Changes

The railroads and grain elevators were not the only types of "big business" that began to generate wealth while also aggravating ordinary Americans.  The biggest and wealthiest business of all, perhaps in the entire history of mankind, was built by John D. Rockefeller to control the production and supply of oil.

The railroads and grain elevators were not the only types of "big business" that began to generate wealth while also aggravating ordinary Americans.  The biggest and wealthiest business of all, perhaps in the entire history of mankind, was built by John D. Rockefeller to control the production and supply of oil.

Oil has been used since the Ancient Greeks, who would pour it into the sea and then set fire to it in order to defend against attacking fleets of ships.  Noah may have used thick oil (called "pitch") to waterproof Noah's ark.  Moses' basket may have been made waterproof using oil, just as American Indians used it to waterproof canoes.<ref name="Oil">http://www.seed.slb.com/qa2/FAQView.cfm?ID=906</ref>

Oil has been used since the Ancient Greeks learned to pour it into the sea and then set fire to it in order to defend against attacking fleets of ships.  Noah may have used thick oil (called "pitch") to waterproof Noah's ark.  Moses' basket may have been made waterproof using oil, just as American Indians used it to waterproof canoes.<ref name="Oil">http://www.seed.slb.com/qa2/FAQView.cfm?ID=906</ref>

But the first modern oil well was in Pennsylvania, when Colonel Edwin L. Drake drilled down 72 feet near Titusville (just east of Pittsburgh) and struck "Oil Creek."  Oil production there started in 1859.  That oil sold for $40 a barrel (note that a dollar was worth far more then), so it was even more expensive to buy than oil is today!  It was used for medicine, as there were no cars then.<ref name="Oil"/>

But the first modern oil well was in Pennsylvania, when Colonel Edwin L. Drake drilled down 72 feet near Titusville (just east of Pittsburgh) and struck "Oil Creek."  Oil production there started in 1859.  That oil sold for $40 a barrel (note that a dollar was worth far more then), so it was even more expensive to buy than oil is today!  It was used for medicine, as there were no cars then.<ref name="Oil"/>

A devout Christian who abandoned public high school before finishing,<ref>When John D. Rockefeller later had children of his own, he and his wife homeschooled them until age ten. http://www.associatedcontent.com/article/44035/john_d_rockefeller_jr.html</ref> John D. Rockefeller, had just started his first job a few years earlier.  He developed a tremendous work ethic, and was immediately attracted to the discovery of oil in 1859.  He quickly entered the business and hooked up with an inventor who knew how to cheaply refine the oil into something usable.  By 1870 Rockefeller founded Standard Oil Company, and then began pursuing highly aggressive business tactics to drive out competitors and consolidate his control (monopolize the industry).<ref name="Rockefeller">http://www.u-s-history.com/pages/h957.html</ref>   

A devout Christian who abandoned public high school before finishing,<ref>When John D. Rockefeller later had children of his own, he and his wife homeschooled them until age ten. http://www.associatedcontent.com/article/44035/john_d_rockefeller_jr.html</ref> John D. Rockefeller, had just started his first job a few years earlier.  He developed a tremendous work ethic, and was immediately attracted to the discovery of oil in 1859.  He quickly entered the business and hooked up with an inventor who knew how to cheaply refine the oil into something usable.  By 1870 Rockefeller founded Standard Oil Company, and then began pursuing highly aggressive business tactics to drive out competitors and consolidate his control (monopolize the industry).<ref name="Rockefeller">http://www.u-s-history.com/pages/h957.html</ref>   

In 1882, Rockefeller formed a new type of business entity called the "trust", and named it the Standard Oil Trust of Ohio.  But ten years later a decision by the Ohio Supreme Court decision forced him to break up his Trust into 20 smaller businesses.  In 1899 he formed a holding company for all his businesses in the name of Standard Oil Company of New Jersey.  By 1911 it controlled an astounding 95% of the entire oil industry, but then the U.S. Supreme Court forced Rockefeller to break up it up into smaller pieces and separately controlled companies, one of which became Exxon.  Rockefeller then retired and devoted the remainder of his long life to philanthropy (giving away his money to charitable causes).<ref name="Rockefeller"/>

