John D. Rockefeller - Wikipedia
Andrew Carnegie was a Scottish-American industrialist, business magnate, and philanthropist. After selling Carnegie Steel, he surpassed John D. Rockefeller as the richest American for the next couple of years. His mother helped support the family by assisting her brother (a cobbler), and by selling potted meats at her . The Lives of John Jacob Astor, Cornelius Vanderbilt, Andrew Carnegie, John D. Rockefeller, Henry Ford and Joseph P. Kennedy Wyn Derbyshire and it has generally been accepted that this was due to his relationship with his mother. Andrew Carnegie () was one of the most successful businessmen and following, Carnegie's mother, with whom he shared a very close relationship, . many others to do the same, including John D. Rockefeller and W.K. Kellogg.
He may have been influenced by his uncle, as accounts indicate his father did not participate in the agitation. He started school at age eight, the typical age for starting school in Scotland.
He attended the Rolland School on Priory Lane. Every morning before school, he had to fetch water from the town reservoir. At the age of 10, he went to work for both his uncle and mother, running errands, keeping accounts, and maybe even clerking.
The following is from: Penguin Books,xiii-xv: Poor though the Carnegies were, they were supported by his mother's extended family and by the Scottish emigrants who had preceded them to America and Allegheny City, across the Allegheny River from Pittsburgh.
Andra, as he was called, was put to work as a bobbin boy at a cotton mill, but after less than a year in the mill, found work as a telegraph messenger, taught himself Morse code, and was hired as private telegraph operator and secretary to Thomas A.The Men Who Built America Episode 1 (FULL)
Scott, the Pittsburgh division superintendent of the Pennsylvania Railroad. For the next twelve years or so, he would work for the railroad. At age thirty, Carnegie resigned his position to go into business for himself with his former bosses, Tom Scott and J. Edgar Thomson, the president of the Pennsylvania Railroad. Together, they organized a series of companies-with Scott and Thomson as secret partners-that were awarded insider contracts to supply the Pennsylvania Railroad with raw materials and build its iron bridges.
By his early thirties, Carnegie had, with help and investment capital from his friends accumulated his first fortune-in Pennsylvanian oil wells, iron manufacturing, bridge building, and bond trading. His business career was, to this point, not unlike that of other ambitious English-speaking immigrants who made their fortunes by being in the right place at the right time.
- John D. Rockefeller
- Andrew Carnegie (1835-1919)
- Andrew Carnegie
In the early s, he moved away from the source of his income, Pittsburgh, to New York City. He would continue to oversee his iron and bridge companies from his hotel suite in New York-which he shared with his mother. Day-to-day decision making was delegated to a succession of partners, including his brother Tom, Henry Clay Frick, and Charlie Schwab.
However, he did not intend to eliminate competition entirely.
John D. Rockefeller Biography
In fact, his partner Pratt said of that accusation "Competitors we must have If we absorb them, it surely will bring up another. It added its own pipelines, tank cars, and home delivery network. It kept oil prices low to stave off competitors, made its products affordable to the average household, and, to increase market penetration, sometimes sold below cost. It developed over oil-based products from tar to paint to petroleum jelly to chewing gum. That orderly, economic, efficient flow is what we now, many years later, call ' vertical integration ' I do not know whether Mr.
Rockefeller ever used the word 'integration'. I only know he conceived the idea. Scottthe president of the Pennsylvania RailroadStandard's chief hauler. Rockefeller envisioned pipelines as an alternative transport system for oil and began a campaign to build and acquire them. Rockefeller prevailed and the railroad sold its oil interests to Standard. In the aftermath of that battle, the Commonwealth of Pennsylvania indicted Rockefeller in on charges of monopolizing the oil trade, starting an avalanche of similar court proceedings in other states and making a national issue of Standard Oil's business practices.
He complained that he could not stay asleep most nights. President Theodore Roosevelt grabbing the head of Nelson W. Aldrich and the snake-like body of John D.
It supplied kerosene by tank cars that brought the fuel to local markets, and tank wagons then delivered to retail customers, thus bypassing the existing network of wholesale jobbers. Standard's most potent weapons against competitors were underselling, differential pricing, and secret transportation rebates. Byaccording to the New York WorldStandard Oil was "the most cruel, impudent, pitiless, and grasping monopoly that ever fastened upon a country".
