Businesses had to slash prices to compete Debts rose, prices fell, bankruptcy Power capitalists tried to limit competition amassed huge amounts of money Buy or Bankrupt other companies John D. Rockefeller had great success with this Captains of Industry: Many of the more successful entrepreneurs became known as of Industry’. ‘Captains They became known for their used to destroy their competition and methods ruthless tactics used to keep workers’ wages low. Some of the best known were: John D. Rockefeller, Andrew Carnegie, JP Morgan, Cornelius Vanderbilt Captains of Industry ruled America during the Gilded Age They amassed fabulous wealth and lavishly spent it while the majority of Americans were poor. These men were barons’ and were glorified and vilified. also called ‘robber Some became the richest men in the world. Monopoly and Trusts: Monopoly- a company that completely dominates a particular industry With competitors out of the way they could rise prices and reap great profits Approach to reduce competition Trusts- A set of companies that are managed by a small group known as trustees. They have the power to prevent companies in the trust from competing with each other. Pop-Up Questions: In what way does a Monopoly inhibit competition and business growth? In what way was a corporation different than previous business types? What are the characteristics of a corporation? John D. Rockefeller Andrew Carnegie Made his fortune in Made his fortune in in the oil. steel mills Kerosene, for lighting, made him Pittsburgh, PA. millions He used vertical integration The gasoline industry, made him Bought his own iron ore fields, coal even richer. mines and ships so he could control all Used horizontal integration and ruthless phases of steel production. tactics to push competition out of business Crushed attempts to form labor unions, paid then would buy them out. and forced laborers to work 12 low wages, Made a deal to ship oil for cheaper to cut hour days. prices below competitors The labor strike on Carnegie’s Standard Oil Co. became a trust, with him Homestead Steel Mill would be one of owning most of the shares. the eras most violent
Businesses had to slash prices to compete Debts rose, prices fell, bankruptcy Power capitalists tried to limit competition amassed huge amounts of money Buy or Bankrupt other companies John D. Rockefeller had great success with this Captains of Industry: Many of the more successful entrepreneurs became known as ‘Captains of Industry’. They became known for their ruthless tactics used to destroy their competition and methods used to keep workers’ wages low. Some of the best known were: John D. Rockefeller, Andrew Carnegie, JP Morgan, Cornelius Vanderbilt Captains of Industry ruled America during the Gilded Age They amassed fabulous wealth and lavishly spent it while the majority of Americans were poor. These men were also called ‘robber barons’ and were glorified and vilified. Some became the richest men in the world. Monopoly and Trusts: Monopoly- a company that completely dominates a particular industry With competitors out of the way they could rise prices and reap great profits Approach to reduce competition Trusts- A set of companies that are managed by a small group known as trustees. They have the power to prevent companies in the trust from competing with each other. Pop-Up Questions: In what way does a Monopoly inhibit competition and business growth? In what way was a corporation different than previous business types? What are the characteristics of a corporation? John D. Rockefeller Andrew Carnegie Made his fortune in oil. Kerosene, for lighting, made him millions The gasoline industry, made him even richer. Used horizontal integration and ruthless tactics to push competition out of business then would buy them out. Made a deal to ship oil for cheaper to cut prices below competitors Standard Oil Co. became a trust, with him owning most of the shares. Made his fortune in steel mills in the Pittsburgh, PA. He used vertical integration Bought his own iron ore fields, coal mines and ships so he could control all phases of steel production. Crushed attempts to form labor unions, paid low wages, and forced laborers to work 12 hour days. The labor strike on Carnegie’s Homestead Steel Mill would be one of the eras most violent
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