Rockefeller - A Richest man ever !!

8/9/2019 Rockefeller - A Richest man ever !!

1/8

Rockefeller

When John D. Rockefeller was a young boy, he said that his two greatest ambitions were to make$100,000 and to live to be 100 years old. He died on May 23, 1937, just 26 months shy of his 100thbirthday and with a net worth of $1.4 billion.

Over a forty-year career that was mired in controversy, Rockefeller made a name for himself inAmericas budding oil industry. He built Standard Oil into the largest company in the world andeventually also became the richest man in the world. Adjusting for inflation, some experts suggest thatRockefeller was the richest human being ever to have lived.

Born November 13, 1810 in Richford, New York, John Davison Rockefeller was the second of sixchildren to parents William and Eliza. William was a traveling salesman in the business of selling suchsuspect things as cancer cures. While he was away, it was left to Eliza to take care of the home. Thefamily moved around, first to Moravia and later, Owego, where Rockefeller attended OwegoAcademy.

In 1853, the family moved to Strongsville, Ohio, where Rockefeller went to Central High School. At19, he became a deacon at the Euclid Avenue Baptist Church and a trustee at 21. In 1855, Rockefellerdropped out of high school to take a business course at Folsom Mercantile College. A six-monthcourse, Rockefeller had completed it in just three.

After searching for six weeks, Rockefeller found his first job as an apprentice bookkeeper at Hewitt &Tuttle, a commission merchant and produce shipping company. He started off earning 50 cents per day,a salary that would gradually increase over the next two years due to his increasing responsibilities andimproving performance. In 1859, Rockefeller felt that he was no longer making the amount of moneyhe deserved and so he left Hewitt & Tuttle. With a partner, Maurice Clark, Rockefeller decided tocreate his own produce commission company.

That year, Cleveland-based Clark & Rockefeller was launched and it became an instant success. Itwasnt long before their new company had accumulated enough capital to be able to invest in otherbusinesses. Along with chemist Samuel Andrews, Clark & Rockefeller invested in an oil refinery.Rockefeller was confident in the bright future of the oil business and over the next five years delvedwholeheartedly into making his company a success.

So confident was Rockefeller in the oil business that in 1865, he decided to sell his share of Clark &Rockefeller to his partner. Far from giving up, Rockefeller wanted to branch out on his own. He usedthe proceeds from the sale of his shares to invest in another refinery, which soon became Rockefeller &Andrews. Two years later, they bought out the refinery that had been started by Rockefellers brother,William. They also joined with Henry Flagler in creating Rockefeller, Andrews & Flagler.

By 1868, this new partnership had become the largest petroleum refiner in the world. Recognizing theirpotential, the Rockefeller brothers, Andrews, Flagler and another silent partner began absorbing theircompetition. Together, in 1870, the five businessmen launched Standard Oil. With Rockefeller as itsnew president, the company would soon find itself at the forefront of a booming industry, achievingunprecedented success.


2/8

By the time Standard Oil was in business, Cleveland had become one of the five major refining centresin the country. By getting secret rebates from the railroads and supporting a new cartel aimed atstabilizing freight railroad rates in return for preferential treatment, Rockefeller was able to give hiscompany an edge.

Rockefeller also began a campaign to buy out as many as possible of his competing refiners. In just six

weeks in 1872, Rockefeller had overtaken 22 of his 26 competitors in Cleveland. Standard Oil wasbecoming so large that even the most ardent of competitors had little choice but to capitulate. If acompetitor refused his offer, Rockefeller promised to run them into bankruptcy.

By buying out his competition, improving his companys own efficiency, and continuing to fight fordiscounts from the railroads, Rockefeller was able to grow Standard Oil into one of the most powerfulcorporations in the country. In little time, the company had become one of the largest shippers of oiland kerosene in the U.S.

From Cleveland to the rest of the country, Standard Oil had attained a complete monopoly over oilproduction in less than ten years. In order to consolidate his cross-country holdings, Rockefeller createdthe Standard Oil Trust in 1882. It was at this point that Rockefeller began attracting much attention.The Trusts immense size was worrying for many observers.

