Chapter 6 Section 3

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Chapter 6Section 3

• Big Business Emerges

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Andrew Carnegie
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Andrew Carnegie

• One of the first industrial moguls to make his
  own fortune
• 1899 Carnegie Steel
• Largest steel company in U. S.

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J. P. Morgan
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J. P. Morgan

• Banker
• Owned U. S. Steel
• 1901 bought Carnegie Steel
• Worlds largest business
• corporation

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John D. Rockefeller
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John D. Rockefeller

• Owned Standard Oil
• Monopoly in oil

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Robber Barons

• Critical term used to describe the great
  industrialists
• Captains of Industry?

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• Rockefeller
• University of Chicago
• Land for UN
• Medical research
• Rockefeller U
• Johns Hopkins

• Carnegie
• Carnegie libraries
• Carnegie Hall
• Carnegie-Mellon U
• Tuskegee Institute

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Business Strategies

• Vertical Integration/Consolidation
• Buy out all suppliers
• Carnegie

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Business Strategies

• Horizontal Integration/Consolidation
• Buy out all competitors
• Carnegie

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Growth and Consolidation

• MONOPOLY firm buys all competitors and has
  control over an industry
• Production
• Quality
• Wages
• Prices

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• Holding Company monopoly that buy out the stock
  of other companies
• Banker J. P. Morgan and U. S. Steel buying
  Carnegie Steel

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• MERGER the company that results from one
  corporation buying out the stock of another
  corporation

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• TRUST a corporation make up of many companies
  that receive certificates entitling them to
  dividends on profits earned
• Rockefeller and Standard Oil monopoly

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Social Darwinism and Big Business

• Theory used to justify efforts of the
  millionaires
• survival of the fittest to justify
  laissez-faire
• Government should not interfere with business

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Sherman Anti-Trust Act

• 1890
• Unsuccessful attempt by Congress to regulate big
  business
• Did not clearly define trust which made
  enforcement difficult

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• GOAL of BIG BUSINESS control or eliminate
  competition to create profits
• GOAL of GOVERNMENT allow more competition