Rockefeller hears the crude oil from Cleveland when he was a young man and goes there right away.
the landscape he sees when he goes is a shock to him. the people of cleveland are immoral, uneducated and idle. fuel oil is removed and noticed with incredible losses when shipped with barrels. “I’ll make money if I fix this subtraction and transport business,” he thinks.
but the real threshold in his life is through an engineer/chemist called Samuel andrews. Andrews turns crude oil into a very efficient and high quality lamp that we know as kerosene lamp. and he says, “now we’re rich!”
John, he’s investing in that engineer’s high-quality kerosene project, buying it in a way. then he makes a lot of money from this high-quality kerosene. He established his own oil refinery in 1863 (24 years old).
Kerosene: an oil derivative used in industry. In the folk language, the substance called kerosene is more developed and filtered as content. It is obtained by distilling the oil between 150 °C and 270 °c very finely.
When he was 26, the Clarke brothers were uncomfortable with John, and they said, “Either you take the company or we take it and we leave.”
John’s making the final bid for the bargain between them with $ 73,000. the Clarke brothers say that’s a lot of money and they quit. that way, his refinery is completely up to him. this is the second major change in your life.
maybe if John had sold it that day, such a giant (Standard Oil Company) would never have existed, and the world would have been shaped into a completely different future.
after the company has been to him, he’s looking for a new partner to find more money, and this is Henry flagler. Flagler is an alcohol distiller investor. he also is very rich. when John shows his projects to the Flagler, the flagler is a partner with $ 100,000.
there are many more details
for example, there is a man named Tom Scott. he’s checking the Railways network in the area. a man who buys cheap oil, brings it to Pittsburgh with his own railroad, runs it in his own factory, sells it everywhere with his own railroad. it’s pretty powerful. so it’s one of the biggest threats to Rockefeller. but this man’s primary power here is the railroad and the future of the world. John Rockefeller, on the other hand, sees the future in oil. railways are only a vehicle for him.
over time, as many refineries are opened in Cleveland, competition is so high that prices are falling
John thinks this is gonna be a problem. john says, “I have to buy other companies to get through this, but we don’t have the money for it, I need a lot of money, and I need a lot of money,” and when he thinks, “how’s that going to happen,” his friend henry flagler says, ” Let’s set up a Joint Stock Company and sell shares.”
John says, “Oh, this is a wonderful idea, Henry, I wish I had as much commercial intelligence as you do.”
and they’re setting up standard oil. stock sales ads are being made and the company’s demand for shares is upping. In two years, they’re doubling the entire capital to three with the sale of shares.
they have abnormal money for investment. John goes running right away to buy the refineries one by one. first, he buys small and cheap. 15-20 after receiving refined, he begins to threaten the remaining powers. he’s buying all the refineries in Cleveland. (1872, just 33 years old)
tom Scott is called a bunch of conspiracies. he plays very hard. it encourages the people to rebel. it’s making the oil mines burn. at the end of this process, the people always blame the Rockefeller.
there is a serious economic crisis in Europe and America in the next period. the cash crisis is so high that everybody’s going bankrupt. except for Rockefeller. he knows how to protect himself in this process. he thinks it’s a chance to get a crisis. and he’s starting to buy all the oil refineries in other states that are sinking with this economic crisis. however, because he can not buy himself according to the monopoly laws, he is always making purchases with front companies.
then it comes to breaking the rail threat
by laying small pipelines, it makes investments and alternatives to transport oil without the need for railroads.
Tom Scott, on the other hand, talks to other refineries owners in the country and tries to build a counter-organization. John is threatening to arrange a meeting and not to do so, but when he is refused, the war begins.
the Rockefeller is playing big and stopping the shipment of oil from all its refineries. so the railroad starts to hurt and stop. that’s not enough for Rockefeller. it’s preventing them from buying and shipping all the oil in the country. that way, the railroad stops completely. the railroad workers are uprooted, it’s a mess. This is one of the biggest workers ‘ riots in American history in 1877. railways are completely sinking at the end of this process.
Rockefeller buys everything from the railroad ($3.4 million).ckefeller buys everything from the railroad ($3.4 million).
however, there is a problem. they also require the sale to be completed within 1 day, in order to make Rockefeller very harmful and even humiliate him. Rockefeller has to find three million cash in one day, and on the same day he meets with bank owners (the difference in talent and trust, good network success)
Standard Oil is so big that 90% of American oil is his when he was 40. he’s building his own intelligence network, his own illegal Army. he buys politicians, etc…
it is growing so large that the state manages to divide the company into seven parts as a result of the latest monopoly cases. giants such as Chevron, Exxon, Shell, BP are companies that are formed in the process as a result of this division. they are so big, they control the states. as the investments fall, there are coup, insurgency, economic crisis, even war, etc., and they manage their countries as they wish.