Welfare Capitalism- Part Three- Rockafeller



John D Rockafeller (1860-1937)
Oil

John D Rockefeller was the second son born to William A Rockefeller, also known as "big bill" & "devil bill". His father was a charismatic snake oil salesman who had a secret second family. It was said that Rockefeller's father bragged, "I cheat my boys every chance I get. I want to make 'em sharp." His mother, however, was a religious and stable influence.

Once Rockefeller's father came clean about having 2 families, he amazingly asked both wives to move into the same house with their children. This might have been one of the reasons Rockefeller got serious early and got a job accounting at 16.

His contemporaries described him as reserved, earnest, religious, methodical, and discreet. 

After working and saving, he got a loan and began trading goods. During the civil war he made huge amounts of profits selling food and supplies.

Rockefeller was an abolitionist. While his brother Frank fought in the Civil War, Rockefeller tended his business and hired substitute soldiers. He gave money to the Union cause, as did many rich Northerners who avoided combat. "I wanted to go in the army and do my part," Rockefeller said. "But it was simply out of the question. There was no one to take my place. We were in a new business, and if I had not stayed it must have stopped—and with so many dependent on it."

After the war, Rockefeller and his brother invested in oil extraction. This was the early days of oil, only recent discoveries had made it possible. Rockafeller did a great job selling the byproducts of his drilling which allowed him to cover some costs, boosting his profits. He'd go on to buy out his competitors, growing bigger and bigger. By the 1870s, he was refining 90% of the oil in the US. This allowed him to dictate the price of oil and withhold oil from companies that didn't follow his will. This caused him to receive much criticism from journalists and politicians. Because his company had become so big, it was no longer a fair and open market but one controlled by Rockefeller alone.

Monopoly

By 1880, according to the New York World, Standard Oil was "the most cruel, impudent, pitiless, and grasping monopoly that ever fastened upon a country". To critics Rockefeller replied, "In a business so large as ours ... some things are likely to be done which we cannot approve. We correct them as soon as they come to our knowledge."

Public opinion turned against Rockefeller. The company's espionage, price wars, heavy-handed marketing tactics, and courtroom evasions became public knowledge. The court ruled that the trust originated in illegal monopoly practices and ordered it to be broken up into 34 new companies. Some of these include BP, Esso, ExxonMobil, Chevron, Mobil and Pennzoil.

Monopolies make goods cheaper and more affordable but crush competition

In 1884, Rockefeller provided major funding for Atlanta Baptist Female Seminary in Atlanta for African-American women, which became Spelman College. His wife Laura Spelman Rockefeller, was dedicated to civil rights and equality for women. Rockefelkn er also gave $80 million to the University of Chicago. Rockefeller became one of the first great benefactors of medical science. In 1901, he founded the Rockefeller Institute for Medical Research in New York City. 

https://youtu.be/Sb_-wfmJnHA

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