Raskob was born to John and Anna Frances (née Moran) Raskob, in Lockport, New York, where his father ran a successful cigar-production business.[3] His parents were of German and Irish descent, respectively. The Raskob family originated in the Eifel region in Germany. Raskob's grandfather was an emigrant from the village of Großlittgen in the Eifel. 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.[clarification needed]
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.[citation needed]
Raskob was hired in 1901 by Pierre S. du Pont as a personal secretary. In 1911, he became assistant treasurer of DuPont, in 1914 treasurer, and in 1918 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 GMAC (now Ally Financial), the company 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.
"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 the average American's weekly salary was between $17 and $22).[4] The article (entitled "Everybody Ought to be Rich") arrived at newsstands just two months before the Wall Street Crash of 1929.
Political activity
Raskob had supported Democratic presidential candidate Al Smith in the 1928 election, and Smith invited Raskob to become chairman of the Democratic National Committee.[5] 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.[citation needed]
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.[citation needed]
In 1932, when Franklin D. Roosevelt (who was by then on rather bad terms with Al Smith) won the party's nomination and the election, Raskob (a Smith ally) resigned as DNC chairman. Raskob (like Al Smith) viewed many of Roosevelt's New Deal policies as radical and unhelpful to economic recovery.[citation needed]
During the Great Depression, Raskob's business interests were focused on the Empire State Building, which was in competition with the Chrysler Building to become the world's tallest building at the time.[7] 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?"[8]
During the early years of the Depression, the Empire State Building had so few tenants it was mocked as the "Empty State Building". Raskob 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.[citation needed]
Philanthropy
Raskob's religious convictions motivated him to 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,[9] and established several other foundations, including one which funds grants for projects and programs associated with the Catholic Church,[10] and another which provides no-interest educational loans.[11] In 1921, he was appointed a Knight of St. Gregory by Pope Pius XI, recognizing him for his contributions.[12] He also served as a Treasurer in the Knights of Malta.[1][2]
Personal life
Raskob married Helena Springer Green in 1906, and they had 13 children.[3] One son, William, predeceased him in an automobile crash at the age of 20, and the Bill Raskob Foundation was started in memory of him. Raskob is known in the Claymont and Wilmington areas for building the "Patio" at what is now Archmere Academy between 1916 and 1918.[13] Originally his residence, it features a marble fountain which has each of his 13 children sculpted around the side.[citation needed]
On May 31, 2017, The Washington Post reported that President Donald Trump and his administration had decided to return Pioneer Point to the Russians,[15] however, as of May, 2018, it had still not been returned.[16]
References
^ ab"John J. Raskob". NNDB (Profile). Soylent Communications. Archived from the original on 7 July 2013. Retrieved 26 July 2019.
^Stanley K. Schultz (1999). "Crashing Hopes: The Great Depression". American History 102: Civil War to the Present. Archived from the original on 2008-03-23. Retrieved 2008-03-13. That same year, John Jacob Raskob, Chief Executive of General Motors and head of the Democratic National Committee, published an article entitled "Everybody Ought to be Rich" in the Ladies Home Journal. Raskob suggested that every American could become wealthy by investing $15 per month in common stocks. He failed to realize, however, that the weekly salary of the average American worker was between $17 and $22, but that's not important: the optimism was there.
^Reichley, A. James (1992). The Life of the Parties: A History of American Political Parties. The Free Press. p. 257. ISBN0-02-926025-6.
^Rev. Edmond J. FitzMaurice, D. D. "Pastoral Letter"(PDF). p. 10. Archived from the original(PDF) on 2008-10-29. Mr. Raskob asks to be listed as the first donor to the Fund with an initial contribution of $500,000.
