Since there was lots of competition in the industry,
he thought the smart way to go about it would be to buy his competitor’s businesses.
But at the time it was illegal for one corporation to control another.
So what he did was: he created an organizational structure called a trust.
A trust is...well, I don’t have to go into that now,
what matters is that a trust created a single, central management team.
And that team directed the activities of what otherwise still appeared to be independent companies.
This new...uh...legal entity worked so well that at one point Rockefeller controlled 90% of the country’s oil refineries,
which again gave him lots of political power.
So you’ve got two different approaches to expanding a business, and both were quite effective, of course, these weren’t the only two examples.
A number of big businesses run by powerful individuals developed across a. .a wide range of industries, like railroads, food processing, electricity.