Transcript Captains of Industry

Captains of
Industry
or Robber Barons
Captain of Industry – person
who builds a huge business
and helps society.
Robber Baron – people
that get ahead in
business by shutting off
all competition, mainly
using illegal practices
I. Andrew Carnegie Steel
• A. Management – efficient
•
1. Tried to make good
products cheaply
•
2. kept accurate records of
eveything
•
3. Hired smart people, let
them buy stock and rewarded
them for efficiency
B. Business
•
1. Cutthroat – wanted to
control the entire steel industry
•
- Vertical Integration –
controlling all aspects of the
industry
Coal mines
Iron mines – these are iron
pellets that will be shipped
to make steel
Railroads
How would it help to control all of this?
- Horizontal Integration
- controlling all the
steel companies (or as
many as he could)
C. By 1901, he produced
80% of the steel in the U.S.
• Gave away over $500 million
•
that would be $11.6
billion today
• - obviously, he made A LOT of
money – about $25 million per
year
• That can get a fella a pretty
nice house
Andrew Carnegie
Staircase
Music room
Dining
Room
In your books . . .
Page 448 – read about
Social Darwinism – what
does it mean? Put the
definition in your notes
In contrast, the homes
of Carnegie’s workers
II. Cornelius Vanderbilt –
Steamboats, Railroads
• A. Controlled the steam boat
industry until selling out in 1863.
•
By then he was worth $40
million ($770 million now)
• B. Invested in Railroads and
made more money
Vanderbilt
Bedroom
Dining room
Vanderbilt summer cottage
Vanderbilt childrens’ cottage
III. John D. Rockefeller Oil
• A. Joined oil companies together in
Trusts – all shared profits – illegal
• B. Standard Oil Company controlled
90% - 98% of the nation’s oil
•
- Had great political power
• C. Treated everyone badly –
employees, competitors, etc.
•
- did give away over $500 million
Rockefeller’s house
Just kidding
Rockefeller
Aerial view of Rockefeller’s estate
Rockefeller
Robber Baron or Captain of
Industry handout
IV. J.P. Morgan banking
• A. Bought the stock of companies in
order to control them
• B. Loaned money to companies,
bought their stock, put all the
businesses together and controlled
them all
•
- example – bought the RR tracks
– didn’t even have to buy the RR
companies – they couldn’t travel
without the tracks
• C. INCREDIBLE wealth
• D. Bought Carnegie Steel for
$500 million
•
Made it bigger – it became
the first Billion dollar company
What point is this cartoon making?
Morgan