Standard Oil

Topics: Standard Oil, John D. Rockefeller, William Rockefeller Pages: 3 (721 words) Published: September 13, 2011

Standard Oil Company Imperialism

John D. was one of the world’s biggest monopolists. He began the Standard Oil Company in 1870 in Ohio. It began as an Ohio partnership formed by the well-known industrialist John D. Rockefeller, his brother William Rockefeller, Henry Flagler, chemist Samuel Andrews, silent partner Stephen V. Harkness, and Oliver Burr Jennings. John D. Rockefeller dominated the oil industry, for he was the single most important figure in shaping the new industry. He quickly distributed power and the tasks of policy formation to a system of committees, but always remained the largest shareholder. Since their company was growing fast, new state law was administrated trying to limit the scale of companies. In response to this law Rockefeller and his associates developed innovative ways of organizing, to effectively manage their fast growing enterprise. In 1882, they combined their disparate companies, spread across dozens of states, under a single group of trustees. By a secret agreement, the existing thirty-seven stockholders conveyed their shares "in trust" to nine Trustees: John and William Rockefeller, Oliver H. Payne, Charles Pratt, Henry Flagler, John D. Archbold, William G. Warden, Jabez Bostwick, and Benjamin Brewster.

The company started to grow more and more by increasing sales and also through acquisitions. After purchasing competing firms, Rockefeller shut down those he believed to be inefficient and kept the others. The year 1872 Rockefeller joined the South Improvement Company which would have allowed him to receive rebates for shipping and receive drawbacks on oil his competitors shipped. As soon as this deal became known competitors convinced the Pennsylvania Legislature to revoke South Improvement's charter. Rockefeller was not able to ship oil under this agreement. The Standard Oil Company had some aggressive practices. For example, a rival oil association tried to build an oil pipeline to overcome...

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