Preview

Monopoly: The Standard Oil Company

Satisfactory Essays
Open Document
Open Document
223 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Monopoly: The Standard Oil Company
Monopoly is the possession or control of the supply in a service. The government made monopoly illegal because they started to hurt the companies by charging way too much for products which caused companies to lose money and run out of business. Then they made monopoly illegal in the 1980’s was passed as the Sherman Antitrust Act. The standard oil company was established in 1870 by John D. Rockefeller as a corporation in Ohio. The company's origin date was in 1863 when Rockefeller join Maurice B. Clarks Cleveland, Ohio oil company. By 1880, Through elimination of competitors, merges with with other companies and use of railroad rebates, they controlled the refining of 90 to 95 percent of all oil produce in the United States. Work industries
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Monopolies: The Sherman Antitrust Act
    • 73 Words
    • 1 Page

    Monopolies: The Sherman Antitrust Act

    A monopoly occurs when a company has such a large portion of the product market that it can set its own price despite the market equilibrium. Monopolies date back to Standard Oil Co. Inc. in 1870. Standard Oil Co. Inc. controlled also the entire oil market in its time and made huge profits by doing so. The Sherman Antitrust Act was put in place to combat monopolies and their power in the marketplace.…

    • 73 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Powerful Essays

    ECO 365 week 4 Differentiating Between Market structures
    • 1201 Words
    • 4 Pages

    ECO 365 week 4 Differentiating Between Market structures

    A monopoly is a situation in which there is a single producer or seller of a product for which there are not close substitutes. The most common example of a natural monopoly would be an Electric (power) company. Power companies are characterized by very large costs for their infrastructure making it inefficient to have more than a single firm in a region because of the high cost of duplicating facilities needed to (Colander, 2013).…

    • 1201 Words
    • 4 Pages
    Powerful Essays
    Read More
  • Good Essays

    Egt1 Task 3
    • 729 Words
    • 3 Pages

    Egt1 Task 3

    A monopoly is the single supplier of a commodity. A natural monopoly such as public utilities where a single supplier of electricity is of economies of scale are regulated for rates preventing harm to society. Private monopolies are a violation of the antitrust acts/industrial regulation. Industrial…

    • 729 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    How Did John D Rockefeller And The Standard Oil Trust
    • 716 Words
    • 3 Pages

    How Did John D Rockefeller And The Standard Oil Trust

    Many of Rockefeller’s business dealings were illegal and immoral. In order to dominate oil production and assure the success of Standard Oil, he allegedly bribed politicians, managed transportation rebate contracts with railroads and undercut the competition. Standard Oil’s organization changed in 1882 when the Standard Oil Trust was established. The first of its kind in the U.S., the trust was devised so shareholders of various companies would hand over their shares to a board of trustees, receiving certificates of trust in place of the shares. The board of trustees then ruled over the companies as one corporation.…

    • 716 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    How Did John D. Rockefeller's Impact On The Petroleum Industry
    • 746 Words
    • 3 Pages

    How Did John D. Rockefeller's Impact On The Petroleum Industry

    Society started to notice the monopoly Rockefeller had on the oil business. The government had passed laws which made it difficult to own a business in one state and operate in another. Rockefeller and his lawyers would create a behemoth known as the Standard Oil Trust. Rockefeller and his partners owned separate companies spanning multiple states. To maximize profits and centralize their business, they would create a board of trustees which would form a monopoly over the big business of the oil industry. Journalists and politicians would attack the monopoly and would birth the anti-trust movement. In 1892, Ohio anti-trust law would separate the Standard Oil of Ohio from the rest of the company. In 1911, Standard Oil would still hold 64 percent of the market share. The Supreme Court ruled that Standard Oil participated in illegal monopoly practices and was broken up into 34 new…

    • 746 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Econ Final
    • 369 Words
    • 2 Pages

    Econ Final

    A monopoly is a market structure in which there is only a single seller of a good, service, or resource. Pure monopolies are very rare in the United States, but there are some forms of monopolies across the country. Many government regulated public utilities are monopolized by the government. Many people believe that Major League Baseball is a monopoly because they are the only organization serving baseball fans nationwide. They can make their tickets and concession prices as high as they want because there is no competition around them to compete with over prices.…

    • 369 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    pineda
    • 253 Words
    • 2 Pages

    pineda

    * Monopoly: a market structure with just a single producer completely dominating the industry, leaving no room for any significant competitors. Example: monopolies can harm the economy most are illegal according to federal legislation.…

    • 253 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Research Paper On John D. Rockefeller's Monopolies
    • 632 Words
    • 3 Pages

    Research Paper On John D. Rockefeller's Monopolies

    The government should break up Standard Oil’s monopoly. In 1870, John D. Rockefeller started his Oil corporation in Ohio. They had about 10,000 shares. Him and, William Rockefeller, who was his brother, Henry Flagler, chemist Samuel Andrews, silent partner Stephen V. Harkness, and Oliver Burr Jennings all partnered up to make this company become one of the first and biggests around. Then about 37 stockholders decided to put their shares into trust with an organization called the trustees. This system became so successful that other enterprises used this technique also. Eventually John’s company was spreading so fast as he was getting richer, he saw no need for other oil companies, so he bought out almost all his rivals. With no other companies…

