Question

List two pieces of evidence that Rockefeller used to convince readers to support his arguments about rebates.

Answer 1

1. Rockefeller envisioned the consolidation of many small oil refineries into one giant company that controlled the production because, when the market for oil grew, the amount of buyers grew more, leading to prices going up and down and many small companies wet into bankruptcy. They created what they called "Our Plan" through Standard Oil to save the industry, by combining the businesses  

2. The three major railroads running through Cleveland and the Oil Regions of Pensylvannia were really costly, but when they were initially setup and the traffic started to grow more and more, the costs decreased, causing very high losses to the them. Since Standard Oil had the market power they were able to get discounts on railway freight rates. If a railroad did not wish to work with the Standard’s demands they would just ship with another railroad, so most of the railroads ended up agreed to work with them to continue with the businesses. Railroads were Erie, New York Central, and Pennsylvania.

Answer 2

Answer:

Railroads offered rebates as part of their standard business.

Standard Oil got good rebates because it saved the railroads money.

Rebates were good business for everyone.