Question

andrew carnegie steel magnate
john d. rockefeller founder of standard oil
cornelius vanderbilt railroad tycoon
j.p. morgan financier and banker
andrew carnegie was a scottish - born industrialist in the united states who made a fortune in the steel industry. he maximized profits through ownership of factories, raw materials, and transportation infrastructure involved with steel making. carnegies reputation was damaged by the deadly homestead strike in 1892 when workers protested against unfair treatment. jp morgan purchased carnegie steel company in 1901 for $480 million and carnegie spent the rest of his life as a philanthropist, giving away large quantities of his fortune to libraries, museums, and education. in an essay he wrote called the gospel of wealth, carnegie said this was the obligation of the rich and powerful.
john d. rockefeller founded the standard oil company. to this day, he remains one of the richest americans to ever live. when kerosene (which was derived from petroleum and used in lamps) became a necessity, oil became a necessity. rockefeller ended up monopolizing the oil industry. he wiped out any competitors so if you wanted oil for your household lights - which was, basically, everybody - you had to get it from him. in 1890, the us congress passed the sherman antitrust act, the first federal legislation prohibiting trusts and combinations that restrained trade. then, to curb rockefellers power, standard oil was broken up into more than 30 companies. he had shares in each company though, and he ended up making millions off of this. rockefeller spent the rest of his life as a philanthropist.
cornelius vanderbilt was a self - made millionaire. as a kid, he worked with his dad on a cargo ferry that operated between staten island and manhattan. he learned a lot about cargo and transportation and the steamship industry during these modest early years of his life. in the 1850s, railroads started to become a prominent method of transportation across the united states, and vanderbilt shifted his interests from the shipping industry to the railroad industry. he bought control of the hudson river railroad in 1864, the new york central railroad in 1867, and the lake shore and michigan southern railroad in 1869. in 1870, he consolidated two of his key lines into the new york central and hudson river railroad - which became one of the first giant corporations in us history.
john pierpont morgan, aka j.p. morgan, was one of the most powerful bankers of his time. he helped to finance railroads, the us steel industry, and general electric. morgan made a fortune by reorganizing and consolidating a bunch of financially troubled railroads. by doing this, he acquired these railroads stock and ultimately controlled a sixth of american rail lines. because of his wealth, and because there was no central bank in the united states at the time, morgan was able to save the us from financial disaster on several occasions. in 1895, he saved americas gold standard by loaning the federal government more than $60 million. during a financial crisis in 1907, morgan held a meeting with the top financiers in the country. he told them which institutions to bail out (financially rescue) in order to save the markets. journalists would later comment that morgan had too much power and could control the us economy to his own benefit.

1. choose one of the industrialists above. how did they become wealthy? what did they do with their wealth?
2. how did john d. rockefeller establish a monopoly over the oil industry?
3. how did j.p. morgan use his wealth to save the us economy? do you agree with journalists that claimed he had too much power and influence? do you think the federal government should have intervened to prevent anyone from having that much power and influence? explain.
4. do you agree or disagree with andrew carnegie that the rich and powerful are obligated to be philanthropists? explain.
5. which of these men would you label as a captain of industry? which would you label as a robber baron?

Explanation:

1. Andrew Carnegie: He became wealthy by maximizing profits in the steel - industry through ownership of factories, raw materials, and transportation infrastructure related to steel - making. After selling his steel company, he spent the rest of his life as a philanthropist, giving to libraries, museums, and education.
2. John D. Rockefeller: He established a monopoly by wiping out competitors when kerosene and oil became necessities. He controlled all aspects of oil production, refining, and distribution.
3. J.P. Morgan: He used his wealth to finance railroads, the US steel industry, and General Electric. He also loaned the federal government money to save the gold standard and organized financial institutions to bail out markets during crises. Whether he had too much power is debatable. Some say his interventions were necessary, while others argue his power was excessive and the government should have intervened to limit it.
4. Regarding Carnegie's view on philanthropy: Some may agree that the rich have a moral obligation to give back as they have benefited greatly from society. Others may disagree, believing they earned their wealth and have the right to use it as they please.
5. 'Captain of industry' and 'robber baron': A 'captain of industry' is seen as a positive figure who contributes to economic growth and social welfare, while a 'robber baron' is associated with unethical business practices and exploitation. Opinions on who fits each label among these men can vary based on different perspectives of their business methods and social contributions.

Answer:

1. Andrew Carnegie: Wealth - Maximized steel - industry profits via vertical integration. Philanthropy - Gave to libraries, museums, education.
2. John D. Rockefeller: Wiped out competitors and controlled all aspects of the oil - industry.
3. J.P. Morgan: Financed key industries, loaned to government, organized market rescues. Views on power vary.
4. Agreement on Carnegie's philanthropy view varies based on moral and property - rights perspectives.
5. Labels of 'captain of industry' and 'robber baron' are subjective and depend on views of business methods and social contributions.