Standard Oil Company 
Standard Oil is considered one of the most stunning events in history of the United States economy. The boom of Standard Oil happened at just the right time when the U.S was converting from mostly agriculture business to biggest industrial powerhouse ever. Standard Oil Company was originally founded by John Rockefeller in Ohio in 1870, and in only a few years it had control of almost all oil refineries in the U.S. The powerhouse of a company plowed through any and all competition when it began to take control of the railroads, other industries, and even parts of the government. Standard Oil wasn’t going anywhere and it wasn’t going to be shaken.
(John D. Rockefeller)
When the Standard Oil Company began John Rockefeller and his co-founders Henry Flager and Samuel Andrews, they used a six step method of taking down the competition. First they lower their own prices so low that the other oil company couldn’t keep up them and eventually went out of business or sold out to Standard Oil. Second they would buy up any ingredients that were involved in making oil barrels so the competitors wouldn’t be able to get oil barrels. Third, they gained an alliance with the railroad companies so then the shipping cost went extremely down. Fourth, they secretly gained spies from the inside of their competitors and then informed Standard Oil about big sales or decrease in gas cost. Fifth, they would by oil related companies like pipeline and engineering firms and had them appear to still be independent for special rebates. And lastly, they would hire thugs to threaten and hurt competitors into persuasion.
It did not take long for the public to realize the corruption behind the Standard Oil Company. The public’s businesses were being bought out and jobs were being lost, yet more jobs were created after because of Standard Oil. But the people soon so what was going on and wanted it to stop. Changed finally took place with The Sherman Antitrust Act’s. At first the part the Act’s played were very little because of unclear wording, but President McKinley however changed it around and soon after Roosevelt’s famous trust busting campaign. The Roosevelt Trust Busting campaign used only three steps to take down Standard Oil and other monopolies. First, Convincing Congress to establish a Department of Commerce and Labor, this was used to have the government oversee actions of big businesses and to look after labor relations. Second, by establishing a Bureau of Corporations to be able to find violations of already in progress antitrust laws. Third, by putting on 44 lawsuits against monopolies including Standard Oil. After many lawsuits and court dates the Trusts lost and the laws were put in place.
The antitrust laws and the Standard Oil Company episode really confuses me about what I think and believe. On one side I side with way it is now how, one company cannot run everything like Standard Oil. But on the other, I look at John Rockefeller and think that he used his business skill and strategies and became very rich because of it, but that was all taken away from him. I am happy that the laws are in place today. But I still say that John Rockefeller was a very smart man who knew what he was doing and took down his completion.
Comments
Very well done!