Transcript Trusts and Monopolies

Trusts and Monopolies
 Objective: The student will explain the impact
of the railroads on other industries, such as
steel, and on the organization of big
business. The student will also identify John
D. Rockefeller and the Standard Oil Company
and the rise of trusts and monopolies.
 Essential Question: How did Rockefeller and
the Standard Oil Company contribute to the
rise of monopolies?
 Vocabulary: John D. Rockefeller, Standard Oil
Company, Trusts, Monopolies
Impact of Railroads
 Increased migration to the West
 Led to rise of Big Business
 Increased demand for other industries (like
steel, for example)
Jay Gould
 wealthy businessman
 purchased the Union
Pacific Railroad in 1874
 bought up smaller
railroads and took
control of railroads east
of Mississippi River
Cornelius Vanderbilt
 A wealthy businessman
 gained control of the
east railway lines from
Chicago to New York
Andrew Carnegie
 “rags to riches” mogul
 Dominated steel
industry
 Steel was used for
machinery in industry
and tracks and engines
for railroads
J.P. Morgan
 Banker that headed the
United States Steel
 A monopoly set up by a
holding company

a corporation that did
nothing but buy out
stock of other
companies
JP Morgan
 United States Steel
became one of the most
successful holding
companies
 Became the world’s
largest business when it
bought the largest
manufacturer, Carnegie
Steel in 1901
John D. Rockefeller
 Standard Oil Company
 Bought out small
refineries until he
controlled oil industry
and market
 Established the nation’s
first trust that controlled
every aspect of the oil
industry
John D. Rockefeller
 By 1882 established the
nations first trust that
controlled every aspect of
the oil industry (vertical
integration)
 Examples
 owned the forests used
to produce the wood for
the oil barrels
 Owned the pipeline the
oil flowed from
 Used to destroy competition
and create a monopoly
Rise of Trusts and Monopolies
 By the end of the 1800s, trusts controlled oil, steel,
railroad, sugar and meat industries
 By 1900, about 30% of all industries were controlled
by a handful of wealthy robber barons