John Davison Rockefeller (July 8, 1839 – May 23, 1937) was an American oil magnate and philanthropist. In 1870, he founded Standard Oil, which at its peak controlled 90% of the U.S. oil market, making him the first American billionaire and the richest person in the world. Adjusted to today’s value, his wealth exceeds $400 billion.

Standard Oil faced numerous legal challenges, and in 1911, it was found to violate antitrust laws and was broken into 34 companies. One successor, ExxonMobil, remains today the largest U.S. oil company.

For the last 40 years of his life, Rockefeller devoted himself to philanthropy, primarily in education and medicine. In 1897, he stepped down from direct management of Standard Oil. He established the Rockefeller Institute to fund medical research in North America. He also founded the University of Chicago and Rockefeller University. In New York City, Rockefeller family contributions created landmarks such as the United Nations headquarters and Rockefeller Center.

Rockefeller’s life philosophy was: “Work hard to earn, work hard to give.” He lived a disciplined, frugal life, abstaining from alcohol and tobacco.

Early Life

Rockefeller grew up in poverty. His father sold patent medicines, committed bigamy, and was often absent, so Rockefeller distanced himself from him for life. His mother, a devout Christian, instilled discipline, thrift, and a strong work ethic.

As a child, Rockefeller helped with household chores and sold potatoes and turkeys. Known for his aptitude in arithmetic, he approached problems methodically and rationally. Peers described him as disciplined, serious, and cautious.

In 1853, after his father faced a sexual assault lawsuit, the family moved to Cleveland, Ohio. After finishing secondary school, Rockefeller attended a short-term business program to learn double-entry bookkeeping. At age 16, he became a bookkeeper and began tithing 10% of his first salary to charity. By 18, after leaving a job over a denied raise, he partnered with Clark in a produce wholesale business.

Founding Standard Oil

In 1859, the first oil well in Pennsylvania was drilled, sparking a rush of poorly regulated drilling. Rockefeller realized profits lay not in drilling but in refining. By 1863, he founded Clark & Rockefeller, focusing on refining.

In 1864, Rockefeller married Laura, his high school classmate. He credited her decisions with his success, calling her indispensable to his fortune. They had four daughters and one son. Faith guided their lives; Rockefeller believed God granted him wealth.

By 1865, Rockefeller bought out Clark and brought in his brother William and later Henry M. Flagler, forming a core group that became the precursor of Standard Oil. Through aggressive investment, debt, and product diversification, they rapidly became the world’s largest refiners, with operations in Cleveland and trading offices in New York.

In 1870, Rockefeller officially reorganized the company as Standard Oil in Cleveland.

Crushing Competition

In 1872, Standard Oil swiftly acquired 22 of Cleveland’s 26 refineries in what became known as the “Cleveland Massacre.” By 1879, Standard Oil controlled 90% of U.S. refining, leveraging economies of scale.

In conflicts with the Pennsylvania Railroad, Rockefeller shifted transportation to pipelines, acquiring them along with refineries. He lowered prices, bribed politicians, threatened railroads, and cut rivals off from necessary resources. Competitors were often absorbed into Standard Oil under favorable terms, forming a unified corporate structure and reducing competition.

Rockefeller considered his monopolies beneficial to both competitors and consumers. He said: “For a beautiful rose to bloom, surrounding shoots must be pruned.”

Market Control Without Price Gouging

By 1882, Standard Oil had grown enormous, prompting the creation of a “trust” to legally centralize control over multiple companies, forming a vertically integrated system across refining, transport, and distribution. This move destroyed many smaller oil businesses and sparked debate.

Rather than manipulating prices directly, Rockefeller controlled supply. Standard Oil issued oil options, creating the world’s first oil futures market. In 1882, the Manhattan Oil Exchange officially opened.

By 1890, the trust controlled 85% of the U.S. oil industry, spanning drilling, refining, distribution, domestic consumption, exports, and by-products. Outside Russia, Standard Oil dominated 70% of the global market.

The Sherman Antitrust Act of 1890 gradually reduced Rockefeller’s monopoly, from 92% in 1890 to 80% by 1900 in refining and even lower in drilling. Rockefeller deliberately refrained from raising prices excessively, stating: “We would face public opposition if we monopolized refining.”

Transition and Retirement

In the 1890s, Rockefeller expanded into iron mining and transport, sometimes clashing with Andrew Carnegie. Approaching 60, he delegated daily management to John D. Archbold and moved to Pocantico Hills, New York, enjoying leisure, cycling, and golf. By 1897, he retired from active management but retained the title of president.

In 1911, the U.S. Supreme Court ruled Standard Oil violated antitrust laws and split it into 34 companies. Standard Oil retained 70% of refining capacity but only 14% of drilling. Rockefeller’s holdings were divided among these companies. Despite the breakup, rising demand for automobile and household fuel grew his fortune.

He maintained affordable prices, reducing everyday oil costs by 80% over decades. Rockefeller stated: “Keep working. We must provide cheap, good oil to the poor. Competition is evil.”

Philanthropy

Rockefeller focused on education, medicine, science, and arts. After 1897, philanthropy became his primary focus.

In 1884, he supported a black women’s college in Atlanta and Denison University.

Between 1880 and 1910, he donated $35 million to the University of Chicago, transforming it into a top-tier institution. He called it “my best investment.”

He founded boards for general education, supporting marginalized populations, especially southern black communities. He also funded Yale, Harvard, and Brown University.

In China, Rockefeller funds established Peking Union Medical College in 1921.

Legacy

Rockefeller’s wealth was amassed boldly, yet with consideration for others. He set a personal goal of living to 100, dying at 98. At 86, he summarized life in a five-line poem:

I was early taught to work as well as play;
My life has been one long, happy holiday;
Full of work and full of play;
I dropped the worry on the way;
And God was good to me everyday.

Rockefeller Family

Rockefeller, the world’s first billionaire, symbolizes American spirit. His family has remained wealthy for six generations, influencing the U.S. for 150 years.

He instilled strict values in his four children: all household chores earned allowances, all income was recorded, and every expense accounted for meticulously. His son, John Jr., even wore his sisters’ dresses until age 8 as the youngest child. Children were assigned cooking, cleaning, and prayer responsibilities weekly, forbidden alcohol until 21, and taught precise bookkeeping.

This disciplined upbringing helped the Rockefeller family defy the “wealth rarely survives three generations” adage.