Robber Barons or Captains of Industry

1. Robber Barons or Captains of Industry Weds Nov 17, 2010

2. Spark 2p. 240-ish will help • 1. What is the difference between a monopoly and an oligopoly? • 2. What could be one way that a monopoly could be “good” for consumers? One way it could be “bad?” • 3. List the source of wealth from the following American industrialists: • A. Carnegie: • J.D. Rockefeller: • Cornelius Vanderbilt: • J.P. Morgan • 4. What is the difference between vertical and horizontal consolidation?

3. Brooklyn Bridge • What materials are needed to build this bridge? • How is the construction of this bridge symbolic of America’s transformation into an industrial nation?

5. Brooklyn Bridge • Longest suspension bridge in world at that time • 16 in. steel cables supported the 1,595 foot bridge • Symbol of American transition from rural nation to industrial nation

6. Steel Workers Manufacturing Cotton Ties (early 1900’s) What are these men doing? How does this steel plant represent an industrial improvement? What might the steel made through this process be used to construct? How did this process help fuel industrial growth?

8. Steel • Workers using Bessemer process to refine iron into steel cotton ties at Ohio plant • Bessemer process made large quantities of steel cheaper ($) and accelerated growth of steel industry • Boosted production from 2,000 tons in 1867 to 7 million in 1900 • Steel stronger and more durable than iron  led to many other technical advances • Used to make train tracks, girders for skyscrapers, and beams and cables for Brooklyn Bridge

9. Flatiron Building Construction in New York City, 1901-1902 What do you notice about this building? What technological advancements created such buildings? Why were these buildings necessary in an increasingly urbanized age?

11. Skyscrapers • This skyscraper could not have been built out of iron…only steel girders were strong enough to support it • Growth of steel industry led to  growth of construction industry • Skyscrapers became visual reminders that the age of industry was bringing change to American cities • Cities grew so quickly that space for buildings became a premium (limited/pricey) commodity • Taller the skyscraper, the more offices it could hold and the larger the developer’s profit (and the steel company’s profit!)

12. RB’s or CP’s • Who are these men and how are they dressed? • Who do you think is the richest man in the group and why? • How did these men become so wealthy • Do wealthy businessmen benefit the United States?

14. Andrew Carnegie surrounded by fellow businessmen, • Innovations and inventions that sparked industrial growth allowed many business leaders to earn huge fortunes • By 1900, there were 4,000+ millionaires in the US, compared with only a few before the Civil War • One of the most famous was Andrew Carnegie, an immigrant from Scotland • Went on to control steel industry • Retired to Scotland but continued to donate $ to universities, churches, and charities (the library in Manitou was funded by a Carnegie donation) • He said a millionaire should be “a trustee for his poorer brethren, bringing to their service his superior wisdom, experience, and ability to administer, doing for them better than they would or could do for themselves.”

15. Refineries • What industry is this? • How is oil being extracted from the ground? • What would it be like to work in such an environment? • How do you think this landscape looked before oil was discovered? • Why do you think oil fields such as this one became increasingly important in an age of industrialization?

17. Glade Run, Pennsylvania oil field, ca. 1860-1870 • Landscape of this Pennsylvania town are covered in oil derricks and drillers’ shanties • After 1st successful oil well drilled at Titusville, PA in 1859, prospectors scrambled to locate more nearby • Soon hills of NW PA were covered in oil derricks as industrialists raced to exploit area’s reserves • Oil refining became a big business in an age when automobiles, locomotives, and turbines were replacing steam- and horse-powered machines

18. Who is this and what type of man is he? • How did he make his money? • What do you think are the benefits and drawbacks to allowing a few businessmen to become fabulously wealthy by selling a common good such as oil? • Can you think of a company that is a monopoly today?

20. Portrait of John D. Rockefeller While Andrew Carnegie was taking over the steel industry, Rockefeller was taking over the oil business Rockefeller knew oil was mostly useless until it was refined so he bought up several refineries using ruthless methods to eliminate competition Standard Oil, Rockefeller’s oil company, would lower prices to woo a competitor’s customers and then raise prices after the competitor was driven out of business By 1879, Standard Oil controlled over 90% of American oil refining To gain control over the oil industry, Rockefeller created a huge trust In a trust stockholders of independent companies agree to exchange their shares of stock for trust certificates issued by giant firms such as Standard Oil Shareholders receive dividends, but lost control of managing their business  Rockefeller gained control of their business Eventually, Standard oil acquired a virtual monopoly of the oil industry—the company had almost total control of the market

21. Railroads • Why are railroads so important to industrialization? • What other transportation systems were vital to an industrial nation then? • What other transportation systems are vital to our post-industrial nation today?

23. Railroad outside Syracuse, New York, 1885 Transportation was key to industrialization To succeed as an industrial nation, the United States needed to have the means to move freight and passengers quickly In 1860, the US only had about 30,000 miles of track (Mostly in the Northeast) The rest of the nation had few rail lines, and most of these were not interconnected Shippers who wanted to send freight long distances had to have their freight loaded and unloaded several times  costly and took too much time

24. Vandy • What is happening in this slide? • Who might the men be and what are they doing? • What do you think the cartoonist’s opinion was of these men?

26. Political cartoon of Cornelius Vanderbilt This is a cartoon of railroad tycoon Cornelius Vanderbilt pictured as a modern colossus towering over his domain. Other men also held the reins of the rapidly expanding rail network After the Civil War, RR builders began building more efficient and economical railroad networks by consolidating, or combining, small lines. Vanderbilt was one of several men who held the reins of the rapidly expanding RR (Don’t have to copy, just read this bullet )He bought up most of the lines linking NY to Chicago but the New York Central RR would not sell……so in the winter of 1867, Vanderbilt refused to let passengers and freight transfer from the NY Central line to his lines NY Central finally surrendered and Vanderbilt gained control of the most important railroad empire in the nation When he died in 1877, he controlled 4,500 miles of rail Consolidating small railroad lines led to inexpensive and fast shipping Replaced iron tracks with steel tracks so that heavier, faster locomotives could be used By 1883, efficient shipping became so important to the industrialization of the US that the American Railway Association divided the nation into four time zones that still exist today: Eastern, Central, Mountain (you’re in this one), and Pacific.

27. The goodfellas • Why do some people think these men are bad? • Why do others think they are good? • Do you think our country would be different without these men?

28. Upper Left: Cornelius VanderbiltMiddle Right: John D. RockefellerBottom Left: Andrew Carnegie

29. Industrial Giants: Vanderbilt, Rockefeller, and Carnegie Did men like Carnegie, Rockefeller, and Vanderbilt cause more harm than good? Some claim they ruthlessly drove small companies out of business, exploited their workers, cuter corners on quality, and “bought off” government officials. Moreover, it is argued that the big monopolies they created overcharged for goods because of lack of competition Also believe they polluted they environment and wasted natural resources Others argue industrialization could not have occurred without men willing to gamble, as these men did They are praised for their philanthropy (giving $) Many argue that big corporations such as Standard Oil and Carnegie Steel invented or perfected many technologies that inevitably lowered the cost of products and improved the quality of life for millions of Americans