Vertical and Horizontal Mergers Andrew Carnegie John Rockefeller J.P. Morgan

Andrew Carnegie Owned every aspect of his steel production The mines that produced the iron ore The rails that transported it to his steel mills The steel mills in Pittsburg The rails and Ships that delivered it throughout the U.S.

The entire prices charged are controlled by the costs

Carnegie owned it all

Social Darwinism Belief that all men really aren't created equal Some are destined for wealth and fame others just to be workers The rich will prevail and the poor will eventually benefit from more jobs, benevolent donations, etc from the rich

John D Rockefeller Initially acquired his wealth from grain and meat partnership Realized newly discovered oil was a way to become even richer Built an oil refinery near Cleveland Ohio He and several associates started the Standard Oil Company Persuaded several others to give him illegal refunds on cost of transporting his oil. As a result was able to lower prices to drive his competitors out of business Those who refused to give in were mysteriously the victims of destructive acts. Since buying stock in other similar companies was illegal, he formed the standard trust company

Rockefeller practiced horizontal consolidation to create his monopoly Practice of many businesses in the same industry being joined together. A trust is simply many business being run by a board of directors, incidentally Rockefeller controlled these board members.

Standard oil company

J.P.Morgan Banking was his game He practiced horizontal consolidation with the banking industry President Roosevelt attacked the trusts, and the Sherman Anti-Trust Act was initiated He acquired so much wealth from banking he was able to loan the United States money during a recession Consequently President Roosevelt eased his attacks on the trusts. He was also able to acquire Carnegie Steel. Arguably one of the richest men of his time.