John D. Rockefeller
Brisson Lam
John D. Rockefeller was the founder of the Standard Oil Company, and revolutionalized the oil industry. His company by the 1880s controlled 90 percent of U.S. refineries and pipelines. He was also a major philanthropist. He improved the quality of kerosene products while greatly reducing their costs to the public.
Before Rockefeller, In Cleveland, Ohio alone there were 26 companies competing against each other. In this mist, companies could not provide the oil needed to meet the nation’s needs. In 1882, Rockefeller’s company created the biggest trust in the country at that time, a bonding of multiple small companies together legally. He absorbed many other companies through vertical and horizontal integration, and eventually spread his business throughout America. Rockefeller believed in Social Darwinism, thus he often said "The growth of a large business is merely a survival of the fittest". One of his favorite tricks is to deal secretly with railway companies which shipped their oil, and demanded them for discounts up to 50%. This made Standard oil’s kerosene cheaper, dropping from 30 cents in 1870 to 6 cents in 1897.
In the refining process, there are many by-products created when crude oil is converted to kerosene. What others saw as waste, Rockefeller saw as gold. Rockefeller abhorred waste and always tried to increase the efficiency of his business. Standard Oil developed over 300 oil-based products affordable to the average household, from tar to paint to Vaseline jelly to chewing gum.
Rockefeller was a modest Christian and philanthropist. As Rockefeller's wealth grew, so did his giving, primarily to educational and medical organizations. He strongly believed that education is what makes people successful in life and business. In total Rockefeller donated over $550 million to colleges including the University of Chicago, Denison University, and the Rockefeller University. He founded the Rockefeller Sanitary Commission in 1909, which eventually eradicated the hookworm disease that once plagued the southern states.
What Rockefeller earned from society, he eventually gave it back for good.
Brisson Lam
John D. Rockefeller was the founder of the Standard Oil Company, and revolutionalized the oil industry. His company by the 1880s controlled 90 percent of U.S. refineries and pipelines. He was also a major philanthropist. He improved the quality of kerosene products while greatly reducing their costs to the public.
Before Rockefeller, In Cleveland, Ohio alone there were 26 companies competing against each other. In this mist, companies could not provide the oil needed to meet the nation’s needs. In 1882, Rockefeller’s company created the biggest trust in the country at that time, a bonding of multiple small companies together legally. He absorbed many other companies through vertical and horizontal integration, and eventually spread his business throughout America. Rockefeller believed in Social Darwinism, thus he often said "The growth of a large business is merely a survival of the fittest". One of his favorite tricks is to deal secretly with railway companies which shipped their oil, and demanded them for discounts up to 50%. This made Standard oil’s kerosene cheaper, dropping from 30 cents in 1870 to 6 cents in 1897.
In the refining process, there are many by-products created when crude oil is converted to kerosene. What others saw as waste, Rockefeller saw as gold. Rockefeller abhorred waste and always tried to increase the efficiency of his business. Standard Oil developed over 300 oil-based products affordable to the average household, from tar to paint to Vaseline jelly to chewing gum.
Rockefeller was a modest Christian and philanthropist. As Rockefeller's wealth grew, so did his giving, primarily to educational and medical organizations. He strongly believed that education is what makes people successful in life and business. In total Rockefeller donated over $550 million to colleges including the University of Chicago, Denison University, and the Rockefeller University. He founded the Rockefeller Sanitary Commission in 1909, which eventually eradicated the hookworm disease that once plagued the southern states.
What Rockefeller earned from society, he eventually gave it back for good.
John Pierpont Morgan
By Jonathan Ou
J. P. Morgan was born in a wealthy family with a father who was already famous in banking industry. The son of a banker, Morgan went into the family business and became one of the most successful financiers in history.
In 1871, he partnered with the Drexels of Philadelphia to form the New York firm of Drexel. Morgan & Company. Anthony Drexel was his partner and after his death in 1893, the firm was rechristened into “J. P. Morgan & Company” in 1895. By 1900, it was one of the most powerful banking houses of the world.
Morgan's process of taking over troubled business to reorganize them is known as “Morganization” which he reorganizes business structures and management in order to return them to profitability. His reputation at that time had helped him to bring interest from investors to the businesses he took over. Morgan was mostly famous for his railroads. After the Panic of 1893, he reorganized many bankrupt railroads and industrial companies. He controlled an estimated one-sixth of American's rail lines. Due to this he was criticized for creating monopolies by making it difficult for any business to compete against his. Nevertheless his railroads helped consolidate many soldiers, mismanaged firms, shorten trips and created more dependable service.