In 1882, Rockefeller formed a new type of business entity called the "trust", and named it the Standard Oil Trust of Ohio.  But ten years later a decision by the Ohio Supreme Court forced him to break up his Trust into 20 smaller businesses.  In 1899 he formed a holding company for all his businesses in the name of Standard Oil Company of New Jersey.  By 1911 it controlled an astounding 95% of the entire oil industry, but then the U.S. Supreme Court forced Rockefeller to break up it up into smaller pieces and separately controlled companies, one of which became Exxon.  Rockefeller then retired and devoted the remainder of his long life to philanthropy (giving away his money to charitable causes).<ref name="Rockefeller"/>

Rockefeller became perhaps the wealthiest man in the history of the world.  Predictably, people became jealous and his competitors sometimes lost their businesses.  Many politicians became determined to break up his huge company, and many critics accused him or his employees in engaging in illegal activities, even bribes, to build his business empire.  But other industries began to follow his example, as large industrial companies began to form to control sugar, lead, beef and even whiskey.   

Rockefeller became perhaps the wealthiest man in the history of the world.  Predictably, people became jealous and his competitors sometimes lost their businesses.  Many politicians became determined to break up his huge company, and many critics accused him or his employees in engaging in illegal activities, even bribes, to build his business empire.  But other industries began to follow his example, and large industrial companies began to form to control sugar, lead, beef and even whiskey.   

Congress ultimately passed the Sherman Antitrust Act to prohibit monopolization and "restraint of trade," or interference with competition, in 1890, named after Senator John Sherman of Ohio (a candidate for the Republican presidential nomination in 1880 and the brother of General William Sherman).  The Sherman Antitrust Act was not what broke up Rockefeller's oil empire, because in 1895 the Supreme Court weakened the law by upholding a powerful Sugar Trust, in ''U.S. v. Knight Co.''  The Sugar Trust controlled 98% of the sugar market, and the Supreme Court allowed it to continue.  Despite being weakened, the Sherman Antitrust Act remains a very important law that is used every day now.

Congress ultimately passed the Sherman Antitrust Act to prohibit monopolization and "restraint of trade," or interference with competition, in 1890, named after Senator John Sherman of Ohio (a candidate for the Republican presidential nomination in 1880 and the brother of General William Sherman).  The Sherman Antitrust Act was not what broke up Rockefeller's oil empire, because in 1895 the Supreme Court weakened the law by upholding a powerful Sugar Trust, in ''U.S. v. Knight Co.''  The Sugar Trust controlled 98% of the sugar market, and the Supreme Court allowed it to continue.  Despite being weakened, the Sherman Antitrust Act remains a very important law that is used every day now.

'''Debate:  Should government break up monopolies?'''

'''Debate:  Should government break up monopolies?'''

Good or bad, Rockefeller was part of a huge economic boom that began before the end of Reconstruction in 1877 and continued through 1900.  There was an increase in America's "gross domestic product," which is the total output (in dollars) of all the good and services produced by labor and property located our country.  It is basically how much our entire country is producing, valued in dollars.  When we are prosperous it increases, and when we are in a depression it goes down or does not increase as much.

Good or bad, Rockefeller was part of a huge economic boom that began before the end of Reconstruction in 1877 and continued through 1900.  There was an increase in America's "gross domestic product," which is the total output (in dollars) of all the goods and services produced by labor and property located our country.  It is basically how much our entire country is producing, valued in dollars.  When we are prosperous it increases, and when we are in a depression it goes down or does not increase as much.

By the late 1800s the wealthiest city in the United States was Williamsport, Pennsylvania, which was the center of the profitable lumber industry.  Now it is best known for hosting the Little League World Series!

By the late 1800s the wealthiest city in the United States was Williamsport, Pennsylvania, which was the center of the profitable lumber industry.  Now it is best known for hosting the Little League World Series!