Essay about The contribution of wealthy businessmen

Submitted By miarichardson
Words: 738
Pages: 3

The contribution of wealthy businessmen to the rise of big businesses
How they contributed
Andrew Carnegie
Dominated the steel industry
Founder of the Carnegie Steel Company – provided raw materials
One of the richest and most powerful of the big industrialists
Invested successfully in railroads, land and oil before developing the Pittsburgh iron and steel industries – making the USA the world’s leading producer
Built up a vast industrial empire – sold it out to J.P. Morgan in 1901 and spent his final years as a philanthropist
A New York music hall, which opened, in 1891 was renamed the Carnegie Hall seven years later in honour of the contribution Andrew Carnegie made to its construction
Adopted and adapted the Bessemer Process for steel making
Mass production of steel
John D. Rockefeller
Founded the Standard Oil Company in 1870
Became the world’s richest man and the first US dollar billionaire
Developed the idea of a trust - companies acquired by the main company could be held in trust so that what appeared to be independent companies, were actually controlled and regulated by a central group of trustees
By 1882, Standard Oil controlled, through trusts, 77 oil companies which produced 90% of all refined oil
Allowed him to control the supply and price of oil across the USA
The activities of the Standard Oil Trust led to an outcry against monopolies and the passing of the Sherman Anti-Trust Act 1890 – although the trust was dissolved by 1892, it was refounded as a holding company in 1899
Founded the Rockefeller Foundation in 1913 which was taken over by his son
J.P. Morgan
Powerful in banking and finance
Made his fortune reorganising American railroad companies
In 1891, he masterminded the merges that led to the formation of General Electric
Played a major part in cutting deals which prevented economic disaster in 1907
Recovered economic disaster by acquiring money from trading
Cornelius Vanderbilt

Transport pioneer
Founded many early ferries and railroads
By the time of his death, he controlled 16 major railroad companies including the New York Central

William Vanderbilt
Son of Cornelius Vanderbilt
Financier and railroad promoter – Became the head of the railroad trust
Increased railroad network
Was strongly opposed to government regulation of the industry
Was given control of the Staten Island Railroad in 1857
Was named vice-president of the New York and Harlem Railroad in 1864
Acquired other railroad companies, before taking over as president of the New York Central Railroad in 1877
He is famous for his phrase, “The public be damned”

Factors that led to rise of big businesses and economic success A number of factors influenced the rise of big business which then led to an expansion of the economy in the USA in the late nineteenth and early twentieth centuries
Raw materials and infrastructure
Economic and business growth would not have been possible without the abundance of raw materials in the USA
Vast areas of agricultural land