In 1901, the most renowned purchase of the Carnegie Steel Company was bought for 500 million. “I never made money as easy as that.” J. P. Morgan stated on his part of the profits for the United States Steel Corporation. Morgan not only merged the Edison Gerenal and Thompson-Houston Electric Companies into General Electric but also he used the Carnegie Steel Company to form the U.S. Steel which because the world's first billion-dollar corporation.
On the other hand, industrial workers especially railroad workers didn't benefit from this at all. They had poor working condition and their wages had been cut the second time since the Panic of 1873. Violent outbreaks of strikes occurred all over the country during 1870s.
Work Cited
"J.P. Morgan." Bio. A&E Television Networks, 2014. Web. 23 Dec. 2014.
Mintz, S., & McNeil, S. (2013). J. P. Morgan. Digital History. 2014. Web. 23 Dec. 2014 from
http://www.digitalhistory.uh.edu/disp_textbook.cfm?smtID=2&psid=3164
Shmoop Editorial Team. "Economy in The Gilded Age." Shmoop.com. Shmoop University, Inc., 11 Nov. 2008. Web. 23 Dec. 2014.
The New Tycoons: J. Pierpont Morgan. Digital History, n.d. Web. 22 Dec. 2014. <http://www.ushistory.org/us/36d.asp>.
In 1871, he partnered with the Drexels of Philadelphia to form the New York firm of Drexel. Morgan & Company. Anthony Drexel was his partner and after his death in 1893, the firm was rechristened into “J. P. Morgan & Company” in 1895. By 1900, it was one of the most powerful banking houses of the world.
Morgan's process of taking over troubled business to reorganize them is known as “Morganization” which he reorganizes business structures and management in order to return them to profitability. His reputation at that time had helped him to bring interest from investors to the businesses he took over. Morgan was mostly famous for his railroads. After the Panic of 1893, he reorganized many bankrupt railroads and industrial companies. He controlled an estimated one-sixth of American's rail lines. Due to this he was criticized for creating monopolies by making it difficult for any business to compete against his. Nevertheless his railroads helped consolidate many soldiers, mismanaged firms, shorten trips and created more dependable service.
In 1901, the most renowned purchase of the Carnegie Steel Company was bought for 500 million. “I never made money as easy as that.” J. P. Morgan stated on his part of the profits for the United States Steel Corporation. Morgan not only merged the Edison Gerenal and Thompson-Houston Electric Companies into General Electric but also he used the Carnegie Steel Company to form the U.S. Steel which because the world's first billion-dollar corporation.
On the other hand, industrial workers especially railroad workers didn't benefit from this at all. They had poor working condition and their wages had been cut the second time since the Panic of 1873. Violent outbreaks of strikes occurred all over the country during 1870s.
Work Cited
"J.P. Morgan." Bio. A&E Television Networks, 2014. Web. 23 Dec. 2014.
Mintz, S., & McNeil, S. (2013). J. P. Morgan. Digital History. 2014. Web. 23 Dec. 2014 from
http://www.digitalhistory.uh.edu/disp_textbook.cfm?smtID=2&psid=3164
Shmoop Editorial Team. "Economy in The Gilded Age." Shmoop.com. Shmoop University, Inc., 11 Nov. 2008. Web. 23 Dec. 2014.
The New Tycoons: J. Pierpont Morgan. Digital History, n.d. Web. 22 Dec. 2014. <http://www.ushistory.org/us/36d.asp>.
Cornelius Vanderbilt
Liang Shu and Samudera Pangestu Phoa
In front of the
Grand Central Terminal in the New York City, there is a statue of one of the
wealthiest human ever lived in the United States History; he was the model of
the shipping and railroad industry, and respected as a businessperson. He is
Cornelius Vanderbilt, he was born in New York in 1794.
In 1829, Vanderbilt ran his own Steamboat business; the Gold Rush provided Vanderbilt the window to success, he made huge profit by using a shortcut to ship gold-seekers.
In 1863, he turned his target to the railroad industry; he was able to build a few essential tracks. New York and Harlem Railroad, and the New York Central Railroad, running along the Hudson River, are still important tracks nowadays. Also by expanding his railroad system, he created an organized and interregional system , and the technique is still in use today.
By the time of Vanderbilt’s death in 1877, he had 105million USD, which is approximately 1/87 of the United States’ GNP at the time, in another words, this one man owned 11.49% of the whole nation’s wealth. His wealth spread between his several sons, they built some of the biggest houses in America, representing the wealth and rapid economic growth of the Gilded Age, so called Vanderbilt Houses.
After Vanderbilt’s success in the investment of railroads, other executives seeking for prosperity follows his path. All kinds of railroads constructed throughout America, and extra workers were employed to promote efficiency. As the wages increased, the workers putted on The Great Railroad Strike of 1877.The amount of competitors were too much that none ended up even close to Vanderbilt, but his legacy was remembered, and his success is recognized by the whole America.
