the captains of industry. trusts trusts: a single business of share holders which controls an entire...
TRANSCRIPT
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?
•
STANDARD OIL DEVELOPS FLORIDA
•
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.