What good and nad things john d Rockefeller have done for industrialization?

Answer 1

The South Improvement Company was a Pennsylvania corporation in 1871-1872. It was created by major railroad interests, but was widely seen as part of John D. Rockefeller's early efforts to organize and control the oil and natural gas industries in the United States which eventually became Standard Oil. Although it lasted less than a year and never shipped any oil, the South Improvement Company scheme caused widespread attention to be focused on the relationships between big railroads (which were public utilities pledged to serve all) and big businesses which wanted and demanded favorable treatment. Thomas A. Scott, president of the Pennsylvania Railroad set up the South Improvement Company in the fall of 1871. The scheme was intended to benefit both the railroads and major refiners, notably those controlled by Rockefeller through secret rebates. Rockefeller had earlier merged several of the Cleveland area refineries and issued 2,000 shares of stock, of which 900 were controlled by Rockefeller and his partners. Rockefeller then started negotiations with the three major railroads running through Cleveland: the Erie, the Pennsylvania Railroad, and the New York Central. The results of the negotiations were as follows: (1) The official rate per barrel from Cleveland to New York would be $2.56, but South Improvement would receive a $1.06 rebate; (2) The railroads would also pay South Improvement $1.06 per barrel of oil shipped that was not produced by South; (3) The railroads would also give reports of the shipping destinations, costs, and dates of all of South's competitors; (4) The commerce would be divided evenly among the railroads, with a double share going to Pennsylvania Railroad; and (5) South would provide tank cars and loading facilities. The secret concessions would have helped lessen the "vicious" competition among the railroad lines by giving a steady, standardized flow of commerce. Word leaked out of the South Improvement Scheme, and the proposed 100% increase in rail shipping rates inflamed the independent producers and many smaller refineries. Following a summit and vocal protest by the independent oil producers and refiners led by Henry Huttleston Rogers and the Charles Pratt and Company refining interests of Brooklyn, New York, which came close to physical warfare in western Pennsylvania in March of 1872 (and came to be known as the "Oil War"), the railroads agreed to back down and treat everyone equally in the future. Although the state of Pennsylvania repealed the South Improvement Company's charter in April of 1872 before it had even conducted a single transaction, the railroad's promise was short-lived. [1] Although the independents had celebrated victory and took the powerful railroads at their word, Rockefeller was already at work on another approach. He acquired many competing interests, stifling others by competitive pressures which later became unlawful. Special considerations were soon again granted by the railroads. Independents such as Ida Tarbell's father were forced into financial ruin. However others joined the momentum of Standard Oil. Even the outspoken and brilliant leader from the "Oil War" of March, 1872, Henry H. Rogers and his mentor Charles Pratt soon chose to become part of Standard Oil after being approached by Rockefeller. While Rogers joined the Standard Oil juggernaut, and became one of its key men, he also later (in 1902) granted detailed interviews with investigative journalist Ida Tarbell "to set the record straight," which in turn greatly facilitated public sentiment and action in the creation of U.S. antitrust laws and a breakup of Standard Oil ordered in 1911. Standard Oil gradually gained almost complete control of oil production in United States. At that time, many legislatures had made it difficult to incorporate in one state and operate in another. As a result, Rockefeller and his partners owned separate companies across dozens of states, making their management of the whole enterprise rather unwieldy. In 1882, Rockefeller's lawyers created an innovative form of partnership to centralize their holdings, giving birth to the Standard Oil Trust. The partnership's size and wealth drew much attention. Despite improving the quality and availability of kerosene products while greatly reducing their cost to the public (the price of kerosene dropped by nearly 80% over the life of the company), Standard Oil's business practices created intense controversy. The firm was attacked by journalists and politicians throughout its existence, in part for its monopolistic practices, giving momentum to the anti-trust movement. One of the most effective attacks on Rockefeller and his firm was the 1904 publication of The History of the Standard Oil Company, by Ida Tarbell, a leading muckraker. Although her work prompted a huge backlash against the company, Tarbell claims to have been surprised at its magnitude. "I never had an animus against their size and wealth, never objected to their corporate form. I was willing that they should combine and grow as big and wealthy as they could, but only by legitimate means. But they had never played fair, and that ruined their greatness for me." (Tarbell's father had been driven out of the oil business during the South Improvement Company affair.) Rockefeller as an industrial emperor, 1901 cartoon from Puck magazine Ohio was especially vigorous in applying its state anti-trust laws, and finally forced a separation of Standard Oil of Ohio from the rest of the company in 1892, leading to the dissolution of the trust. Rockefeller continued to consolidate his oil interests as best as he could until New Jersey, in 1899, changed its incorporation laws to effectively allow a re-creation of the trust in the form of a single holding company. At its peak, Standard Oil had about 90% of the market for kerosene products. By 1896, Rockefeller shed all of his policy involvement in the affairs of Standard Oil; however he retained his nominal title as president until 1911; he kept his stock. In 1911, the Supreme Court of the United States held that Standard Oil, which by then still had a 64% market share, originated in illegal monopoly practices and ordered it to be broken up into 34 new companies. These included, among many others, Continental Oil, which became Conoco; Standard of Indiana, which became Amoco; Standard of California, which became Chevron; Standard of New Jersey, which became Esso (and later, Exxon); Standard of New York, which became Mobil; and Standard of Ohio, which became Sohio. Rockefeller, who had rarely sold shares, owned stock in all of them.