Was John
D. Rockefeller
a Robber Baron or a Captain of Industry?
John Rockefeller was the king of the oil industry during
the late 1800s and early 1900s. At one point, Rockefeller’s
Standard Oil Company produced over 95% of the oil sold in
the United States. Rockefeller was known as a shrewd,
ruthless (cruel) businessman who hated competition. He
was often quoted as saying, “competition is wasteful”. As he gained more
control over the oil industry Rockefeller would force his competition to
choose between being swallowed up by his Standard Oil Company or being
crushed into bankruptcy. He would often threaten railroad companies to
lower the price of the shipping of his oil or he would turn to another
company. Rockefeller once insisted that a railroad company share the
profits it was getting from shipping another company’s oil with
Rockefeller! In six weeks in 1872, Rockefeller’s Standard Oil Company
bought out 22 competitors in Cleveland, Ohio alone! Rockefeller was known
to drastically reduce the price of his oil in order to force competitors out
of business. Once Rockefeller controlled these companies he created a
trust. A trust is a large group of companies that was controlled by a
board of directors of which he was the President. Once Standard Oil was
in control of oil production in the United States, the price of oil did drop,
however, many in the United States saw Rockefeller’s actions as cruel and
vicious. He was portrayed negatively in many United States newspapers.
To counter that image, Rockefeller also sought a life of Philanthropy, or
donating large sums of money to charity. Since his first paycheck at the
age of 14, Rockefeller donated 10% of his money to his Church. By 1915,
Rockefeller created the Rockefeller Foundation which was designed to
advance medical research. He donated $250,000,000 of his own personal
wealth to charity. In 1884, Rockefeller paid to build Spellman College in
Atlanta, Georgia which was designed specifically to give African American
women a college education. Rockefeller also donated $80,000,000 to the
University of Chicago which has now become one of the country’s best
institutions. By the time of his death, Rockefeller reportedly donated
over $550,000,000 to different charities and causes.
http://middle.usm.k12.wi.us/faculty/taft/Unit5/baronscaptains.htm