John J. Raskob
Encyclopedia
John Jakob Raskob, KCSG
(19 March 1879 - 15 October 1950) was a financial executive and businessman for DuPont
and General Motors
, and the builder of the Empire State Building
. He was chairman of the Democratic National Committee
from 1928 to 1932 and a key supporter of Alfred E. Smith's candidacy for President of the United States
.
After Franklin D. Roosevelt
became President, Raskob was a prominent opponent of the New Deal
through his support of a number of anti-Roosevelt organizations including the American Liberty League
. Raskob was also a leader in the Association Against the Prohibition Amendment
.
, where his father ran a successful cigar-production business. The Raskob family originated in the Eifel
region in Germany; John J. Raskob's grandfather was an immigrant from the Eifel village Großlittgen
. During his studies at both parochial and
public schools, Raskob delivered newspapers, worked in seasonal agriculture, participated in local theater, and was involved in the Catholic community. He entered a local business school after his high school graduation but dropped out to support his family through secretarial work following his father's death in 1898.
as a personal secretary. In 1911, he became assistant treasurer of DuPont
, in 1914 treasurer, and in 1918 vice-president for finance of both DuPont and General Motors. Raskob had been an early investor in General Motors and had engineered DuPont's ownership of 43% of GM, purchased from the financially troubled William C. Durant
.
While with GM, he led the creation of General Motors Acceptance Corporation
, the corporation that allowed GM dealers to offer installment credit directly to customers. He also promoted the use of standard financial statistics to measure the performance of different operations within a diversified company, primarily through his associate Donaldson Brown
.
Raskob held the head financial job at both GM and DuPont until 1928, when he resigned from GM in a dispute with chairman Alfred P. Sloan
.
.
in the 1928 election, and Smith invited Raskob to become chairman of the Democratic National Committee
. Sloan, a supporter of Herbert Hoover
, insisted Raskob resign either from GM or the DNC. Raskob left GM after the board supported Sloan, sold his GM stock, and used the proceeds to build the Empire State Building
. Raskob made Smith president of the Empire State Co., operators of the building, based on a promise to do business together the night Smith lost the presidential election. Raskob served as chairman of the DNC through 1932. He continued to promote Smith's candidacy as Chairman of the DNC, and to advocate for the adoption of an anti-prohibition
policy. Both of these positions were opposed by different factions within the Democratic Party
, and in 1932, when Franklin D. Roosevelt
won the party's nomination and the election, Raskob resigned as DNC chairman.
Toward the end of Roosevelt's first term as president, Raskob began actively working against Roosevelt. Testimony given to the United States Senate Lobby Investigation Committee
revealed Raskob was an active fundraiser for Georgia
governor Eugene Talmadge
, considered a possible anti-Roosevelt candidate for the Democratic nomination in the 1936 United States presidential election. Raskob later became involved with the American Liberty League
, an anti-New Deal
organization active around the time of the 1936 election.
, which was in competition with the Chrysler Building
to become the world's tallest building at the time. According to one story, Raskob had taken a jumbo pencil, stood it on end and asked architect William F. Lamb
, "Bill, how high can you make it so that it won't fall down?" He was also invested in precious metal mining in Nevada
and New Mexico
, ranching, the aeronautical industry, and pesticides. Raskob remained with DuPont until his retirement from the company in 1946.
, recognizing him for his contributions.
and Wilmington
areas for building the "Patio" at what is now Archmere Academy
between 1916 and 1918. Originally his residence, one of its most significant features is a fountain made of marble, which has each of his 13 children sculpted around the side
Raskob is buried at Cathedral Cemetery in the city of Wilmington.
Order of St. Gregory the Great
The Pontifical Equestrian Order of St. Gregory the Great , was established on September 1, 1831, by Pope Gregory XVI, seven months after his election.It is one of the five orders of knighthood of the Holy See...
(19 March 1879 - 15 October 1950) was a financial executive and businessman for DuPont
DuPont
E. I. du Pont de Nemours and Company , commonly referred to as DuPont, is an American chemical company that was founded in July 1802 as a gunpowder mill by Eleuthère Irénée du Pont. DuPont was the world's third largest chemical company based on market capitalization and ninth based on revenue in 2009...
and General Motors
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
, and the builder of the Empire State Building
Empire State Building
The Empire State Building is a 102-story landmark skyscraper and American cultural icon in New York City at the intersection of Fifth Avenue and West 34th Street. It has a roof height of 1,250 feet , and with its antenna spire included, it stands a total of 1,454 ft high. Its name is derived...
