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Oil Monopolies In The 1800s

505 Words3 Pages

In the 1800s competition between industries drove industrial growth. One of the first

trust was made by John D. Rockefeller, for oil. In a trust, owners of competing companies give

their stock to a committee and they control it. The committee operates all the companies

together as one and pays the stockholders, this way there is no competition between

businesses to drive down prices. Standard oil led to these trust, and eventually a bunch of

different trust were created like sugar trust, steel trust and whiskey trust.

eventually the trust turned into a bad thing because prices went up and small businessmen

were not able to afford these necessities and large corporations had a lot of power and did not

need their …show more content…

small business

were not able to reach all the resources they needed so monopolies really hurt them with there

prices.

I think that the government should break up standard oil's monopoly because they bring up oil

prices and it hurts small business owners. oil monopoly was creating other monopolies and i

think that if this was not stopped it would have ruined them once again. monopolies were trying

to cut out other companies by lowering there prices till they went out of business, they would buy

all of the resources so local businessmen can’t get their resources. By 1873 standard oil had

required about 80% of refining captivity in cleveland. Standard oil eventually focused on

integration by getting control of their refineries. If this was not stopped i think that small business

men would have gone out of business and other large corporations as well and the only place

you could buy from would be monopolies and trust with ridiculous prices.

The impact of standard oil companies were big they did not care what they effected so they

would do what they want and put small business out of business buy buying their resources

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