Vanderbilt was a Captain of Industry, who helped America in technology and economy.
In 1829, Vanderbilt ran his own Steamboat business; the Gold Rush provided Vanderbilt the window to success, he made huge profit by using a shortcut to ship gold-seekers.
In 1863, he turned his target to the railroad industry; he was able to build a few essential tracks. New York and Harlem Railroad, and the New York Central Railroad, running along the Hudson River, are still important tracks nowadays. Also by expanding his railroad system, he created an organized and interregional system , and the technique is still in use today.
By the time of Vanderbilt’s death in 1877, he had 105million USD, which is approximately 1/87 of the United States’ GNP at the time, in another words, this one man owned 11.49% of the whole nation’s wealth. His wealth spread between his several sons, they built some of the biggest houses in America, representing the wealth and rapid economic growth of the Gilded Age, so called Vanderbilt Houses.
After Vanderbilt’s success in the investment of railroads, other executives seeking for prosperity follows his path. All kinds of railroads constructed throughout America, and extra workers were employed to promote efficiency. As the wages increased, the workers putted on The Great Railroad Strike of 1877.The amount of competitors were too much that none ended up even close to Vanderbilt, but his legacy was remembered, and his success is recognized by the whole America.
Vanderbilt was a Captain of Industry, who helped America in technology and economy.
Andrew Carnegie, American Hero
by Ginger Chang
Andrew Carnegie, Captain of Industry who owned the Carnegie Steel Company, was “not the norm in management’s relationship with labor at the time”, as described by historian Joseph Frazier. Instead, he promoted laborers’ rights to unionize and made sacrifices for them.
In 1890, steel prices decreased from $38/gross ton to $22/gross ton. The Bessemer Process invented in the 1850’s was further modified to accelerate steel mass production. He was able to mass produce steel with fewer laborers even while steel prices dropped. However, he refrained from firing workers altogether and lowered their wages after two years of hardship, when he finally decided that wages must be lowered, only to face a labor strike that grew to be violent and had to be settled by the state militia. This bloody strike is known as the Homestead Strike of 1892, Homestead being a city containing Carnegie's factory in Philadelphia.
Carnegie’s sympathy, empathy, and support for labor unions was probably influenced by his childhood. As Scottish immigrants, the Carnegie family suffered in America at first. Andrew himself at the age of thirteen had to work at a factory for only $1.20/hour. Hence he went on to attempt to sustain his business without hurting his workers, despite the decrease of steel prices.
“This is the trial of my life. Such a foolish step, contrary to my ideals, repugnant to every feeling of my nature. Our firm offered all it could offer, even generous terms,”
Carnegie had written to British statesmen William E. Gladstone regarding the strike.
Carnegie showed his selflessness even further by selling his entire company to J.P. Morgan for $20 million dollars in 1901. The majority of the money was donated to charities; $5 million alone went to the New York Public Library.
How else could this benevolent, philanthropic man be regarded, but as an American hero undeterred by labor union rascals?
Sources:
http://minerals.usgs.gov/minerals/pubs/historical-statistics/ds140-feste.pdf
http://www.pbs.org/wgbh/amex/carnegie/peopleevents/pande04.html
http://www.biography.com/people/andrew-carnegie-9238756?page=2#steel-tycoon
http://www.pbs.org/wgbh/amex/carnegie/sfeature/mf_flames.html
In 1890, steel prices decreased from $38/gross ton to $22/gross ton. The Bessemer Process invented in the 1850’s was further modified to accelerate steel mass production. He was able to mass produce steel with fewer laborers even while steel prices dropped. However, he refrained from firing workers altogether and lowered their wages after two years of hardship, when he finally decided that wages must be lowered, only to face a labor strike that grew to be violent and had to be settled by the state militia. This bloody strike is known as the Homestead Strike of 1892, Homestead being a city containing Carnegie's factory in Philadelphia.
Carnegie’s sympathy, empathy, and support for labor unions was probably influenced by his childhood. As Scottish immigrants, the Carnegie family suffered in America at first. Andrew himself at the age of thirteen had to work at a factory for only $1.20/hour. Hence he went on to attempt to sustain his business without hurting his workers, despite the decrease of steel prices.
“This is the trial of my life. Such a foolish step, contrary to my ideals, repugnant to every feeling of my nature. Our firm offered all it could offer, even generous terms,”
Carnegie had written to British statesmen William E. Gladstone regarding the strike.
Carnegie showed his selflessness even further by selling his entire company to J.P. Morgan for $20 million dollars in 1901. The majority of the money was donated to charities; $5 million alone went to the New York Public Library.
How else could this benevolent, philanthropic man be regarded, but as an American hero undeterred by labor union rascals?
