History of John Rocke Fellsner

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The United States was destined to become an industrialized nation. The post civil war era was the beginning of immense changes for America. It was this period that would begin the march towards the technologically advanced and industrial nation that we are today. Much of this, in fact, was due to technology developed during the Civil War and the boom in population caused by soldiers returning home. American society was a perfect vehicle for industrialization. Aided by the extension of the transportation system, the boom period in American industrialization came latter part of the1th century. There were a variety of key industries and technological innovations that led to the industrial boom. There were railroads enhancing transportation, new building materials, such as concrete, steel, and glass, used to build the new urban centers, and there were new energy sources, such as oil, electricity, and coal.


However, it was not because of this that rapid industrialization begun. Men and women working towards the creation of a new and different powerful nation began it. It was, in actuality, a search for money, wealth and power. There were primarily three philosophies that drove America towards industrial greatness. There was “Laissez-Faire” capitalism, which was capitalism in its purest form. The view was that the best way for government to help business and promote industrialization was to leave it alone. This meant no regulations and no laws governing business. In this open environment, industry was free to expand unchecked and take whatever actions it deemed necessary. There was “Rugged Individualism,” which was the idea that it was a person’s responsibility to help themselves. There would be no government security net, no welfare. This philosophy instilled and reinforced the hard work ethic. The most influential philosophy was “Social Darwinism.” This was the application of Charles Darwin’s philosophy of “survival of the fittest” to civilization. It was the basic belief that those that deserved and were strongest would become wealthy and those that were poor were obviously not fit enough.


A few great men known as industrialists often drove the wave of industrialism. There can be no mistaking their motives � wealth. Some felt that the powerful industrialists of the gilded age should be referred to as “robber barons.” This view emphasizes the negative. It portrays men like Rockefeller and cruel and ruthless businessmen who would stop at nothing to achieve great wealth. These robber barons were accused of exploiting workers and coercing dreadful working conditions and unfair labor practices upon the manual worker. Another view of the industrialist is that of “captain of industry.” This term views these men as viewed resourceful and conscientious leaders who transformed the American economy with their business skills. They were praised for their skills as well as for their philanthropy and benevolence. Just as there were both positives and negatives to industrialism, there were positives and negatives to the leaders of industrialism.


As business expanded natural predatory instincts took over as companies sought to eliminate competition. It was survival of the fittest in an economy headed by a government which did not regulate business - laissez faire, social Darwinism, rugged individualism were the themes of the day. Clearly, the natural conclusion of laissez faire capitalism, or pure competition, is the end of competition itself. It is the natural goal of any business to make as much profit as it can and to eliminate its competition. When a corporation eliminates its competition it becomes what is known as a “monopoly.”


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Monopolies took several organizational forms including what were known as trusts.


Stockholders of numerous competing corporations turn in their stock to trustees in exchange for a trust certificate entitling them to a dividend. These trusts had an enormous impact on the American economy. They became huge economic and political forces. They were able to influence price and quality without regard for the laws of supply and demand. The basic economic principles no longer applied. Also, they had great political power. Trusts were extremely influential in Congress and in the Senate. As trusts grew ever more powerful and wealth became concentrated in fewer and fewer hands, animosity towards the new businessmen and the new methods of doing business increased tremendously and they were more regarded as “robber barons.”


The industrial revolution and the great economic success that accompanied it had a wide variety of victims. The American public, through the efforts of trusts, became a victim of the elimination of competition. The consumer was not the only victim however. The American worker was also victimized. As the population grew, so did wants and needs. Manufacturers realized that bulk production was cheaper, more efficient, and provided the quantity of items needed. As a result, more and more factories sprang up. The introduction of the factory system had a negative effect on living conditions and demography. Factory owners who believed in “Social Darwinism” and “Rugged Individualism” did not care much about those who worked in their factories. The owners of the early factories often were most interested in hiring a worker cheaply. Thus they employed many women and children. These workers could be hired for lower wages than men.


John D. Rockefeller is the best example of a “robber baron/captain of the industry.” When the oil industry was chaotic, he imposed order on it. He ended up building the Standard Oil Company, which made him become one of the titans of corporate business. He considered competition wasteful. Methodically, Rockefeller absorbed or destroyed competitors in Cleveland, where he was from, and elsewhere. Ruthless in his methods, he demanded cost cutting measures, efficiency, and the latest technology. He triumphed over his competitors by marketing products of high quality at the lowest unit cost. However, he used other methods as well. He threatened rivals and bribed politicians. He did whatever he had to do in order to stay on top. He even employed spies to harass the customers of competing refiners. Nevertheless, because of these methods, by 187, he controlled 0 percent of the country’s entire oil-refining capacity. The company grew so big that he and his attorney set up the Standard Oil Trust, marking the first of the modern trusts. Rockefeller went on to prosper and retired with a fortune of $00 million.


There are many valid comparisons to contemporary corporate scandals. The most in the computer industry, which has been booming since the 10’s. One could see it with Microsoft monopolizing the software part of the industry. They did this by buying making programs by compatible with the latest technology in their operating systems. Making sure that all programs were within the Microsoft realm. Then when the company got bigger and stronger, they started making their own programs. The company ended getting so big and powerful economically and within the industry, that the company had to be broken down into subdivisions. In another case with the computer industry, one could see the corporations of Intel and AMD monopolizing the hardware part of the industry. As of today programs most be optimized for one of those two hardware computer chips and even the motherboards of today are set only for those kinds of chips and the PC side of the realm. They have taken over the server, workstation, and desktop computer hardware eliminating their multitudes of competition just like John D. Rockefeller did with his Oil refining company.





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