Business and Industry

What business practices did Rockefeller do to make his money?

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January 09, 2009 2:16AM

Beginning in the 1870s, Standard Oil employed a number of cutthroat business practices, including: * Monopolization - Rockefeller is remembered for buying up all of the components needed for the manufacture of oil barrels in order to prohibit his competitors from getting their product on the market * Rate Wars - the giant Standard Oil was able to withstand short term losses by cutting the price of oil; smaller competitors could not keep pace and either went out of business or sold out to Rockefeller * Rebates - Rockefeller was able to demand a refund on public rates offered by the railroads; the carriers agreed to this practice because of Standard's immense volume * Intimidation - on more than one occasion Standard dispatched thugs to break up competitors' operations that could not otherwise be controlled Courtesy of http://www.u-s-history.com/pages/h957.html Beginning in the 1870s, Standard Oil employed a number of cutthroat business practices, including: * Monopolization - Rockefeller is remembered for buying up all of the components needed for the manufacture of oil barrels in order to prohibit his competitors from getting their product on the market * Rate Wars - the giant Standard Oil was able to withstand short term losses by cutting the price of oil; smaller competitors could not keep pace and either went out of business or sold out to Rockefeller * Rebates - Rockefeller was able to demand a refund on public rates offered by the railroads; the carriers agreed to this practice because of Standard's immense volume * Intimidation - on more than one occasion Standard dispatched thugs to break up competitors' operations that could not otherwise be controlled Courtesy of http://www.u-s-history.com/pages/h957.html