In a time of booming industry and affluent innovators, an era known as the Gilded Age came to be. From this age arose successful businessmen who would soon become captains of industry. Some of these businessmen included Cornelius Vanderbilt, Andrew Carnegie, and John D. Rockefeller. In their success, these men acquired large monopolies which upset many lower-class citizens. It seemed to them that as each monopoly grew, the rich got richer and the poor got poorer. Frustrated, low-paid workers started giving these industrialists more and more negative names—one of the more popular names being “robber barons.” However, while some view these men as greedy, unethical monopolists, in the long run they are captains of industry who shaped America into …show more content…
what it is today. The Gilded Age was originally given its name by American authors Mark Twain and Charles Warner in their book The Gilded Age: A Tale of Today. The word gilded refers to something that appears to be good but is really just a façade for something ugly underneath. The point these writers were trying to make was that while America’s economy was growing and everything seemed to be going well, it was all just a silver lining over the many who were underpaid and living in poverty. However, when you take a closer look, you’ll realize that there is a deeper layer underneath the poverty. Through rough times and hard work comes great accomplishments. This layer is the future success of America. Every future has a past. To solve the debate of whether the aforementioned men were robber barons or captains of industry, one would rewind time to the 1800’s where a man named Cornelius Vanderbilt made his mark in history. Cornelius Vanderbilt is famously known as the Commodore due to his success in the steamboat trade. Vanderbilt came from a very poor family and received very little schooling, but he didn’t let this get in the way of his success. By the age of 16 Vanderbilt owned his first barge and offered his passengers safe and affordable transportation around the Manhattan area. He used a competitive strategy of lowering fares to ultimately gain more loyal passengers than each of the other ferry services. His strategy was a major success and his business continued to expand until 1818 when he sold his vessels to become a steamboat captain with a man named Thomas Gibbons. “The Vanderbilt-Gibbons partnership charged only a quarter of the competitive fares. It soon became the dominant ferry service on the busy Philadelphia-New York City route. During the 1818-1829 time period the partnership made a fortune” (New Netherlands Institute). For most of his life Vanderbilt worked in the steamboat business, but by his late 60’s he observed a newer form of transportation and recognized the potential it possessed; the railroad industry would prove another great success for Cornelius Vanderbilt. Vanderbilt gained control of a string of railroads which he named the New York Central and Hudson River railroad. In 1869 Vanderbilt decided to build a station for his monopoly of tracks, and called it the Grand Central Terminal. This station provided thousands of men with jobs in the midst of the Panic of 1873. Mark Samels, executive producer of the film Grand Central once said, “Thousands of people pass through Grand Central Terminal every day, but few know the triumph of this monumental project. It became a city within a city, and ultimately gave rise to midtown Manhattan, establishing it as a center of wealth and commerce” (American Experience). Vanderbilt’s fortune continued to grow, and by the time of his death in 1877 he was the wealthiest man in the United States. While Vanderbilt wasn’t really involved in any charities, he still made his mark in shaping America. At a time of financial crisis for the country, he was able to provide more jobs than any other business in the nation. Railroads were very much depended on during this particular time in history, and the expansion that Vanderbilt offered was vital to the growth of America. Around the same time that Vanderbilt started in the railroad industry, another brilliant man by the name of John D.
Rockefeller was just at the start of his infamous oil monopoly. At the age of 23 Rockefeller teamed up with an inventor named Samuel Adams to find a cheap way to purify crude oil (McGill). Together the two of them produced kerosene, a cheaper fuel used to light lanterns, homes, and businesses. This man meant business, and it was only the beginning. In 1870 Rockefeller organized the Standard Oil Company, and in only eight years he obtained ownership of 90 percent of the nation’s oil refineries. In 1882 the Standard Oil Trust was created. “The first of its kind in the United States, the trust was devised so shareholders of various companies would hand over their shares to a board of trustees, receiving certificates of trust in place of the shares. Many powerful companies in the United States followed Rockefeller's example and established trusts” (McGill). However, in 1890 congress passed the Shermin Anti-Trust Act and the Standard Oil Trust was abolished. Oddly enough, it was in his days of retirement that Rockefeller became a billionaire; this was due to the increased need of oil in motor vehicles and the dividends from his many small …show more content…
companies. Not only did Rockefeller make a huge contribution to the nation’s economy, but he was also a major philanthropist. Throughout his whole life he donated money to his church and various charities. However, rather than just giving money to his own church, he also donated to churches of different faiths for most of his life. Rockefeller once wrote, “I believe it is every man's religious duty to get all he can honestly and to give all he can” (Rockefeller Family & Associates). One of his many charitable groups was the Rockefeller Foundation, which had an international health division and had the sole purpose of promoting the well-being of mankind. The Rockefeller Foundation is still around today, and has kept the same goal of improving the well-being of mankind. The foundation has five main program areas: Creativity and Culture, Food Security, Health Equity, Working Communities, and Global Inclusion. By 2011 the Rockefeller Foundation had awarded over $140 million in grants, $3 million was used to assist in rebuilding New Orleans after Hurricane Katrina struck in 2005 (Rockefeller Foundation). Vanderbilt wasn’t the only monopolist devoted to philanthropy, there was another man out there who would eventually donate all of his life’s earnings to good causes. Philanthropic industrialist Andrew Carnegie quite literally went from rags to riches.
