Captains of Industry or Robber Barons: Gilded Age - Progressive Age Created by Ron Gorr – AP History and adapted by Phil Roiko – Air Academy High

Steel Industry The turn of the century saw steel replacing __________ as the building material of choice. It was stronger and it lasted longer. Buildings could be taller, ships could be bigger, train cars could be safer. All of these things were possible because steel was being made faster and cheaper Andrew ______________ became very wealthy because he tapped into America’s need for steel. Carnegie wood

Andrew Carnegie ( ) Born in Scotland Moved to US in 1848 (Penn) Worked in cotton mill for 1.20 per week Climbed the ladder in the __________ industry until he was eventually able to form his own steel mill. Using ____________ Process Carnegie expanded his holdings in steel rapidly. By 1899, he controlled ___% of U.S. Steel production. Bessemer 25 railroad

Moved steel production from small mills to the gigantic steel plants. By 1880, ___% of America’s steel was produced through this process These allowed production to increase, and profits to rise Carnegie could use his wealth to undersell competition. These also put ________ companies out of business. Andrew Carnegie and the __________ Process Sir Henry Bessemer and William Kelly Created process by which steel could be made faster and _____________. (1850’s) Was more expensive and required a lot of money to buy Bessemer Converters. Bessmer Converter stronger 90 small

Andrew Carnegie (cont) As Carnegie expanded his steel empire, he began to incorporate more efficient manufacturing strategies. _____________ Consolidation: In addition to owning the steel mills, Carnegie purchased the _____ ore fields, the _____ lines that transported it, the ships that moved it, and the transport network necessary to bring finished steel to the market. In short, he controlled every level of the steel making process. “Napoleon of the ___________________” This allowed him to regulate costs and lower the price that it cost him to produce steel. (Thereby making more profit) By 1873, Carnegie Steel Company had become the premier Steel Producer in America. Vertical ironrail Smokestacks

In 1901, Carnegie sold his steel interests to the U.S. Steel Company (Still producing today) for ___ million dollars. He dedicated the rest of his life to _____________ and improving America. He preached the obligation of the wealthy to return their money to the societies where they made it. "The man who dies ___, dies disgraced.” By his death in 1919, Carnegie had donated almost 350 million dollars. Carnegie _____ (1892) in New York City, Carnegie Institute of Washington (1902) Carnegie Foundation for the Advancement of Teaching (1905) Carnegie Endowment for International Peace (1910) Carnegie also funded the building of over 2,800 ________________ worldwide. $250 rich Hall libraries charity

“This, then, is held to be the duty of the man of wealth: first, to set an example of modest unostentatious living, shunning display; to provide moderately for the legitimate wants of those dependent upon him; and, after doing so, to consider all surplus revenues which come to him simply as trust funds which he is strictly bound as a matter of duty to administer in the manner which, in his judgment, is best calculated to produce the most beneficial results for the community.” Carnegie - __________of Wealth Gospel

_______________, John Pierpont John Pierpont was educated in Boston Father was wealthy financier 1857: became an accountant and eventually rose to the head of his father company. J.P. Morgan and Company (It grew to be one of the largest banking houses in the world) Most of his money came from _______________ money and charging interest. By the 1880’s, Morgan began to reorganize the railroad road industry. In most cases, he helped major rail lines avoid bankruptcy and other problems ( ) Morgan loaning

In the process of helping some of the largest rail lines avoid ______________, Morgan worked his way on to their Board of Directors By gaining control of much of the stock of the railroads, insurance companies, and banks that he reorganized, he became one of the world's most powerful industry magnates, controlling about _________ miles (8,000 km) of American railroads by Morgan, John Pierpont (cont.) “Jupiter” Morgan bankruptcy 5000

Morgan, John Pierpont (cont.) Because Morgan had such powerful influence over some of the largest companies in the U.S., many people __________him and felt that he had obtained almost dictatorial control. Donated to: ______________ (artwork) Cathedrals and ___________ Hospitals After his death in 1913, much of his artwork was given to the _____________ Museum of Art and his private library was made public in Metropolitan churches Museums distrusted

________________, Cornelius ( ) Born in Staten Island, New York Entered __________ business in 1818 Bought first steamship in 1829 Built large fleet of ships and eliminated competition by drastically _____________ rates until newer companies could not compete. When he had the _____________, he could set price at what ever he wanted Competition paid him to move elsewhere. Steamship and Railroad industry Vanderbilt monopoly lowering Steamboat

