1. Captains of Industry American economy ran on oil American economy ran on oil –Steel was its backbone Two Giants Two Giants –John D. Rockefeller – oil –Andrew Carnegie – steel Would later be known as Robber Barons Would later be known as Robber Barons

2. Standard Oil Trust John D. Rockefeller – The Early Years John D. Rockefeller – The Early Years –Saved money early on –Chose to invest in oil refining instead of drilling –Too much competition among small producers

3. Standard Oil Trust Standard Oil Becomes a Giant Standard Oil Becomes a Giant –Gained control of over 90% of the nations oil refineries –Used rebate on freight charges Give all shipping if they would secretly charge less Give all shipping if they would secretly charge less Caused other refineries to shut down Caused other refineries to shut down –Expanded vertically by gaining control of oil fields –Companies kept old names –Controlled shipping of oil to Europe –Manufactured stoves in increase demand for kerosene –Many people resented methods Standard Oil used

4. Standard Oil Trust Following Standard Oils lead Following Standard Oils lead –Horizontal companies created monopolies –Vertical companies resulted in lower prices Common form of business Common form of business Business Tactics Exposed Business Tactics Exposed –1903 – McClures Magazine revealed secret deals –Rockefeller admitted no wrong doing

5. Master of Steel Andrew Carnegie Andrew Carnegie –Immigrated from Scotland –Worked a low wage job –Grew with the railroad –Invested earnings with iron companies

6. Master of Steel Another Giant is Born Another Giant is Born –Steel industry changed, required large amounts of capital to survive –Carnegie found best technical and scientific experts to make steel –Combined all processes into a vertical combination –Controlled steel mills, iron ore deposits, fleets of ships, railroads, factories Crushing Labor and Gobbling the Competition Crushing Labor and Gobbling the Competition –Made ablest people in industry partners –Promoted workers –Still drove wages down and hours up

7. Social Darwinism Great industrialists used theory to justify their actions Great industrialists used theory to justify their actions –Survival of the fittest Carnegie wrote the Gospel of Wealth Carnegie wrote the Gospel of Wealth –believed wealthy people should help the under privileged –Share knowledge –Sold steel properties and devoted his life to philanthropy Actions benefiting society Actions benefiting society Built libraries, improved education, promoted research Built libraries, improved education, promoted research

8. Social Darwinism Sherman Antitrust Act Sherman Antitrust Act –Public cried to stop monopolies –1888 election both parties promised action –1890 Congress passed Sherman Antitrust Act Artificial restrictions on trade and private monopolies were wrong Artificial restrictions on trade and private monopolies were wrong Did not prevent consolidation Did not prevent consolidation Not strictly enforced Not strictly enforced –Signaled large corporations to be more aware of their activities –Start for regulation of big business and industry