1. For some, it seemed as if everything was layered in gold
The Gilded Age
For some, it seemed as if everything was layered in gold

2. "Survival of the Fittest"
NOTES on Rise of Trusts
"You can't have two
number 1's, that's 11"
"Survival of the Fittest"

3. Trusts: separate companies controlled by a single board

4. Trusts: separate companies controlled by a single board
Monopoly: a trust that has exclusive control over an entire industry
Robber Baron: person who became wealthy by unethical means
Captain of Industry: an innovative entrepreneur who positively influenced society

5. Cornelius Vanderbilt: steamboating and railroads
Loss Leader – charges less than it costs, but makes profit elsewhere
Legacy: $100 million
$95 million to son
$1 million to Vanderbilt University

6. John Rockefeller: Standard Oil
Horizontal Integration: ally with companies in same industry
i. Controlled 90% of oil industry
Legacy - $900 million** Richest man in the US
Gave away $500 million
Gave away $10,000 in dimes

7. Oil Tycoon: Robber Baron?

8. Andrew Carnegie: US Steel
Vertical Integration – ally with producer of raw materials and distributor of finished goods
Legacy: $400 million
gave $350 million to charity
Gospel of Wealth: book which advised people to make what they need  give the rest to the community
Est free libraries – everyone = access to education

9. JP Morgan: banking
“Morganization” – buys failing companies, reorganizes them into one successful company
Legacy
JP Morgan & Company
loaned gov’t $65 mill to help restore confidence in the nation’s finances
Bequeathed (left) large art collection to the Metropolitan Museum of Art

10. Morgan’s role in the economy was perceived as larger than the Federal Government

12. What does the government say? …. We need to step in …
Interstate Commerce Commission –oversee RR operations
1st regulation of US businesses
Sherman Antitrust Act
Outlaws monopolist trusts
Gov’t does not recognize unions as a result