The Court concluded that a contract offended the Sherman Act only if the contract restrained trade "unduly"—that is, if the contract resulted in one of the three consequences of monopoly that the Court identified. RockefellerIndustrialist and Philanthropist, 2 volumes New York: The company also led the way in horizontal integration, controlling businesses in the same industry.
The evidence in this case overwhelmingly sustained that view and led the circuit court, by its final decree, to order the dissolution of the New Jersey corporation and the discontinuance of the illegal combination between that corporation and its subsidiary companies. The bulk of the production at the turn of the century was in the hands of a single company, Carnegie Steel, founded by Scottish immigrant and railroad entrepreneur Andrew Carnegie.
During the mid s the company expanded its pipeline network and centralized its purchasing under a wholly owned subsidiary, the Joseph Seep Agency. The management of Standard Oil then reinvested their profits in the acquisition of most of the refining capacity in the Cleveland area, then a center of oil refining, until Standard Oil controlled the refining capacity of that key production market.
The Court embarked on a lengthy exegesis of English authorities relevant to the meaning of the term "restraint of trade. The main issue before the Court was whether it was within the power of the Congress to prevent one company from acquiring numerous others through means that might have been considered legal in common law, but still posed a significant constraint on competition by mere virtue of their size and market power, as implied by the Antitrust Act.
His competitors, unable to obtain the same rates, found themselves faced with the choice of being ruined or agreeing to be absorbed by Standard Oil via stock exchanges. Harlan J quoted from United States v. It would not become important for fueling engines until the twentieth century.
Big business also meant consolidation; entire industries were controlled by a handful of companies as competition led to new forms of business organization.
Over a period of decades, the Standard Oil Company of New Jersey had bought up virtually all of the oil refining companies in the United States. By the end of the decade it was expanding its operations into crude-oil production and at the same time tightening its marketing procedures.
While acquiring other steel companies that were unable to compete against his highly efficient operations, Carnegie also bought iron ore deposits as well as steamships and railroad cars, which were used to ship ore to his plants and goods to his customers.
Rockefeller and the oil industry. The Sherman Anti-Trust Act was aimed directly at the structure that Standard Oil had set up, and in its wake the company faced a major legal assault.
Daum, The American Petroleum Industry: In the decades after the Civil War this buzzing, frenetic activity formed the backdrop for the emergence of a new way of organizing business on an unprecedented large scale: Out of that sale came the United States Steel Corporation, the largest company in the world at that time, controlling subsidiaries and employing more thanpeople.
The most serious challenge to Standard Oil carne from the oil producers at this stage the company did not actually drill for oil; it merely refined it.John D. Rockefeller created Standard Oil of Ohio inand the company quickly monopolized oil refining and transportation in the United States. Rockefeller received significant rebates from the railroads and made his own oil barrels, built pipelines and oil storage facilities, and bought tank cars to.
John Davison Rockefeller (July 8, - May 23, ) was the guiding force behind the creation and development of the Standard Oil Company, which grew to dominate the oil industry and became one of the first big trusts in the United States, thus engendering much controversy and opposition regarding its business practices and form of organization.
Mr. Saccullo Case Study John D. Rockefeller & The Standard Oil Trust Lexile Name: Mr. Meehan Period: John%Davison%Rockefellercombined%business%intelligence%with. "Trust-busting" critics accused Standard Oil of using aggressive pricing to destroy competitors and form a monopoly that threatened consumers.
Horizontal Integration Strategy where a company creates or acquires production units for outputs which are alike - either complementary or competitive.
By Standard Oil controlled 90 to 95 percent of the oil refined in the United States. Federal Legislation. The Sherman Anti-Trust Act was aimed directly at the structure that Standard Oil had set up, and in its wake the company faced a major legal assault.
home / study / business / economics / economics questions and answers / Contrast The Outcomes Of The Standard Oil And U.S. Steel Cases. What Was The Main Antitrust What Was The Main Antitrust Question: Contrast the outcomes of the Standard Oil and U.S.