John D. Rockefeller: Oil, Money and Power

German-American oil magnate and philanthropist, John Davison Rockefeller net worth is estimated at $11 billion. With their current net worth, the Rockefeller family is considered as the 22nd richest family in the world in Nationality: United States.

Its successors such as ExxonMobil or Chevron are still among the companies with the largest income worldwide.

Keep Exploring Britannica

The Standard Oil Trust was formed in by John D. Rockefeller. He built up the company through to become the largest oil refinery firm in the world.

Stanvac's North China Division, based in Shanghai, owned hundreds of river going vessels, including motor barges, steamers, launches, tugboats and tankers. Mei Hsia , a tanker, was specially designed for river duty and was built by New Engineering and Shipbuilding Works of Shanghai, who also built the ton launch Mei Foo in Mei Hsia "Beautiful Gorges" was launched in and carried tons of bulk oil in three holds, plus a forward cargo hold, and space between decks for carrying general cargo or packed oil.

Mei Ping "Beautiful Tranquility" , launched in , was designed offshore, but assembled and finished in Shanghai. Its oil-fuel burners came from the U. It explored in Palestine before the World War broke out, but ran into conflict with the British government. By , Standard Oil controlled 88 percent of the refined oil flows in the United States.

The state of Ohio successfully sued Standard, compelling the dissolution of the trust in But Standard simply separated Standard Oil of Ohio and kept control of it. Eventually, the state of New Jersey changed its incorporation laws to allow a company to hold shares in other companies in any state. The Epic Quest for Oil, Money, and Power , this conglomerate was seen by the public as all-pervasive, controlled by a select group of directors, and completely unaccountable.

In , Standard controlled 91 percent of production and 85 percent of final sales. Most of its output was kerosene , of which 55 percent was exported around the world. After it did not try to force competitors out of business by underpricing them.

In , the US Department of Justice sued Standard under federal anti-trust law, the Sherman Antitrust Act of , for sustaining a monopoly and restraining interstate commerce by:.

Rebates, preferences, and other discriminatory practices in favor of the combination by railroad companies; restraint and monopolization by control of pipe lines, and unfair practices against competing pipe lines; contracts with competitors in restraint of trade; unfair methods of competition, such as local price cutting at the points where necessary to suppress competition; [and] espionage of the business of competitors, the operation of bogus independent companies, and payment of rebates on oil, with the like intent.

The lawsuit argued that Standard's monopolistic practices had taken place over the preceding four years:. The general result of the investigation has been to disclose the existence of numerous and flagrant discriminations by the railroads in behalf of the Standard Oil Co.

With comparatively few exceptions, mainly of other large concerns in California, the Standard has been the sole beneficiary of such discriminations. In almost every section of the country that company has been found to enjoy some unfair advantages over its competitors, and some of these discriminations affect enormous areas. The government identified four illegal patterns: Almost everywhere the rates from the shipping points used exclusively, or almost exclusively, by the Standard are relatively lower than the rates from the shipping points of its competitors.

Rates have been made low to let the Standard into markets, or they have been made high to keep its competitors out of markets. Trifling differences in distances are made an excuse for large differences in rates favorable to the Standard Oil Co. Sometimes connecting roads prorate on oil—that is, make through rates which are lower than the combination of local rates; sometimes they refuse to prorate; but in either case the result of their policy is to favor the Standard Oil Co.

Different methods are used in different places and under different conditions, but the net result is that from Maine to California the general arrangement of open rates on petroleum oil is such as to give the Standard an unreasonable advantage over its competitors.

The government said that Standard raised prices to its monopolistic customers but lowered them to hurt competitors, often disguising its illegal actions by using bogus supposedly independent companies it controlled. The evidence is, in fact, absolutely conclusive that the Standard Oil Co.

It ordered Standard to break up into 34 independent companies with different boards of directors, the biggest two of the companies were Standard Oil of New Jersey which became Exxon and Standard Oil of New York which became Mobil. Standard's president, John D. Rockefeller, had long since retired from any management role. But, as he owned a quarter of the shares of the resultant companies, and those share values mostly doubled, he emerged from the dissolution as the richest man in the world.

Over the next few decades, both companies grew significantly. Jersey Standard, led by Walter C. Teagle , became the largest oil producer in the world. Socony purchased a 45 percent interest in Magnolia Petroleum Co. In , Socony merged with Vacuum Oil Co. In the Asia-Pacific region, Jersey Standard had oil production and refineries in Indonesia but no marketing network. Socony-Vacuum had Asian marketing outlets supplied remotely from California. In , Jersey Standard and Socony-Vacuum merged their interests in the region into a 50—50 joint venture.

