Titans of Industry Changes in Business Vertical Integration

Titans of Industry

Changes in Business �Vertical Integration Controlling your suppliers �Horizontal Integration Similar companies merging �Social Darwinism Natural Selection �Robber Barons Shrewd and successful businessmen of the late 1800 s �Monopolies Complete control of supplies and goods of a business

Cornelius Vanderbilt �“The Commodore” �Steamship captain Becomes one of the largest steamship operators in the U. S. Donates “The Vanderbilt” in the Civil War �Enters Railroad industry in 1860 s Controls and connects numerous railway lines between Chicago and New York Creates one of the first efficient rail lines

Cornelius Vanderbilt

Andrew Carnegie �Rags to riches From Scotland �Gets start with the Pennsylvania Railroad �Carnegie Steel Company Homestead Strike 1892 Sells to J. P. Morgan for $480 million �U. S. Steel 1 st Billion dollar company Controlled 67% of U. S. steel production Declines after WWI �Gospel of Wealth

Andrew Carnegie

John D. Rockefeller �Devout Christian �Shipping business profits from the Civil War �Invests in a Cleveland refinery in 1863 �Standard Oil (1870) By 1890 controlled 88% of U. S. oil Dissolved by U. S. Gov in 1911 Researched innovative uses for oil �Bought out and crushed competition

John D. Rockefeller

JP Morgan �Banking Helps to reorganize and consolidate struggling railroad companies � Gains large amounts of stock �Gains control of 1/6 of RR �Northern Securities Trust Controlled 32, 000 miles of track Broken up by Theodore Roosevelt �Helps bail out U. S. Government $60 million loan in 1895 Advises through the financial panic 0 f 1907

Electricity �Morgan invests in Thomas Edison Has him discover a way to light 400 lightbulbs �Electric light hurts Rockefellers business Devalues kerosene lamps �Niagara Falls Contract Bid to light majority of the Northeast Tesla wins over Edison � Chicago World’s Fair �Morgan threatens Tesla’s investor with a lawsuit Gains Tesla’s patents Creates General Electric (GE)

JP Morgan

Legacy of the “Titans” �Cornelius Vanderbilt University �Andrew Carnegie Gospel of Wealth �John D. Rockefeller Over $500 million donate for philanthropy �JP Morgan Extensive art collection �Morgan, Rockefeller, and Carnegie unite in 1896 Help Mc. Kinley win election