1. Captains of Industry or Robber Barons? American History 1

2. Rise of Big Business—late 1800’s  Entrepreneur  Capitalism  Laissez-faire  Social Darwinism 2 Risk-takers who begin new ventures Economic system in which most businesses are privately owned “leave alone”; little or no gov’t interference *Based on theory of natural selection *stronger people/business/nations will survive & weaker ones will fail

3. Business Tycoons  John D. Rockefeller  Standard Oil (refinery)  Implemented vertical integration & horizontal integration  By 1875—refined ½ of US oil  Andrew Carnegie  Carnegie Steel Company  By 1899—dominated US steel industry  Sold 1901 to JP Morgan  John Piermont Morgan  Private banking  Financed many industrial consolidations  Cornelius Vanderbilt  Began in shipping  Invested in railroads during Civil War  Controlled most railroads in eastern US  George Pullman  Designed & built railroad sleeper cars  1881—built Pullman (company town outside Chicago) 3

4. Captain of Industry OR Robber Baron? By 1890 —about 10% of the US population held 70% of nation’s wealth! Captain of Industry Extremely successful entrepreneur who dedicates part of his/her wealth to charitable pursuits Robber Baron Person who made enormous amounts of money in business Insulting term that implied unfair business practices & little sensitivity to common worker 4

5. Captain of Industry OR Robber Baron? John D. Rockefeller Andrew Carnegie John. P. Morgan Cornelius Vanderbilt George Pullman 5 Which one applies?