The original Standard Oil Company corporate entity continues in existence and was the operating entity for Sohio ; it is now a subsidiary of BP. Supreme Court ruled in that antitrust law required Standard Oil to be broken into smaller, independent companies. Among the "baby Standards" that still exist are ExxonMobil and Chevron.

Critics claimed that success in meeting consumer needs was driving other companies out of the market who were not as successful. An example of this thinking was given in when Rep. William Mason, arguing in favor of the Sherman Antitrust Act, said: The Sherman Antitrust Act prohibits the restraint of trade. Defenders of Standard Oil insist that the company did not restrain trade; they were simply superior competitors.

The federal courts ruled otherwise. Some economic historians have observed that Standard Oil was in the process of losing its monopoly at the time of its breakup in Although Standard had 90 percent of American refining capacity in , by that had shrunk to between 60 and 65 percent, due to the expansion in capacity by competitors.

In addition, demand for petroleum products was increasing more rapidly than the ability of Standard to expand. The result was that although in Standard still controlled most production in the older regions of the Appalachian Basin 78 percent share, down from 92 percent in , Lima-Indiana 90 percent, down from 95 percent in , and the Illinois Basin 83 percent, down from percent in , its share was much lower in the rapidly expanding new regions that would dominate U.

In Standard controlled only 44 percent of production in the Midcontinent, 29 percent in California, and 10 percent on the Gulf Coast. Some analysts argue that the breakup was beneficial to consumers in the long run, and no one has ever proposed that Standard Oil be reassembled in pre form. Since the breakup of Standard Oil, several companies, such as General Motors and Microsoft , have come under antitrust investigation for being inherently too large for market competition; however, most of them remained together.

The successor companies from Standard Oil's breakup form the core of today's US oil industry. Several of these companies were considered among the Seven Sisters who dominated the industry worldwide for much of the 20th century.

Standard Oil of Colorado was not a successor company; the name was used to capitalize on the Standard Oil brand in the s. Standard Oil of Connecticut is a fuel oil marketer not related to the Rockefeller companies.

Of the 34 "Baby Standards", 11 were given rights to the Standard Oil name, based on the state they were in. Conoco and Atlantic elected to use their respective names instead of the Standard name, and their rights would be claimed by other companies.

By the s, most companies were using their individual brand names instead of the Standard name, with Amoco being the last one to have widespread use of the "Standard" name, as it gave Midwestern owners the option of using the Amoco name or Standard. Three supermajor companies now own the rights to the Standard name in the United States: ExxonMobil , Chevron Corp. Likewise, BP continues to sell marine fuel under the Sohio brand at various marinas throughout Ohio.

ExxonMobil keeps the Esso trademark alive at stations that sell diesel fuel by selling "Esso Diesel" displayed on the pumps. ExxonMobil has full international rights to the Standard name, and continues to use the Esso name overseas and in Canada.

To protect its trademark Chevron has one station in each state it owns the rights to branded as Standard. Over time, Chevron has changed which station in a given state is the Standard station. BP station with "torch and oval" Standard sign in Durand, Michigan.

BP continues to sell marine fuel under the Sohio brand at various marinas on Ohio waterways and in Ohio state parks in order to protect its rights in the Sohio and Standard Oil names. From Wikipedia, the free encyclopedia. This article is about an oil company that was dissolved in The new organization perfected the great monopoly and began to look like the Vatican.

They discussed in the greatest secrecy the affaires of their empire, taking decisions which were quickly transmitted around the world in a seemingly frictionless machine. Standard Oil's headquarters at 26 Broadway A reasonable share of oil production? Its factories were the most perfect in the whole industry, organized with the greatest economy.

Its knowledge of worldwide oil demand was so deep that the company produced only what was necessary to keep prices constant. At the same time marketing departments sold its products all over the world through aggressive campaigns. Who could complain against such a perfect company? A trust was a new type of industrial organization, in which the voting rights of a controlling number of shares of competing firms were entrusted to a small group of men, or trustees, who thus were able….

Supreme Court ordered it to divest itself of 33 of its American subsidiaries. Meanwhile, the New Jersey company had become, in…. In its early years its chief operations were marketing oil and related products, primarily in the Rocky Mountain area and in California. In , two years after the U. Supreme Court dissolved the Standard Oil combine, the company was again…. Flagler Rockefeller In John D.

Help us improve this article! Contact our editors with your feedback. Standard Oil Company and Trust. You may find it helpful to search within the site to see how similar or related subjects are covered.

Any text you add should be original, not copied from other sources. At the bottom of the article, feel free to list any sources that support your changes, so that we can fully understand their context. Internet URLs are the best.

Copyright © 2017 · All Rights Reserved · Maine Council of Churches