Standard Oil Co. Established in by John D. Rockefeller and Henry Flagler as a corporation in Ohioit was the largest oil refiner in the world of its time. Supreme Court ruled, in a landmark casethat Standard Oil was an illegal monopoly. Standard Oil dominated the oil products market initially through horizontal integration in the refining sector, then, in later years vertical integration ; the company was an innovator in the development of the business trust. The Standard Oil trust streamlined production and logistics, lowered costs, and undercut competitors.
Rockefeller ran the company as its chairman, until his retirement in He remained the major shareholder, and inwith the dissolution of the Standard Oil trust into 34 smaller companies, Rockefeller became the richest person in modern historyas the initial income of these individual enterprises proved to be much bigger than that Rickefeller a single larger company.
Its successors such as ExxonMobilMarathon PetroleumAmoco You Work For A Pharmaceutical Company, and Chevron are still among the companies with the largest revenues in the world.
Byhis top aide was John Dustin Archbold. AfterRockefeller disengaged from business to concentrate on his philanthropy, leaving Archbold in control. Rogerswho built the Virginian Railway.
Standard Oil's pre-history began in as an Ohio partnership Nmae by industrialist John D. InRockefeller abolished the partnership and incorporated Standard Oil Rckefeller Ohio. Of the initial 10, shares, John D. In the early years, John D. Authority was centralized in the company's main office in Cleveland, but decisions in the office were made in a cooperative way.
The company grew by increasing sales and through acquisitions. After purchasing competing firms, Rockefeller shut down those he believed to be inefficient and kept the others. Standard's actions and secret  transport deals helped its kerosene price to drop from 58 to 26 cents from to Rockefeller used the Erie Canal as a cheap alternative form of transportation—in Compsny summer months when it was not frozen—to ship his refined oil Clmpany Cleveland to New York City.
Standard Oil, Quarrick Equipment Company formed well before the discovery of the Spindletop oil field in Texas, far from Standard Oil's base in the Midwest and a demand for oil other than for heat and light, was well placed to control the Williams Game Company of the oil business.
The company was perceived to own and control all aspects of the trade. InRockefeller joined the South Improvement Co. But when this deal became known, competitors convinced the Pennsylvania Legislature to revoke South Improvement's charter. No oil was ever shipped under this arrangement. Barton Hepburn was directed by the New York State Legislature in Rockefeoler investigate the railroads' practice of giving rebates within the state. Merchants without ties to the oil industry had pressed for the hearings.
Prior to the committee's investigation, few knew of the size of Standard Oil's control and influence on seemingly unaffiliated oil refineries and pipelines—Hawke cites that only a dozen or so within Standard Oil knew the extent of company operations. The committee counsel, Simon Sternequestioned representatives from the Erie Railroad and the New York Central Railroad and discovered that at least half of their long-haul traffic granted rebates, and that much of this traffic came from Standard Oil.
The committee then shifted focus to Standard Oil's operations. He then admitted to being a director of Standard Oil. The committee's final report scolded the railroads for their rebate policies and cited Standard Oil as an example.
This scolding was largely moot to Standard Oil's interests since long-distance oil pipelines were now their preferred method of transportation. In response to state laws trying to limit the scale of companies, Rockefeller and his associates developed innovative ways of organizing, to effectively manage their fast growing enterprise.
On January 2, they combined their disparate companies, spread across dozens of states, under a single group of trustees. By a secret agreement, the existing 37 stockholders conveyed their shares "in Rockefellet to nine trustees:  John and William Rockefeller, Oliver H. ArchboldWilliam G.
WardenJabez Bostwickand Benjamin Brewster. The law forbade every contract, scheme, deal, or conspiracy to restrain trade, though the phrase "restraint of trade" remained subjective. The Standard Oil group quickly attracted attention from antitrust authorities leading to a lawsuit Rokefeller by Ohio Attorney General David K.
