By Celia, Robbie, David, and Michael Rise of Big Business By Celia, Robbie, David, and Michael

Corporations A corporation is a business overseen and owned by investors, who supplement the initial expenses for a new company. After the Civil War, corporations became very popular, attracting large amounts of money from wealthy investors. To make sure the invested money is being used responsibly, a board of directors is elected, who command the running of the corporation.

John D. Rockefeller John D. Rockefeller was a very wealthy and successful businessman. In 1862 at age 23, he bought into his first oil refinery. Petroleum (oil found underground) was a very valuable resource- and oil refineries turn the petroleum into oil. Oil was used for light, cooking, and for machinery. He changed the oil business by creating the trust and crushed competition by destroying or buying companies, which allowed for him to have a monopoly on the oil industry. By 1880, Rockefeller controlled 95% of America’s oil refining.

Trusts A trust is a group of businesses who invest in companies that join together to lower competition and control the prices in an industry/business. John D. Rockefeller created the concept of a trust. Many Americans were worried about the trust system. They felt the dangers were: The trust system was a threat to free market, because that system reliant on competition. Because there is no competition, the system does not need to improve it’s quality or provide fair prices to consumers. Rich entrepreneurs could bribe public officials and buy elections.

Monopolies A monopoly is a company that has exclusive control of the supply, trade, or sales of a specific product. To help regulate his multiple businesses, John D. Rockefeller created the Standard Oil Trust, a combination of his trusts. The Standard Oil Trust made oil business in America more productive and powerful. However, many people did not like how this monopoly could now completely control the price of oil.