William Avery Rockefeller, jr., Co-founder Standard Oil

 

 

William Avery Rockefeller Jr. (May 31, 1841 – June 24, 1922) was an American businessman and financier. Rockefeller was a co-founder of Standard Oil along with his elder brother John Davison Rockefeller. He was also part owner of the Anaconda Copper Company, which was the fourth-largest company in the world in the late 1920s. He was a prominent member of the Rockefeller family. 

William Jr. was born in Richford, New York. He was the middle son of con artist William Avery Rockefeller Sr. and Eliza Davison. In addition to elder brother John, William Jr.'s siblings were Lucy, Mary, and twins Franklin (Frank) and Frances (who died young). He also had two elder half-sisters, Clorinda (who died young) and Cornelia, through his father's affairs with mistress and housekeeper Nancy Brown. In 1853 his family moved to Strongsville, Ohio. As a young pupil in public school, he was inspired and motivated by his teacher-mentor, Rufus Osgood Mason, whom Rockefeller later named "A Rockefeller Patron."

At the age of sixteen, he began work as a clerk for a miller in Cleveland, Ohio. About two years later, he joined his older brother's produce commission business, Clark and Rockefeller, which later supplied provisions to the Union Army. 

Rockefeller was very adept in business matters. When John D. formed Rockefeller, Andrews & Flagler in 1867, he invited William to take charge of the company's export business in New York. In 1867, William Rockefeller and Co. was formed as a subsidiary to Rockefeller and Andrews. In 1870, that company became Standard Oil. In 1911 Standard Oil of New Jersey was split up by the United States Supreme Court. 

In 1899, Rockefeller joined fellow Standard Oil principal Henry H. Rogers in forming the Amalgamated Copper Mining Company, a holding company that intended to control the copper industry. Rockefeller, along with Henry Rogers, devised a scheme which earned them a profit of $36 million. First, they purchased Anaconda Properties from Marcus Daly for $39 million, with the understanding that the check was to be deposited in the bank and remain there for a definite time (National City Bank was run by Rockefeller's friends). Rogers and Rockefeller then set up a paper organization, known as the Amalgamated Copper Mining Company, with their own clerks as dummy directors, saying the company was worth $75 million.

They had Amalgamated Copper Company buy Anaconda from them for $75 million in capital stock, which was conveniently printed for the purpose. Then, they borrowed $39 million from the bank using Amalgamated Copper as collateral. They paid back Daly for Anaconda and sold $75 million worth of stock in Amalgamated Copper to the public. They paid back the bank's $39 million and had a profit of $36 million in cash.

With help from banker John Dennis Ryan, Amalgamated acquired two large competitors, and soon controlled all the mines of Butte, Montana. By the late 1920s it had become Anaconda Copper Company and was the fourth-largest company in the world.

From 1912 to 1913, the Pujo Committee investigated Rockefeller and others for allegedly earning $30 million in profit through cornering the copper market and "synchronizing with artificially enforced activity" in Amalgamated Copper stock in the New York Stock Exchange.

When the newly formed Mutual Alliance Trust Company opened for business in New York on the Tuesday after June 29, 1902, there were 13 directors, including Emanuel Lehman and Rockefeller. Wikipedia