the captains of industry. trusts trusts: a single business of share holders which controls an entire...

THE CAPTAINS OF INDUSTRY

TRUSTS

•Trusts: A single business of share holders which controls an entire industry (a monopoly)

STANDARD OIL CO.John D. Rockefeller Henry M. Flagler

HORIZONTAL INTEGRATION

OIL REFINING

http://www.history.com/topics/john-d-rockefeller/videos/john-d-rockefeller-oil-money-and-power

CONTROL OF THE MARKET

1. Standard Oil controlled

95% of the Oil Market.

2. Prices were cut to prevent competition.

3. Helped greatly by the creation of the automobile.

STANDARD OIL STOCK

HOW BIG WAS STANDARD OIL?

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STANDARD OIL DEVELOPS FLORIDA

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CARNEGIE STEEL1. Created by Andrew Carnegie, a Scottish Immigrant.2. Based out of Pittsburgh, PA3. Used the “Bessemer Process” to create the strongest steel in the world.http://www.history.com/topics/andrew

-carnegie/videos/andrew-carnegie

VERTICAL INTEGRATION• 1. Carnegie believes in

owning every step of production, to eliminate the “middle man”.• 2. Reduced costs,

lower the price of his steel.

• 3. Controlled 25% of the world’s steel market.

JOHN PIERPONT (JP) MORGAN

1. Financier, who made his fortune investing in the Trusts.2. Used “interlocking directories” of joint share holders on multiple Corporate Boards.3. Spends $400 million to buy Carnegie Steel.4. Becomes 1st Billionaire by creating 1st Billion $ Company, US Steel.