1. Were they Robber Barons or Captains of Industry

2.  Scottish Immigrant, textile mill worker  Telegraph and RR worker  Bought Iron Bridge company and formed Carnegie Steel Company  Incorporated new techniques and machinery  Chemists and metallurgists improved quality  Detailed accounting systems-precise tracking  Attracted talented people  Offered stock in company  Encouraged competition to increase production and low costs

3.  Vertical Integration  Bought out all suppliers ▪ Coal & iron mines, ore freighters and RR lines ▪ Controlled raw materials, transport systems and every state of manufacturing  Horizontal Integration  Attempted to buy out all competitors ▪ Similar companies merged ▪ Gained control of suppliers and competition ▪ Almost monopolized steel industry-produced 80% of all steel

4.  Homestead Strike of 1892- workers struck, 9 dead, PA national guard called, took 40 yrs. For steel workers to reorganize  Charitable contributions (90% of fortune)  Funded over 3,000 public libraries  Funded Scottish and U.S. Universities  Funded Carnegie Foundation  Funded the arts, museums, music halls

5.  Standard Oil Company  Trust- stock turned over group of trustees  Separate companies ran as one corporation  Grey area not an official merger  Total control of oil industry in U.S. (90%)  Keep profits, paid workers low wages  Sold oil lower than cost to produce to run competitors out of business  RR rebates and kickbacks- higher fees for competitors

6.  Gave $500 million to Rockefeller Foundation  $80 million to found the University of Chicago  Created a medical institute to stamp out yellow fever  Gave away more than Carnegie (325 million) vs. Rockefeller (over 500 million)

7.  Banker- controlled much of U.S. economy  Set up monopolies by creating “holding companies”  Corporation that did nothing but buy out the stock of other companies  Could then influence the running of the Co.  1901 bought out Carnegie Steel  Became the worlds largest business org.

8.  Natural selection-the economy selects out the strong and eats the week  Justified Laissez-faire economics to keep Gov. regulation out for free competitions (mortgage crisis this weekend?  4,000 millionaires came out of the Civil War  Based on individual responsibility and blame  No shame in humble beginnings, focused on opportunities to be upright, energetic, and smart. (pull yourself up by your bootstraps)