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| | == Big Business and Big Oil == | | == Big Business and Big Oil == |
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| − | John D. Rockefeller monopolized the oil industry at this time, becoming perhaps the wealthiest person ever. After he formed the Standard Oil Trust of Ohio in 1881 to run his empire, it became a goal of government to break his empire up. Meanwhile, other industries began to follow his example, as large industrial companies began to form to control sugar, lead, beef and even whiskey. Rockefeller, in turn, allegedly bribed public officials to advance his business goals. Congress ultimately passed the Sherman Antitrust Act to prohibit “restraint of trade” or interference with competition, in 1890, named after Senator John Sherman of Ohio (General William Sherman’s brother). Rockefeller’s oil company was ultimately broken up by the courts. The Sherman Antitrust Act is a big area of the law today. | + | 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. |
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| | + | 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> |
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| | + | 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"/> |
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| | + | A devout Christian who abandoned public school before finishing, John D. Rockefeller, had just started his first job a few years earlier. He had 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 useable. By 1870 Rockefeller founded Standard Oil Company, and then began pursuing cutthroat 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/> |
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| | + | In 1882, Rockefeller formed a new type of business entity called the "trust", and named it the Standard Oil Trust. 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. In 1911, the U.S. Supreme Court forced him to break up that monopoly too. Rockefeller then retired and devoted the remainder of his long life to philanthropy (giving away his money to charitable causes).<ref name="Rockefeller"/> |
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| | + | monopolized the oil industry at this time, becoming perhaps the wealthiest person ever. After he formed the Standard Oil Trust of Ohio in 1881 to run his empire, it became a goal of government to break his empire up. Meanwhile, other industries began to follow his example, as large industrial companies began to form to control sugar, lead, beef and even whiskey. Rockefeller, in turn, allegedly bribed public officials to advance his business goals. Congress ultimately passed the Sherman Antitrust Act to prohibit “restraint of trade” or interference with competition, in 1890, named after Senator John Sherman of Ohio (General William Sherman’s brother). Rockefeller’s oil company was ultimately broken up by the courts. The Sherman Antitrust Act is a big area of the law today. |
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| | Monopolies are a topic that divides free enterprise thinkers. Some advocate that the free market will deal with monopolies adequately. Others say that monopolies are an opponent to the free market and should be broken up. | | Monopolies are a topic that divides free enterprise thinkers. Some advocate that the free market will deal with monopolies adequately. Others say that monopolies are an opponent to the free market and should be broken up. |