1. INDUSTRIALISTS A person involved in the ownership and management of an industry.

2. Format the page in your notebook like the example on the right. John D. Rockefeller Andrew Carnegie Cornelius Vanderbilt INDUSTRIALISTS Definition - Monopoly – Trust – Describe how EACH industrialist in the graphic organizer relates to a trust or monopoly. Watch the videos in this presentation and fill in the graphic organizer with notes about each industrialist.

3. John D. Rockefeller Watch the following video: http://www.history.com/topics/john-d-rockefeller/videos John D. Rockefeller became the richest man in the world in the oil business. He created Standard Oil Company. Oil began being used in all types of machines, including cars.

4. Industrialization led to a demand for oil for lubrication and kerosene lighting The oil industry during the Gilded Age was dominated John D. Rockefeller’s Standard Oil Company Rockefeller used ruthless tactics to buy out competing companies Standard Oil lowered costs and improved the quality of its oil products By 1879, Standard Oil sold 90% of the oil in America

5. …but Rockefeller gave away $500 million to charities, created the Rockefeller Foundation, and founded the University of Chicago. Rockefeller took advantage of his workers and used his fortune to influence the national government…

6. Andrew Carnegie Watch the following video: http://www.history.com/topics/andrew-carnegie Became a millionaire by creating a monopoly in the steel industry. Created U.S. Steel in Pittsburgh. Watch the following video: http://www.history.com/topics/andrew-carnegie Became a millionaire by creating a monopoly in the steel industry. Created U.S. Steel in Pittsburgh.

7. Steel led to skyscrapers, longer bridges, stronger railroads, and heavier machinery.

8. The iron and steel industries were dominated by Andrew Carnegie. Carnegie converted his mills to the Bessemer process and made the highest quality steel at the lowest price.

9. Carnegie Steel Company produced more steel than all the steel factories in Great Britain combined Carnegie best represented the American dream by rising from poor a immigrant to richest man in the world

10. Cornelius Vanderbilt Watch the following video: http://www.history.com/topics/cornelius-vanderbilt began investing in railroads during the Civil War and by 1872, owned the New York Central Railroad controlled 4,500 miles of track at height of his career supported few charities, but gave money to what would come to be Vanderbilt University died leaving an estate of $100 million Watch the following video: http://www.history.com/topics/cornelius-vanderbilt began investing in railroads during the Civil War and by 1872, owned the New York Central Railroad controlled 4,500 miles of track at height of his career supported few charities, but gave money to what would come to be Vanderbilt University died leaving an estate of $100 million

11. Monopolies AND Trusts

12. What is a MONOPOLY? A single seller of a product (good or service). –Monos: single, alone –Polo: to sell

13. Competition  the rivalry of two or more parties  What are the consequences of eliminating competition? Inferior Goods and Services Less Innovation Higher prices Elimination of small businesses

14. There are two runners in a race, and both are competing to win the race and get the prize. The two runners run as fast as they can competing for that prize. They train for months; they invest in good running shoes and aerodynamic clothing; they pace themselves with precision during the race—all these efforts to beat the other runner and win the prize. ANALOGY

15. Now think of two competing companies as those runners. They are competing for YOUR money! The prize the companies get for “winning” is a greater share of the market (more money and business). Those two companies are going to do everything they can to win and that includes making better products and selling them at a lower price.

16. Trusts a combination of businesses whose intent is to diminish competition (monopolize business) Standard Oil Trust - first well-known trust Companies assign their stock to a board of trustees, who combine them into a new organization. The trustees run the organization, paying themselves dividends on profits.

17. Trusts (Monopolies) Trust Tactics: Buy outs Price undercuts Long-term customer contracts Forced customer purchases Intimidation and violence Famous Trusts - Standard Oil, US Steel, American Tobacco Company