1. John D. Rockefeller & Andrew Carnegie Ch. 19.3

3. John D. Rockefeller Born in Richford, New York o 1839 Made his fortune in oil America’s first billionaire Built his first oil refinery at age 26 o Cleveland, Ohio

4. Rockefeller 1870- Organized the Standard Oil Company Horizontal Integration- Combining competing companies into one organization

5. The Standard Oil Trust Rockefeller lowered his prices to drive competitors out of business o Who does this sound like today? Persuaded railroads to give him special rates 1882 o Formed a trust by acquiring stocks in many different oil companies o Standard Oil Company became part owner of the other companies Trust: Group of companies managed by the same board of directors Rockefeller had formed a monopoly

7. Andrew Carnegie Made his fortune in steel Son of a Scottish immigrant o Began his career as a telegraph operator 1865- Invested in the Steel industry

8. Carnegie By 1890- Carnegie was the dominant figure in the steel industry Vertical Integration- His company acquired companies that provided the equipment and services he needed o Bought iron and coal mines, warehouses, ore ships, and railroads By 1900, Carnegie Steel Company produced 1/3 of the nation’s steel

9. Philanthropy Philanthropy: Use of money to benefit the community Rockefeller and Carnegie used their fortunes to: o Found schools, universities Carnegie: o Built Carnegie Hall- Famous concert hall in New York City o 2,000 libraries Rockefeller: o Founded the University of Chicago o Founded New York’s Rockefeller Institute for Medical Research

12. Monopolies 1889- Some states pass laws to allow businesses to form monopolies Many Americans admired large businesses, but some thought lack of competition hurt consumers 1890- Sherman Antitrust Act o Prohibits trusts and monopolies o Ineffective in its early years