John D. Rockefeller's The Standard Oil Trust

Words: 1389
Pages: 6
Open Document
During the 20th century oil became the primary fuel and important part of the American economy. In 1862 John D. Rockefeller founded The Standard Oil Trust. Over the years he created an industrial empire, by controlling 90 percent of all oil produced and its processing, marketing, and transportation in the United States. Standard Oil gained a monopoly in the oil industry by developing companies for distributions and marketing its products in the Unites States and other countries. He built his company in 1868 and it became the largest oil refinery firm in the world in its time. Rockefeller controlled the oil when it was drilled and the refining process, in which later he turned into gasoline. Moreover, to achieve his goals Rockefeller bought …show more content…
He also lowered his prices below cost, in which it favors him and this made his competition out of business and he then bought them for a pittance. Once he had control of the competitors’ refineries he joined his refineries with the ones that he bought to make his company bigger, and then he raised the price of the oil products. Furthermore, the Rockefeller and his trustees owned more than $150 million of capital, and to avoid another court order of the liquidation of the trust, the trustees liquidate the shares themselves, as well they replace the trust certificate by a proportion of securities in each of the ensuing 20 companies. John D. Rockefeller received 250'000 of the 970'000 shares that came from the liquidation of the Trust. The Standard Oil kept its monopoly power and went on paying dividends to its shareholders. Moreover, Rockefeller shouldn’t have taken advantage of the deals that he had with the railroads, because he was causing economic losses for his competition. Additionally, Rockefeller could’ve prevent the rupture of Standard Oil by not restraining and monopolization the control of pipelines, and using unfair practices against competing pipe lines; also he shouldn’t have signed contracts with competitors in restraint of trade. Moreover, he could’ve avoid the unfair methods of competition, like cutting local prices at the points just to suppress his competition. The Standard Oil Company earned enormous and unreasonable profits were the result of the alleged
Show More

Related Documents: John D. Rockefeller's The Standard Oil Trust

John d. Rockefeller Essay

- How was John D Rockefeller's business viewed by the American people? Section A: Plan of Investigation In this plan of investigation to examine how was John D Rockefeller's business viewed by the American people. This investigation will focus on the business deals Rockefeller made that affect many people. Also this investigation will examine the economic pressure that Rockefeller had to deal with in order to make his business deals. The view of John D Rockefeller is split; some thought of…

Words 513 - Pages 3

Andrew Carnegie's Business Methods

Carnegie’s business methods with those of John D. Rockefeller. Andrew Carnegie and John D. Rockefeller were both men of their times who rose from non-affluent backgrounds to become some of the richest men on Earth. The methods that they used were in some ways very similar and in some ways very different. Rockefeller was in the oil industry and Carnegie was in the steel industry. Rockefeller created the Standard Oil Company that handled 90% of America’s oil industry by 1890. Carnegie created Carnegie…

Words 801 - Pages 4

Essay on Civil War

John D. Rockefeller was born July 8, 1839, in Richford, New York. His father was a "doctor" who claimed he could cure cancers and charged up to $25 a treatment. His mother was an extremely religious and very disciplined woman. She taught John how to work, how to save, and how to donate to charities. By the age of 12, he had saved over $50 from working for neighbors and raising turkeys for his mother in the meantime. At the urging of his mother, he made his first loan to a local farmer at $50 with…

Words 729 - Pages 3

Ida Tarbell's Issues With The Standard Oil Industry

Ida Tarbell was an investigative reporter who exposed evidence of corruption, bribery, and illegal price-setting by the Standard Oil Company. Her main issue with the Standard Oil Company was the founder John D. Rockefeller, for he was monopolizing the oil market in her hometown of Titusville, Pennsylvania. She publicized her anger and issues with the Standard Oil Company and also the South Improvement Company into the pages of the magazine the McClure. In researching about the companies, many of…

Words 271 - Pages 2

The Sherman Anti-Trust Act Of 1890

SHERMAN ANTI-TRUST ACT The Sherman Anti-Trust Act of 1890 the first and most significant of the U.S. antitrust laws, was signed into law by President Benjamin Harrison and is named after its primary supporter, Ohio Senator john Sherman. The prevailing economic theory supporting antitrust laws in the United States is that the public is best served by free competition in trade and industry. When businesses fairly compete for the consumer's dollar, the quality of products and services…

Words 287 - Pages 2

Essay on John D

Dec 21 2014 John D. Rockefeller and the Standard Oil Trust 1. In 1863 Rockefeller invested $4,000 in a Cleveland petroleum refinery; from there he devoted himself to the oil business. He had two principles he followed: avoid paying a profit to anyone and methodical cost cutting. He borrowed heavily from the banks and bought out his partners. This monopoly power allowed John to be a low-cost, high volume producer. “Standard Oil” suggested uniformly good quality. This power allowed John to become the…

Words 361 - Pages 2

John D. Rockefeller Biography Essay

John D. Rockefeller Thomas Williford Senior Division Historical Paper Paper Length: 1,725 words John Davison Rockefeller is an American icon, and was instrumental in leading the American economy to success in the Restoration period shortly after the Civil War. He is known today as the richest man in history, with a net worth of over $336 billion in today’s money, and for pioneering the trust system, a new concept of business described as a “corporation of corporations.” In addition, he founded…

Words 1621 - Pages 7

Essay about John D. Rockefeller

John D. Rockefeller John Davidson Rockefeller was born in Richford, New York in July 8, 1839. His father’s name was William Avery Rockefeller and his mother’s name was Eliza Davison. He was second of the six children in the Rockefeller family. Some of his ancestors can be traced back to France. His father owned farm property and traded in many goods, including lumber and patent medicines. His mother was quite the opposite of his father's fun-loving ways. She brought up her large…

Words 543 - Pages 3

Monopolies Dbq

set prices for a product at whatever level it wanted. These corporations, and the executives who ran them, became exceedingly wealthy and powerful, often at the expense of many poor workers. Some of the most powerful corporations were John D. Rockefeller’s Standard Oil Company, Andrew Carnegie’s Carnegie Steel, Cornelius Vanderbilt’s New York Central Railroad System, and J.P. Morgan’s banking house.” In my view from 1870-1900 big businesses governed by robber barons bolted up and had a substantial…

Words 940 - Pages 4

US history notes Essay

Unit VII Chapter 24 IDs Cornelius Vanderbilt (571) Who: steamboat and railroad millionaire Where: East Coast When: 1860s,70s What: enterprised the welding together and expanding the older eastern railroads. Facilitated the success of western lines. Offered good service, at low rates and amassed a fortune of $100million. Helped popularize steel railroads to replace iron tracks of the New York Central. Steel was safer and more economical. HS: helped the success of new western lines, Vanderbilt…

Words 1323 - Pages 6