alittle feed back would be nice
sorry guys no cliff notes, give me an dea of what you all think.
Rockefeller employed my tactics to become a monopoly and himself a robber baron. Many of them involved the control of the market, the first of his career, in the oil industry, was his first thoughts of consolidating all the refineries in to a mass group. Much like the group his partners had been involved in with Michigan salt association. The idea being to either run people out of business or to incorporate them in to yours, which he essentially did both. He would physically run people out of business but then would offer them stock in his company making them a share holder so essentially part of his company. Now how did he go about doing this? How would he force people out of business and pull them in to “Southern Improvement Company?” he did this through unfair and illegal business practices. For starters he would get what were called rebates from the railroads, the life line of any oil refinery; he got these due to his overwhelming amount of business that he brought to the table, even though these types of practices had been illegal since queen Elizabeth’s time. So when every other refinery was paying a rate of .40 cents per barrel to ship on the rail lines, he would pay a secret rate of .25 cents. And later after becoming a major distributor he actually got the rail roads to raise the prices of his competitors to 1.40 per barrel and then got a kick back from the railroads, this is a highly illegal practice. So he was literally making money just for having his competitors shipping on the railways. At this point he had established “Southern Improvement Company” and he was in the middle of acquiring all the other Cleveland based refineries. He literally went to every company and told them he would access their land and building value and offered them ˝ to 1/3 of the value. He told them either they take shares in his company or cash which ever they preferred or they would lose all their money, because not only would they not have an costumers but because of this the land would be worth nothing and they would only lose their companies, due to the fact that he could sell his oil at a much lower price then they could ever even dream of. With in three months he bought out every single competing oil refinery in the Cleveland area. But to hide this, he put all these companies under the name of “Southern Improvement Company” which was a dummy company, a front if you will, which had 25 companies under it. Officially on the books it was a “union” of 25 separate oil refineries but they were run by the same 21 directors but in different orders, each “company” had 5 directors, so they could claim that they were all separate, but isn’t it funny that all the directors were all directors from Standard Oil? Obviously this was a monopoly but they just did quite a good job trying to hide it. And this part was legal, especially at that time which the government really gave companies a huge break on just about anything. And in doing all this, what did Rockefeller get? He was able to take total control over all of Cleveland’s, and 1/5 of all oil production in the United States. Standard oil was a complete monopoly and Rockefeller was at the helm. So even if there were decisions made with out his knowledge he was still in the position of high leadership so he was, in the end, responsible for everything. Rockefeller used many illegal and deceitful, at that time not necessarily illegal but still immoral, tactics which is why historians, and the world, label him a robber baron
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Originally Posted by Brent
You still have a quote in your sig from a guy that hasn't signed in in almost 2 years