DR. FOOTE’S PROPHESYBOOK I

1865-1900

AMERICAN INFRASTRUCTURE

• TRANSPORTATION• FIRM AGRICULTURAL BASE• NATIVE TECHNOLOGY• LABOR• CAPITAL

RAILROADS

• 1865-1890• 35,000-

200,000 MILES

0

50,000

100,000

150,000

200,000

250,000

1865 1890

AGRICULTURE

• MORRILL ACT OF 1862• HATCH ACT OF 1887• 30,000 ACRES/SEN. & CON. • COLLEGES MUST BE COED• $15,000/YR. FOR AGRICULTURAL

EXPERIMENTAL STATION

AGRICULTURAL WORKERS

0 2 4 6 8 10 12

1870

1890

COLLEGES

0

100

200

300

400

500

600

1878 1898

NATIVE TECHNOLOGY

• LAND GRANT COLLEGES• WILLIAM KELLY-EDDYVILLE,

KEN.• HENRY BESSEMER-ENGLAND• 1ST STEEL PLANT-1864• 10,000 TONS• 1900-13 MILLION TONS

STEEL INDUSTRY

• IRON ORE• 1887-

LEONIDOS MERRITT

• MESABI RANGE

1ST MILLIONAIRES

• ANDREW CARNEGIE

• JOHN D. ROCKEFELLER

ANDREW CARNEGIE

• BORN IN SCOTLAND-1835• MOVED TO PENNSYLVANIA-1848• WORKED HIS WAY UP & SAVED• AGE 30-GOES FULL-TIME INTO

STEEL

REASON FOR CARNEGIE’S SUCCESS

• KEEP COSTS DOWN• CHOSE CAPABLE

SUBORDINATES• WILLIAM JONES• 8-HOUR DAY

VERTICAL INTEGRATION

S TE E LP L A N T

O R EM IN E

TR A INTyp e tit le h ere

V .I.Typ e t it le h ere

CARNEGIE

• 1900• $480

MILLION• UNTAXED

JOHN D. ROCKEFELLER

• BORN IN NY-1839• MOVED TO

CLEVELAND-1855• BECAME PRODUCE

MERCHANT• 1863-INVESTED

$4000 IN OIL REFINING

STANDARD OIL1870

• HORIZONTAL INTEGRATION• CARTEL• KEPT COSTS DOWN• CONSOLIDATION• 1866-1890-50% DROP• 1881-40 REFINERIES-90%• HORIZONTAL TO VERTICAL

ROCKEFELLER

• JUST AFTER TURN OF CENTURY

• $1 BILLION

GUSTAVUS SWIFT

• MEATPACKING• 1877-1ST

REFRIGERATED BOXCAR

• 1878-SWIFT & COMPANY

• $300,000• 1903-$25 MILLION

LABOR

• 1860-1900• 885,000-3.2

MILLION• 1860-1:4, 11+ • 1900-1:9• AGRICULTURE• MANUFACTURING

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

1860 1900

CAPITAL

• “GO PUBLIC”• USE PROFITS• MERGER• 1899-1200-$2.3 BIL.• OLIGOPOLY• MONOPOLY• AMERICAN SUGAR

REFINING COM.

RESULTS

• WOOLWORTHES-1879• MONTGOMERY WARDS-1872• SEARS & ROEBUCK-1886• NEIMAN MARCUS• A&P GROCERS

THOMAS EDISON

• LIGHT BULB• PHONOGRAPH• MICROPHONE• 1866-1ST

PATENT

ELECTRIC INDUSTRY

• EDISON• THOMSON-HOUSTON• WESTINGHOUSE• 1892• EDISON + THOMSON-HOUSTON =

GENERAL ELECTRIC = $35 MILLION• JOHN PIERPONT MORGAN

LIFE INSURANCE

• TONTINE• 1900• EQUITABLE• NEW YORK LIFE • MUTUAL LIFE• $1 BILLION