Regulating Trusts: Rockefeller's Tactics and Antitrust Acts

The Sherman Antitrust Act and The Clayton Antitrust Act

Sherman Antitrust Act Section 1: Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal. Section 2: Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce…shall be deemed guilty of a felony…

John D. Rockefeller’s Violations

Clayton Antitrust Act Section 2. That it shall be unlawful for any person engaged in commerce…to discriminate in price between different purchasers… Section 7. That no corporation shall acquire…another corporation …to create a monopoly of any line of commerce.

John D. Rockefeller’s Violations

John D. Rockefeller and Standard Oil’s Tactics

Standard Oil…began buying rival refineries and developing companies…In 1882, these various companies were combined into the Standard Oil Trust, which would control some 90 percent of the nation’s refineries and pipelines.

Mr. Rockefeller…temporarily undercut the prices of competitors until they either went out of business or sold out to Standard Oil.

Bought up the components needed to make oil barrels in order to prevent competitors from being able to.

Used his large and growing volume of oil shipments to negotiate an alliance with the railroads that gave it secret rebates and thereby reduced its…shipping costs to a level far below the rates charged to its competitors.

Secretly bought…competitors and then had officials from those companies spy on and give advance warning of deals being planned by other competitors.

Secretly bought or created new oil-related companies, such as pipeline and engineering firms, that appeared be independent…but which gave Standard Oil hidden rebates.

Dispatched thugs who used threats and physical violence to break up the operations of competitors who could not otherwise be persuaded.