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Ohio inventions and firsts · Company innovation · 1870

Standard Oil Company

Standard Oil Company was incorporated in Cleveland on January 10, 1870 by John D. and William Rockefeller, Henry Flagler, Samuel Andrews and Stephen Harkness; it became a trust in 1882 and was ordered broken up in 1911 (39 companies per Wikipedia).

At a glance

Year
1870
By
John D. Rockefeller
Company
Standard Oil
Place
Cleveland, Cuyahoga County ZIP 44114 · Cleveland · Cuyahoga County

The story

In the 1860s Cleveland was a leading oil-refining city, with many small refiners competing and prices swinging wildly. John D. Rockefeller, who had started in a produce business in 1859, moved into oil refining in 1863 in the Flats, Cleveland's industrial district.

By 1867 the firm was Rockefeller, Andrews and Flagler, and by 1868 it ran what was called the largest oil refinery in the world. On January 10, 1870, Rockefeller founded Standard Oil of Ohio with $1 million in capital. In just four months in 1872 it absorbed 22 of 26 Cleveland competitors.

Growth was fast. By 1880 it controlled 90 percent of American refining capacity. In 1882 its companies in many states were combined under a single group of trustees, creating the trust form. By 1904 it had 91 percent of refining and 85 percent of final sales. Journalist Ida Tarbell's reporting fed public anger at the monopoly.

In 1911 the U.S. Supreme Court found the company guilty of anticompetitive practices and ordered it split into separate companies; Wikipedia says 39, other sources say 34. Rockefeller's wealth actually grew after the split. Successors include ExxonMobil, Chevron and BP. He died May 23, 1937, and is buried at Lake View Cemetery in Cleveland.

Timeline

  • 1859: Rockefeller co-founds a produce commission business. (Cleveland, OH) source
  • 1863: The firm moves into oil refining in the Flats. (Cleveland, OH) source
  • 1870-01-10: Standard Oil of Ohio is founded with $1 million in capital. (Cleveland, OH) source
  • 1872: In four months the firm absorbs 22 of 26 Cleveland competitors. (Cleveland, OH) source
  • 1880: Standard Oil controls 90 percent of American refining capacity. (United States) source
  • 1882-01-02: Standard Oil's companies are combined under a single group of trustees. (New York) source
  • 1911: The Supreme Court orders Standard Oil dissolved. (Washington, D.C.) source
  • 1937-05-23: Rockefeller dies; he is buried in Lake View Cemetery. (Cleveland, OH) source

What it changed

  • Controlled 90 percent of U.S. refining in 1880 and 91 percent by 1904.
  • Its 1911 breakup is a landmark antitrust case; ExxonMobil, Chevron and BP descend from it.

Why it matters

Defined American big business; broken up 1911.

Worth knowing

Wikipedia gives January 2, 1870 for the founding, which mixes it up with the 1882 trust date; another source gives January 10, 1870. Sources also differ on how many companies the breakup created, 34 or 39.

Places in Ohio to see

Further reading

Sources

Confidence. Medium: the main facts were confirmed, but some details (often an address or ZIP code) were not.