. He was chairman of the Democratic National Committee
Democratic National Committee
The Democratic National Committee is the principal organization governing the United States Democratic Party on a day to day basis. While it is responsible for overseeing the process of writing a platform every four years, the DNC's central focus is on campaign and political activity in support...
from 1928 to 1932 and a key supporter of Alfred E. Smith's candidacy for President of the United States
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
.
After Franklin D. Roosevelt
Franklin D. Roosevelt
Franklin Delano Roosevelt , also known by his initials, FDR, was the 32nd President of the United States and a central figure in world events during the mid-20th century, leading the United States during a time of worldwide economic crisis and world war...
became President, Raskob was a prominent opponent of the New Deal
New Deal
The New Deal was a series of economic programs implemented in the United States between 1933 and 1936. They were passed by the U.S. Congress during the first term of President Franklin D. Roosevelt. The programs were Roosevelt's responses to the Great Depression, and focused on what historians call...
through his support of a number of anti-Roosevelt organizations including the American Liberty League
American Liberty League
The American Liberty League was an American political organization formed in 1934 by conservative Democrats to oppose the New Deal of Franklin D. Roosevelt. It was active for just two years...
. Raskob was also a leader in the Association Against the Prohibition Amendment
Association Against the Prohibition Amendment
The Association Against the Prohibition Amendment was established in 1918 and became a leading organization working for the repeal of prohibition in the United States.- Background :...
.
Early life
Raskob was born to John and Anna Frances (Moran) Raskob in Lockport, New YorkLockport (city), New York
Lockport is a city in Niagara County, New York, United States. The population was 21,165 at the 2010 census. The name is derived from a set of Erie canal locks within the city. Lockport is the county seat of Niagara County and is surrounded by the town of Lockport...
, where his father ran a successful cigar-production business. The Raskob family originated in the Eifel
Eifel
The Eifel is a low mountain range in western Germany and eastern Belgium. It occupies parts of southwestern North Rhine-Westphalia, northwestern Rhineland-Palatinate and the south of the German-speaking Community of Belgium....
region in Germany; John J. Raskob's grandfather was an immigrant from the Eifel village Großlittgen
Großlittgen
Großlittgen is an Ortsgemeinde – a municipality belonging to a Verbandsgemeinde, a kind of collective municipality – in the Bernkastel-Wittlich district in Rhineland-Palatinate, Germany....
. During his studies at both parochial and
public schools, Raskob delivered newspapers, worked in seasonal agriculture, participated in local theater, and was involved in the Catholic community. He entered a local business school after his high school graduation but dropped out to support his family through secretarial work following his father's death in 1898.
DuPont and General Motors
He was hired in 1901 by Pierre S. du PontPierre S. du Pont
Pierre Samuel du Pont was president of the E. I. du Pont de Nemours and Company from 1915 to 1919, and served on its Board of Directors until 1940...
as a personal secretary. In 1911, he became assistant treasurer of DuPont
DuPont
E. I. du Pont de Nemours and Company , commonly referred to as DuPont, is an American chemical company that was founded in July 1802 as a gunpowder mill by Eleuthère Irénée du Pont. DuPont was the world's third largest chemical company based on market capitalization and ninth based on revenue in 2009...
, in 1914 treasurer, and in 1918 vice-president for finance of both DuPont and General Motors. Raskob had been an early investor in General Motors and had engineered DuPont's ownership of 43% of GM, purchased from the financially troubled William C. Durant
William C. Durant
William Crapo "Billy" Durant was a leading pioneer of the United States automobile industry, the founder of General Motors and Chevrolet who created the system of multi-brand holding companies with different lines of cars....
.
While with GM, he led the creation of General Motors Acceptance Corporation
General Motors Acceptance Corporation
Ally Financial Inc. is a bank holding company headquartered in Detroit, Michigan, United States at Tower 200 of the Renaissance Center. The bank slogan has more than 15 million customers worldwide and provides a range of financial services including auto financing, insurance, mortgage services, and...