Vanderbilt, Cornelius (cont.) By 1846, Vanderbilt had become a wealthy man Using the Gold Rush “49rs” he ran a rail / sea line to California. Eventually ran steamers across the oceans. 1862, Vanderbilt sold Steamboat interests and put money into _________________ By 1867, he controlled the N.Y. Central. Began using Steel rails, and standard gauge. Late in life, he donated millions of dollars to charities and worthy causes. _________ University (Nashville, Tenn.) Worth over $100 million upon death in 1877 Railroads Vanderbilt

_______________, John D. - Oil Industry Born in New York, educated in Cleveland, Ohio Hard worker, even as a boy. (Bought candy at the store and sold it for a profit ) 1862, Rockefeller was hired to survey an area of land for potential oil drilling. Rockefeller reported that the land was poor, and then promptly bought it and began drilling for oil He named his company The _____________ Oil Company Rockefeller Standard

The Standard Oil Company grew rapidly under the shrewd control of Rockefeller. ______________ Consolidation: Buy out all competitors in a market. (Monopoly) Using ___________, and other questionable business practices, Standard Oil gained control of ____% of the Oil Refineries in the U.S. (1887) 1882, Standard Oil Trust was formed bringing ____companies under the control of Rockefeller and 9 trustees. Supreme Court dissolved his Trust, calling it an illegal monopoly. He had become a very rich man too. Rockefeller, John D. (cont) As a boy, Rockefeller saved over $800 (on $15 per week) in just three years. Horizontal Rebates 90 40

Rockefeller was a major shipper of oil on the RR’s. 1872, he secretly negotiated ____________ shipping prices for his oil. (Competitors still paid higher shipping rates). (His rates were % lower) He would pay the regular rate for shipping and then the RR would send him a _______. (The other oil companies did not get the rebate). This unfair competition forced most of the other oil companies to sell their holding to Standard Oil After three months of public protest, the RR companies and Rockefeller cancelled their deal. By 1878 Standard Oil also owned the major refineries in New York City; Pittsburgh, Pennsylvania; and Philadelphia, Pennsylvania. Rockefeller and Rebates cheaper rebate

Rockefeller’s personal fortune was estimated at _______________ dollars Felt that _____ would reward those who he had chosen for greatness. Social ___________________ Rockefeller donated over 550 million dollars throughout his life. _______________ Foundation The General Education Board Rockefeller Institute for ________ Research Rockefeller, John D. (cont) 1 billion God Darwinism Rockefeller Medical

______________ Cars George Pullman George __________ designed, created and sold Pullman Rail cars. By 1865, business was booming (Lincoln’s Funeral) Developed ___________ cars, dining cars, passenger / sleeper cars. Comfort and style = paramount Amassed huge fortune by selling to wealthy Factory located in Pullman, Illinois Pullman, IL was built by Pullman for his workers Pullman ____________ will occur in 1894 and is used as benchmark for ______________ Relations in America The Pullman Company, owned by George Pullman, manufactured railroad cars, and by 1894 it operated "first class" sleeping cars on almost every one of the nation's major railroads. The name Pullman was a household word. The Illustrated American (July 14, 1994: 65) Pullman Strike Labor luxury

Industrial Control of America Throughout the Gilded Age, America was dominated by big business. Carnegie, Rockefeller, Vanderbilt and Morgan wielded enormous amounts of power and no ______________ wanted to challenge them. Each of these men had a strong influence on their workers and who their workers ______________ for. Lobbyists used money to achieve political power Politicians were at the mercy of the industry leaders. Laissez-Faire Economic policy. Led to __________________ of workers and consumers _______ labor, long hours, no workman’s ________________ for injuries, low safety standards, limited pollution controls, price fixing, pooling, monopolies, etc…. voted President exploitation compensationchild

“Reckefella” – “Rule or Ruin” – Operate”just to the windward of the law!”

There is not a poor person in the United States who was not made poor by his own shortcomings. Reverend Russell Conwell “The fruits of the toil of millions are boldly stolen to build up colossal fortunes for a few…. And the possessors of these, in turn despise the Republic and endanger liberty. From the same prolific womb of governmental injustice, we breed the two great classes- tramps and millionaires.” Populist platform 1892