Big Business post Civil War.

Group 2 Question, by: Courtney Bagley

Explain how and why business grew

  • John D. Rockefeller organized the standard oil company of Ohio
  • He used the horizontal integration method to make his business grow
  • He increased his control of industry by forming a trust
  • He traded stock, which gave John Oil's board of directors ownership of the other companies
  • He created a monopoly, almost total control by a single producer of the oil industry
  • He persuaded the railroads to grant him rebates in exchange for his business

John D. Rockefeller and his Company

  • John D. Rockefeller was born in Richford, New York in 1839
  • John D. Rockefeller was 26 when he and four partners set up a oil refinery ( a plant to process oil) in Cleveland, Ohio

Government restriction

How?

  • The government passed laws to prohibit trusts and monopolies
  • The Sherman Act in 1890 sought "To protect trade and commerce against unlawful restraint and monopoly"
Why?


  • Giant corporations were the driving force behind the economic growth
  • Some thought that a lack of competition because of giant corporations hurt consumers without competition
  • Giant corporations had no reason to keep their prices low or to improve their good and services