Lecture Notes: Robber Barons of the 19th Century

Overview

• Continuation of 1302 lectures on Robber Barons.
• Previous lecture covered Daniel Drew, Jim Fisk, Jay Gould, Cornelius Vanderbilt, John D. Rockefeller.
• This lecture focuses on Andrew Carnegie and J.P. Morgan.

Key Figures

Andrew Carnegie

• Background:
  • Born in 1835 in Scotland; immigrated to the U.S. in 1848.
  • Son of a textile weaver who lost his job.
• Career and Achievements:
  • Known for a rags-to-riches story; started as a gopher in a carbon black plant.
  • A remarkable telegraph messenger on the Pennsylvania Railroad; could decipher Morse code by ear.
  • Became a significant figure in the railroad industry, later transitioning to steel.
  • By 1859, involved in making sleeper cars; reported significant income by 1863.
  • Known for the Bessemer process, which revolutionized steel production.
  • Advocated the idea of putting ‘all eggs in one basket’ but watching that basket carefully.
• Legacy:
  • Philanthropy: Built libraries across the U.S. and promoted the 'Gospel of Wealth.'
  • Efficiency and innovation were hallmarks of his business methods.
  • Controversially opposed labor unions and used force against strikes.

J.P. Morgan

• Background:
  • Born in the 1830s; came from a wealthy banking family.
  • Did not serve in the Civil War; paid for a substitute.
• Career and Achievements:
  • Known primarily as a financier and banker; similar to Warren Buffett today.
  • Controlled vast amounts of money, influencing the economy and bailing out the government during financial crises.
  • Significant involvement in mergers and securities, especially in railroads and other industries.
• Legacy:
  • Had a tangible influence on government and economic policies.
  • Known for his powerful presence and business acumen.
  • Invested in the Suez Canal, showcasing his international finance influence.

Conclusion

• Both Carnegie and Morgan played crucial roles in shaping American industry and finance.
• They shared controversial stances on labor and war, with significant impacts both domestically and abroad.
• Next lectures will cover immigration and growth of cities.