Robber Barons Research Paper
The American Businessman: Industrial Innovator or Robber Baron?
During the latter part of the nineteenth century, industries began to bloom across the United States. Local businesses and merchants gave way to larger corporations and industries. The head of these industries, such as the names of Rockefeller, Carnegie, and J.P. Morgan, were looked upon as robber barons by some, industrial innovators by others. A baron is "one having great wealth, power, and influence in a specified sphere of activity: an oil baron." Therefore the robber barons that these men were looked upon as were "one of the American industrial or financial magnates of the late 19th century who became wealthy by unethical means, such as questionable stock-market operations …show more content…
This combined all the phases of manufacturing into one organization. This allowed him to control all phases of production. John D. Rockefeller, labeled as the oil baron, derived the technique of horizontal integration. Here, different businesses controlled different stages of production. Then they were all allied to monopolize a given market. In doing this, Rockefeller eliminated competitors. He set up trusts, which were combinations "of firms or corporations for the purpose of reducing competition and controlling prices throughout a business or an industry" (Dictionary.com). J.P. Morgan, the banker's banker, introduced still yet another way to eliminate competition. Through his use of interlocking directorates, he placed officers of his own banking organization on the boards of directors of rival …show more content…
According to some business historians, "business leaders were not predatory money seekers. Indeed, in many cases they were talented individuals whose creative contributions to the economy - and to American society as a whole - were very great." Allan Nelvins said that "it was true that Rockefeller used methods that were of dubious moral character. On the other hand the kind of monopoly control attained by Standard Oil was a natural response to the anarchical cutthroat competition of the period and reflected the trend in all industrial nations toward consolidation. To Nelvins Rockefeller was not a robber baron; he was a great innovator who imposed upon American industry 'a more rational and efficient pattern.' Rockefeller's objective was not merely the accumulation of wealth; he and others like him were motivated by 'competitive achievement, self-expression, and the imposition of their wills on a given environment'" (The American Businessman: Industrial Innovator or Robber Baron, pg. 34). These men came into a disorganized economy and created organizations that played a vital role in making American the greatest industrial power in the world. If it were not for the advancements in steel, oil, textiles, chemicals, electricity, and automotive vehicles, our nation would not be where it stands
During the latter part of the nineteenth century, industries began to bloom across the United States. Local businesses and merchants gave way to larger corporations and industries. The head of these industries, such as the names of Rockefeller, Carnegie, and J.P. Morgan, were looked upon as robber barons by some, industrial innovators by others. A baron is "one having great wealth, power, and influence in a specified sphere of activity: an oil baron." Therefore the robber barons that these men were looked upon as were "one of the American industrial or financial magnates of the late 19th century who became wealthy by unethical means, such as questionable stock-market operations …show more content…
This combined all the phases of manufacturing into one organization. This allowed him to control all phases of production. John D. Rockefeller, labeled as the oil baron, derived the technique of horizontal integration. Here, different businesses controlled different stages of production. Then they were all allied to monopolize a given market. In doing this, Rockefeller eliminated competitors. He set up trusts, which were combinations "of firms or corporations for the purpose of reducing competition and controlling prices throughout a business or an industry" (Dictionary.com). J.P. Morgan, the banker's banker, introduced still yet another way to eliminate competition. Through his use of interlocking directorates, he placed officers of his own banking organization on the boards of directors of rival …show more content…
According to some business historians, "business leaders were not predatory money seekers. Indeed, in many cases they were talented individuals whose creative contributions to the economy - and to American society as a whole - were very great." Allan Nelvins said that "it was true that Rockefeller used methods that were of dubious moral character. On the other hand the kind of monopoly control attained by Standard Oil was a natural response to the anarchical cutthroat competition of the period and reflected the trend in all industrial nations toward consolidation. To Nelvins Rockefeller was not a robber baron; he was a great innovator who imposed upon American industry 'a more rational and efficient pattern.' Rockefeller's objective was not merely the accumulation of wealth; he and others like him were motivated by 'competitive achievement, self-expression, and the imposition of their wills on a given environment'" (The American Businessman: Industrial Innovator or Robber Baron, pg. 34). These men came into a disorganized economy and created organizations that played a vital role in making American the greatest industrial power in the world. If it were not for the advancements in steel, oil, textiles, chemicals, electricity, and automotive vehicles, our nation would not be where it stands