeller's wealth grew, he struggled to reconcile his business practices with his religious beliefs. He saw philanthropy as a way to atone for his sins and to use his fortune for the good of humanity.

Family life:

• Rockefeller's marriage to Eliza Davison was a source of stability and moral guidance.
• He was a devoted father who instilled in his children the values of thrift, hard work, and religious piety.
• He also sought to shield his children from the negative publicity surrounding Standard Oil.

Early philanthropy:

• Rockefeller began giving to charity at a young age, donating a portion of his earnings to religious causes.
• He was inspired by the example of Amos Lawrence, a wealthy New England textile manufacturer who gave away a large portion of his fortune.
• He saw philanthropy as a religious duty, a way to use his wealth to serve God and humanity.

7. The Long Shadow of the Past: Battles with Critics and the Government

The representatives of the Standard Oil Company cherish most kindly and brotherly feelings even toward those who abused them most, and are ready to lay it to their weakness and ignorance and whatever else was controlling them.

Public scrutiny. As Rockefeller's power grew, so did public criticism of his business practices. He was accused of using unfair tactics to crush competitors and of exploiting his monopoly power to enrich himself.

Key antagonists:

• Ida Tarbell, whose investigative journalism exposed the inner workings of Standard Oil and turned Rockefeller into a symbol of corporate greed.
• Henry Demarest Lloyd, whose book Wealth Against Commonwealth provided a scathing critique of Rockefeller's business methods.
• The federal government, which launched an antitrust suit against Standard Oil in 1906.

Rockefeller's response:

• He initially ignored his critics, believing that time would vindicate him.
• He later engaged in a public-relations campaign to improve his image, but he never fully acknowledged the validity of the charges against him.
• He saw himself as a victim of jealousy and misunderstanding, a man who had been unfairly targeted by his enemies.

8. A New Generation: Junior's Path and the Legacy of Standard Oil

I was trained from the beginning to work and to save. I have always regarded it as a religious duty to get all I could honorably and to give all I could.

Junior's burden. John D. Rockefeller, Jr., inherited his father's wealth and his moral compass, but he also carried the burden of his father's controversial legacy. He struggled to reconcile his family's wealth with his own desire to serve humanity.

Junior's challenges:

• He was torn between his father's business world and his own desire for social reform.
• He was often criticized for his father's actions, even though he had no direct involvement in Standard Oil.
• He sought to use his wealth to promote social justice and to create a more equitable society.

A new path:

• Junior's involvement in the Ludlow Massacre and the white-slavery jury forced him to confront the ethical dilemmas of his family's wealth.
• He began to develop his own philanthropic vision, focusing on education, public health, and international cooperation.
• He sought to create a legacy that would be remembered for its positive impact on the world.

9. The Enduring Paradox: A Titan of Industry and a Man of Faith

When history passes its final verdict on John D. Rockefeller, it may well be that his endowment of research will be recognized as a milestone in the progress of the race.

A complex legacy. John D. Rockefeller remains a figure of enduring paradox. He was a brilliant businessman who built a vast industrial empire, but he was also a devout Christian who sought to use his wealth for the good of humanity.

Contradictions:

• He was a ruthless competitor who also believed in cooperation.
• He was a secretive man who also sought to be a public benefactor.
• He was a man of great wealth who also lived a simple, austere life.

Enduring impact:

• Rockefeller's business innovations transformed the oil industry and shaped the modern American economy.
• His philanthropic contributions have had a lasting impact on education, medicine, and public health.
• His life story continues to provoke debate about the role of wealth and power in society.

Last updated: January 17, 2025