For some, it seemed as if everything was layered in gold The Gilded Age For some, it seemed as if everything was layered in gold

"Survival of the Fittest" NOTES on Rise of Trusts "You can't have two number 1's, that's 11" "Survival of the Fittest"

Trusts: separate companies controlled by a single board

Trusts: separate companies controlled by a single board Monopoly: a trust that has exclusive control over an entire industry Robber Baron: person who became wealthy by unethical means Captain of Industry: an innovative entrepreneur who positively influenced society

Cornelius Vanderbilt: steamboating and railroads Loss Leader – charges less than it costs, but makes profit elsewhere Legacy: $100 million $95 million to son $1 million to Vanderbilt University

John Rockefeller: Standard Oil Horizontal Integration: ally with companies in same industry i. Controlled 90% of oil industry Legacy - $900 million** Richest man in the US Gave away $500 million Gave away $10,000 in dimes http://www.hispanicbusiness.com/news/2010/3/11/carlos_slim_son_of_a_mexico.htm

Oil Tycoon: Robber Baron?

Andrew Carnegie: US Steel Vertical Integration – ally with producer of raw materials and distributor of finished goods Legacy: $400 million gave $350 million to charity Gospel of Wealth: book which advised people to make what they need  give the rest to the community Est free libraries – everyone = access to education

JP Morgan: banking “Morganization” – buys failing companies, reorganizes them into one successful company Legacy JP Morgan & Company loaned gov’t $65 mill to help restore confidence in the nation’s finances Bequeathed (left) large art collection to the Metropolitan Museum of Art

Morgan’s role in the economy was perceived as larger than the Federal Government

What does the government say? …. We need to step in … Interstate Commerce Commission –oversee RR operations 1st regulation of US businesses Sherman Antitrust Act Outlaws monopolist trusts Gov’t does not recognize unions as a result