How did monopolies develop in the US? Types of Monopolies Monopoly-A situation in which a single company owns all or nearly all of the market for a given type of product or service. No competition!!! Cartel loose association of businesses making the same product, that agree to share certain business practices, such as same pricing. Trust (invented by Rockefeller) different businesses that agree to be run by a common Board of Trustees, who got a profit from each of the businesses they oversaw Rockefeller set up his businesses this way because the government did not allow for one company owning stock in another. How did monopolies develop in the US?

Why monopolies developed Various factors allowed for monopolies to develop and exist during the Gilded Age Government of policy of laissez-faire allowed for monopolies to develop in late 1800’s Unlimited resources Basically no early competition for the original big businessmen Technological advances in that field gave them superior advantage over any possible competition How did monopolies develop in the US?

How did monopolies develop in the US? Andrew Carnegie “American Dream” rags to riches story Scottish immigrant, worked as telegraph messenger boy, eventually bought the company, then went into steel industry Pittsburg Steel Co. Combination of Bessemer process, desperate need for steel (RR, cities), and Carnegie’s business acumen made him one of the richest men in the world In 1900, Carnegie was 66 years old, wanted to retire, forced J.P. Morgan to buy his company or he would threaten Morgan’s similar business Sold company, which Morgan renamed US Steel, for $400 million Carnegie’s share was $226 million, which translates to $120 billion in today’s dollars To put in proper perspective,,,,, Bill Gates, the richest man in the world, has a net worth of $81 billion Recent study put Carnegies wealth at $300 billion, Rockefeller $318 billion Carnegie spends retirement as philanthropist, giving away 90% of all his wealth to charity (gospel of wealth) Schools, libraries, hospitals/ the arts etc. How did monopolies develop in the US?

10 Richest Individuals All time 10. Cornelius Vanderbilt $185 billion 9. Henry Ford $199 billion 8. Muammar Gadafi $200 billion 7. William the Conqueror $209 billion 6. Jakob Fugger $221 billion 5. Mir Osman Ali Khan $230 billion And 147 kids!!! 4. Czar Nicholas II $300 billion 3. Andrew Carnegie $310 billion 2. John D. Rockefeller $318 billion 1. Mansa Musa $400 billion How did monopolies develop in the US?

How did monopolies develop in the US? John D. Rockefeller Started his 1st company at 19 years old. Eventually buys out almost all of the competition Standard Oil Company By 1870’s, Standard was refining 90% of US petroleum 2/3rds of world oil shipping!!! Creates the trust form of business Gives away ½ of his wealth throughout his life How did monopolies develop in the US?

How did monopolies develop in the US? Vanderbilt NY Central RR We already did his story How did monopolies develop in the US?

How did monopolies develop in the US? J.P Morgan Banker and consolidator JP Morgan (Chase) Bought out Edison Bought out Carnegie to form US Steel Loaned the US government $52 million of his own gold to bail out government after Panic of 1893 How did monopolies develop in the US?

Big Businessmen Quotes The growth of large business is merely survival of the fittest- Rockefeller What do I care about the law, havent I got the power?-Vanderbilt I believe with $200,000 we can get the bill we want passed- Collis Huntington RR owner The public be damned. I am working for my stockholders- William Vanderbilt Well, I don’t know if I want a lawyer to tell me what I cannot do. I hire him to tell me how to do what I want to do- JP Morgan You have undertaken to cheat me. I won't sue you, for the law is too slow. I'll ruin you. Cornelius Vanderbilt How did monopolies develop in the US?

How did monopolies develop in the US?

How did monopolies develop in the US?

How did monopolies develop in the US?