Essay heading: 1900-1930

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American History

 

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Date added:

August 8, 2006

 

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7 / 1734

 

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This illustrates the relationship between railroad expansion and corporate America. It also was a start for John Rockefeller, a local oilman who believed in vertical integration and also created horizontal integration. Horizontal integration was a form of control, which meant buying out your competitor legally or illegally...
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His method was very similar to Carnegie's: cost cutting and efficiency. Rockefeller would use aggression and dishonesty to force out competitors. He would sell below cost to repress rivals, and when they tried to go against him, he would set up agreements with bigger benefits for him. Boyer explains in "The Enduring Vision", Rockefeller integrated the oil industry both vertically, by controlling every function from production to local retailing, and horizontally, by merging companies into a giant system with stockholders involved...
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