Industrial Giants: Robber Barons Or Captains of Industry - PowerPoint PPT Presentation

Loading...

PPT – Industrial Giants: Robber Barons Or Captains of Industry PowerPoint presentation | free to view - id: 1cfb6-Mjg3Z



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Industrial Giants: Robber Barons Or Captains of Industry

Description:

Industrial Giants: Robber Barons Or Captains of Industry – PowerPoint PPT presentation

Number of Views:3142
Avg rating:5.0/5.0
Slides: 47
Provided by: Work145
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Industrial Giants: Robber Barons Or Captains of Industry


1
Industrial Giants Robber Barons Or Captains of
Industry?
2
Robber Barons
  • Business leaders who treated workers with little
    regard
  • They drove out competition with unscrupulous
    practices (though not illegal at the time)
  • Laissez Faire led to doctrine of Social
    Darwinism, which evolved from Darwins Origin of
    Species.
  • Free competition in economy, like natural
    selection, would ensure survival of the fittest.
  • Bribed political officials

3
Captain of Industry
  • Business leaders who served nation in a positive
    way
  • This includes creating jobs, building up nations
    wealth/power, and financing parks, hospitals,
    schools etc.

4
CORNELIUS VANDERBILT 1794 - 1877
  • Came from a poor family
  • Nicknamed the Commodore

5
Made millions in shipping business transports
people to California Gold Rush
6
(No Transcript)
7
Business Continues
  • Invested in railroads--owned NY Central RR (1st
    connection NY to Chicago)
  • During Panic of 1873 provided thousands of jobs
    to build Grand Central Terminal

8
(No Transcript)
9
Philanthropic Activity
  • Generally didnt give money away
  • Gave away 1 million to Central University in
    Nashville,TN Later renamed Vanderbilt University
  • 50,000 for Church of the Strangers

10
Rest of Fortune
  • the public be daed, I am working for my
    stockholders
  • Bulk of inheritance (95 million) went to eldest
    son William
  • Like father, like son in response to reporters
    question Don't you run it (the train) for the
    public benefit?

11
3rd Richest American of all-time 105
million calculated based on percentage of
nations GNP Todays Value 95.9 Billion 5 Bill
Gates 61.7 billion
12
(No Transcript)
13
JOHN D. ROCKEFELLER 1839 - 1937
  • Came from a modest family father was a farmer
    and traveling salesman
  • Nicknamed The Deacon

14
Early Years
  • As a kid bought candy wholesale and sold for
    profit
  • 10 years old gave a 50.00 loan at 7 interest to
    neighbor!!
  • Worked as an accountant

15
Oil Business Grows
  • Oil discovered 1859 in Titusville, PA by Edwin
    Drake
  • Rockefeller and partners see possibilities for
    oil
  • Standard Oil Formed 1870

16
Business Becomes Powerful
  • Used Horizontal Consolidation
  • Attempt to corner the market in oil refinery
    business
  • 10 oil in USA in 1870
  • 90 oil in USA in 1880

17
Horizontal Consolidation
  Borculo Oil Refinery
  Zeeland Oil Refinery
  Drenthe Oil Refinery
Standard oil (a refinery company) purchases
smaller oil refinery companies. This eliminates
competition and gives Rockefeller a larger share
of the market
STANDARD Oil
18
Business Under His Control
  • Fixed shipping rates through rebates money
    repaid to Rockefeller by railroad companies
  • Railroad companies cut Standards costs in half
  • Railroad companies raised competitions costs 2x
  • States attempt to break his monopoly organizes
    Trusts to avoid law eventually broken apart
  • New companies eventually include Exxon, Texaco
    (Chevron), Phillips, BP, and Mobil

19
 
 
TRUSTS
STANDARD Oil
Profits
Profits
Profits
Stock/Control
  Small Oil Company
Stock/Control
  Small Oil Company
Stock/Control
  Small Oil Company
  • STANDARD OIL Takes control of small oil
    companies by forcing them to sell more than ½ of
    their stock. This gives Standard control over
    the boards of directors ultimately giving them
    control of the companies. In return Standard will
    not run the small companies out of business and
    they will share in some of Standards profits.
    This eliminates competition and Standard Oil can
    now charge whatever price it wants.
  • Avoids anti-monopoly rules aimed at Rockefeller

20
POOLS/CARTELS      Could Produce
10,000 Could Produce 8,000
Could Produce 12,000 Barrels Per Day
Barrels Per Day
Barrels Per Day                 All these
companies agree to produce only 6000 barrels per
day and this makes oil scarce, so the price
increases.
  OIL Company 1
  OIL Company 2
  OIL Company 3
21
Who is the man in the cartoon?
What is the cartoonist saying about the man?
22
What animal is used to represent big business?
What is the animal controlling?
23
Save Money At All Costs
  • Counted welds on barrels…only 39 needed
  • Painted storage tanks 1 color
  • Counted number of bungs (corks) used on
    barrels wanted to know where months supply went

