Question

What was the goal of John D. Rockefeller's Standard Oil Trust?

A) To shield his children's inheritance from estate taxes.
B) To control oil prices and distribution.
C) To support small oil distributors.
D) To create environmental regulations for the oil industry.

Answer 1

The primary goal of John D. Rockefeller's Standard Oil Trust was to control oil prices and distribution, ultimately resulting in Standard Oil's dominance over the oil industry with approximately 90 percent control of U.S. oil refineries.

Step-by-step explanation:

The goal of John D. Rockefeller's Standard Oil Trust was to control oil prices and distribution. By creating a trust, a group of investors managed by Rockefeller, the stock of various "independent" oil companies were purchased and held "in trust" for Standard's stockholders. This allowed the trust to legally control the companies without owning them outright, which would have been illegal at the time. The trust facilitated Standard Oil's expansion, enabling it to dictate terms with suppliers and shippers, effectively driving out competition, controlling a significant portion of the market, and influencing oil prices to their advantage. By the 1890s, Standard Oil commanded approximately 90 percent of the nation's oil refineries. Rockefeller's strategy of horizontal integration, combined with aggressive business practices, positioned Standard Oil as a dominant force in the industry.