Saturday, August 27, 2011

South Improvement Company / Cleveland Massacre, 1871-1872

Rockefeller had been carrying out "his plan" even before the demise of S.I.C. Eager to consolidate the refining industry, he set out to eliminate what he called "ruinous" competition from his most immediate rivals. In less than six weeks, between February and March of 1872, he used the threat of the big new alliance and a sophisticated range of tactics to buy up 22 of his 26 Cleveland competitors.

While the public and many in the industry were caught up in the South Improvement Company crisis, Rockefeller had already moved beyond that momentary defeat. He now controlled what would become the foundation for the biggest industrial empire of its time. "It was really the first great step on John D.'s march to industrial supremacy," says biographer Ron Chernow, "because once he had a monopoly over the Cleveland refineries, he then marched on and did the same thing in Pittsburgh, Philadelphia, Baltimore, New York, and the other refining centers. So that was really the major turning point in his career, and it was really one of the most shameful episodes in his career."

1 comment:

  1. what are the differences between this and the s.i.c.?