The Robber Barons Flashcards
1
Q
Cornelius Vanderbilt
(Railways)
A
- Made his fortune through steamboat operations which were worth $11 billion by 1862
- Ploughed his profits into the railroad boom in the 1860s
- Established a standard track gauge
- He was among the first railroaders to replace iron nails with tighter, more durable steel
- Brutal handling of strikes made Vanderbilt one of the most unpopular men in America
- Died in 1877, aged 83, as the richest man in America
- Bulk of his fortune went to his son
- Further ruthless manipulation of capital and labour made him the richest man in America when he died in 1885
2
Q
Andrew Carnegie
(Steel)
A
- Started work in a railroad company, sold iron during the Civil War, invested profits in ironworks
- Began to use new, British invention, Bessemer Converter to make better and cheaper steel from iron
- Initially, mainly manufactured rails, as demands decreased, changed, provided for new markets in cities/industries, e.g. machinery, pipes, wires
- 1900: sold his empire to J.P Morgan for $480 million
- Monopolised steel production through vertical integration
- Made donations to charities, hospitals, libraries
- Set up the Carnegie Endowment for International Peace, research/advancement of knowledge
- Criticised by the businessmen for being socialist, criticised for making a fortune by exploiting his workforce
3
Q
John D. Rockefeller
(Oil)
A
- Studied oil industry carefully after being appalled by the disorganisation and confusion of it
- Realised oil could have the same universal scale as steel/copper
- Best way to control was not by producing oil but by refining and redistributing it
- Undercut his rivals
- Methods led to public outcry, hated for secrecy and ruthlessness
- Bought his first oil refinery in 1862
- Set up Standard Oil Company in 1870
- 1880s: controlled 85% of all American oil production
- 1899: owned a fortune of $200 million
- 1913: world’s first billionaire
4
Q
J.P Morgan
(Finance)
A
- Inherited $12 million, increased due to his financial skills
- 1871: began his own private banking company, later became one of the most leading financial firms in the country
- Major force behind the creation of large companies, e.g. US Steel Corporation, first billion-dollar corporation in history
- Wealth, power and influence attracted a lot of media and government scrutiny
- Criticised for creating monopolies by making it difficult for any business to compete against his
- Criticised for his love of the high life, appeared to flaunt his wealth
- Often seen in public in the company of actresses
