The Epic Rise of John D. Rockefeller was the greatest businessman to ever live.
This article appeared in Vol. Case Western Reserve University If one were to write the saga of the Standard Oil Company into a drama, it would have three major players: Rapid Expansion A time-line chart showing the history of the companies derived from the Standard Oil Company from up to the present.
Rasoul Sorkhabi from various sources InRockefeller, aged 24, together with the Clark brothers and a chemist, Samuel Andrews, started an oil refinery in Cleveland, Ohio. The name Standard was chosen to imply the standardization of oil refineries and products.
Indeed, the oil barrel of 42 gallons was a design of Standard Oil in Pennsylvania in the s; oil was stored in the wooden whiskey barrels and it was 40 plus 2 gallons per barrel because some oil was often lost during transportation. The rise and expansion of Standard Oil occurred after the Civil War and during a period in the American history which has been dubbed as the Gilded Age, popularized in Gilded Age: A Tale of Today by Mark Twain and Charles Dudley in in reference to the process of gilding an object with a superficial layer of gold.
This was the period of rapid economic expansion, population growth, and rise of large enterprises and monopolies over oil, tobacco, steel, beef and railroads in the USA. Rockefeller and his associates did not build the Standard Oil Company in the broad rooms of Wall Street banks and investment houses, water their stock and rig the market.
They fought their way to control by rebate and drawback, bribe and blackmail, espionage and price cutting, and perhaps even more important, by ruthless, never slothful efficiency of organization and production.
Nevertheless, during the s—s, Standard Oil absorbed many small and large oil companies and established regional companies across the USA.
InRockefeller and partners further consolidated their dominance by transforming Standard Oil into a trust with nine trustees managing the corporation on behalf of all shareholders. In response to this, the Standard Oil Trust changed its name to the Standard Oil Interests, with 20 companies, and made some cosmetic adjustments — but still the central power remained with a holding company first in New York and then in New Jersey.
Progressive Era Nevertheless, the —97 depression, which hurt the middle and lower-income classes, and the rise of an intellectual movement against trusts and monopolies pushed the politicians to curb the economic power of corporations. President Theodore Roosevelt from the Republican Party was one of the strongest political leaders who pushed for Progressive reforms.
When Roosevelt ran for presidency ina highlight of his agenda was to limit the reign of monopolies over the American economy.
Even though Standard Oil had contributed a large sum of money to the Republican Party campaign, Roosevelt ordered its return. His administration then started an investigation into the activities of Standard Oil. Archbold and Henry H.
Roger Rockefeller had retired in rushed to the White House in March to talk sense to Roosevelt, but apparently it did not work, for in November U.
The company was under fire from various law suits and negative press coverage. A law suit against Standard Oil of Indiana eventually brought Rockefeller himself to a federal court in Chicago in July He played like someone suffering from memory loss.
Although the court imposed fines, the company remained intact. Rockefeller, who always tried to keep a low profile, responded by publishing his memoir Random Reminiscences of Men and Events in The Sherman Anti-Trust Act was to be implemented.
Roosevelt was then out of office he had declined to re-run for presidency but rejoiced at the news. Standard Oil appealed the case.
The next stop was the Supreme Court, which on 15 May upheld the federal court ruling. Chief Justice Edward White gave Standard Oil six months to dissolve itself as a single entity and be split into several companies with independent boards of management.
New Thirst for Oil Logos of several important Standard Oil companies formed in the nineteenth century but which continued to dominate the oil industry in the twentieth century.
These logos are shown only for the informational purpose of this article, and are not meant as trade use. At that time, Standard Oil operated on a huge scale: In JulyStandard Oil announced its new structure: It would split into 33 companies, some large and some small.
In doing so, it made sure that the new companies shared the market rather than competed with one another, which was to be expected — as Financier J. Rockefeller himself owned about one-fourth of Standard Oil stock.
But Rockefeller knew his business far better. When oil production began in the s, oil was mainly used for kerosene lamps. Therefore, within a year of the dissolution of Standard Oil, the stock market value of its spin-off companies doubled.In the past two issues of GEO ExPro (No.
2 and 3, Vol. 8), we looked at the profiles of John D. Rockefeller and Ida Tarbell; in this final part of the article, we review the growth and fate of the Standard Oil Company, which, as we will see, remains the great-grandfather of the major US oil companies today.
Shell's Quest for Crude Oil and Samuel’s Vision of Oil for Fuel. Threatened by Royal Dutch in the East & Standard Oil elsewhere, Shell needed its own production field and crude to . Standard Oil was infamous for underselling kerosene to put local competitors out of business, similar to how Walmart behaved in the s.
Standard Oil’s vast empire included 20, domestic wells, 4, miles of pipeline, 5, tank cars, and over , employees. Standard Oil Company and Trust: Overview of the Standard Oil Company and Trust, U.S.
company and corporate trust that from to was the industrial empire of John D. Rockefeller and associates, controlling almost all oil production, processing, marketing, and transportation in the United States. It originated in Cleveland, Ohio. Read more about Airline shares extend fall as oil prices rise; IndiGo dips 10% in two days on Business Standard.
InterGlobe Aviation (IndiGo), Jet Airways and SpiceJet were trading in the range of 3% to 5%, as compared to a marginal % decline in the S&P BSE Sensex at AM. Standard Oil Company: The Rise and Fall of America's Most Famous Monopoly [Charles River Editors] on urbanagricultureinitiative.com *FREE* shipping on qualifying offers.
*Includes pictures *Includes Rockefeller's quotes about Standard Oil *Includes online resources and a bibliography for further reading “The secret to success is to do the common /5(7).