Vice-president John Dustin Archbold took a large part in the running of the firm. Inthe U. Justice Department sued the group under the federal antitrust law and ordered its breakup into 34 companies. Standard Oil's market position was initially established through an emphasis on efficiency and responsibility. While other companies' refineries piled mountains of heavy waste, Rockefeller found ways to sell it. For Rockefeller Oil Company Name, Standard created the first synthetic competitor for beeswax and bought the company that invented and produced Vaselinethe Chesebrough Manufacturing Co.
One of the original " Muckrakers " was Ida M. Tarbellan American author and journalist. Her father was an oil producer whose business had failed because of Rockefeller's business dealings. After extensive interviews with a sympathetic senior executive of Standard Oil, Henry Valve Company Culture. RogersTarbell's investigations of Standard Oil fueled growing public attacks on Standard Oil and on monopolies in general.
The Standard Oil Trust was controlled by a small group of families. Rockefeller stated in "I think it is true that the Pratt family, the Payne— Whitney family which were one, Com;any all the stock came from Colonel Paynethe Harkness-Flagler family which came into the company together and the Rockefeller family controlled a majority of the stock Sustainable Electricity Company all the history of the company up to the present time.
They Naje invested heavily in the gas and the electric lighting business including the giant Consolidated Gas Co. They made large purchases of stock in U. However, the deal fell through and the firm was sold to Royal Dutch Shell. Standard Oil's production increased so rapidly it soon exceeded U. In the s, Standard Oil began marketing kerosene to China's large population of close to million as lamp fuel.
Response was positive, sales boomed and China became Standard Oil's largest market in Asia. Prior to Pearl Harbor, Stanvac was the largest single U. For inland distribution the company had motor tank trucks and railway tank cars, and for river navigation it had a fleet Rockefller low-draft steamers and other vessels. Stanvac's North China Division, based in Shanghai, owned hundreds of river going vessels, including motor barges, steamers, launches, tugboats and tankers.
Mei Hsiaa tanker, was specially designed for river duty and was built by New Engineering and Shipbuilding Works of Shanghai, who also built the ton launch Mei Foo in Mei Hsia "Beautiful Gorges" was launched in and carried tons of bulk oil in three holds, plus a forward cargo hold, Rockefeller Oil Company Name space between decks for carrying general cargo or packed oil. Mei Ping "Beautiful Tranquility"launched inwas designed offshore, but assembled and finished in Shanghai.
Its oil-fuel burners came from the U. It explored in Palestine before the World War broke out, but ran into conflict with the British government. ByStandard Oil controlled 88 percent of the refined oil flows in the United States. The state of Ohio successfully sued Standard, compelling the dissolution of the trust in But Standard simply separated Standard Oil of Ohio and kept control of it.
Eventually, the state of New Jersey changed its incorporation laws to allow a company to hold shares in other companies in any state.
According to Daniel Yergin in his Pulitzer Prize-winning The Prize: The Epic Quest for Oil, Money, and Powerthis conglomerate was seen by the public as all-pervasive, controlled by a select group of directors, and completely unaccountable. InStandard controlled 91 percent of production and 85 percent of final sales. After it did not try to force competitors out of business by underpricing them. Justice Department sued Standard under federal antitrust law, the Sherman Antitrust Act offor sustaining a monopoly and restraining interstate commerce by:.
Rebates, preferences, and other discriminatory practices in favor of the combination by railroad companies; restraint and monopolization by control of pipe lines, and unfair practices against competing pipe lines; contracts with competitors in Companu of trade; unfair Rockfeller of competition, such as local Oi, cutting at the points where necessary to suppress competition; [and] espionage of the business of competitors, the operation of bogus independent companies, and payment of rebates on oil, with the like intent.
The lawsuit argued that Standard's monopolistic practices had taken place over the preceding four years:. The general result of the investigation has been to disclose the existence of numerous and flagrant discriminations by the railroads in behalf of the Standard Oil Co. With comparatively few exceptions, mainly of other large concerns in California, the Standard has been the sole beneficiary of such discriminations.