Under Rockefeller, the price of kerosene dropped almost 80%, making it more widely available. But,the Trusts strong monopoly was a cause for concern amongst journalists, activists, and politiciansalike. Rockefeller himself became the target for much public criticism. In 1892, anti-trust laws in Ohioeven forced the separation of Standard Oil of Ohio from the rest of the company.

From 1896 to 1911, Rockefellers involvement in the company he had created gradually decreased.While he maintained his presidential title as well as his stock, he disengaged himself in the dailyrunning of the company and its policy decisions. It was in 1911 that the company was dealt a hugeblow. While not as powerful as it was at its peak, Standard Oil by that point still controlled 64% of themarket. The U.S. Supreme Court then decided that because the company had originated from illegalmonopolistic practices, it had to be dismantled in 34 smaller companies. The remnants of these newcompanies can still be found today in the likes of Chevron, Exxon, and Mobil.

Throughout his career, Rockefeller was also committed to certain charitable causes that were close tohis heart. He gave 10% of every paycheck to his church. As his wealth grew, he increased his giving toeducational and health causes, including $80 million to the University of Chicago, and creatingRockefeller University and the Rockefeller Foundation. In total, Rockefeller gave away over $550million of his $1.4 billion fortune.

Rockefellers legacy lives on today. No other American including Bill Gates has ever achieved asimilar level of wealth as a percentage of the nations economy.

The secret of success is to do the common things uncommonly well, said Rockefeller. According asyou put something in, the greater will be your dividends of salvation.

What perhaps most set Rockefeller apart from his competitors was his precision. Whereas others mighthave left things to chance, Rockefeller believed that nothing was out of his control. No aspect ofStandard Oils operations was guessed at nor was anything left uncounted or unmeasured. Down to thesmallest detail, Rockefeller was obsessed with efficiency and economy. The precision and foresight


3/8

with which he worked would become two of the cornerstones of his success.

In order to ensure that Standard Oil was acting at the most efficient level possible, Rockefeller tookcontrol over every aspect of its operations. He built refineries of higher quality and better planning thandid his competitors, using only the best materials available. He owned his own barrel-making plant aswell as drying facilities and hoop iron, which resulted in the reduced cost of a barrel by over $1.50. He

also ensured that Standard Oil produced its own sulfuric acid for the purification process and createdtechnology to recover it for re-use.

I believe that thrift is essential to well-ordered living, said Rockefeller. Wherever possible,Rockefeller made sure that the company had complete control over its operations in order to reducecosts. Standard Oil owned its own warehouses in New York City, its own boats on the Hudson and EastRivers, its own fleet of tank cars, and its own cart transportation service. They also built their ownholding tanks near their refineries in order to efficiently store the oil and their equipment.

Whereas other refiners often dumped the waste products from their operations into rivers, Rockefellerwas insistent on trying to reuse them for his operations. He began creating from the waste a lubricatingoil that soon became the industry standard for lubricating machinery, replacing lard oil. Hemanufactured Benzine as a cleaning fluid, paraffin for candles, and Petrolatum for ointments (whitepetrolatum would later be marketed as Vaseline). He created Naphtha as a fuel for motors and shippedit to other gas plants and also began using gasoline as a fuel.

Rockefeller knew that the oil business was at times chaotic, but he did his best to ensure that hemanaged whatever he could. Competition is a sin, he said. In an industry with such low entry costs,Rockefeller saw the market as being filled with a high level of waste. He viewed free competition asinefficient and thus sought to buy out weaker firms. While his attempt to create a monopoly wasquestioned by many, Rockefeller saw it as simply another step in his quest for efficiency.

Standard Oil grew to the scale that it did not by chance, but by Rockefellers design. It was the result ofa carefully formulated plan focused on efficiency and precision. By taking control over every aspect ofthe companys operations, and trying to reduce wasteful practices in not only his own company butindustry-wide, Rockefeller ensured his company would be an industry leader.

If you want to succeed you should strike out on new paths, rather than travel the worn paths ofaccepted success, said Rockefeller.

