Room in your home

Technology found there

Kitchen

Living Room

Bedroom

Bathroom

Classroom

Technology Survey

NOTES on NOTES on Rise of TrustsRise of Trusts

Trusts: separate companies controlled by a single board

Trusts: separate companies controlled by a single board

1. Monopoly: a trust that has exclusive control over an entire industry

a. Robber Baron: person who became wealthy by unethical means

b. Captain of Industry: an innovative entrepreneur who positively influenced society

Cornelius Vanderbilt: steamboating and railroads

1. Loss Leader – charges less than it costs, but makes profit elsewhere

2. Legacy: $100 milliona. $95 million to sonb. $1 million to

Vanderbilt University

John Rockefeller: Standard Oil

1. Horizontal Integration: ally with companies in same industry

i. Controlled 90% of oil industry

2. Legacy - $900 million** Richest man in the US

a. Gave away $500 millionb. Gave away $10,000 in

dimes

http://www.hispanicbusiness.com/news/2010/3/11/carlos_slim_son_of_a_mexico.htm

Rockerduck: Captain of Industry?

Oil Tycoon: Robber Barron?

Andrew Carnegie: US Steel1. Vertical Integration –

ally with producer of raw materials and distributor of finished goods

2. Legacy: $400 milliona. gave $350 million to charityb. Gospel of Wealth: book

which advised people to make what they need give the rest to the community

i. Est free libraries – everyone = access to education

Here’s a few million… go

build a library

Can I get some

change?

Go to the library I made for you!

JP Morgan: banking 1. “Morganization” – buys

failing companies, reorganizes them into one successful company

2. Legacy a. JP Morgan & Company

a. loaned gov’t $65 mill to help restore confidence in the nation’s finances

b. Bequeathed (left) large art collection to the Metropolitan Museum of Art

Morgan’s role in the economy was perceived as larger than the Federal Government

What does the government say?…. We need to step in …

• Interstate Commerce Commission –oversee RR operations – 1st regulation of US businesses

• Sherman Antitrust Act– Outlaws monopolist trusts– Gov’t does not recognize unions as a result

Do we have Robber Barons OR Captains of Industry today?

Who?

What does the public think?

• Robber Barons = person who

became wealthy by unethical means

• Captains of Industry =

business leaders that were believed to positively serve

the nation

VS.

Circle OneRobber Baron Captain of Industry

“You have undertaken to cheat me. I won't sue you, for the law is too slow. I'll ruin

you.”—Cornelius Vanderbilt

Reasoning

Circle OneRobber Baron Captain of Industry

“The way to make money is to buy when blood is running in the

streets.” John D. Rockefeller

Reasoning

Circle OneRobber Baron Captain of Industry

“Surplus wealth is a sacred trust which its possessor is bound to

administer in his lifetime for the good of the community.” Andrew Carnegie

Reasoning

Circle OneRobber Baron Captain of Industry

“Well, I don't know as I want a lawyer to tell me what I cannot do. I hire him to tell how to do what I want to

do”

—JP Morgan

Reasoning