Sources:
http://minerals.usgs.gov/minerals/pubs/historical-statistics/ds140-feste.pdf
http://www.pbs.org/wgbh/amex/carnegie/peopleevents/pande04.html
http://www.biography.com/people/andrew-carnegie-9238756?page=2#steel-tycoon
http://www.pbs.org/wgbh/amex/carnegie/sfeature/mf_flames.html
Andrew Carnegie
by Charles Wang & Jerry Chu
Who: Andrew Carnegie was one of America's most powerful philanthropists during the Gilded Age. His biggest corporation, Carnegie Steel Company, a driving force of American steel industry, played a large factor in the flourishing of America during this time period. Andrew Carnegie was born in 1835 and died in 1919. His upbringing into financial wellness and high socioeconomic status also exemplified the Gilded Age ideal of 'rags to riches' perfectly.
Why: Andrew Carnegie deserves his own spotlight in the Gilded age because was an extremely influential figure during this time period. He erected several foundations and companies of wide variety such as the International Endowment of International Peace, Carnegie Corporation of New York, Carnegie Mellon University, Carnegie Foundation for the Advancement of Teaching, and most importantly the Carnegie Steel Corporation.
What: Andrew Carnegie was an entrepreneur, industrialist, as well as a philanthropist. He gave back to society as often as he could and ended up donating over 350 million USD of his money back to society. He followed the moral belief of "why give a man a fish when you could just teach him how to fish?".
Where: Andrew Carnegie was born in Durmfemline, Scotland, but later emigrated to Pennsylvania, America in 1848 where he continued the majority of his business operations.
When: Andrew Carnegie lived from November 25th, 1835 to August 11th, 1919.
How: Andrew Carnegie's life time perfectly sums up the Gilded Age ideal of 'rags to riches' which would later be known as "The American Dream". At birth, Andrew Carnegie was nothing close to what he would soon amount to socially, economically, or politically. His first job was located at Allegheny, Pennsylvania and earned a mere 1.20 USD per week. However, Andrew Carnegie soon climbed the socioeconomic ladder and eventually became the Superintendent of the Pennsylvania Railroad. Afterwards, he realized the important role of steel that it would soon play in America. As a result, Andrew Carnegie formed the Carnegie Steel Company. From this, Carnegie earned most of his wealth.
Works Cited:
"Andrew Carnegie Famous Quotes 4 - Collection Of Inspiring Quotes, Sayings, Images | WordsOnImages." Andrew Carnegie Famous Quotes 4 - Collection Of Inspiring Quotes, Sayings, Images | WordsOnImages. N.p., n.d. Web. 23 Dec. 2014.
"The Homestead Strike, 1892 - Jeremy Brecher." The Homestead Strike, 1892 - Jeremy Brecher. N.p., n.d. Web. 23 Dec. 2014.
Why: Andrew Carnegie deserves his own spotlight in the Gilded age because was an extremely influential figure during this time period. He erected several foundations and companies of wide variety such as the International Endowment of International Peace, Carnegie Corporation of New York, Carnegie Mellon University, Carnegie Foundation for the Advancement of Teaching, and most importantly the Carnegie Steel Corporation.
What: Andrew Carnegie was an entrepreneur, industrialist, as well as a philanthropist. He gave back to society as often as he could and ended up donating over 350 million USD of his money back to society. He followed the moral belief of "why give a man a fish when you could just teach him how to fish?".
Where: Andrew Carnegie was born in Durmfemline, Scotland, but later emigrated to Pennsylvania, America in 1848 where he continued the majority of his business operations.
When: Andrew Carnegie lived from November 25th, 1835 to August 11th, 1919.
How: Andrew Carnegie's life time perfectly sums up the Gilded Age ideal of 'rags to riches' which would later be known as "The American Dream". At birth, Andrew Carnegie was nothing close to what he would soon amount to socially, economically, or politically. His first job was located at Allegheny, Pennsylvania and earned a mere 1.20 USD per week. However, Andrew Carnegie soon climbed the socioeconomic ladder and eventually became the Superintendent of the Pennsylvania Railroad. Afterwards, he realized the important role of steel that it would soon play in America. As a result, Andrew Carnegie formed the Carnegie Steel Company. From this, Carnegie earned most of his wealth.
Works Cited:
"Andrew Carnegie Famous Quotes 4 - Collection Of Inspiring Quotes, Sayings, Images | WordsOnImages." Andrew Carnegie Famous Quotes 4 - Collection Of Inspiring Quotes, Sayings, Images | WordsOnImages. N.p., n.d. Web. 23 Dec. 2014.
"The Homestead Strike, 1892 - Jeremy Brecher." The Homestead Strike, 1892 - Jeremy Brecher. N.p., n.d. Web. 23 Dec. 2014.