Launch List:Launch List:

1. Copy objectives 7,81. Copy objectives 7,8

2. Think of an example of how 2. Think of an example of how competition effects the price of competition effects the price of something you bought. something you bought.

Big Business Tycoons

Name: Industry/Company Location

Cornelius Vanderbilt

John D. Rockefeller

Andrew Carnegie

J. P Morgan

10/13 Big Business10/13 Big Business

CorporationCorporation: a business owned by : a business owned by investors. investors.

Trust:Trust: A group of corporations A group of corporations controlled by a single board of controlled by a single board of directorsdirectors

10/13 Big Business10/13 Big Business Monopoly: Monopoly: A A

business that business that controls all of the controls all of the business of an business of an industryindustry

Examples of Monopolies:Examples of Monopolies:

1. 1. Vanderbilt’s NY railroad: Vanderbilt’s NY railroad: This This controlled all the railways from NY to the controlled all the railways from NY to the Great Lakes. 4500 miles. Great Lakes. 4500 miles.

Examples of Monopolies:Examples of Monopolies:

2. 2. Standard Oil:Standard Oil: Owned by Rockefeller Owned by Rockefeller this company controlled 95% of the oil in this company controlled 95% of the oil in the United States the United States

Examples of Monopolies:Examples of Monopolies: 3. 3. Carnegie Steel: Carnegie Steel: Later became US Later became US

Steel, this company controlled 90% of the Steel, this company controlled 90% of the steel in America steel in America

Carnegie Steel: Carnegie Steel:

Bessemer Bessemer Process: Process: Using Using this new process this new process allowed for allowed for stronger steel to be stronger steel to be created cheaper. created cheaper.

Growth of Steel industry:Growth of Steel industry:

Carnegie FurnacesCarnegie Furnaces

This photograph of the Carnegie Furnaces in This photograph of the Carnegie Furnaces in Braddock, Pennsylvania shows how smoky and Braddock, Pennsylvania shows how smoky and grimy the factory environment was. grimy the factory environment was.

this illustration from this illustration from Leslie's Illustrated NewspaperLeslie's Illustrated Newspaper on on September 4, 1875, shows the giant steel shears used at the September 4, 1875, shows the giant steel shears used at the

Atlas Ironworks in Pittsburgh.Atlas Ironworks in Pittsburgh.

Carnegie Steel:Carnegie Steel: From 1889 to 1899 yearly production of From 1889 to 1899 yearly production of

steel rose from 332,111 to 2,663,412 tons.steel rose from 332,111 to 2,663,412 tons.

Carnegie Steel:Carnegie Steel:

Banker Banker J.P. MorganJ.P. Morgan purchased the purchased the Carnegie Company for $500,000,000 Carnegie Company for $500,000,000 and established the U.S. Steel and established the U.S. Steel Corporation that was valued at $1.4 Corporation that was valued at $1.4 billion. billion.

Carnegie Gave A lot to Carnegie Gave A lot to CharityCharity

Caption reads: "Forty-Millionaire Carnegie in his Great Double Role. As the tight-fisted employer he reduces wages that he may play philanthropist and give away libraries, etc."

Andrew Carnegie Andrew Carnegie died in August, died in August, 1919, he had given 1919, he had given away $350,000,000. away $350,000,000. A further $125 A further $125 million was placed million was placed with the Carnegie with the Carnegie Corporation to carry Corporation to carry on his good works.on his good works.

Objectives:Objectives:

9. Explain why tycoons wanted to 9. Explain why tycoons wanted to keep government and business keep government and business separate.separate.

10. List 2 problems associated with 10. List 2 problems associated with monopolies. monopolies.

10/13: Monopolies10/13: Monopolies

Pro-MonopolyPro-Monopoly Tycoons: Tycoons: Robber Barons: Rockefeller, Carnegie, Robber Barons: Rockefeller, Carnegie,

Vanderbilt, MorganVanderbilt, Morgan

Pro-MonopolyPro-Monopoly

Free-Enterprise systemFree-Enterprise system: Keep the : Keep the government out of business government out of business

Laissez-faire: Laissez-faire: idea that government idea that government should play as small a role in should play as small a role in economic affairs. “LAZY economic affairs. “LAZY GOVERNMENT” GOVERNMENT”

Andrew Carnegie Andrew Carnegie

““It will be a great mistake for the It will be a great mistake for the community to shoot the millionaires, community to shoot the millionaires, for they are the bees that make the for they are the bees that make the most honey, and contribute most to most honey, and contribute most to the hive even after they have gorged the hive even after they have gorged themselves full.” themselves full.”

Anti-monopolyAnti-monopoly

Monopolies reduce competition Monopolies reduce competition

Anti-monopolyAnti-monopoly

Farmers were forced to pay high Farmers were forced to pay high train rates train rates

Burned Their Crops for fuel instead of Burned Their Crops for fuel instead of paying high rates paying high rates

Wanted the government to set more Wanted the government to set more fair Train Ratesfair Train Rates

Sherman Anti-Trust Act Sherman Anti-Trust Act 1890- bans the formation of trusts 1890- bans the formation of trusts

and monopolies and monopolies

Child LaborChild Labor

Child LaborChild Labor

Child LaborChild Labor

Child LaborChild Labor