Fun With Big BusinessCarnegie, Rockefeller, and

Success

Railroads America’s First Big Business Railroads combine and corporations

are formed (helped by the government)

Cornelius Vanderbilt dominated the industry and became extremely wealth (2nd in history) "Gentlemen: you have

undertaken to cheat me. I won't sue you, for the law is too slow. I'll ruin you. Yours truly, Cornelius Vanderbilt."

How to Build a Corporation Vertical Integration- own all means of

production from the top down (you cut out the middle man and cut costs)

Horizontal Integration- take control of all the companies that make the same product

How would you vertically or horizontally integrate your lemonade business?

Andrew Carnegie

Doesn’t he look like the guy from Jurassic Park?

Andrew Carnegie Scottish immigrant who achieved the “rags

to riches” dream (the best example of this) Built steel mill in 1870 and focused on

cutting costs and keeping prices low Practiced vertical and horizontal

integration Carnegie Steel becomes the World’s

largest corporation Sold company to J.P. Morgan for $450

million

Is Carnegie a Robber Baron?

YES, HE IS A BAD GUY NO, HE IS A GREAT GUY

He cut costs and workers salaries

Violently and ruthlessly ended the homestead strike

Helped keep workers in state of pauperism

Created unsafe and difficult conditions for his workers

He created thousands of jobs with his industry

He helped create products and technological developments that benefitted society

He was a great philanthropist and donated over $300 million to charityHenry Clay

Frick

John D. Rockefeller

I’m thinking of growing a moustache like this…

J.D. Rockefeller Founded Standard Oil Company in

1870 Scrutinized every aspect of

production to cut costs Advertized heavily and was a master

of marketing First Horizontal, then Vertical Consolidation > Competition

Richest People Ever http://www.nytimes.com/ref/business/

20070715_GILDED_GRAPHIC.html#

http://www.neatorama.com/2008/07/09/10-richest-people-of-all-time-and-how-they-made-their-fortunes/

Types of Monopolies Pools- informal agreements to set

rates, prices, and business Trusts- stockholders transfer control

to a board of trustees Holding companies- One major

corporation would buy the stock and exert direct control

Example: Standard Oil in New Jersey