1. *In response to a video clip, “The Men Who Built America 2 of 8 Oil Strike” about John D. Rockefeller” answer accompanying worksheet …
Rockefeller Video -
** Entrepreneur …
** Laissez-faire …
** Capitalism …
** Monopoly …

2. How were these men successful?
Generalizations?

3. Important Concepts - Capitalism
- An economic system in which private individuals own property, goods, and resources, and they control the “means of production”. Prices for goods and what is produced is determined by “supply & demand.”

4. Captains of Industry John D. Rockefeller
How were these men successful?
(1839 – 1937)
“Job Day” – Sept. 26, 1855
1859 – America’s first oil well was drilled in Titusville, Pennsylvania
1866 – “train crash” & later meeting w/ Vanderbilt
1870 – founds Standard Oil
1872 – “the Cleveland Massacre” – take-over to “control” 90% of oil refinery business
1882 – reorganized under the “Standard Oil Trust”
John D. Rockefeller

5. Consolidation of Big Business
Merger … “general combining of two or more companies …”
Corporation … “protected by law as one person …”; can issue stock
Stock … “a financial investment in a corporation …”
Economies of scale …
“cost advantages …”

6. Consolidation of Big Business
Vertical integration … “the supply chain of that company is owned by that company …”
Andrew Carnegie …
Horizontal integration … “a company acquires like assets …”
John D. Rockefeller …
Cornelius Vanderbilt …
Trust … “or a corporate trust; formed to get around monopoly laws …”

7. Economic Benefits
Citizens increasingly became wage earners instead of farmers
GNP per capita more than doubled

8. Captains of Industry Cornelius Vanderbilt
How were these men successful?
(1794 – 1877)
1817 – ferry boat captain
1820’s – goes into business on his own
1850’s – supports the California Gold Rush
1860’s – shifts focus to railroad industry
1869 – “Horizontal Integration” … forms “New York Central”
1871 – builds New York’s Grand Central Terminal
1873 – extends control of railway routes connecting New York City to Chicago
Cornelius Vanderbilt

9. Captains of Industry Andrew Carnegie How were these men successful?
(1835 – 1919)
1847 – works as a “bobbin boy” then as a telegraph operator
1849 – “secretary” to Thomas Scott
1859 – division superintendent
1865 – “Vertical Integration” … begins telegraph company & iron bridge building company
1870 – begins first steel factory, near Pittsburgh (Homestead, PA)
1870’s – 1890’s – enters the steel business & becomes the dominant force in the industry
1875 – “How?” begins “Bessemer Process” in U.S.
1901 – sells Carnegie Steel to J.P. Morgan
Andrew Carnegie