Tuesday, December 29, 2009
LEADERS OF INDUSTRY IN THE 1800S
Andrew Steel company
This is a negative cartoon of John D. Rockefeller, about his oil company
This is a negative cartoon about John D. Rockefeller about the monopoly he had.
This is a negative cartoon of Andrew Carnegie, about the "robber barons"
This is a positive cartoon of Andrew Carnegie, about his donations to public libraries.
LEADERS OF INDUSTRY IN THE 1800S
In the 1800s, after inventions were created, big business start to grow, and new businessmen start to appear. One of the most successful of all business leaders and industrialist is Andrew Carnegie. The second most richest and successful in the world is John D. Rockefeller. Both of them give a great among of their money to benefit the nation and support artistic, schools, colleges, etc. Many people include me are happy and thankfully with their donations and help to the poor. I believe that many people in the country love them and know who they are. However some people disagree with their own strategies such as Horizontal Consolidation and Vertical Consolidation. I think many industrialists use many methods, fair or unfair, to gain a competitive edge over their rivals.
Andrew Carnegie born in Scotland in 1835, like many immigrants his family faced hard times. He is famous between immigrants because I know many people that look at him like an idol. He used to work in cotton mill as a kid, then in a Railroad Company and his boss encouraged him to invest money in the Adams Express Company, he mortgage his house and amazed with the money he made, Carnegie start to begun his career as a businessman. The development of the Bessemer process persuaded Carnegie that steel would soon replace iron in many Industries. Then around his 30, he made his first company "Carnegie Steel Company" in 1889. I just realize that he is admired for many people in the country, I can see newspapers writing about him and business people taking about it. As soon his company start to get stronger and have more money to buy the companies that performed all the phases of steel production. This tragedy was The Vertical Consolidation. However smaller companies were then at a disadvantage, because when his production increases the cost of each item produced is lower. Many small businessmen and relatives didn't like that, calling him "robber baron". Since then, I think people start to disagreed with others about is he really a "robber barons" or "captain of industry".
Finally the second more rich and successful businessmen is John D. Rockefeller. Owner of the Standard Oil Company in 1870. All start when oil was discovered in 1859 for Edwin L. Drake and many new opportunities for oil start to arose. Rockefeller didn't think about twice and invest his money from a grain and meat partnership during the Civil War. I hear many histories of people getting rich from grain and meat partnership during the Civil War, it is common in 1800s. Fist, he built an oil refinery, then it become larger, and in 1870 Rockefeller and several associates formed the Standard Oil Company of Ohio. Then he was getting help from other companies and then cut his production cost. So he can fight with his competitors. Rockefeller knew that he can go further, so he used the "horizontal consolidation" which involves the bringing together of many firms in the same business. Rockefeller then got all the small refineries, having all the monopoly of oil. It was a good strategy but I don't think is good for the country because a person doesn't have the choice to choose another kind of oil than Rockefeller's one.
After all, Carnegie and Rockefeller made a really good attribution to the country in donations. When people start to read in the newspapers about the great among of money that Rockefeller gave, $500 million to establish or improve charities and institutions that he believed would benefit humanity. People start to realize that in the end he was a good men when Rockefeller found the University of Chicago and the Rockefeller foundation which give aid to institutions working in the fields of public health, art, social research, and many others. Also Carnegie 80 percent of his fortune went to education, public libraries, artist, and set up a fund to study how to abolish war.
Both of them while expanding their business, they became a major figure too.I think Carnegie and Rockefeller are the major leaders of Industry and made a big change in the United States in the 1800s with their donations.