Before Rockefeller entered the oil industry, he saw it as a vulgar environment. Oil workers weretypically rowdy and uncouth and the atmosphere was filled with prostitution, gambling and alcohol.With low technological methods for refining and transporting oil, he also had difficulty seeing theindustrys profitable possibilities.

Rockefeller knew that the industry was one of instability. Fires were regular occurrences that wouldcause the prices of oil per barrel to sharply rise. Conversely, when new reserves of oil were discovered,prices would fall dramatically. For a man who prized order and control, the oil industry was the lastplace Rockefeller had planned on making his fortune.

But, rather than shy away from the difficulties that the industry posed, Rockefeller embraced them aschallenges. He was determined to set the industry straight, convinced that he could make a profit doingthings his own way. Thus, with determination and resolve, Rockefeller set out to not only reform the


4/8

industry but also to control it. It was with this intention that Rockefeller decided to create Standard Oilin the first place. He needed an entity which could generate enough capital to begin acquiring hiscompetitors.

When Rockefeller first established Standard Oil, he also wanted to give it a different structure thanmost other corporations of the day. Instead of giving his staff a regular salary, Rockefeller took the

unprecedented step of granting stock to his officers. He believed that giving his workers a stake in thecompany would encourage hard work and make them prize the success of the company over individualbonuses.

Instead of purchasing barrels from someone else, Rockefeller decided to make his own at a cheapercost. In doing so, Rockefeller noticed that 40 soldered rivets were being used to hold the woodtogether. He proceeded to ask the welder why 40 were being used. The welder replied that this washow he was trained. Rockefeller told the welder to try using just 38 rivets. When these new barrelsburst upon being filled, Rockefeller suggested trying 39 rivets. That time, the barrels managed tosustain the oil. Not only did using one less rivet in his barrels save Rockefeller a small fortune over theyears, but it also demonstrates his willingness to take chances and try the road less traveled.

Don't be afraid to give up the good to go for the great, said Rockefeller. For Rockefeller, running hisbusiness in the most efficient and profitable manner was more important than maintaining the statusquo. It was of no concern to him how his competitors were doing things, unless he could improve uponthem. From his equipment and technology to his secret deals with the railroads, Rockefeller wasntafraid to strike out on his own path. Indeed, this was what set him apart from his competitors and whyhe rose to the top when others were struggling to stay afloat.

The road to happiness lies in two simple principles, said Rockefeller. Find what interests you andthat you can do well, and put your whole soul into it every bit of energy and ambition and naturalability you have.

It was no accident that Rockefeller became one of the richest individuals in the history of the world.While his initial stated goal was simply to live to be 100 years old and earn $100,000, Rockefeller hadthe ambition to achieve much, much more. I had no ambition to make a fortune, he said. Meremoneymaking has never been my goal. I had an ambition to build.

Rockefeller began as a humble bookkeeper in Cleveland, Ohio. In less than seven years, he had risen tocontrol one tenth of the entire U.S. oil business. He was all business and rarely let personal feelings getin the way of his business ambitions. In fact, Rockefellers favourite personal maxim was, Don't letgood fellowship get the least hold of you.

For Rockefeller, no detail was too small to neglect. In a similar vein, no task was too big to undertake.In the late 19th century, Rockefeller faced one of his biggest challenges when Thomas Edisondiscovered the light bulb. The invention of electricity severely threatened Rockefellers growingempire almost overnight the need for kerosene lamps was eliminated. Safer and more cost effectivethan kerosene, electricity was threatening to destroy Rockefellers dynasty.

Amidst the potential ruin of his company, Rockefeller could have easily given in to the latesttechnological revolution. Personally, he could have walked away and still have been able to surviveand live a more than comfortable life. But, it was not in Rockefellers nature to give up and walk away.


5/8

The person who starts out simply with the idea of getting rich wont succeed, said Rockefeller. Youmust have a larger ambition.

Instead of giving up on his business plans, Rockefeller decided to take advantage of anotherburgeoning technology the automobile. With the invention of the internal combustion engine forindividual transportation, Rockefeller could now not only distill oil into kerosene but also refine it into

gasoline. Rockefeller hedged his bets on the promise of the automobile and it paid off. Demand for theautomobile, and thus gasoline, exploded. Rockefeller had been saved in large part due to luck but alsoin part to his ambition and his refusal to give up even in the face of disaster.

