Captains of Captains of IndustryIndustry

or Robber Barons

Captain of Industry – person who Captain of Industry – person who builds a huge business and helps builds a huge business and helps

society.society.

Robber Baron – people Robber Baron – people that get ahead in business that get ahead in business by shutting off all by shutting off all competition, mainly using competition, mainly using illegal practicesillegal practices

I. Andrew Carnegie - SteelI. Andrew Carnegie - Steel

• A. Management – efficientA. Management – efficient• 1. Tried to make good products 1. Tried to make good products

cheaplycheaply• 2. kept accurate records of 2. kept accurate records of

eveythingeveything• 3. Hired smart people, let them 3. Hired smart people, let them

buy stock and rewarded them for buy stock and rewarded them for efficiencyefficiency

B. Business B. Business

• 1. Cutthroat – wanted to control 1. Cutthroat – wanted to control the entire steel industrythe entire steel industry

• - Vertical Integration – - Vertical Integration – controlling all aspects of the controlling all aspects of the industryindustry

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

C. By 1901, he produced 80% C. By 1901, he produced 80% of the steel in the U.S.of the steel in the U.S. • Gave away over $500 millionGave away over $500 million• that would be $11.6 billion that would be $11.6 billion

todaytoday• - obviously, he made A LOT of - obviously, he made A LOT of

money – about $25 million per yearmoney – about $25 million per year• That can get a fella a pretty nice That can get a fella a pretty nice

househouse

Andrew Carnegie

Staircase

Music room

Dining Room

In your books . . .In your books . . .

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

In contrast, the homes of In contrast, the homes of Carnegie’s workersCarnegie’s workers

II. Cornelius Vanderbilt – II. Cornelius Vanderbilt – Steamboats, RailroadsSteamboats, Railroads

• A. Controlled the steam boat A. Controlled the steam boat industry until selling out in 1863.industry until selling out in 1863.

• By then he was worth $40 By then he was worth $40 million ($770 million now)million ($770 million now)

• B. Invested in Railroads and made B. Invested in Railroads and made more money more money

Vanderbilt

Bedroom

Dining room

Vanderbilt summer cottage

Vanderbilt childrens’ cottage

III. John D. Rockefeller - OilIII. John D. Rockefeller - Oil

• A. Joined oil companies together in A. Joined oil companies together in Trusts – all shared profits – illegalTrusts – all shared profits – illegal

• B. Standard Oil Company controlled 90% B. Standard Oil Company controlled 90% - 98% of the nation’s oil- 98% of the nation’s oil

• - Had great political power- Had great political power• C. Treated everyone badly – employees, C. Treated everyone badly – employees,

competitors, etc.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 Rockefeller

Robber Baron or Captain of Robber Baron or Captain of Industry handoutIndustry handout

IV. J.P. Morgan - bankingIV. J.P. Morgan - banking

• A. Bought the stock of companies in A. Bought the stock of companies in order to control themorder to control them

• B. Loaned money to companies, bought B. Loaned money to companies, bought their stock, put all the businesses their stock, put all the businesses together and controlled them alltogether and controlled them all

• - - example – bought the RR tracks – example – bought the RR tracks – didn’t even have to buy the RR didn’t even have to buy the RR companies – they couldn’t travel without companies – they couldn’t travel without the tracksthe tracks

• C. INCREDIBLE wealthC. INCREDIBLE wealth• D. Bought Carnegie Steel for $500 D. Bought Carnegie Steel for $500

millionmillion• Made it bigger – it became Made it bigger – it became

the first Billion dollar companythe first Billion dollar company

What point is this cartoon making?

Morgan