Presentation on theme: "The Rise of “Big Business”"— Presentation transcript:
1 The Rise of “Big Business” 1870-1900 What led to the growth of corporations and monopolies in the late 19th century?Who were major industrialists during this period?How did these businesses affect American economics, politics, and social relationships?
2 The Gild The Boldt Castle The Astor Family Breakers of the Vanderbilt FamilyThe Mount of Edith WhartonLockwood-Mathews Mansion
3 “Big Business”Monopolies (trusts): Companies that controlled the majority of one industry:Rockefeller’sStandard OilCarnegie’s U.S. SteelVanderbilt’s railroadsTrusts -A group of separate companies placed under the control of a single managing boardCritics called these practices unfair and the business leaders “Robber Barons”
4 Rationalizing Big Business Social DarwinismUsed Darwin’s theory to explain business, promoted by Harvard professor William Graham SumnerNatural Selection, Survival of the FittestLaissez-faire -policy that US had followed since inception to not allow govt. to interfere with businessGovt. should not interfereSherman Anti-Trust Act of 1890Law outlawing a combination of companies that restrained interstate trade or commerce; important to prevent monopolies. Not initially enforced properly.Gospel of Wealth -belief that the wealthy are “chosen by God” to be successful and were therefore responsible to look out for the well being of those less fortunate. Many Industrialist shared wealth although rarely through direct welfare. Started museums, etc.Captains of Industry: a positive idea that industrial leaders worked hard and deserved their wealth
6 Andrew CarnegieA Scottish immigrant, Andrew Carnegie helped build the American steel industry—Carnegie Steel Co. (originally started as an ironworks foundry)1900 Carnegie Steel produced more of the metal than all of Great BritainRichest man in the world at the timeOne of the first philanthropists, gave his collected fortune away to cultural, educational and scientific institutions for "the improvement of mankind." (Gospel of Wealth)Carnegie Hall, NYCCarnegie-Mellon UniversityOver 2,500 public libraries$350 million by the time he diedCarnegie was unusual because he preached for the rights of laborers to unionize and to protect their jobs.However, Carnegie's steel workers were often pushed to long hours and low wages-- Homestead Strike of 1892
7 Building a monopoly (as described by Andrew Carnegie) Vertical IntegrationA process in which a company buys out all of the suppliers. (Ex. coal and iron mines, ore freighters, RR lines)Horizontal Consolidation-A process in which a company buys out or merges with all competing companies (JP Morgan bought out Carnegie steel and other companies)
8 The Steel Industry’s Impact on America Bessemer Process- developed around 1850 injected air into molten iron to remove impurities and make steel-a lighter, more flexible, rust resistant metalSteel is used in railroads, farm equipment, canned goodsEngineers use steel to create skyscrapers and longer bridges (Brooklyn Bridge)View Steel Industry Video
9 J.P. MorganIndustrialist and financier who started U.S. Steel from Carnegie Steel and other companiesBecame 1st billion- dollar corporationBailed out the U.S. economy on more than one occasion
11 John D. RockefellerHe was a co-founder of the Standard Oil Company, which dominated the oil industry and was the first great U.S. business trustAs kerosene and gasoline grew in importance, became the world's richest man and the first American worth more than a billion dollarsOften cited as the richest person in historyLike Carnegie, was a philanthropist under the Gospel of Wealth:An abolitionistCreator of Spelman CollegeMajor donator to the University of Chicago and other major medical universitiesOwned a large portion of real estate in Manhattan, NYC
12 Cornelius (“The Commodore”) and W.H. Vanderbilt Originally a steamboat entrepreneur, C. Vanderbilt became a railroad magnateInitially did not think his son was fit for the jobW.H. became president of Central and Hudson River Railroad, Lake Shore and Michigan Southern Railway, the Canada Southern Railway, and the Michigan Central RailroadAn active philanthropist, giving extensively to a number of philanthropic causes:Funded the Metropolitan OperaFunded College of Physicians and Surgeons at Columbia University.In 1880, he provided the money for Vanderbilt University in Nashville, Tennessee
13 "The Great Race for the Western Stakes, 1870," Cornelius Vanderbilt versus James Fisk
14 Thomas Edison (“The Wizard of Menlo Park”) An American inventor and businessman. He developed many devices that greatly influenced life around the world, including:Phonographmotion picture cameraLong-lasting electric light bulb. one of the first inventors to apply the principles of mass production and large-scale teamwork to the process of invention, and because of that, he is often credited with the creation of the first industrial research laboratory.One of the first to apply the mass production and large-scale teamwork to the process of inventionCreated the first industrial research laboratoryLater electrical genius Nicola Tesla worked for Edison and is (unofficially) credited with many of his inventions1,093 US patents in his nameInventions established major new industries world-wide:electric light/power, power utilitiessound recording, motion picturesTelecommunications: stock ticker, mechanical vote recorder, battery for an electric car, recorded music device
15 VideosThe Gilded Age“Traits of a Titan” from the History Channel’s The Men Who Built AmericaCaptains of Industry (biography.com)
Your consent to our cookies if you continue to use this website.