Last month you reported, on hand, 1,119 bungs.
10,000 were sent you beginning this month. You
have used 9,572 this month. You report 1,092 on
hand. What has become of the other 500?
24
Philanthropic Activity
  • Gave away millions of dollars to
  • Churchesmany denominations
  • University of Chicago and others
  • Founded Rockefeller Institute for Medical Research
  • Golf Courses
  • Handed out dimes to children daily
  • Colonial Williamsburg preservation
  • Donated land for United Nations building

25
The Richest American of all-time !! 900
million calculated based on percentage of
nations GNP Todays value 189.6 billion 5
Bill Gates 61.7 billion
26
(No Transcript)
27
ANDREW CARNEGIE 1835 - 1919
  • Came from a poor Scottish immigrant family
  • Father was a weaver
  • Very close to his family

28
Early Years
  • Worked as bobbin boy in sweatshop for 1.20
    per week
  • Was hard working and paid attention to detail
  • Got job operating telegraph for wealthy railroad
    executive
  • Invested some money in stock market

29
Wave of Future
  • Carnegie is convinced steel is wave of future
  • Invests in steel plants
  • Implements new technology for making steel
    (Bessemer Process)
  • Expensive to install
  • Cheaper and faster to produce steel

30
Goal To Be The Best
  • Founded Homestead Steel (Pittsburgh, PA)
  • Henry Frick becomes partner and daily manager
    very frugal
  • 1892 Strike at Homestead Steel plant over wage
    cuts
  • Pinkertons end strike with force and replacement
    workers hired

31
Business Practices
  • Used Vertical Consolidation (a.k.a. Integration)
  • Obtained mines, trains, ships, foundries etc. to
    control all aspects of steel production
  • Workers had to meet production goals or risk
    losing some wages…competed for Flag

32
                                                  
                                                  
                 
33
Time For A Change
  • Sold out to J.P. Morgan in 1901
  • Believed in Gospel of Wealth The man who dies
    thus rich dies disgraced.
  • Gave away 400,000,000 for libraries, schools,
    hospitals
  • Carnegie foundation worth over 1.4 billion today
    annually gives away 60 million

Carnegies Scottish Castle
Carnegies 60 bedroom NY mansion
34
2nd Richest American of all-time 250 million
calculated based on percentage of nations
GNP Todays value 100.5 billion 5 Bill Gates
61.7 billion
35
(No Transcript)
36
JOHN PIERPONT MORGAN 1837 - 1913
  • Came from wealthy family
  • Father was a banker
  • Graduated from Harvard
  • Worked for fathers investment firm

37
Gift of Combinations
  • Took smaller and weaker companies and combined
    into major industries
  • Known as Morganization
  • ATT
  • General Electric
  • Western Union
  • International Harvester
  • First National Bank

38
Prized Company
  • Holding Company A corporation that did nothing
    but buy out the stock of other companies.
  • U.S. Steel is example of this.
  • Purchased Carnegie Steel for 493,000,000 turns
    into U.S.
  • U.S. Steel Becomes 1st Billion Dollar Corporation
    in USA

39
Power To Help
  • Helped bail out government in 1895 bought
    substantial amount of government bonds with gold
  • Nation was short on gold and needed to back
    currency
  • 1907 Raised 25 million dollars in
  • 15 minutes to stock Wall Street Crash

40
Power to Destroy
  • Public hurt by some of Morgans dealings
  • Presidents Teddy Roosevelt and William Howard
    Taft set out to be trust busters
  • Government breaks apart many Morgan Trusts

41
Near Disaster
  • Owned IMM shipping company which owned White Star
    Lines
  • White Star Line owned Titanic
  • Morgan had reserved the fanciest suite on board
    he was unable to travel that day

42
Philanthropic Activity
  • Donated Rare Book Collection to J.P. Morgan
    Library
  • Kept his rare coin collection until he died
    however
  • Gave private art collection to New York Citys
    Metropolitan Museum
  • Gave millions to East Coast Universities,
    hospitals, YMCA etc

43
23rd Richest American of all-time 119 million
calculated based on percentage of nations
GNP Todays value 25 billion 5 Bill Gates
61.7 billion
44
(No Transcript)
45
In response Sherman Anti-Trust Act 1890 (this
isnt in your guided notes…write it down)
  • Made it a crime to conspire to destroy
    competition
  • Now illegal to combine businesses into monopolies
    and hurt free interstate trade
  • Aimed at curbing abuses of big business
  • Not as effective early on because few courts or
    government officials would enforce it

46
Industrial Age A Final Look
  • Viewed as captains of industry by some, robber
    barons by others
  • 32 of 40 wealthiest Americans ever lived in this
    period (near turn of century)…only 3 alive today!
  • Claimed chosen to be wealthy
  • Monopolies were generally legal then
  • Monopolies are generally illegal today
  • Real rags to riches stories inspired poor
  • Were philanthropists
  • Lived long lives diets, types of work, access to
    health care
About PowerShow.com