john d. rockefeller & andrew carnegie ch. 19.3
TRANSCRIPT
John D. Rockefeller• Born in Richford, New York
o 1839
• Made his fortune in oil
• America’s first billionaire
• Built his first oil refinery at age 26o Cleveland, Ohio
Rockefeller• 1870- Organized the Standard Oil Company
• Horizontal Integration- Combining competing companies into one organization
The Standard Oil Trust
• Rockefeller lowered his prices to drive competitors out of businesso Who does this sound like today?
• Persuaded railroads to give him special rates
• 1882o Formed a trust by acquiring stocks in many different oil companieso Standard Oil Company became part owner of the other companies
• Trust: Group of companies managed by the same board of directors
• Rockefeller had formed a monopoly
Andrew Carnegie• Made his fortune in steel
• Son of a Scottish immigranto Began his career as a telegraph operator
• 1865- Invested in the Steel industry
Carnegie• By 1890- Carnegie was the dominant figure
in the steel industry
• Vertical Integration- His company acquired companies that provided the equipment and services he neededo Bought iron and coal mines, warehouses, ore ships, and
railroads
• By 1900, Carnegie Steel Company produced 1/3 of the nation’s steel
Philanthropy• Philanthropy: Use of money to benefit the
community
• Rockefeller and Carnegie used their fortunes to:o Found schools, universities
• Carnegie:o Built Carnegie Hall- Famous concert hall in New York Cityo 2,000 libraries
• Rockefeller:o Founded the University of Chicagoo Founded New York’s Rockefeller Institute for Medical Research