Rockefellers ambition stemmed from his upbringing. His mother, Eliza, made sure to give her childrena sense of encouragement in whatever they wanted to pursue. Even as a young boy, Rockefeller wouldpurchase candy by the pound, divide it up, and sell it to his siblings for a profit. He once also found aturkey nest, stole the baby turkeys and raised them for later sale. Any money that Rockefeller madewas then put into a small blue china bowl on the familys mantel to help assist them.

Whether he had a family who depended on him or he was simply supporting himself, Rockefellerpursued his work with ambition, determined never to give up on his goals.

The ability to deal with people is as purchasable a commodity as sugar or coffee and I will pay morefor that ability than for any other under the sun, said Rockefeller.

In his decades of business, one of the key characteristics that propelled Rockefeller to success was hisstrong leadership. It wasnt his status, nor his age that made Rockefeller a great leader. Instead, it washis influence. People around him wanted to follow him; they were inspired by him to do more than theyever thought they were capable of. It was his ability to create a strong sense of teamwork and his ownenergy and passion that drove his workers and thus his company.

I would rather earn 1% off of 100 people's efforts than 100% of my own efforts, said Rockefeller.With this attitude, it would be necessary for Rockefeller to instill within his workers the same sense ofdesire to succeed that he had, and indeed, he did. He was a hands-on leader who valued the interactionhe would have with his workers on a daily basis. He never believed to be above any of his staff, evengoing down to the refineries on a regular basis to sweep up so that workers could continue their effortswithout any interruptions.

Good leadership consists of showing average people how to do the work of superior people, he said.Indeed, Rockefeller knew that he, too, was just an average person trying to do above-average work. Heknew that there would be times when he too, as the leader, would make mistakes. However,Rockefeller took full responsibility for his actions, whether they were failures or success. Don't blamethe marketing department, he once said. The buck stops with the chief executive. It was thisaccountability that earned him the respect of many of his colleagues.

I believe in the dignity of labor, whether with head or hand, said Rockefeller. That the world owesno man a living but that it owes every man an opportunity to make a living. Rockefellers own dignitywas questioned many a time, including a particularly brutal series of attacks by journalist Ida Tarbell.

In a series of articles for McClure Magazine in 1902, Tarbell began exposing Standard Oil andRockefeller as two of the greatest evils in America for their monopolistic and ruthless businesspractices. While Tarbell was in no way impartial her father had been put out of business by


6/8

Rockefeller years before her articles went a long way in demonizing Rockefeller in the eyes of theAmerican people.

But, in a demonstration of maturity and strong leadership, Rockefellers response to Tarbell and hisother critics was silence. Let the world wag, he used to love to say. While many saw Rockefellerssilence as an admission of his guilt, Rockefeller preferred to carry on with his business and not get

distracted by media attacks, as he knew that as he continued to grow in size and power, public scrutinyover his activities would only increase.

Rockefeller was a strong leader who used his personal charisma and passion to inspire those aroundhim. No matter how far he pushed the envelopes, he ensured himself a loyal staff behind him.

God gave me my money, said Rockefeller. I believe the power to make money is a gift from God tobe developed and used to the best of our ability for the good of mankind.

Rockefeller could have left his legacy at the enormous fortune he had amassed throughout his career.He would have undoubtedly been remembered as one of the shrewdest and most successfulentrepreneurs in history. But, a deeply religious man, Rockefeller was unsatisfied with that.

The only question with wealth is, what do you do with it, said Rockefeller. Applying the same focusand shrewdness to his charitable vision as he did with his company, Rockefeller decided early on in lifeto devote much of his wealth and energy to benevolent efforts. From establishing Spelman College inAtlanta and Spelman Seminary to teach freed female slaves to endowing the University of Chicago,Rockefeller decided to listen to his conscience in deciding how to best use his wealth.