, the corporation that allowed GM dealers to offer installment credit directly to customers. He also promoted the use of standard financial statistics to measure the performance of different operations within a diversified company, primarily through his associate Donaldson Brown
Donaldson Brown
Frank Donaldson Brown was a financial executive and corporate director with both DuPont and General Motors Corporation. He graduated from Virginia Tech in 1902 with a Bachelor of Science degree in Electrical Engineering...
.
Raskob held the head financial job at both GM and DuPont until 1928, when he resigned from GM in a dispute with chairman Alfred P. Sloan
Alfred P. Sloan
Alfred Pritchard Sloan, Jr. was an American business executive in the automotive industry. He was a long-time president, chairman, and CEO of General Motors Corporation...
.
"Everybody Ought to be Rich"
Raskob was very bullish in the stock market in the 1920s and gave an interview to Samuel Crowther for Ladies Home Journal in which he suggested every American could become wealthy by investing $15 per month in common stocks (at a time when average American's weekly salary was between $17 to $22). The article (entitled "Everybody Ought to be Rich") arrived at newsstands just two months before the Wall Street Crash of 1929Wall Street Crash of 1929
The Wall Street Crash of 1929 , also known as the Great Crash, and the Stock Market Crash of 1929, was the most devastating stock market crash in the history of the United States, taking into consideration the full extent and duration of its fallout...
.
Political activity
Raskob had supported Democratic presidential candidate Al SmithAl Smith
Alfred Emanuel Smith. , known in private and public life as Al Smith, was an American statesman who was elected the 42nd Governor of New York three times, and was the Democratic U.S. presidential candidate in 1928...
in the 1928 election, and Smith invited Raskob to become chairman of the Democratic National Committee
Democratic National Committee
The Democratic National Committee is the principal organization governing the United States Democratic Party on a day to day basis. While it is responsible for overseeing the process of writing a platform every four years, the DNC's central focus is on campaign and political activity in support...
. Sloan, a supporter of Herbert Hoover
Herbert Hoover
Herbert Clark Hoover was the 31st President of the United States . Hoover was originally a professional mining engineer and author. As the United States Secretary of Commerce in the 1920s under Presidents Warren Harding and Calvin Coolidge, he promoted partnerships between government and business...
, insisted Raskob resign either from GM or the DNC. Raskob left GM after the board supported Sloan, sold his GM stock, and used the proceeds to build the Empire State Building
Empire State Building
The Empire State Building is a 102-story landmark skyscraper and American cultural icon in New York City at the intersection of Fifth Avenue and West 34th Street. It has a roof height of 1,250 feet , and with its antenna spire included, it stands a total of 1,454 ft high. Its name is derived...
. Raskob made Smith president of the Empire State Co., operators of the building, based on a promise to do business together the night Smith lost the presidential election. Raskob served as chairman of the DNC through 1932. He continued to promote Smith's candidacy as Chairman of the DNC, and to advocate for the adoption of an anti-prohibition
Prohibition
Prohibition of alcohol, often referred to simply as prohibition, is the practice of prohibiting the manufacture, transportation, import, export, sale, and consumption of alcohol and alcoholic beverages. The term can also apply to the periods in the histories of the countries during which the...
policy. Both of these positions were opposed by different factions within the Democratic Party
Democratic Party (United States)
The Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...
, and in 1932, when Franklin D. Roosevelt
Franklin D. Roosevelt
Franklin Delano Roosevelt , also known by his initials, FDR, was the 32nd President of the United States and a central figure in world events during the mid-20th century, leading the United States during a time of worldwide economic crisis and world war...
won the party's nomination and the election, Raskob resigned as DNC chairman.
Toward the end of Roosevelt's first term as president, Raskob began actively working against Roosevelt. Testimony given to the United States Senate Lobby Investigation Committee
United States Senate Lobby Investigation Committee
The Senate Lobby Investigation Committee is a now defunct special committee that once operated within the United States Senate during the 1930s and 1940s with the purpose of investigating lobbyist activities...
revealed Raskob was an active fundraiser for Georgia
Georgia (U.S. state)
Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788...
governor Eugene Talmadge
Eugene Talmadge
Eugene Talmadge was a Democratic politician who served two terms as the 67th Governor of Georgia from 1933 to 1937, and a third term from 1941 to 1943. Elected to a fourth term in 1946, he died before taking office...
