contracts that close channels of distribution or supplies to competitors. Though its interpretation is not particularly clear, The Sherman Anti-Trust Act is the standard used for determining trade misconduct and violates. Standard Oil January 2, 1882 marked the formation of the Standard Oil Trust. It was the invention of attorney Samuel Dodd and fueled by the control of John D. Rockefeller. Rockefeller began by concentrating on the refining business. He then expanded to other aspects of the oil industry to include extraction, sales, transportation, research, marketing even to the point of barrel manufacturing. The practices that brought Standard Oil to its peak became the evidence of its demise. Rockefeller kept a low profile on his company earnings and hid the profits by reinvesting. Other acts were more covert and damaging. Standard Oil had agreements with the railroads in which the railroad provided not only a lower transportation price but also gave a Standard Oil a kickback from the higher prices charged to competitors. The railroad also provided information regarding competitors shipments. This greatly aided Standard Oil in its ability to wage lengthy price wars undercutting the competition. Prices were then raised high enough to maximize profit without attracting new competitors. Also reported were acts of sabotage and bribery. When pipelines became a threat to Standard Oil, Rockefeller bought land to intercept piping routes. Standard Oil continued its consolidation and eventually made any form of a competitive challenge impossible. In 1906, the federal government launched a lawsuit against the Standard Oil Trust based on its practices and abuses. In 1911, Standard Oil was found in violate of the Sherman Anti-Trust Act of 1890 and was soon dismantled. Microsoft Software is to the information age as oil was to the industrial age and as Standard Oil represented its industry so stands Microsoft nearly one hundred years later. Found...
