Long before Bill Gates, Jeff Bezos and Elon Musk lived the original business “Titan”: John D Rockefeller.

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Long before Bill Gates, Jeff Bezos and Elon Musk lived the original business “Titan”: John D Rockefeller.

His vast empire and equally vast philanthropy provided a template for today’s billionaires, but where did the money come from? And are there lessons for today’s entrepreneurs?

His vast empire and equally vast philanthropy provided a template for today’s billionaires, but where did the money come from? And are there lessons for today’s entrepreneurs?

When Ron Chernow agreed to write the first full-length biography of Rockefeller since the 1950s, he aimed to get beneath the folksy, grandfatherly image of Rockefeller’s later years, and expose the rapacious monopolist of the younger man.

When Ron Chernow agreed to write the first full-length biography of Rockefeller since the 1950s, he aimed to get beneath the folksy, grandfatherly image of Rockefeller’s later years, and expose the rapacious monopolist of the younger man.

What made him so interesting, Chernow says, is that “his good side was every bit as good as his bad side was bad.” At the point where he was most vilified, he began focusing his considerable powers on giving away history’s greatest fortune for the benefit of humankind.

What made him so interesting, Chernow says, is that “his good side was every bit as good as his bad side was bad.” At the point where he was most vilified, he began focusing his considerable powers on giving away history’s greatest fortune for the benefit

John Davison Rockefeller was fortunate in the timing of his birth, 1839. Along with Andrew Carnegie (1835), Jay Gould (1836) and J Pierpont Morgan (1837), he would come of age just as the post-Civil War industrial boom was about to get under way. A time of limitless possibility.

John Davison Rockefeller was fortunate in the timing of his birth, 1839. Along with Andrew Carnegie (1835), Jay Gould (1836) and J Pierpont Morgan (1837), he would come of age just as the post-Civil War industrial boom was about to get under way. A time o

Rockefeller grew up a Baptist, in New York State. His father William, a charismatic entrepreneur, Chernow describes as a “bigamist and snake-oil salesman” who went around the country selling patent medicines.

Rockefeller grew up a Baptist, in New York State. His father William, a charismatic entrepreneur, Chernow describes as a “bigamist and snake-oil salesman” who went around the country selling patent medicines.

With his father often away, John became the man of the house to his mother Eliza, and had early responsibilities. She came to trust totally in what she called “John’s judgement”. Ohio, where William had moved the family, was a fortuitous place for John to enter the adult world.

With his father often away, John became the man of the house to his mother Eliza, and had early responsibilities. She came to trust totally in what she called “John’s judgement”. Ohio, where William had moved the family, was a fortuitous place for John to

For the cost of setting up a shop, anyone could launch a crude oil refining operation producing kerosene, which was providing lantern light in houses and huts across America. By the time he was 25, John had a controlling interest in the biggest refinery in Cleveland.

For the cost of setting up a shop, anyone could launch a crude oil refining operation producing kerosene, which was providing lantern light in houses and huts across America. By the time he was 25, John had a controlling interest in the biggest refinery i

He married Cettie Spelman, the daughter of well-to-do, cultured parents. They weren't keen on the match, as Rockefeller had little social standing, but he was persistent. Chernow: “in love as in business [Rockefeller] had a longer time frame, a more settled will, than other men."

He married Cettie Spelman, the daughter of well-to-do, cultured parents. They weren't keen on the match, as Rockefeller had little social standing, but he was persistent. Chernow: “in love as in business [Rockefeller] had a longer time frame, a more settl

The oil industry was then a wild frontier, with brothels, taverns and gambling dens littering the fields, and everyone out to make a quick buck. Yet  Rockefeller’s aim from the start was to tame it, rationalize it, and make it a respectable industry.

The oil industry was then a wild frontier, with brothels, taverns and gambling dens littering the fields, and everyone out to make a quick buck. Yet  Rockefeller’s aim from the start was to tame it, rationalize it, and make it a respectable industry.

Judgement and some luck

“The Standard Oil Company will some day refine all the oil and make all the barrels,” Rockefeller told a Cleveland businessman.

“The Standard Oil Company will some day refine all the oil and make all the barrels,” Rockefeller told a Cleveland businessman.


He methodically set about buying up the 20 to 30 smaller refiners in Cleveland, and created a shell company that allowed collusion between a small group of major refiners and the railroads.

He methodically set about buying up the 20 to 30 smaller refiners in Cleveland, and created a shell company that allowed collusion between a small group of major refiners and the railroads.


Rockefeller never saw the move as corrupt, more a matter of logic. He wanted a massive, efficient, hi-tech industry, dominated by his company, and it was a goal that could not be achieved through conventional competition.

Rockefeller never saw the move as corrupt, more a matter of logic. He wanted a massive, efficient, hi-tech industry, dominated by his company, and it was a goal that could not be achieved through conventional competition.


Arguably, he was proven right. The consolidation of the industry under Standard Oil, thanks to big investments in research and development, would allow it to increase quality and consistency of products. By cutting the cost of oil refining in half, it led to reduced prices for consumers.

Arguably, he was proven right. The consolidation of the industry under Standard Oil, thanks to big investments in research and development, would allow it to increase quality and consistency of products. By cutting the cost of oil refining in half, it led

In Rockefeller’s mind, only without the annoyance of competition could he make long-term investments in quality and efficiency. Innovation was only possible through monopoly, and he was doing the public a service.