To critics Rockefeller replied, "In a business so large as ours We correct them as soon as they come to our knowledge.
As a result, Rockefeller and his associates owned dozens of separate corporations, each of which operated in just one state; the management of the whole enterprise was rather unwieldy. InRockefeller's lawyers created an innovative form of corporation to centralize their holdings, giving birth to the Standard Oil Trust.
Nine trustees, including Rockefeller, ran the 41 companies in the trust. Standard Oil had gained an aura of invincibility, always prevailing against competitors, critics, and political enemies. It had become the richest, biggest, most feared business in the world, seemingly immune to the boom and bust of the business cycle, consistently making profits year after year. The company's vast American empire included 20, domestic wells, 4, miles of pipeline, 5, tank cars, and overemployees.
Rockefeller finally gave up his dream of controlling all the world's oil refining; he admitted later, "We realized that public sentiment would be against us if we actually refined all the oil. In the early s, Rockefeller created one of his most important innovations. Rather than try to influence the price of crude oil directly, Standard Oil had been exercising indirect control by altering oil storage charges to suit market conditions.
No. Carnegie and Rockefeller
Rockefeller then ordered the issuance of certificates against oil stored in its pipelines. These certificates became traded by speculators, thus creating the first oil-futures market which effectively set spot market prices from then on. The National Petroleum Exchange opened in Manhattan in late to facilitate the trading of oil futures.
The Paris Rothschilds jumped into the fray providing financing. Even more critical, the invention of the light bulb gradually began to erode the dominance of kerosene for illumination. Standard Oil adapted by developing a European presence, expanding into natural gas production in the U. He bought a residence in on 54th Street near the mansions of other magnates such as William Henry Vanderbilt. Despite personal threats and constant pleas for charity, Rockefeller took the new elevated train to his downtown office daily.
Ohio was especially vigorous in applying its state anti-trust laws, and finally forced a separation of Standard Oil of Ohio from the rest of the company inthe first step in the dissolution of the trust.
Rockefeller, who is sitting in the witness stand, during the Standard Oil case on July 6, In the s, Rockefeller expanded into iron ore and ore transportation, forcing a collision with steel magnate Andrew Carnegieand their competition became a major subject of the newspapers and cartoonists. The daily management of the trust was turned over to John Dustin Archbold and Rockefeller bought a new estate, Pocantico Hillsnorth of New York City, turning more time to leisure activities including the new sports of bicycling and golf.
Steelthen controlled by J. Pierpont Morganhaving bought Andrew Carnegie's steel assets, offered to buy Standard's iron interests as well. Steel stock and gave Rockefeller and his son membership on the company's board of directors.
She documented the company's espionage, price wars, heavy-handed marketing tactics, and courtroom evasions. I was willing that they should combine and grow as big and wealthy as they could, but only by legitimate means. But they had never played fair, and that ruined their greatness for me. Though he had long maintained a policy of active silence with the press, he decided to make himself more accessible and responded with conciliatory comments such as "capital and labor are both wild forces which require intelligent legislation to hold them in restriction.
Critics found his writing to be sanitized and disingenuous and thought that statements such as "the underlying, essential element of success in business is to follow the established laws of high-class dealing" seemed to be at odds with his true business methods.
Rockefeller retained his nominal title as president until and he kept his stock. Even before he'd reached his apogee, Carnegie wrote that a wealthy man's life should go in two stages -- first gaining wealth, then using that wealth to improve the general welfare.
And that's what he did. He established Carnegie Institute, Tuskegee Institute, and many other schools. He became the patron saint of libraries. He set up charitable foundations.
Rockefeller, on the other hand, began giving when anti-trust forces closed in on his Standard Oil Company.
Andrew Carnegie - Wikipedia
He also set up charitable corporations of all sorts to give away excess money. He began by creating the University of Chicago. Whatever his motives, Rockefeller gave birth to a dynasty of charitable giving that extends right down to the present day. Of course, Andrew Carnegie makes the better hero.
He, after all, was part and parcel of the emerging technologies that made our country.