Its history is inextricably linked to oil

Memoirs published in France, in the spring of 2006, from des en à le 2006, en à le 2006, en en à le 2006 à le à le 2006 2006, billionaire, was an opportunity to discuss the destiny of this astonishing dynasty and its founder: John D. Rockefeller. Its history is inextricably linked to oil. Creator of Standard Oil, John d. Rockefeller is the first manufacturer of black gold. He is also the first to bring order in a market that, since the discovery of the colonel Drake, struggles in total anarchy...

The future "tycoon" of oil was born in July 1839 in New York. He descends from a family of French huguenots Roquefeuille who had fled the France upon revocation of the edict of Nantes by Louis XIV. The grandfather of John Godfrey, was launched in the wheat trade, but business had gone bad. He then chose to leave Massachusetts to try his luck in the West. His son, William, John's father, will be much more fortunate. "big Bill" as were dubbed, is a vagabond existence. Posing as "physicist botanist" or "doctor herbalist", he spends his days on the road to sell miracle drugs the virtues elixirs secret and other drugs to the dubious effectiveness. In 1855, during one of his tours, he married a second time and began the secret life of a bigamous will continue until his death in 1906...

At Cleveland, where the family settled in 1853, young John d. Rockefeller was raised by his mother who, in the absence of this strange father, found inspiration and comfort in the daily reading of the Bible. Deeply believing, the young boy assiduously attended the Baptist Church. This time it will retain the taste for a simple and rigorous lifestyle. Until the end of his life, he never turn a cigar or toss a drop of alcohol. Piles, serious, applied and economical from his childhood, he manifests on the other hand a taste for the trade. Used by amazing faculties of mental calculation, he organizes school all kinds of small traffic.

In 1855, believing that the time has come for his son to work it then sixteen years old "big Bill" brought John in a large house in wholesale coal and grain of Cleveland: Hewitt & Tattle. This first work will be decisive for the remainder of his career. Entered as modest employee writes, he was quickly appointed bookkeeper. This position, the future emperor of oil began to transport by railway or boat operations and learn the bases of the commercial accounting. Large worker, he manifested an insatiable curiosity and a thirst for understanding of the financial mechanisms governing the purchase, storage, transport and sale of raw materials. Very appreciated of his patrons, he was appointed in 1857, at eighteen, Chief Accountant.

Three major principles

In 1858, considering himself inadequately paid, John Rockefeller chooses to leave Hewitt & Tattle and steal its own wings. Much later, he said that if his employers had agreed to increase it, he probably remained, adding however that, at this time, he was "ready to do something much more important." The year of its twenty years, he joined with a former schoolmate, Maurice Clarck, to establish a wholesale House. The civil war, which broke out two years later, made the fortune of the company. Specializing in the purchase and sale of salt, pork meat and wheat, it takes advantage of the increase in the price of agricultural commodities and signs very remunerative contract with the Government for the supply of armies. In 1862, the young company has a profit of $ 17,000. Rich, Rockefeller is already. It was then that, for the second time, his life takes a new turn...

In 1862, one of her knowledge of the Baptist Church, Samuel Andrews, offers, as well as Maurice Clarck, create an oil refinery. John Rockefeller shows first skeptical. Discovered in 1859 by colonel Drake, who has been updated to Titusville, Pennsylvania, the first well, oil is still, at this time, an uncertain market and anarchic addition. At Titusville and in its region, and then in Ohio and Kentucky, multiple drilled wells were discovered, with the instability of prices. The young entrepreneur nevertheless decides to embark on the refining with Clarck and Andrews. It is all the more encouraged to do that, early in 1863, a line of railway from Cleveland to Pennsylvania was opened. Throughout the line, we saw appear a chaplet of oil refineries. Encouraged, the three partners so create the Excelsior Oil Works and invest $ 4,000 in the construction of a refinery, which is to start among the most important of the region. The association did however not last long. Between Rockefeller, now convinced of precious liquid, and its two partners, careful to the pusillanimity, relations are not slow to degrade. In 1865, John Rockefeller buys Clarck and Andrews undertaking for 72.500 dollars. Now alone on board, he will focus fully on the oil...

It will benefit some at the outset of an exceptional situation. That same year 1865, indeed, the US civil war and are preparing to enter an era of unprecedented industrial expansion which will serve at Rockefeller. It, however, will always refuse to speculator, preferring to develop one by one its markets, systematically building a high-performance industrial tool and reinvesting all profits. At this time, three major principles guide its action: on the one hand, have about the chain oil refining, the most efficient equipment storage, on the other hand strictly control costs to keep them at a lower level than those of competitors, finally, to keep momentarily out of production,

much too risky area at this time because of the anarchy that reigns. What are these recipes that will move its business to the forefront of the oil industry of the United States.