    • 632 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    How Did John D Rockefeller's Domination Of The Oil Industry
    • 894 Words
    • 4 Pages

    How Did John D Rockefeller's Domination Of The Oil Industry

    John D. Rockefeller was the head of the Standard Oil Company and one of the world's richest men. He used his fortune to make many generous causes. He was born in Richford, New York, on July 8, 1839. John Davison Rockefeller moved with his family to Cleveland, Ohio, at the age of 14.…

    • 894 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    John D Rockefeller Research Paper
    • 607 Words
    • 3 Pages

    John D Rockefeller Research Paper

    With this borrowed money and the money he had made with his other business, he bought the largest oil refinery in Cleveland, Ohio and started Standard Oil. Rockefeller formed Standard Oil with his younger brother William Rockefeller, Henry Flagler, and a group of other men. John was the company’s president and the largest shareholder. Over the next few years, Rockefeller made new partners and grew his business interest in the growing oil industry. In 1882 these companies combined to form the Standard Oil Trust. This trust would soon control about 90% of the nation’s refineries and pipelines in America. One of the reasons Standard Oil was so successful was that they bought rival companies and started companies for distributing and marketing their products. “In order to exploit economies of scale, Standard Oil did everything from building it’s own barrels to employing scientists to figure out a use for petroleum by products.” Because of Rockefeller’s enormous wealth and fame, he was often the target of people spreading rumours about how he ran his business and how he became successful. As the New York Times reported in 1937: “ He was accused of crushing out competition, getting rich on rebates from railroads, bribing men to spy on competing companies, making secret agreements, coercing rivals to join the Standard Oil Trust under threat of being forced out of business, building up enormous fortunes on the ruins of other men, and so…

    • 607 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Ida Tarbell
    • 333 Words
    • 2 Pages

    Ida Tarbell

    3. As a result of Ida Tarbell, there was a report filed against Rockefeller, accusing him of creating and organizing a Monopoly. He went to Supreme Court; they ordered the dissolution of the Standard Oil Company ruling it in violation of the Sherman antitrust act. The court forced Standard Oil to break into thirty four independent companies spread across the country.…

    • 333 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Monopoly In The United States Of America Before The Standard Oil Company
    • 1085 Words
    • 5 Pages

    Monopoly In The United States Of America Before The Standard Oil Company

    In conclusion, the writer of this paper full whole-heartedly agrees with the Supreme Courts decision to break the company up into 34 smaller companies.…

    • 1085 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Monopolies In The Gilded Age
    • 585 Words
    • 3 Pages

    Monopolies In The Gilded Age

    (1) One of the most well known, and successful leading entrepreneurs throughout the Gilded Age, was a man named John. D Rockefeller. John D. Rockefeller had “a Standard Oil Company [that] dominated the oil industry.” With the help of his “precision, order, and tidiness”, he was a strong candidate for a very successful business owner. Rockefeller was a pioneer and a leading example to many other business owners throughout the next decades. People are gravitated to his will and power to soar through business. But rockefeller had an important strategy that remains interlocked with his name, forever. Monopolies. What exactly are monopolies? According to dictionary.com, it means “the exclusive possession or control of the supply or trade in a commodity or service.” Rockefeller had complete control of business. He made tactics that was known as horizontal integration and vertical integration.…

    • 585 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    The Effects of Industrialization on U.S Economy and Society
    • 594 Words
    • 3 Pages

    The Effects of Industrialization on U.S Economy and Society

    companies and temporarily cut prices for Standard Oil kerosene to force rival companies to sell out. Standard Oil made a fortune because Rockefeller was able to control the supply and prices of oil products by using…

    • 594 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Monopoly Market
    • 1401 Words
    • 6 Pages

    Monopoly Market

    The Chairman of the Public Utilities Commission (PUC) Dr. Jayatissa De Costa has said that the public opinion regarding the proposed tariffs will also be taken into consideration before the price hike is introduced. According to the CEB proposal, a home using 40 units of electricity will have to pay Rs.384 instead of the previously paid sum of Rs. 244. 95. Under the new proposal, 0-30 units of a home line which is currently priced at Rs. 3 each will be increased to Rs. 05.Meanwhile, the value of domestic units 31- 60, which is currently at Rs.4.70 each, will be increased to Rs.6.Under prevailing provisions the electricity bill is based on unit category and the increase of value is based on increase of used units. Accordingly, if a consumer uses 120 units per month he will be charged Rs. 3 for the first 30 units, Rs. 4.70 from 30 to 60 units, Rs.7.50 from 61 to 90 units and Rs. 21 from 91 to 120 units. However, under the proposed system a consumer who use 120 units per month falls under the unit category of 91 to 120 units and each unit will cost Rs.15. Accordingly the electricity bill will be calculated considering that the consumer used 120 units, which cost Rs. 15 each.…

    • 1401 Words
    • 6 Pages
    Powerful Essays
    Read More