Big Business

Industries and Businesses grew after the Civil War

RAILROADS J.P. Morgan Cornelius Vanderbilt

Holding Company J.P. Morgan very successful banker The Rise of Big Business Holding Company J.P. Morgan very successful banker Bought Carnegie Steel in 1901 for $500 million Changed name to US Steel Became the largest business organization

OIL J.D. Rockefeller

STEEL Andrew Carnegie J.P. Morgan

AT&T Alexander Graham Bell

GENERAL ELECTRIC J.P. Morgan Thomas Edison

Westinghouse Electric Corporation George Westinghouse

Singer Sewing Machines

These companies became BIG !!! HOW?

Richest Men in American History (Take into account inflation) Rockefeller (3x Gates) Carnegie Vanderbilt Astor Gates Top Three are from the Gilded Age Astor is pre-Civil War

New Theory that explained these successes SOCIAL DARWINISM New Theory that explained these successes The strongest, most intelligent, hardest-working, creative people become the leaders in society

Many industries merged to form huge trusts or monopolies.

“Robber Barons” Many of these businessmen formed monopolies and dominated their industries by using unfair/dirty business practices

Philanthropists Vanderbilt University Carnegie Melon University Many donated their huge fortunes to form colleges, museums, libraries, etc. Carnegie Hall

Sherman Anti-trust Act, 1890 Gov’t tried to control these men with this law Made it illegal to form a trust that interfered with free trade Hard to enforce Monopolies continued President Benjamin Harrison

Why didn’t the government try harder to control them? Why are monopolies bad? Why didn’t the government try harder to control them?

S E C T I O N 3 Big Business and Labor GRAPH HOME ASSESSMENT 2. Do you think that the tycoons of the late 19th century are best described as ruthless robber barons or as effective captains of industry? Think About: • their management tactics and business strategies • their contributions to the economy • their attitude toward competition ANSWER continued . . .

“Barons”—exploitation of workers; greed; personal gain “Captains”—philanthropy; national commerce; jobs

S E C T I O N 3 Big Business and Labor GRAPH HOME ASSESSMENT 3. Does the life of Andrew Carnegie support or counter the philosophy of Social Darwinism? ANSWER continued . . .

Support: Carnegie well-suited to his society; caused his success Counter: advantages beyond Carnegie’s personal qualities