Big Business in the Gilded Age PowerPoint Presentation Assignment

Andrew Carnegie A. How/why did this person go into business? Carnegie was an immigrant to the US who was looking for his big break. His is the quintessential “rags to riches” story. He had been an office clerk for a RR when he saw that oil seemed to be a big deal… In 1861 he formed a company that began drilling for oil This gave him the money that he needed to switch to another industry that looked promising…. Andrew Carnegie, 1913

Andrew Carnegie B. What business or industry did he go into? Right: Andrew Carnegie and other business leaders B. What business or industry did he go into? In 1875 he chartered his first steel company began using the Bessemer Process to increase production In 1878 his company won the contract to build the Brooklyn Bridge (from Manhattan Island to Brooklyn, NY) In 1892 his steel companies were all consolidated into the Carnegie Steel Company, and by 1900 company profits had jumped from $4 million to $40 million In 1901 he sold his company to banker J.P. Morgan for a record $480 million, making him the richest man in the world; his company became the centerpiece for the largest corporation of the day, U.S. Steel

Andrew Carnegie C. What business practices did his company use? Carnegie was pretty ruthless getting to the top His employees worked long hours & for as low of wages as possible Carnegie hated unions He always tried to negotiate terms that stopped unions from forming in his factories By 1892 he began breaking the unions that did form by shutting mills down. In the 1893 Homestead strike he hired 300 armed men to keep workers out.

Andrew Carnegie D. Were any of these practices intended to form a monopoly? Describe. Maybe not directly, but he did try to capture as much of the steel industry as possible by using vertical integration to integrate the steel and railroad industries. This practice allowed him to beat out his competition—and at this time monopolies were NOT illegal…

Andrew Carnegie E. What effect did his business have on other businesses in the same industry? Think of both positive and negative effects. Only a two other men became “millionaires” via the steel industry, and one of these was his earlier partner (Henry Frick). Many of the other steel industries were either bought out, or lost so much ground to the Carnegie company that they sold out.

Andrew Carnegie F. What was the response of the gov’t to this man’s business practices? Initially the gov’t stayed out—employing a “laissez faire” attitude toward most businesses of the day. By 1890, however, the Sherman Anti-Trust Act declared that any contract that formed a trust, combination or any other conspiracy to restrain trade was illegal. In regard to strikes, the government supported companies, like Carnegies, in the Homestead Strike the PA Governor sent 8,000 National Guardsmen to restore order (i.e. stand up against the strikers). The Homestead Strike, 1892

Andrew Carnegie G. Is this man a “Captain of Industry” who revolutionized & expanded business or a “Robber Baron” whose wealth was based on the exploitation of others? Carnegie was both. By today’s standards, though he did nothing “illegal,” he didn’t treat his workers as humanely as he should have & he actively sought to force other companies out of business, rather than it being a natural result of competition. He was a pretty amazing business man who had a vision that most of us will never have, or be able to accomplish. In 2001 it was still the biggest US steel producer; and the 15th largest in the world by 2014. Also, after selling his company he proceeded to follow his own “Gospel of Wealth” by giving away over $350 million to charities, including libraries, concert halls & universities Left: The Gospel of Wealth. Cartoon from Judge, 1903. New York Public Library Below: Seattle Public “Carnegie” Library, 1919 (Seattle has a total of 7 Carnegie libraries)

Bibliography List all of your sources here—with a minimum of 2 primary sources used