The Robber Barons or Captains of Industry?

Andrew Carnegie Made use of the Bessemer Process. Carnegie Steel Corporation Made use of the Bessemer Process. Used Vertical integration to buy out all his suppliers. He would then control not only the resources but the final product. First company with market value of $1 Billion.

John D. Rockefeller Standard Oil Company Using horizontal consolidation, Standard Oil came to control 90% of market. Utilized the idea of a “trusts” to gain market share.

Cornelius Vanderbilt Railroads and Transportation Began with steamships but soon moved toward railroads in New York. Rivalry with Jay Gould Responsible for Grand Central Station

Jay Gould Competed with Vanderbilt for RR control Western Railroads Competed with Vanderbilt for RR control Never able to beat out Vanderbilt but gained control of most western RR including the Transcontinental RR.

J.P. Morgan Made a living buying stock in other companies. Banker Made a living buying stock in other companies. First major holding company founder Formed US Steel which ended up buying Carnegie Steel for $500 million.

Robber Barons? Rockefeller controlled 90% or Oil Industry Workers paid extremely low wage and drove down prices. Once he controlled the oil industry, he hiked the price up. Many claimed they built their fortunes on the back of the common worker. Labor Unions were not yet powerful enough to combat poor working practices.

Captains of Industry? These industrialists were not all about profit, many of them donated to good causes. Carnegie gave away $325 million (90% of his wealth) and founded the Carnegie Libraries as well as Carnegie Mellon University. Rockefeller gave away $500 million, funded the start up of the University of Chicago and funded a medical institute that stamped out Yellow Fever. These men also provided work for laborers who were looking for it. Without them, many would have likely been unemployed. These men help build the industrial structure we have to this day and allowed the US to become an industrial power in the world.

Key Terms of the Rise of Big Business Monopoly- when a company controls all of an industry Vertical integration- buying out suppliers to control entire process of producing goods Horizontal consolidation- a company buying out competitors Holding company- corporation with sole purpose of buying stock in other companies Trust- consolidating companies by having one large corporation headed by a Board of Trustees controlling everything.