Standard Oil (Rockefeller)

Definition

Founded by John D. Rockefeller, Standard Oil was an American oil producing, transporting, refining, marketing company established in 1870. It became one of the world's first and largest multinational corporations until it was broken up by court order in 1911 due to its monopoly practices.

Analogy

Imagine if there was only one pizza place in town that made all types of pizzas - from pepperoni to vegetarian - controlled all pizza delivery services, and also owned all cheese factories. That's how dominant Standard Oil was in America's oil industry!

Related terms

Monopoly: The exclusive possession or control of supply or trade in a commodity or service.

Sherman Antitrust Act (1890): An act passed by Congress aimed at curbing concentrations of power that interfere with trade and reduce economic competition.

Robber Baron: A derogatory term applied to wealthy and powerful 19th-century American businessmen who used unethical methods to get rich.