At the age of 13 Carnegie moved from Scotland to the United States, and got a job working in a factory that same year. In 1853 he was hired by the Pennsylvania Railroad where he worked as an assistant for Thomas Scott. Scott taught Carnegie all about the railroads, the stock market, and how to become a successful businessman. While working for the railroad Carnegie began making investments in oil and received a good amount of money because of it. In 1865 he left the railroad company to focus on his interest in steel. He and Scott would remain close friends, and Scott even assisted Carnegie in his plans to build a bridge across the Mississippi River. Many had attempted this task and failed, but Carnegie was determined to succeed. He Started the Keystone Bridge Company, and made plans to build the bridge with iron and steel rather than wood. The bridge was a success, and Carnegie went on to produce more and more steel; he called his business the Carnegie Steel Company. By 1889 Carnegie had a monopoly of steel. Many believe that at the time of his retirement in 1901, Andrew Carnegie was the richest man in the world. Throughout his life Carnegie had been generous in his donations, but at the time of his retirement he devoted all his time to his philanthropies. Some of his major charitable contributions included the Carnegie Trust for the Universities of Scotland, the Carnegie Dunfermline Trust,
the Carnegie Endowment for International Peace, and the Carnegie Corporation of New York (Andrew Carnegie). Carnegie once said, “The man who dies rich dies in disgrace…In bestowing charity the main consideration should be to help those who help themselves” (Stamburg). Everybody has flaws, and these three industrial businessmen were not the exception. The pursuit of wealth got the better of them at times, and they were oftentimes harsh on their employees. For this reason they received the title “robber barons.” The term robber baron is often defined as one who seeks wealth through exploitations and ruthless means. Some of the ways these men did business were considered shady and questionable.
Robber Barons are known as ruthless capitalist or industrialist of the late 19th century, known to have gain wealthyness by exploiting natural resources, corrupting legislators, or other unethical means. The Myth of the Robber Barons is a book about the entrepreneurs Cornelius Vanderbilt, James J. Hill, Andrew Mellon, Johne D. Rockefeller, the Scranton family, and Charles Schwab. Many in todays sociaty would argure that these men were all robber barons, but this book gives us a hole new look in the history of these men and there lives and all they did for the rise in the U.S economic power.
Robber Barons and the Gilded Age Did the Robber Barons and the Gilded Age of the 1890’s and early 20th Century have a negative impact on 21st Century Corporate America today? Carnegie, Rockefeller, Morgan, and Vanderbilt all had something in common, they were all “Robber Barons,” whose actions would eventually lead to the corruption, greed, and economic problems of Corporate America today. During the late 19th century, these men did all they could to monopolize the railroad, petroleum, banking, and steel industries, profiting massively and gaining a lot personally, but not doing a whole lot for the common wealth. Many of the schemes and techniques that are used today to rob people of what is rightfully theirs, such as pensions, stocks, and even their jobs, were invented and used often by these four men.
characterizes the capitalists who shaped post-Civil War industrial America and it is valid that they would be properly distinguished as corrupt “robber barons”.
What is a robber baron? Webster’s New Dictionary defines it as an American capitalist of the late 19th century who became wealthy through exploitation (As of natural resources, governmental influence, or low wage scales) or a person who satisfies himself by depriving another. In America we had a lot of these kind of people. For this report I am going to tell you about the ones that I found most interesting to me. I would first like to tell you about Cornelius Vanderbilt.
Andrew Carnegie and John D. Rockefeller: Captains of industry, or robber barons? True, Andrew Carnegie and John D Rockefeller may have been the most influential businessmen of the 19th century, but was the way they conducted business proper? To fully answer this question, we must look at the following: First understand how Andrew Carnegie and John D. Rockefeller changed the market of their industries. Second, look at the similarities and differences in how both men achieved dominance.
Based on the Gilded Age, literally meaning a layer of gold is displayed on the outside and once you look deeper past through the top layer of gold, you can identify that the robber barons are the culprit of the corruption in the government who monopolized the corporate America. Although, there is a great transition from the agricultural economy towards the rapid growth of the urban and industrial society, the robber barons created a lot of problems for much of the working class poor in America. The robber barons use the power they obtain through their wealth for their own advantage and try to repress any form of the spread of democracy and the regulation in the marketplace, its work safety, the labor laws, and the certain amount of work hours which followed thereafter witnessing of the homestead strikes that touched on the major issues of the American nation. Both Carnegie and John D. Rockefeller dominated giant corporations, but they dictated much of the employees and greatly tried to divide out the employees from desperately trying to organize the reforms that would essentially stop the robber barons from taking advantage of them. The robber barons insisted that if you cannot work the day you are supposed to other than the Fourth of July, some other person will be a willing participant to come and take your job.
