John D. Rockefeller

Made his fortune from oil.

Starting Business

Rockefeller was born in Richford, New York, in 1839, John D. Rockefeller made is fortune oil. When Rockefeller was 26 years old, he and four partners set up and oil refinery a plant to process oil in Cleveland, Ohio. In 1870 Rockefeller organized the Standard Oil Company of Ohio and set out to dominate the oil industry.

How and why the business grew

Rockefeller lowered his prices to drive his competitors out of business. in addition he pressured customers not to deal with rival oil, and he persuaded the railroads to grant him rebates in exchange for his business. Rockefeller increased his control of the oil industry in 882 by forming a trust, a group of companies managed by the same board of directors

How he controlled

Rockefeller increased his control of the oil industry in 1882 by forming a trust, a group of companies managed by the same board of directors. First he acquired stock in many different oil companies. Then the shareholders of there companies traded their stock for Standard Oil stock, which paid higher dividends. This gave Standard Oil's board of directions ownership of the other companies stock and the right to mange those companies.

How and why the government began to restrict it.

State governments responded to the growing opposition to trust and monopolies. During the 1880's several state passed laws restricting business combination. Corporation, however, avoided these laws by doing business in states that had no such laws. Public pressure for a federal law to prohibit trusts and monopoly. The act did not clearly define either trust or monopolies, however. In it's early years, the Sherman Antitrust Act did little to curb the power of big business. did little to curb the power of big business.