Standard Oil Trust Company example essay topic

Policy as defined by Webster is a principle, plan or course of action, as pursued by a government, organization or individual. In the case of this paper, we will be dealing with policies with regard to government, initiated by various people of the state, particularly the American government and the United States of America. Policy-making is an integral part of governmental duties that is critical to the development and progress of its people. Acting as a trouble-shooter of the nation's problems, it aims to employ a solution to the changing political, economic and social climate of the times.

The United States have exploited this power in almost every case it can to ensure the protection of liberty and justice that it's constitution proclaims. There are two main branches that are constitutionally capable of exercising this power: the executive and legislative branch. The president can enact decrees, acts, executive orders and even propose laws to congress as he sees fit. However, congress approves whether the proposed bill is worthy of a hearing or not and the people's response can influence the longevity of these directives.

Congress, on the other hand, assumes the responsibility to ratify bills into laws with the president possessing the power of veto on it. This distribution of capacity is within the scope of the separation of powers law provided for in the constitution. The American society also plays a major role in policy making of the state. Although they do not have direct power in making the ordinances per se, the mature societies of the American nation possess great influence on the agenda of the policies themselves.

And in America's modern societies, both the majority and minorities have equal participation in policy development (in some cases, the latter having more power than the other). An issue I would like to discuss in this paper that shows the interaction of these institutions in policy-making is the "Sherman Anti-Trust Act of 1890". This law, at first glance, would seem to attack the American concept of Individualism vis-'a-vis Equality. However, this case exemplifies the dynamic character of the state in addressing political, economic and social predicaments. This act has been particularly used in breaking down corporate monopolies and sets out to define illegal business practices often confused with "creativity" in gaining advantages in the business industry.

This acts shows the distinction between the genius of American individualism (in the establishment of leaders in competitive industries) and the right for competitive markets. It draws the line for business savvy establishing (their) edges in the market and illegally garnering monopoly and unlimited power (giving unequal chance to other businesses) in the industry. The first recipient of this Act is the "Standard Oil Trust Company". In January 2, 1882, attorney Samuel Dodd, fueled by John D. Rockefeller incorporated the Standard Oil Trust that dealt with the refining business. In its peak, the company expanded to other aspects of the oil industry. It included extraction, sales, transportation, research, marketing as well as barrel manufacturing.

The company was kept at a low profile and the profits were reinvested as means to hide revenues. Rockefeller also initiated agreements with the railroad company for lower rates as well as kickbacks for high rates of the competing companies. In fact, the railroad company also provided Standard Oil with route and schedule information of the other firms. This gave the Standard Oil company monopoly in the industry due to the impossibility of the competitors to compete in the race.

Almost all the competitive firms lost their business as well as their employment capabilities. The people clamoured against the abuses of Rockefeller and Dodd. This popular demand for Standard Oil's head initiated an investigation by the federal government. Seeing the unequal advantage of this large corporation in the market, and the detriment of its existence, congress passed the Sherman Act of 1890 and was signed by President Benjamin Ha risson on July 2. In 1911, realizing it's macroeconomic and social repercussions, Standard Oil was found to have violated the Sherman Antitrust act and was dismantled. This is an example of how policy was made in America and the how the different characters of the state responded to each other and worked together to preserve the liberty and justice that their principles inviolably protects.

Bibliography

Ogden, Daniel M. "How National Policy is Made". - Oak Brook, Illinois, 1971.
Tarbell, Ida M. "History of the Standard Oil Company". - McClure, Phillips and Co, 1904.
Well, Peter and Zimmerman, Sidney E. "Politics and Policies" - NY, McGraw Hill Co. Vile, M.J.C. "The Making of Policy in Modern America" - London, Routledge, 1999.