USA HISTORY

Detailed explanation-1: -To give Standard Oil an edge over its competitors, Rockefeller secretly arranged for discounted shipping rates from railroads. The railroads carried crude oil to Standard’s refineries in Cleveland and kerosene to the big city markets.

Detailed explanation-2: -Standard Oil gained a monopoly in the oil industry by buying rival refineries and developing companies for distributing and marketing its products around the globe. 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.

Detailed explanation-3: -Rockefeller gained much of his wealth by controlling oil refineries across the country. At Rockefeller’s refineries, crude oil would be turned into kerosene and then sold to the American public at affordable prices. Kerosene lighting greatly transformed homes and businesses across the country.

Detailed explanation-4: -Rockefeller demanded rebates, or discounted rates, from the railroads. He used all these methods to reduce the price of oil to his consumers. His profits soared and his competitors were crushed one by one. Rockefeller forced smaller companies to surrender their stock to his control.