TheirSpaceJohn D. Rockefeller realized 135 years ago that the way to control the oil market was to control the transport of oil. So in 1871, he colluded with the railroad industry to form a cartel called the South Improvement Company.
Under their plan, the rate to ship oil would double, and Rockefeller's Standard Oil Company would get rebates for every gallon of oil shipped, even those shipped by its competitors. South would also collect information on the destinations, costs and dates of competitors' oil shipments.
Once word leaked, independent oil producers revolted and managed to stop South before it shipped a single gallon. But to a great extent, the damage had been done. Rockefeller offered to buy out his competitors, showing them his books so they'd know what they were up against. They had a choice: Sell out now, or be run into the ground. Standard Oil went on to control the production of oil throughout the United States until the Supreme Court broke it up in 1911.
What does a 19th-century oil monopolist have to do with the modern-day Internet world of ones and zeroes? Well, we all know how nicely things work out when oil men are in charge.
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Now, as Congress votes on its first major telecommunications bills since 1996, telecom and cable companies are seeking preferred status for Internet content providers willing to pay for fast downloads, with slower service for everyone else—an Information Super-Tollway, if you will.
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