Industrial development of the late 18th century (around 1865-1900) is often characterized by it’s affluent, aggressive and monopolistic industrial leaders of the likes of men such as Andrew Carnegie, William H. Vanderbilt, and John D. Rockefeller. Due to their ruthless strategies, utilization of trusts, and exploitation of cheap labor in order to garner nearly unbreakable monopolies and massive sums of wealth, these men are often labelled as “robber barons”. At the same time, they are also often referred to as “industrial statements” for their organization, and catalyst of, industrial development; not to forget their generous contributions to the betterment of American society. Therefore, whether or not their aforementioned advances in industry were undertaken for their own personal benefits, one cannot ignore their positive effects on America. Thus, one can conclude that not only were the captains of industry both “robber barons” and “industrial statements”, but that that these two labels, in fact, go hand-in-hand.
The Gilded Age marked a period of industrial growth in America. Mark Twain termed the period of 1865 to 1896 as the “Gilded Age” to {indicate} the widespread corruption lying underneath the glittering surface of the era. Known as either “captains of industry” or “robber barons,” several prominent figures shaped this time period; these capitalists gained great wealth and success with their industries. Corrupt and greedy are two words associated with the term “robber barons,” which referred to the capitalists who acquired their great wealth in less than admirable and ethical ways. On the other hand, many referred to the capitalists as the “captains of industry” that were celebrated as admirable philanthropists; their way of acquiring extreme
———. “Robber Barons or Captains of the Industry.” History Now. Accessed December 7, 2011. Last modified June 2010. http://www.gilderlehrman.org.
Steel Company after a serious, bloody union strike.He saw himself as a hero of working people, yet he crushed their unions. The richest man in the world, he railed against privilege. A generous philanthropist, he slashed the wages of the workers who made him rich. By this time, Carnegie was an established, successful millionaire. He was a great philanthropist, donating over $350 million dollars to public causes, opening libraries, money for teachers, and funds to support peace.
However, the reason Rockefeller controlled 90% is because of a company that basically appeared from nowhere and had some actual competition for Standard Oil and actually surprised Rockefeller. The company was known as the Tidewater Pipe-line Company, it started by building a pipeline from north Pennsylvania to Williamsport. Rockefeller tried to acquire the company but in the end it ended up as Standard only competition with Tidewater controlling 10% of the oil refining market. This was however of not a large concern to Standard as they were developing products besides oil from Vaseline to candy.
The captain of industries were businessmen who also benefitted society through their accumulation of wealth, using methods such as increased productivity, the expansion of markets, offering up new jobs to the working class, and other acts of generosity. All of the notable industrialists dubbed “robber barons” were also named “captain of industries” as well. Therefore, there have been many debates as to whether the term “robber barons” really did justice to the industrialists, when taking into account of their effects on America’s economy, and not just the negative aspects. While the robber barons did harm specific groups of people in order to meet their selfish goals, as well as execute ruthless tactics to surpass their competitors, they have also created an economic boom in which they created larger manufacturing companies, created many employment opportunities for the working class. Even though robber barons went to extreme measures and harmed others in their pursuit of wealth, they have also, and built a stable and prosperous
Carnegie's first job was a telegraph messenger boy, and later upgraded to work for the Pennsylvania Railroad Company as a telegraph operator. His persevering work allowed him to quickly advance through the company, and he became the superintendent of the Pittsburgh Division. He continued making investments and made good profits throughout the civil war, and finally left Pennsylvania Railroad and started his own iron companies, eventually Keystone Bridge Works and Union Ironworks.
The first positive affect of John D. Rockefeller was his donations of large sums of money to public institutions. During his lifetime, Rockefeller gave away 540 million dollars (Sicilia 2006). Almost all of his philanthropies occurred after his retirement from Standard Oil. Donations varied from colleges, to churches, to hospitals. With the help of his son and Frederick Gates, the man Rockefeller put in charge of his philanthropies, he was able to help improve the lives of many (Poole 2000).
Majority of his donations were in the name of higher education and learning became his motive for giving. He gave superfluous amounts of money to support colleges in Scotland as well as abroad. philanthropyroundtable.org - http://philanthropyroundtable.org/. Carnegie said his institutions were made “to encourage in the most liberal manner investigations, research and discovery, and the application of knowledge to the improvement of mankind” (Kent). Many institutes were equipped with libraries, music halls, museums, and art departments. Carnegie was also the donor of over 7,600 pipe organs to churches around the world.