Industrialists of the late 1800s Were they Captains of Industry (shiny) or Robber Barons (rusty)?

Slide 1 Watch the clip Robber Barons and the Industrial AgeRobber Barons and the Industrial Age As you watch, complete your evidence/interpretation section on your notetaker (first 5 minutes only)

2 Andrew Carnegie: Background Organized Carnegie Steel Company Used vertical integration – owned all businesses needed to produce and distribute steel (bought his own iron and coal companies) By 1900, Carnegie Steel produced more of the metal than all of Great Britain. Self-made man who went from rags to riches

3 Carnegie: Contributions & Criticisms “The man who dies rich dies disgraced.” He spent much of his fortune on establishing over 2,500 public libraries and supporting colleges. He gave away $350 million during his life. Advocated The Gospel of Wealth: wealthy Americans should engage in philanthropy to “help the poor help themselves.” His almost complete control over the steel industry created an unethical monopoly that eliminated the competition. Exploited his workers by paying them low wages Undercut labor unions, union buster

4 John D. Rockefeller: Background Standard Oil Company was the nation’s largest oil refiner. Used horizontal integration – combining firms into one large corporation (smaller oil companies were purchased to become part of SOC) By 1880, SOC controlled 90% of oil- refining in the US Today, Rockefeller would be worth between $392-$663 billion (Bill Gates highest net worth was $82 billion)-

5 Rockefeller: Contributions & Criticisms funding for college for African-American women – it became Spelman College (named for Rockefeller’s in-laws who were abolitionists before the Civil War. Standard Oil made life better for most – bringing products to market at low prices His business practices (monopolizing the oil industry) were unethical and an example of greedy capitalism at its worst. “The growth of a large business is merely the survival of the fittest. This is not an evil tendency in business. It is merely the working out of the law of nature and a law of God.”

6 Cornelius Vanderbilt: Background Purchased and merged 3 NY railroads –formed the New York Central (NY City to Buffalo) Extended travel between NY City and Chicago Ordered the construction of Grand Central Terminal in NYC, which gave jobs to thousands who were unemployed

7 Vanderbilt: Contributions & Criticisms Was never really interested in philanthropy while building his fortune, later in his life he did give $1 million to Vanderbilt University. (In his will he left $90,000,000 to his son William Henry, $7,500,000 to William’s four sons and relatively small remainder to his second wife and his 8 daughters!) “Law! What do I care about law? H’aint I got power?” He didn’t really play by any rules. Every time he could put the competition out of business, he did.

8 J.P. Morgan: Background Described as a coldly rational man Reorganized railroads, gained control of majority stock in rail companies Created the first billion-dollar corporation when he merged Carnegie Steel and several others (United States Steel) Controlled large portions of the financial and insurance industries

9 Morgan: Contributions & Criticisms Collector of art and books His book collection and the building that housed it in New York City are now The Pierpont Morgan Library. “I owe the public nothing” when the U.S. Treasury did not have enough gold in reserve to meet its bills, he loaned the nation $62 million

Slide 10: You Decide If you had to pick… Which side would you support? Robber Barons or Captains of Industry? Complete your note taker about these 4 industrialists after your quiz

Slide 11: Power THINK/PAIR/SHARE Why did these men have so much power? Who has power in our society? Why?