The Greatest Oil Man Essay -- essays papers

The Greatest Oil Man The majority of people in the world dislike monopolies. People do not like monopolies because they are allocatively inefficient and because they produce less than consumers want. John D. Rockefeller was a good example of a monopolist from 1880 to 1911. Most people in that time period did not like his company, Standard Oil, and wished for an end to it (micheloud). In 1870, J. D. Rockefeller started the Standard Oil Company. Soon after the birth of this company, Rockefeller began to horizontally integrate other refineries into his company. This was not enough for Rockefeller. He wanted control over the whole industry so he proceeded to vertically integrate other companies including companies having to do with extraction, transport, retail, marketing, and research. Within a relatively short amount of time, Rockefeller obtained all of the components needed not only for creating the refined oil but for shipping it as well. The only things that were missing from his giant conglomerate of companies from the oil industry were insignificant considering that now Standard Oil was virtually the only buyer (micheloud). In order to keep his monopoly intact he used the railroads to keep updates on all oil shipped through the railroad companies. In order for the railroads to work for him, they had to give him detailed reports on all oil shipped though them. Standard Oil also made sure they were keeping these reports correct by placing spies (Michel...