, considered a possible anti-Roosevelt candidate for the Democratic nomination in the 1936 United States presidential election. Raskob later became involved with the American Liberty League
American Liberty League
The American Liberty League was an American political organization formed in 1934 by conservative Democrats to oppose the New Deal of Franklin D. Roosevelt. It was active for just two years...
, an anti-New Deal
New Deal
The New Deal was a series of economic programs implemented in the United States between 1933 and 1936. They were passed by the U.S. Congress during the first term of President Franklin D. Roosevelt. The programs were Roosevelt's responses to the Great Depression, and focused on what historians call...
organization active around the time of the 1936 election.
Empire State Building
During the Great Depression, Raskob's business interests were focused on the Empire State BuildingEmpire State Building
The Empire State Building is a 102-story landmark skyscraper and American cultural icon in New York City at the intersection of Fifth Avenue and West 34th Street. It has a roof height of 1,250 feet , and with its antenna spire included, it stands a total of 1,454 ft high. Its name is derived...
, which was in competition with the Chrysler Building
Chrysler Building
The Chrysler Building is an Art Deco style skyscraper in New York City, located on the east side of Manhattan in the Turtle Bay area at the intersection of 42nd Street and Lexington Avenue. Standing at , it was the world's tallest building for 11 months before it was surpassed by the Empire State...
to become the world's tallest building at the time. According to one story, Raskob had taken a jumbo pencil, stood it on end and asked architect William F. Lamb
William F. Lamb
William Frederick Lamb was the principal designer of the Empire State Building.Lamb was born in Brooklyn and studied at William College, Columbia University's School of Architecture and the École des Beaux-Arts in Paris. He joined the firm of Carrere & Hastings in 1911...
, "Bill, how high can you make it so that it won't fall down?" He was also invested in precious metal mining in Nevada
Nevada
Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its...
and New Mexico
New Mexico
New Mexico is a state located in the southwest and western regions of the United States. New Mexico is also usually considered one of the Mountain States. With a population density of 16 per square mile, New Mexico is the sixth-most sparsely inhabited U.S...
, ranching, the aeronautical industry, and pesticides. Raskob remained with DuPont until his retirement from the company in 1946.
Philanthropy
Raskob's religious convictions motivated him be substantially involved in charitable giving over the course of his life. He provided the initial funding for the Catholic Foundation for the Diocese of Wilmington, and established several other foundations, including one which funds grants for projects and programs associated with the Catholic Church, and another which provides no-interest educational loans. In 1921, he was appointed a Knight of St. Gregory by Pope Pius XIPope Pius XI
Pope Pius XI , born Ambrogio Damiano Achille Ratti, was Pope from 6 February 1922, and sovereign of Vatican City from its creation as an independent state on 11 February 1929 until his death on 10 February 1939...
, recognizing him for his contributions.
Personal life
Raskob married Helena Springer Green in 1906, and together had 13 children. One son, William, predeceased him in an auto accident at the age of 20, and the Bill Raskob Foundation was started in memory of him. Raskob is known in the ClaymontClaymont, Delaware
Claymont is a census-designated place in New Castle County, Delaware, United States. The population was 9,220 at the 2000 census.-History:...
and Wilmington
Wilmington, Delaware
Wilmington is the largest city in the state of Delaware, United States, and is located at the confluence of the Christina River and Brandywine Creek, near where the Christina flows into the Delaware River. It is the county seat of New Castle County and one of the major cities in the Delaware Valley...
areas for building the "Patio" at what is now Archmere Academy
Archmere Academy
Archmere Academy is a Roman Catholic college preparatory school of 474 students in Claymont, Delaware. It is run independently within the Roman Catholic Diocese of Wilmington.-History:...
between 1916 and 1918. Originally his residence, one of its most significant features is a fountain made of marble, which has each of his 13 children sculpted around the side
Raskob is buried at Cathedral Cemetery in the city of Wilmington.
External links
- Raskob's papers at Hagley Museum and LibraryHagley Museum and LibraryThe Hagley Museum and Library is a nonprofit educational institution located in Wilmington, Delaware. Hagley Museum and Library collects, preserves and interprets the history of American enterprise.- Hagley Library :...
- DuPont Heritage:John J. Raskob