John E. Swearingen Standard Oil
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Introductiont John Swearingen transformed, “ …a ragtag group of oil companies into a major American oil company.” In the process he became an oil industry legend. A retired C.E.O. of the Sara Lee Corporation said of him, “He was a giant of a businessman. I don’t think there was anyone in Chicago in the 20th century who was a more important business figure.”
Early Life John Eldred Swearingen was born on Sept. 7, 1918, in Columbia, S.C. the eldest of three
children. His father was the state’s superintendent of schools. His father made him fall in love with education and dislike politics. At the age of 16 John entered the University of South Carolina and by age 20 acquired a master’s degree in chemical engineering from Carnegie Institute of Technology in Pittsburgh. While he prepared for a career in engineering, his liberal arts background is worthy of note. As he once said, “I’m probably the only chemical engineer in the country with six years of Latin.”
Business Career Swearingen started working in Indiana Standard’s research laboratory in Whiting, Indiana. His growth was rapid in the company. He was promoted to a leadership position with Production Co., Indiana Standard’s exploration and production arm, and also occupied chief posts with the parent company. In 1958 he was named president of the oil company. He became the CEO in 1960 and the chairman five years later. He retired in 1983 at the age of 65. During his tenure Standard became the envy of the industry as the company ex-
panded its fuel exploration vigorously, acquiring drilling rights in the United States, Africa and the Middle East while becoming a model of efficient operations. Swearingen installed labor-saving technologies I refineries and incorporated 26 regional offices in 8. He reduced the number of employees by thousands. At the same time he started subsidiaries such as roadside restaurants and automobile insurance. Sales, profits and dividends soared. Under his leadership profit rose to $1.8 billion from $ 84 million.
The Continental Illinois Rescue Not long after his retirement John Swearingen returned to public life to engage in the rescue of a major American bank, Continental Illinois Bank. Continental was almost on verge of collapse, when federal officials requested him to come out of retirement to help in this crucial situation. Mr. Swearingen teamed with another strong personality, William Ogden, the retired vice chairman of Chase Manhattan Bank. Ogden was made chairman and chief executive of Continental bank to save it. Of course Mr. Swearingen was not new to
the banking business, but he was involved in a job that many in the industry scorned at. Previously he was a part of several bank boards and then serving on the Chase Manhattan board at the time of his Continental appointment. Continental faced problems due to the 1982 collapse of Penn Square Bank, an obscure Oklahoma City institution. More than $1 billion worth of participations in Penn Square-originated energy loans was acquired by the Chicago bank. During May 1984 the bank’s difficulties increased due to fears of panicky investors.
After major banks rejected a Continental merger, an extensive rescue plan was developed by the Federal Deposit Insurance Corp. The plan was to have a federal regulatory agency buy $4.5 billion worth of bad loans from Continental at a discounted rate of $3.5 billion and to grant Continental another $1 billion in capital. In return an 80 percent stake in the bank was taken by the FDIC. Swearin-
gen’s plan was successful. Taking up the Continental post, Mr. Swearingen severely protested against the suggestions that the bank had become nationalized at taxpayer’s expense. He said, “This is not tax money.” And then he added the following emphasis, “There is no injection of public funds.”
Private Life Mr. Swearingen’s wife Bonnie was his energy source. She was vivacious and flamboyant, her style made the couple a colorful name in international social circles.
She once associated Mr. Swearingen to Napoleon, saying in an interview, “Napoleon isn’t really dead,” “He’s alive and well and disguised as my husband.”
Conclusion Mr. Swearingen retired for the second time and started writing an autobiography, “Think Ahead.� He spend most of his time reading, playing golf and often worked several crossword puzzles a day -- in marker.
References Quotations were taken from John E. Swearingen, Think Ahead; A Memoir, 2004 (out of print).
WESTERN ILLINOIS UNIVERSITY
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