1. Big
Business

2. Industries and Businesses grew after the Civil War

3. RAILROADS
J.P. Morgan
Cornelius Vanderbilt

4. 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

5. OIL
J.D. Rockefeller

6. STEEL
Andrew Carnegie
J.P. Morgan

7. AT&T
Alexander Graham Bell

8. GENERAL ELECTRIC
J.P. Morgan
Thomas Edison

9. Westinghouse Electric Corporation
George Westinghouse

10. Singer Sewing Machines

11. These companies became
BIG !!!
HOW?

12. 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

13. 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

14. Many industries merged to form huge trusts or monopolies.

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

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

21. 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

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

23. 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 . . .

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

25. 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 . . .

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