When was standard oil company founded

Payne the owner of the largest refinery in Cleveland and proposed that they unite their companies together. In the next few years they bought other companies and drove some competitors out of business. In Standard Oil of Ohio came together from these different companies with the goal of cornering the oil market and thus try to tame the market and avoid the wide swings in the market place.

Rockefeller remained the main stockholder in the company as the company bought out more and more competitors closing some and using others to gain market share. Following publication of her report, the Standard Oil Company was forced to break up into separate state companies — the "Seven Sisters" — each with its own board of directors. Background The Standard Oil Trust had quickly become an industrial monster. The trust had established a strong foothold in the U. Early on, Rockefeller and partners attempted to make money on the home lighting market, converting whale oil to kerosene.

Gasoline had been nearly worthless up to However, with a growing demand for "juice" needed to power the newly emergent automobile, Standard Oil Trust's moneybags began to bulge.

The Trust broke up in , which led to the skyrocketing of the trust's stock prices. However, if a company separated on its own, it was restricted from using the "Standard" brand. Just as Bell had accomplished later on in its history, the Standards soon rose up to dominate the market, becoming more valuable than the original trust. Competition and a dynasty breakup More and more Standard Oil companies were becoming common across the country, without the venerable Standard name — often adopting the names of smaller oil companies they purchased.

Rockefeller, who always tried to keep a low profile, responded by publishing his memoir Random Reminiscences of Men and Events in The Sherman Anti-Trust Act was to be implemented.

Roosevelt was then out of office he had declined to re-run for presidency but rejoiced at the news. Standard Oil appealed the case. The next stop was the Supreme Court, which on 15 May upheld the federal court ruling. Chief Justice Edward White gave Standard Oil six months to dissolve itself as a single entity and be split into several companies with independent boards of management. Logos of several important Standard Oil companies formed in the nineteenth century but which continued to dominate the oil industry in the twentieth century.

NB: These logos are shown only for the informational purpose of this article, and are not meant as trade use. In July , Standard Oil announced its new structure: It would split into 33 companies, some large and some small.

In doing so, it made sure that the new companies shared the market rather than competed with one another, which was to be expected — as Financier J. Rockefeller himself owned about one-fourth of Standard Oil stock. But Rockefeller knew his business far better. When oil production began in the s, oil was mainly used for kerosene lamps. Therefore, within a year of the dissolution of Standard Oil, the stock market value of its spin-off companies doubled.

Rockefeller soon became the first American billionaire. It seems that it was the expansion of markets cheap oil rather than high oil prices that financially fuelled the growth of Standard Oil. Filter Collections.