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Standard Oil Octopus

Page history last edited by Mr. Hengsterman 4 years, 7 months ago

 

 

 

 

This image portrays the overwhelming control of the oil industry at the dawn of the 19th century. Captain of industry, John D. Rockefeller, practiced horizontal integration. Through this strategy Rockefeller formed alliances with competitors in the oil industry allowing him to eventually create a monopoly on the entire industry, eliminating competitors all together. He created the "trust" which allowed stockholders of other companies to give stock to his Standard Oil Company. Because of this, he was able to gain control of every aspect of the oil market, running any companies out of business who did not join his alliance. This creation of, debatably, histories largest monopoly, gave Rockefeller immense control both in business, politics, and the social scene. The octopus in the picture represents the Standard Oil Company and shows its control in all aspects of society. The center of the Octopus (the industry) is at oil manufacturers and stretches out across the country. It has its control on the capital building, worker unions, and foreign trade. (Sarah B.)

 

Monopolist, John Rockefeller had almost complete control of the Oil Industry. In 1870 he organized his Standard Oil Company and within seven years he controlled 95% of all oil refineries in the country. He got this power by allying with competition and forming a "trust" all companies left out of his trust quickly died out, which is the biggest issue with monopolies. Although his control regulated prices and made them generally lower, it gave small oil companies little chance of survival. Besides controlling oil, his wealth gave him immense governmental power, which is shown in the image above of the Standard Oil Octopus holding the government buildings, during this time period, Captains of Industry like Rockefeller had more power and more control than the president of the United States. (Jenna L.)

 

 

 

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