John D Rockefeller Monopolies Essay

In the late 18 century up to the early 19th century industries were booming. Many “wise” business men began forming monopolies and eliminating competition to form even more monopolies and become Captains of Industries. Among these corrupt men was robber baron John D. Rockefeller (1839-1937). Some could say Rockefeller was a great man who did so much for the American people, but the real truth is buried beneath the lie that everyone keeps repeating: “John D. Rockefeller created jobs for many Americans, donated for various philanthropical causes…etc...” The real truth is that he used ruthless business practices to enrich himself. When Edwin Drake first discovered oil in 1859 in Titusville, Pennsylvania, Rockefeller

This not only brought in more consumers but forced his competitions to fall. In 1866, he proceeded with his plans for expanding the business. He built a second refinery in Cleveland naming it Standard Works and also brought his brother William Rockefeller into the partnership and opened an office in New York City, which William was in charge of, handling eastern trade and the export of kerosene (American Experience). Then in 1867, Henry M. Flagler joined aboard Rockefeller’s oil business, Rockefeller, Andrews & Flagler was formed. By 1870 they were recognized as the largest oil company in the world (Hubpages). It took them eleven years to almost completely take over the oil and petroleum industry, but yet their ambitions and desires did not stop there. Rockefeller developed a plan that was designed to “control and direct the flow of oil into the hands of a narrowed group of refiners” (Hubpages). He did not take into account no one’s feelings, he did not care who was standing in his way. All he knew was that who ever was standing in his way was going to get crushed. The only thing he cared about was getting all the profit and nothing else. By this time, he had already wiped out four of his twenty-nine petroleum competitors. He was doing a good job, thanks to the help of his wife who advised him to keep everything a secret (hubpages). Since the

In 1877, Rockefeller and the Standard Oil Company were at war with the Pennsylvania Railroad who entered the oil-refining business. Rockefeller saw the Pennsylvania Railroad as a major threat to his royal thrown. The Pennsylvania Railroad entered the oil-refining business and wanted to put together a network of independent refiners and producers. Rockefeller and his colleagues ended the Standard’s contract with the Pennsylvania; they also lowered the price of kerosene in the markets served by the Empire and its allies (Kenneth W. Rose). In order for Rockefeller to eliminate the Pennsylvania, he persuaded allied railroads (the Erie and the New York Central) to reduce shipping rates to cut into their rival’s business and profits. The Pennsylvania soon saw its self in some serious trouble and with many financial problems. In October of that year the Standard bought the refining assets of the Empire and forced it out of business. Rockefeller continued to expand his monopoly. He acquired a major pipeline system and a new agreement with railroads for all oil shipments among the railroads in exchange for reduced rates (Kenneth W. Rose). Rockefeller was becoming richer by the minute. In 1879 Standard Oil controlled 90 percent of the nation’s oil-refining capacity and also dominated both the transport of refined oil and piping. By 1913,