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John D. Rockefeller

 

John D. Rockefeller was an oil baron. He came from very humble beginnings to become a very rich man.

Rockefeller believed that competition among oil companies was a waste of time. So, he used the profits formhis refinery to buy up other oil companies. He then combined them all into the Standard Oil Company of Ohio.

Rockefeller did everything he could to snuff out competition. He slashed Standard Oil's prices so that he could drive his competitors out of business.

He tigntened his hold on the iod industry by forming the Standard oil Trust in 1882. A trust is a group of corporations run by the same board of directors. Eventually, the Standard Oil board of directors ran managed the business of all the companies, which before had been rivals.

The Standard Oil Trust ended competition in the oil industry. He controlled 95% of all oil refining in the United States.


Other businesses followed the lead of Rockefeller, and tried to set up trusts and monopolies. by the late 1890's monopolies and trusts dominated some of the nation's most important industries.

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1882

 

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