Standard Oil

Standard Oil (1863 - 1911) was a large integrated oil producing, transporting, refining, and marketing organization. It was founded by John D. Rockefeller (1839-1937) and partners in 1863, with the plan of making kerosene, which was sweeping the home lighting market, supplanting the commonly used whale oil (blubber). Borrowing heavily to expand his business, Rockefeller drew five big refineries including the business concern of Henry Morrison Flagler into one large firm, Rockefeller, Andrews & Flagler. By 1868 Rockefeller and Company headed Standard Oil of Pennsylvania, based in Pittsburg, one of the world's largest oil refining concerns.

The antitrust breakup

As the public became more aware of the Standard Oil trust in allowing its oil companies in different states to be headed by the same board of directors, there was more public support in calling for its dissolution. Eventually, the company was broken up after the United States Supreme Court declared the trust to be an "unreasonable" monopoly under the Sherman Antitrust Act. Thus, on May 15, 1911, though Standard Oil's share of the market had been steadily declining from 1900 to 1910 (Standard's share of oil refining was 64% at the time of the trial and in competition with over 100 other refiners), the Supreme Court of the United States ordered the dissolution of Standard Oil Company into into 34 smaller companies, each with their own board of directors. It was at this time that John D. Rockefeller retired his position as President of the Standard Oil Company of New Jersey.

Related Topics:
United States Supreme Court - Monopoly - Sherman Antitrust Act - May 15 - 1911

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