Rockefeller Defeats Pennsylvania
Rockefeller went against the PRR by not using the railroad to ship Standard Oil products and used PRR’s competition instead. The PRR suffered a devastating loss of revenue; the declining profits meant they had to cut wages, leading to a labor crisis for the railroads. Rockefeller had no problem turning to the other railroads and basically destroying the PRR. He initiated a price war that cut deeper into Pennsylvania’s reserves.
An illustration of the Great Railroad Strike of 1877. Photo by Granger / Shutterstock
The railroad ultimately surrendered, forced to sell its oil and pipeline holding to Standard Oil; it seemed to be the price of peace. Rockefeller got what he wanted, but the PRR influence in the Pennsylvania legislature led to Rockefeller and his company facing a charge for operating a monopoly in 1879. The millionaire found himself in a long, expensive battle that lasted over three decades.