How Did Rockefeller Use To Prevent Greed?

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The Standard Oil Company (and the trust associated with it) was an economic game changer for America and tarnished the ideals of purist capitalism. It demonstrated a very clear flaw and was met with reform and punishment. This company developed by John D. Rockefeller, used many tactics and strategies to systematically eliminate the competition in the new emerging economy of oil. Following this capitalism on a national level was seen as a system of “haves” and “have nots”. Furthermore, it exposed the selfishness and greed of the upper class. This all caused America to completely reinvent it’s economic policy to avoid private corperations from controlling the country and it’s great people.
John D. Rockefeller began his work in the oil industry …show more content…

Rockefeller would buy up anything and everything needed to make and distribute oil. He would do things such as purchase all of the barrels in the area so that other companies couldn't pack their oil and dispense it. He would also go as far as to threaten the workers so that they wouldn't go to work. With the oil companies close to bankrupt Rockefeller would buy them at a fraction of the price as he would’ve before. These tactics were cruel and unfair to the smaller companies and their business owners because there was no way for the companies to respond. The companies either didn’t have the money to hold out or, it was simply impossible for them to sell any of their product. Shortly thereafter, John soon began to make backdoor deals with the South Improvement Company, a railroad company that offered him cheap rates in turn for all of Standard Oil’s shipping remain with the South Improvement Company. This company would ship his oil all across the country at a fraction of the cost that others would have to pay for it. Shipping was so expensive many companies couldn't keep up with Rockefeller’s mass amounts of oil shipped and soon they were left in the wake of Standard Oil. Rockefeller exploited mass production by allowing him to refine and distribute oil at a much cheaper cost than its …show more content…

This ruling was seen nationwide in everything from local newspapers, and even national papers. The United States Supreme court also took a great interest in this case. Rockefeller had violated state laws in Ohio but the laws had not yet been established in New Jersey. However, federal law as dictated in the Sherman Antitrust act said that limiting competition through price fixing was illegal. As previously stated Standard Oil’s prices had been fixed at different rates across the country but it had never been noticed until the government investigated the company. Although the Federal Government hadn’t found enough evidence to get a convictions, Ida Turnbal published the book “History of the Standard Oil Company” outlining their unfair business. She went into the barrel shortages and alluded to the deals Rockefeller had made with the railroad companies. The book delved into in many aspects of social morality including legally and under Christian morals. Her book became wildly popular throughout the country sparking public outrage from many. The new public opinion on the company forced politicians to act. Theodore Roosevelt had led a push to stop corporations like Standard Oil from monopolizing their markets. He also targeted many of Rockefeller’s subsidiary companies such as Standard Grain, but also after other mega-corporations like Carnegie Steel.

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