Captains of Industry or Robber Barons

Captain of Industry – person who builds a huge business and helps society. Robber Baron – people that get ahead in business by shutting off all competition, mainly using illegal practices

I. Andrew Carnegie - Steel A. Management – efficientA. Management – efficient 1. Tried to make good products cheaply 1. Tried to make good products cheaply 2. kept accurate records of eveything 2. kept accurate records of eveything 3. Hired smart people, let them buy stock and rewarded them for efficiency 3. Hired smart people, let them buy stock and rewarded them for efficiency

B. Business 1. Cutthroat – wanted to control the entire steel industry 1. Cutthroat – wanted to control the entire steel industry - Vertical Integration – controlling all aspects of the industry - Vertical Integration – controlling all aspects of the industry

Coal mines Iron mines – these are iron pellets that will be shipped to make steel Railroads How would it help to control all of this?

- Horizontal Integration - Horizontal Integration - controlling all the steel companies (or as many as he could) - controlling all the steel companies (or as many as he could)

C. By 1901, he produced 80% of the steel in the U.S. Gave away over $500 millionGave away over $500 million that would be $11.6 billion today that would be $11.6 billion today - obviously, he made A LOT of money – about $25 million per year - obviously, he made A LOT of money – about $25 million per year That can get a fella a pretty nice house That can get a fella a pretty nice house

Andrew Carnegie

Staircase

Music room

Dining Room

In your books... Page 448 – read about Social Darwinism – what does it mean? Put the definition in your notes

In contrast, the homes of Carnegie’s workers

II. Cornelius Vanderbilt – Steamboats, Railroads A. Controlled the steam boat industry until selling out in 1863.A. Controlled the steam boat industry until selling out in By then he was worth $40 million ($770 million now) By then he was worth $40 million ($770 million now) B. Invested in Railroads and made more moneyB. Invested in Railroads and made more money

Vanderbilt

Bedroom

Dining room

Vanderbilt summer cottage

Vanderbilt childrens’ cottage

III. John D. Rockefeller - Oil A. Joined oil companies together in Trusts – all shared profits – illegalA. Joined oil companies together in Trusts – all shared profits – illegal B. Standard Oil Company controlled 90% - 98% of the nation’s oilB. Standard Oil Company controlled 90% - 98% of the nation’s oil - Had great political power - Had great political power C. Treated everyone badly – employees, competitors, etc.C. Treated everyone badly – employees, competitors, etc. - did give away over $500 million - did give away over $500 million

Rockefeller’s house Just kidding

Rockefeller

Aerial view of Rockefeller’s estate

Rockefeller Robber Baron or Captain of Industry handout

IV. J.P. Morgan - banking A. Bought the stock of companies in order to control themA. Bought the stock of companies in order to control them B. Loaned money to companies, bought their stock, put all the businesses together and controlled them allB. Loaned money to companies, bought their stock, put all the businesses together and controlled them all - example – bought the RR tracks – didn’t even have to buy the RR companies – they couldn’t travel without the tracks - example – bought the RR tracks – didn’t even have to buy the RR companies – they couldn’t travel without the tracks

C. INCREDIBLE wealthC. INCREDIBLE wealth D. Bought Carnegie Steel for $500 millionD. Bought Carnegie Steel for $500 million Made it bigger – it became the first Billion dollar company Made it bigger – it became the first Billion dollar company

What point is this cartoon making?

Morgan