Andrew Carnegie 1899 Carnegie Steel Improved quality and cut costs

John Rockefeller Standard Oil Trust Employees paid low wages Drove out competitors with low oil prices When he controlled 90% of the oil, he then hiked up the prices

Vertical Integration Bought out all his suppliers Coal and iron mines → ore freighters → railroad lines Controlled the entire manufacturing process

FOR SALE TO CONSUMERS DISTRIBUTION REFINING TRANSPORTING DRILLING AND EXTRACTING CRUDE OIL DEPOSITS

Horizontal Consolidation Tried to buy out competing steel producers When he sold his company in 1901, it was producing 80% of the nation’s steel!

Social Darwinism and Big Business Natural selection of weeding out the weaker individuals and enabling the strong to survive Rich deserve their wealth and poor deserve to be in poverty

Robber Barons Ruthless business men who stop at nothing to achieve wealth Accused of exploiting workers, unfair labor practices, horrible working conditions

Captain of Industry Leaders who transformed the American economy with their business skills Philanthropic (charity work)

Holding Company Corporation that does nothing but buy out the stock of other companies Creates monopolies Example: JP Morgan bought Carnegie Steel in 1901 and combined it with his U.S. Steel