In Rockefeller’s mind, only without the annoyance of competition could he make long-term investments in quality and efficiency. Innovation was only possible through monopoly, and he was doing the public a service.


Not even Rockefeller could stop the march towards antitrust (anti-monopoly) legislation. In 1892 he had to reorganize Standard Oil to escape anti-trust law, with compartmentalization into 20 different companies.

Not even Rockefeller could stop the march towards antitrust (anti-monopoly) legislation. In 1892 he had to reorganize Standard Oil to escape anti-trust law, with compartmentalization into 20 different companies.


The firm prospered anyway, and became so cashed up that it no longer needed Wall Street banks for finance. By 1907, Standard Oil refined 87% of the nation’s kerosene, had 90 percent of the domestic market, and was 20 times the size of its next competitor.

The firm prospered anyway, and became so cashed up that it no longer needed Wall Street banks for finance. By 1907, Standard Oil refined 87%  of the nation’s kerosene, had 90 percent of the domestic market, and was 20 times the size of its next competitor

Under President Teddy Roosevelt, there were a multitude of antitrust (antimonopoly) cases brought against Standard. Looming over Rockefeller was even the possibility that he, now in his sixties, could go to jail.

Under President Teddy Roosevelt, there were a multitude of antitrust (antimonopoly) cases brought against Standard. Looming over Rockefeller was even the possibility that he, now in his sixties, could go to jail.


In a courtroom in Chicago he pretended to be a bumbling old man who couldn’t remember much. The show didn’t stop the Supreme Court, in 1911, handing down a judgement that Standard Oil be dismantled into 34 smaller companies which now would compete with each other.

In a courtroom in Chicago he pretended to be a bumbling old man who couldn’t remember much. The show didn’t stop the Supreme Court, in 1911, handing down a judgement that Standard Oil be dismantled into 34 smaller companies which now would compete with ea

Standard Oil of New Jersey became Exxon, Standard Oil of New York became Mobil, and Standard Oil of Indiana Amoco. Shares in the new constituent companies soared in value. The dawning automobile age and its boundless thirst for oil would make Rockefeller richer than ever.

Standard Oil of New Jersey became Exxon, Standard Oil of New York became Mobil, and Standard Oil of Indiana Amoco. Shares in the new constituent companies soared in value. The dawning automobile age and its boundless thirst for oil would make Rockefeller 

Antitrust won’t stop me

As America’s richest man (his untaxed income for one year alone, 1902, was $58 million, or over a billion dollars in today’s money) every day Rockefeller received thousands of letters requesting money.

As America’s richest man (his untaxed income for one year alone, 1902, was $58 million, or over a billion dollars in today’s money) every day Rockefeller received thousands of letters requesting money.


Despite his ruthless reputation, Rockefeller had always been charitable, giving away 6-10 percent of his income. He once said, “It has seemed as if I was favoured and got increase because the Lord knew that I was going to turn around and give it back.”

Despite his ruthless reputation, Rockefeller had always been charitable, giving away 6-10 percent of his income. He once said, “It has seemed as if I was favoured and got increase because the Lord knew that I was going to turn around and give it back.”


Rockefeller’s founding of the University of Chicago, and money to colleges for black Americans, were just a foretaste of his later giving through the Rockefeller Foundation, created in 1913.

Rockefeller’s founding of the University of Chicago, and money to colleges for black Americans, were just a foretaste of his later giving through the Rockefeller Foundation, created in 1913.


The sheer size of the new foundation enabled Rockefeller to move beyond personal whim and invest in the creation of knowledge that could benefit humanity in the biggest way over the long run. From the start, the foundation’s focus was medical research and education.

The sheer size of the new foundation enabled Rockefeller to move beyond personal whim and invest in the creation of knowledge that could benefit humanity in the biggest way over the long run. From the start, the foundation’s focus was medical research and

Other members of the Rockefeller clan also gave generously. For instance, Abby Aldrich Rockefeller, wife of Rockefeller’s son John, became the major benefactor of New York’s Museum of Modern Art (MoMA).

Other members of the Rockefeller clan also gave generously. For instance, Abby Aldrich Rockefeller, wife of Rockefeller’s son John, became the major benefactor of New York’s Museum of Modern Art (MoMA).


Biographer Ron Chernow takes a dim view of Rockefeller’s business strategies. Yet every business aims to dominate its field, or at least be its leader - it’s just that few are able to do so.

Biographer Ron Chernow takes a dim view of Rockefeller’s business strategies. Yet every business aims to dominate its field, or at least be its leader - it’s just that few are able to do so.


Rockefeller achieved his aim of making the oil industry modern and efficient, ramping up quality and saving consumers money, not to mention employing legions of people. Without his rapacity in business, there would be no Rockefeller Foundation today.

Rockefeller achieved his aim of making the oil industry modern and efficient, ramping up quality and saving consumers money, not to mention employing legions of people. Without his rapacity in business, there would be no Rockefeller Foundation today.


For Rockefeller, the cut-throat competitiveness of the early oil industry was good for no one. He saw his buying up of the industry’s small players as a public service that was inevitable if the industry was to mature.

For Rockefeller, the cut-throat competitiveness of the early oil industry was good for no one. He saw his buying up of the industry’s small players as a public service that was inevitable if the industry was to mature.


The Rockefeller legacy: philanthropy and business  

Titan: the Life of John D Rockefeller Snr.

Rockefeller's Monopoly

John D Rockefeller and the power of monopoly

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