A disturbing power

The kick-off of this strategy is given on January 10, 1870 with the Foundation, in Cleveland, of Standard Oil. At this adventure Rockefeller Associates his brother William and one of his friends, Harry Flager, which play a vital role in the development of the firm. The "Standard" name was chosen to signify that the products delivered will be guaranteed at the highest level of quality. With two refineries, the best equipped in the region, the company begins against the collapse of prices due to overcapacity of production. Flager and Rockefeller are working methodically, gradually integrating the entire chain, countering efforts of independent producers, and especially negotiating with the companies of railway of the advantageous tariff concessions in return for guarantees of deliveries. In the space of a decade, the Standard is grants thus a dominant position of the order of 90 in the refining, transportation, trade and distribution of oil. In the years that followed, the group back upstream and tackling the production of crude oil, taking control of new oil fields of Ohio and Indiana. This growing power does not lack of worry about the opinion and political circles. Accused of unfair practices and tariff manipulation, threatened with trial in several States, John Rockefeller decided, in 1882, to turn his company into trust, i.e. in association of virtually autonomous enterprises is voluntarily providing the leadership of the Standard. A transformation legal without real consequences because, apparently, the decisions communicated to the various units of the trust in the form of simple recommendations, in fact the trust is led by a small group of men led by Rockefeller.

At the beginning of the 1880s, it is already, with a heritage of more than 150 million dollars, among the first American fortunes. In 1864, he married Laura Celestia Spelman, resulting in a family of good bourgeoisie of Cleveland. Installed in the city, the couple had five children, lives simply. When it is not your business, John Rockefeller handles his fruit trees and its horses, one of his passions. His Office, the industrial leads its group with a firm hand, but known to listen to his closest collaborators. It is however all know what happens in the multiple ramifications of the trust. To this end, it implements a remarkably effective espionage and information system directly attached.

The industrialist has not finished to so with the concerns. The press and the political class indeed strongly criticized the transformation of Standard Oil in trust, presented as a dilatory manoeuvre. In 1890, the famous Sherman Act strictly regulates the use of the system. John Rockefeller responds by taking advantage of the opportunity offered by several States to create holdings companies to constitute, in 1899, in the State of New Jersey, Standard Oil Company, which will monitor now 70 companies of the trust. But the war for the monopoly, the incessant struggles against the Federal Government, vehement critics including the Standard object and press campaigns eventually affect the health of the industrial. Sold out, with insomnia, he entrusted in 1897 branch of the firm to one of his colleagues at the Board of Directors, John d. Archbold. He remains President and member of the Board. But if it is systematically consulted on the guidelines relevant to the future of the firm, it is more dedicated to his family. A nearly sixty years, the Emperor of oil takes back.

The target of Roosevelt

However, the Standard trouble won't delay to remind on the front of the stage. At the turn of the century in effect, a moralistic campaign rises in public opinion against the monopolistic tendencies of capitalism. In newspapers and the political class, it is against this handful of magnates who focused their hands all the economic power of the country. The relay of opinion are demanding the dismantling of the trusts, starting with the main of them: the Standard.

The case began in 1904 with the publication by the journal "Mc Lur's" a series of articles on the history of Standard Oil. Conducted by one of the most prestigious press organs of the United States, the investigation Unveils to the public methods that enabled the Standard to impose on the market. These revelations are feeling and are the cause of a wide campaign for the dismantling of the trust. President of the United States from 1901, Theodore Roosevelt made the Standard one of its priority targets. Extensive investigations are launched, legal actions. The main trial opens in 1902 in the Federal Court of St. Louis. It will last until 1909, date which is ordered the dissolution of Standard Oil. Confirmed by the Supreme Court in 1911, the award forced the Standard to abandon control of 33 subsidiaries and to sell part of its shares. This forced dissolution are some of the largest US oil companies such as Exxon, Mobil, Chevron, or Amocco.

Those who hoped by this means shooting the power of John Rockefeller are for their expenses. The resale of the shares it owned in various societies of the dismantled trust him indeed reported the bagatelle of $ 900 million, making him the richest man in the United States. Forced out of business, the first billionaire in history did not abandon so any activity. In 1909, he established the Rockefeller Foundation for health and education and it was with a capital of $ 100 million. He then devoted himself to its development, making it the first charitable institution in the world. His death in 1937, despite the stock market crisis of 1929, he left his heirs a fortune of nearly $ 500 million.