Having been endowed with the gift I possess, I believe it is my duty to make money and still moremoney and to use the money I make for the good of my fellow man according to the dictates of myconscience, said Rockefeller. I was trained from the beginning to work and to save. I have alwaysregarded it as a religious duty to get all I could honorably and to give all I could. I was taught that wayby the minister when I was a boy.

Rockefeller also established the Rockefeller University, the Rockefeller Institute for Medical Research,the General Education Board, the Rockefeller Sanitation Commission, and the Rockefeller Foundation.I believe that every right implies a responsibility; every opportunity an obligation; every possession aduty, he said. Rockefellers work with the University of Chicago even almost led to a nervousbreakdown; much of his hair would fall out and he would experience frequent digestive problems. But,he would continue in his quest to respond to appeals for funds from various sources believing it was hisduty to do so.

It is wrong to assume that men of immense wealth are always happy, said Rockefeller. Heunderstood that wealth did not equal happiness and while he was appreciative of the fortune he hadamassed, he believed that only in giving it away would he understand true happiness. His religiousupbringing and his conscience both dictated his duty to do so.

But, Rockefellers business aptitude and his keen eye for efficiency were not lost in his charitablevision. Charity is injurious unless it helps the recipient to become independent of it, he believed. Itwas only after much careful study and the assistance of expert advisers that Rockefeller made hisdecisions as to who to donate funds to. He wanted his money to be used as effectively as possible,


7/8

much like he ran his business.

Rockefeller listened to his conscience and wound up giving away more of his fortune than he kept,which was the second half of the great legacy which he created.

Rockefeller's Quote :

If you want to succeed you should strike out on new paths, rather than travel the worn paths of acceptedsuccess.

I do not think there is any other quality so essential to success of any kind as the quality ofperseverance. It overcomes almost everything, even nature.

Good leadership consists of showing average people how to do the work of superior people.

I would rather earn 1% off a 100 people's efforts than 100% of my own efforts.

The person who starts out simply with the idea of getting rich wont succeed; you must have a largerambition.

God gave me my money. I believe the power to make money is a gift from God . to be developed andused to the best of our ability for the good of mankind. Having been endowed with the gift I possess, Ibelieve it is my duty to make money and still more money and to use the money I make for the good ofmy fellow man according to the dictates of my conscience.

I always tried to turn every disaster into an opportunity.

Don't be afraid to give up the good to go for the great.

I believe that every right implies a responsibility; every opportunity an obligation; every possession aduty.

The most important thing for a young man is to establish credit - a reputation and character.

The way to make money is to buy when blood is running in the streets.

I believe in the dignity of labor, whether with head or hand; that the world owes no man a living butthat it owes every man an opportunity to make a living.

The only question with wealth is, what do you do with it?

If your only goal is to become rich, you will never achieve it.

I have ways of making money that you know nothing of.

I believe that thrift is essential to well-ordered living.

Charity is injurious unless it helps the recipient to become independent of it.


8/8

I can think of nothing less pleasurable than a life devoted to pleasure.

Do you know the only thing that gives me pleasure? It's to see my dividends coming in.

The ability to deal with people is as purchasable a commodity as sugar or coffee and I will pay morefor that ability than for any other under the sun.

Competition is a sin.

Singleness of purpose is one of the chief essentials for success in life, no matter what may be one's aim.

Next to doing the right thing, the most important thing is to let people know you are doing the rightthing.

It is wrong to assume that men of immense wealth are always happy.

The person who starts out simply with the idea of getting rich won't succeed; you must have a largerambition. There is no mystery in business success. If you do each day's task successfully, and stayfaithfully within these natural operations of commercial laws which I talk so much about, and keepyour head clear, you will come out all right.

I believe in the supreme worth of the individual and in his right to life, liberty, and the pursuit ofhappiness.

Don't blame the marketing department. The buck stops with the chief executive.

A friendship founded on business is a good deal better than a business founded on friendship.

The secret of success is to do the common things uncommonly well.

According as you put something in, the greater will be your dividends of salvation!

Rockefeller - A Richest man ever !!

Documents

Transcript of Rockefeller - A Richest man ever !!