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How Did The Standard Oil Have A Good Relationship With The Railroad Industry

171 Words1 Pages
Standard Oil had a good relationship with the railroad industry in the late 19 and early 20th century. Standard oil was trying to gain control of the railroad companies so they could get the most out of their money. Their goal was to make max profit out of everything they were getting. They used vertical integration or the combination of one or two stages of production, that started as two separate companies. Standard oil did this by taking control of the railroads, so they didn’t have to pay for shipping cost, making them more money in the end. Since they didn’t have to pay for shipping, they could lower their cost but still increase their profit in the end. They did this by first taking control of the railroads. This means they don't’ have
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