What was the effect of Rockefeller’s affiliation with the South Improvement Company in 1872, and why did it cause his competitors in the oil industry to call it a “conspiracy”?

The south improvement company largely increased the number of oil and railroad companies in southern states. Because of the increase in numbers, the market for oil and railroad companies became saturated. This lead many of his competitors to bankruptcy, which is why the competitors called it a conspiracy.

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Martebi Martebi · Answer 2 · 2021-11-09T17:54:39+01:00

The effect of Rockefeller’s affiliation with the South Improvement Company in 1872 is that The company improved greatly and gave the company an edge over its competitors as he controlled about 90 percent of U.S refineries and pipelines.

why did it cause his competitors in the oil industry to call it a “conspiracy" is because it lead many of his competitors to bankruptcy as he was also of engaging in unethical practices, such as predatory pricing and colluding with railroads to eliminate his competitors.

Rockefeller's schemed to give Standard Oil an edge over its competitors by secretly arranged for discounted shipping rates from railroads.

The railroads was known to carry crude oil to Standard's refineries and kerosene to the big city markets.

In 1870, Rockefeller established Standard Oil. Others accused Rockefeller of engaging in unethical practices, as he was involved i predatory pricing and colluding with railroads to remove his competitors in order to gain a monopoly in the industry.

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