Transcript File
Industrial Leader John Piermont ( J.P. ) Morgan Who he was: JP Morgan was born on April 17, 1837, in Hartford Connecticut. JP Morgan was born into a fortunate family. His father had made a name for himself in the banking industry, he was associate with a London-based merchant banking firm. This enabled Morgan to have a special education. He did not go through all the struggles of climbing a corporate ladder. Having an executive track position in one of New York's finest banks, Morgan had a great mind set even though he was handed his job. His image was to conquer the financial world, and so he did. How he acquired his wealth: • Could turn a failing company into a profitable company over night. • Helped the railroad industry recover itself. He merged railroad companies and became a stockholder in every one of them. • Formed the Federal Steel Company by merging many steel companies which created the biggest United States Steel Corporation. • Morgan gave the President Grover Cleveland gold to back up the currency in exchange for United State government bonds that he later sold for big profits. • Invested in Thomas Edison Electric company railroads • Provided war materials How he treated his workers: J.P. Morgan treated his workers poorly. He compensated them with low pay. all though their salary was low they still had enough money to semi support their families. But the way they were treated was bad. He treated them as he did his land ‘property’. How he spent his money: J.P. Morgan would buy distressed businesses and railroad companies. By buying railroad companies he created the U.S. Steel Corporation. He bought war material during the civil war. He also helped the U.S. Government with their problem of inflammation in 1895. How did he donated his money: J.P. Morgan donated his money to others unselfishly. expecting nothing in return. On one occasion he donated his money to William Mckinley in 1900 (former presidential candidate) he also helped the government. they were in a bad situation due to inflation. he bought 200 million government bonds using gold. he also used his money to buy art from museums one of them being here in NY. Why was he better than other "Robber Barron's" J.P. Morgan was better than other "Robber Barron's" because when he told him self that he was gonna conquer the world of of finance in the banking industry, that's exactly what he did. Morgan was known for taking failing companies and making them profitable companies. He made J.P. Morgan & Co. the most powerful banking house in the world by 1900. Was he a Robber Barron or a Captain of Industry? J.P. Morgan was a captain of industry, he had formed the American economy with his business skills. Examples: • He merged Edison General Electric and Thompson-Houson Electric Company to form General Electric, which then became the country's main electrical-equipment manufacturing company. • The creation of the Federal Steel Company he joined with Henry Frick to merge it with Carnegie Steel Company to form the United States Steel Corporation. • His ties with London's financial world enabled him to arrange a capital for growing industrial corporations in the United States with money from British bankers.