1. The Rise of Big Business
An Industrial Society
Chapter 20, Section 3

2. Essential Questions
Should private businesses and corporations have the right to run their businesses how they see most “fit”? Why or why not?
What should be the roll of a government during a time of great wealth for a few, and much poverty for many?

3. Jay Gould Jay Gould was a Robber Barron Robber Barron:
Was in the Railroad Industry
Worth $77 Million in 1892
Robber Barron:
Business Leader Who Becomes Wealthy Through Dishonest Methods
Jay Gould Used Illegal Methods to Become Rich:
Bribing Officials
Selling Fake Stock

6. How to Raise Investment Capital?
Most Businesses in the 1800’s were Owned by 1 Person
Businesses Owners Wanted to Buy New Equipment & New Technologies (Factory Equipment) Very Expensive!
How Can You Raise Investment Capital? (Story of Rob!)

7. Corporations
Corporations are Businesses that are Owned by Multiple Investors
Owner of Business Sells Shares of Stock (Part of the Business) to Investors to Raise Investment Capital
George Steinbrenner

8. A Sample Share of Stock

9. Advantages of Corporations vs. Private Businesses
Corporations Can Raise Large Amounts of $$$ Money by Selling Stock
A Corporation Continues After Its’ Founders Die (President, Vice Presidents, Etc…) Banks are MORE Likely to Lend to Corporations then Private Businesses
If a Corporation Goes into Debt, Investors (Stock Holders) DO NOT have to Pay the Debt! Safer to Invest

10. John D. Rockefeller Most Famous Robber Barron in U.S. History!
Had a Monopoly on the OIL Industry!
You MUST Know John D. Rockefeller!
His Company Was Called Standard Oil!

11. Monopoly
A Monopoly is a Company that WIPES OUT its’ Competitors & Controls an Industry
Purpose of the Game is to Have All the $$$ and Bankrupt Your Opponents! Charge High Rent!
Monopolies Have the Only Product, They Charge High Prices $$$
Ah Pizza & Espizitos
Rockefeller Had a Monopoly on the Oil Industry!

12. Rockefeller’s Strategy
Put His Competitors Out of Businesses!
Rockefeller Built Oil Refineries Around the United States
Made Secret Deals with Railroads to Carry His Oil at Lower Rates than his Competitors
Built and Purchased His Own Pipelines to Carry Oil (Did Not Have to Pay Rent)

14. Rockefeller Formed the Standard Oil Trust
A Trust is a LEGAL (In 1882) Body Created to Hold Stock in Many Companies in the SAME Industry
Rockefeller Purchased Stock in All the Other Oil Companies in U.S. in 1882
That Way He Had Ownership of All Oil Companies! (A Monopoly!)
What Would Steinbrenner Do if He Had Red Sox Stock?

16. Price of Gasoline
By 1880, Rockefeller Controlled 95% of All Oil Companies in the U.S.
Rockefeller Raised the Price of Oil!
Americans Couldn’t Get Oil Anywhere Else!
Standard Oil Earned Hundreds of Millions of $$$ Dollars

18. Other Trusts Formed
Trusts Formed in the Sugar, Cottonseed, & Lead Mining Industries
It Was Legal!
Americans Got Screwed!
Had to Pay High Prices!
U.S. Government Did Nothing About It!

22. Andrew Carnegie Andrew Carnegie Had a Monopoly in the STEEL Industry
Differed From Rockefeller
Created a Monopoly & Beat His Competition by Making a Better & Cheaper Product
Company Was Called U.S. Steel

23. Andrew Carnegie
Sought to Control All of the Processes Related to the Making of Steel
Bought the Mines That Supplied the Iron Ore to Make Steel
Bought the Ships & Railroads that Carried Iron Ore to Carnegie Steel Mills

24. Philanthropists People Who Give Large Amounts of Money to Charities
Rockefeller and Carnegie Gave Away Hundreds of Millions of Dollars
Why???

25. Rockefeller John D. Rockefeller Gave Away Over $500 Million
Donated to University of Chicago & NYU
Rockefeller Center
Rockefeller Estate

26. Carnegie Andrew Carnegie Gave Away Over $350 Million Dollars
Carnegie and Mellon University (Engineering School)
Built Hundreds of Public Libraries

27. Duh… Carnegie Hall

29. The Gilded Age
What Do These 2 Images Tell You About Life During the Gilded Age?
Why Did Mark Twain Call the Late 1800’s The Gilded Age?
What Does it Mean to Gild Something?

30. The Gilded Age (Late 1800’s)
To Gild Something is to Cover it With Gold
Mark Twain Wrote The Gilded Age: A Tale of Today
What Was Mark Twain Trying to Say About U.S. Society During the Late 1800’s?
Wrote About Great Disparity Between Rich & Poor
Corruption in Government
Poverty

31. In the South (1860-1914) After the Civil War, Slaves Were Freed!
YIPPEEEEEEE!
Former Slaves/Poor Whites:
No Job
No Education
No House
No Food
No $$$
Screwed!
Turned to Sharecropping

32. Sharecropping
The Southern States Stayed Agricultural (Farming) for the Most Part After the Civil War
Former Slave Owners Had Large Plantations, But NO Workers
Hired Poor Whites & Former Slaves to Work the Fields
Rented the Land to the Workers – Workers Had to Pay in Crops

33. Sharecropping
As a Sharecropper, You Rented a Piece of Land from a Landowner
You Had to Pay For:
Land That You Rented
Tools/Equipment
Seeds to Plant
Housing
Food
*** Very Similar to Slavery, EXCEPT You Had a Choice!

34. Essential Questions
Should private businesses and corporations have the right to run their businesses how they see most “fit”? Why or why not?
What should be the roll of a government during a time of great wealth for a few, and much poverty for many?