The government identified four illegal patterns: 1 secret and semi-secret railroad rates; 2 discriminations in the open arrangement of rates; 3 discriminations Rockefeller Oil Company Name classification and rules of Dead And Company Fall 4 discriminations in Rockefeller Oil Company Name treatment of private tank cars. The government alleged:. Rates Rockereller been made low to let the Standard into markets, or they have been made high to keep its competitors out of markets.
Trifling differences in distances are made an excuse for large differences in rates favorable to the Standard Oil Co. Sometimes connecting roads prorate on oil—that is, make through rates which are lower than the combination of local rates; sometimes they refuse to prorate; but in either case the result of their policy is to favor the Standard Oil Co.
The government said that Standard raised prices to its monopolistic customers but lowered them to hurt competitors, often disguising its illegal actions by using bogus supposedly independent companies it controlled. The evidence is, in fact, absolutely conclusive that the Standard Oil Co. It ordered Standard to break Namf into 34 independent companies with different boards of directors, the biggest two of the companies were Standard Oil of New Jersey which became Exxon and Standard Oil of New York which became Mobil.
Standard's president, John D. Rockefeller, had long since retired from any management role. Over the next Rockefelller decades, both companies grew significantly. Jersey Standard, led by Walter C. Teaglebecame the largest oil producer in Rockefekler world. Socony purchased a 45 percent interest in Magnolia Petroleum Co. InSocony merged with Vacuum Oil Co.
In the Asia-Pacific region, Jersey Standard had oil production and refineries in Indonesia but no marketing network. Socony-Vacuum had Asian marketing outlets supplied remotely from California. InJersey Standard and Socony-Vacuum merged their interests in the region into a 50—50 joint venture. Standard-Vacuum Oil Co.
Standard Oil Co. Inc. was an American oil producing, transporting, refining, marketing company.Established in 1870 by John D. Rockefeller and Henry Flagler as a corporation in Ohio, it was the largest oil refiner in the world of its time. Its history as one of the world's first and largest multinational corporations ended in 1911, when the U.S. Supreme Court ruled, in a landmark case, that ...Headquarters: Cleveland, Ohio (1870–1885), New York ……
Oct 08, 2019 · John D. Rockefeller (1839-1937), founder of the Standard Oil Company, became one of the world’s wealthiest men as America's first billionaire and a major philanthropist.…
Synopsis. American industrialist John D. Rockefeller was born July 8, 1839, in Richford, New York. He built his first oil refinery near Cleveland and in 1870 incorporated the Standard Oil Company.Born: Jul 08, 1839…
John D. Rockefeller (July 8, 1839–May 23, 1937) was an astute businessman who became America’s first billionaire in 1916. In 1870, Rockefeller founded Standard Oil Company, which eventually became a domineering monopoly in the oil industry.…
Nov 20, 2008 · John D Rockefeller was the founder of the standard Oil company. The Standard Oil Company formed by John and was in partnership with his brother William.…
John D. Rockefeller, American industrialist and philanthropist, founder of the Standard Oil Company, which dominated the oil industry and was the first great U.S. business trust. Learn more about Standard Oil’s reorganization in the face of antitrust actions and about Rockefeller’s philanthropy.…
Standard Oil, U.S. company and corporate trust that from 1870 to 1911 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.…
Other companies used the Standard Oil name to profit off of the company's reputation, but these organizations were never part of the company formerly controlled by Rockefeller. The Standard Oil Company of Ohio was the original company that Rockefeller established in 1862.…
Mar 09, 2016 · The article later turned into a book, bent on proving how arrogant Standard Oil was and making Rockefeller America’s biggest enemy. The most painful blow, however, was Tarbell’s exposure of Rockefeller’s father as a snake-oil salesman, bigamist, and accused rapist, a fact that Rockefeller hid nearly his entire life.…