Carnegie and Rockefeller: Captains of Industry
Essay Preview: Carnegie and Rockefeller: Captains of Industry
Report this essay
Carnegie and Rockefeller: Captains of Industry
The Industrial Revolution started in the 1800’s birthing four men who would change the way of living forever. These men were either a Robber Baron, who became rich through ruthless business practices or a Captain of Industry, who were head of a successful business who used their money to help the community. Two leaders who stand out as Captains of Industry were Andrew Carnegie and John D. Rockefeller. Carnegie and Rockefeller were ingenious and industrious leaders who transformed the American economy with their business skills as well as their philanthropy.
Andrew Carnegie revolutionized the steel industry in America with is company the Carnegie Steel Company. Carnegie built plants around the country, using technology and methods that made manufacturing steel easier, faster and more productive. He introduced the idea of vertical integration. He bought railroad companies and iron mines. If he owned the rails and the mines, he could reduce his costs and produce cheaper steel. Carnegie owned the raw materials, ships and railroads for transporting the goods, and even coalfields to fuel the steel furnaces. To keep his workers vested in their jobs he used the profit sharing, plan which gave all of them a share of the company’s profits. Carnegie also established the “Gospel of Wealth”. He was the first business men to speak out and say the rich should contribute their wealth to society. Carnegie practiced his philosophy by dedicating the rest of his life to distributing the large fortune he had accumulated. He
donated $4.4 billion dollars in his lifetime. He set up 3,000 libraries, and donated $5 million dollars to the New Your Library. He established the Carnegie Institute. He created the Carnegie Foundation for the advancement of teaching. He formed the Carnegie Endowment for International Peace. Carnegie also gave $125 Million to the Carnegie Corporation, which aided colleges and other schools.
John D. Rockefeller was the guiding force behind the creation and development of the Standard Oil Company, which grew to dominate the oil industry, becoming one of the first big trusts in the United States. Standard Oil refined over 90% of the oil in the US, and developed petroleum based products like Vaseline, gasoline, and chewing gum
Rockefeller saw an opportunity in the oil business in the early 1860s. The oil business was so new with little competition; Rockefeller decided that establishing an oil refinery near Cleveland would be a good business move. In 1870, Rockefeller formed the Standard Oil Company of Ohio. Standard Oil became the largest refinery in Ohio. Rockefeller used vertical and horizontal integration. He achieved this by buying the companies that were used in the process of oil mining, shipping and selling. At the same time, he used horizontal integration by buying and merging with their