John D. Rockefeller's The Standard Oil Trust

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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
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