Question

How did the Cleveland Massacre How did the Cleveland Massacre impact Standard Oil in 1872?ct Standard Oil in 1872?

Answer 1

Answer:

Standard Oil became a monopoly in the Cleveland oil market after the Cleveland Massacre.

Explanation:

Answer 2

Cleveland Massacre

The Cleveland Massacre refers to a three-month period in 1872 during which the Standard Oil Company purchased practically all of Cleveland's competing oil refineries.

Impact of Cleveland Massacre on Standard Oil in 1872

• Standard Oil purchased 22 of 26 rival refineries at heavily discounted rates during a six-week period in February and March 1872.
• Cleveland was packed with oil refineries at the time, resulting in surplus capacity and sharply reduced costs.
• Standard Oil, led by John D. Rockefeller, purchased the competitor in order to stabilize production and return it to profitable levels.
• Standard had agreed to share its oil supplies among the railways in proportions agreed upon in exchange for the railroads charging all of Standard's competitors exorbitant charges.
• Despite the fact that the South Improvement Company was dissolved before it went into effect, many feel that the threat of the agreement prompted panic among non-participating Cleveland refineries, prompting them to sell before their businesses lost all value.

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