1. Captains of Industry Otherwise known as: Robber Barons

2. Cornelius Vanderbilt New York Transit Company Founder Significance: – Built a Railroad Empire using mergers Mergers – where a company buys out a similar company to make the company larger, more profitable, and eliminate competition – First to use “Robber Baron” techniques to eliminate competition.

3. Robber Baron 1.A business owner who will use ruthless tactics to eliminate his competitors 2.A business owner whose employees are not well paid, have long hours and unsafe working conditions to achieve number one above.

4. Andrew Carnegie Carnegie Steel Company Significance: Used Vertical Integration – Bought out the suppliers to his company to: Lower the costs of production ( make products for less money which will increase profits) Control competitors access to raw materials and transportation and other services needed to make and market(sell) steel. - Philanthropist – he gave away 90% of his fortune

5. Vertical Integration

6. John D. Rockefeller Standard Oil Company Founder Significance: – Used Horizontal Integration- this is merging separate similar companies who produce similar products under TRUST agreements and running them as one large corporation. Stocks from the separate companies are turned over to the trustees in a holding company – THIS CREATES A MONOPOLY – A trust is a relationship where property is held by one party for the benefit of another. In this case the holding company holds the stock for the benefit of the owner of the smaller companies.

7. Horizontal Integration

8. Both Carnegie and Rockefeller did horizontal and vertical integration

9. J.P. Morgan J.P. Morgan and Company Founder Significance: Banker to the Captains of Industry Industry – His company financed (gave loans) to companies for mergers – He created holding companies. He had the idea and his company handled all the paperwork to create these companies. A holding company is a parent corporation that owns enough voting stock in another company to control its policies and management. A holding company exists for the sole purpose of controlling another company rather than produce a good or service. Another name for this is a TRUST.

10. Diagram of a Holding Company

11. All Robber Barons influenced politicians to pass law benefitting their corporations

12. Working for a Robber Baron meant long hours, low pay and unsafe conditions

13. Vertical or Horizontal Integration?

14. HORIZONTAL These are all media companies

15. Captain of Industry or Robber Baron?

19. Captains of Industry or Robber Barons? Who is their audience?

20. Robber Barons!! Their workers The middle class The Federal Government

21. Who was Anderson Cooper’s Great Grandfather?

22. Vanderbilt!!!