Captains of Industry or Robber Barons?

This week in class we have been doing things a little differently. To start of the lesson about John D. Rockefeller and Andrew Carnegie we watched several videos about the time period and the economic systems that were being put to use. In groups we would take shared notes on the videos and also on a few primary and secondary sources. After being filled in on what the focus and content of the lesson was, we, the students decided what our essential question would be for the week. We were to determine whether Carnegie and Rockefeller were robber barons or captains of industry. Robber barons were seen as corrupt, unsportsmanlike, bribed government officials, they bought out or destroyed rivals, and created giant monopolies and trusts. Citizens of the time had a love hate relationship with them. Captains of industry were simply business leaders who advanced the economy. These two men were both robber barons and captains of industry.

This shows Rockefeller's standard oil tank as an octopus strangling
its competitors, and the government.

Seeing future industry in oil Rockefeller quit the merchant business in which he was involved and began putting his prospects in oil in 1865. His business techniques attracted Flagler and he had the ability to negotiate lower shipping rates with the railroads, and then in 1870 the two men created the Standard Oil Company of Ohio. When Rockefeller’s strict strategies did bring the company extreme success, they damaged his reputation in the public. Some people believed that he and his partners used illegal tactics to get them to where they were, and eventually in 1892 antitrust legislation by Congress and Ohio supreme court forced Rockefeller to disband his companies. From this negative perspective John D. Rockefeller can be seen as a robber baron. Then again, Rockefeller’s wealth peaked at a highly impressive $900 million, this was more than the federal budget and qualified him as the most wealthy man in America’s history, but this money was not only spent for his own purposes but was also donated to charities and educational institutions. Throughout his years he was giving away millions of dollars for the advancement of education, medicine, and science. He also was willing to drop his prices, and this obviously has consumers following him constantly. As Rockefeller can be seen as a robber baron, he can be viewed as a captain of industry as well.

This image depicts Carnegie giving back on one side and
cutting wages on the other.

Andrew Carnegie was known for his strong production of steel in the U. S. With his addition to the industry it helped the country to surpass Great Britain in the production of steel. He also created a process where higher quality steel could be bought at lower costs. He became the first operator in the country to take messages by sound. Carnegie impressed Thomas Scott a businessman, who he saw frequently in telegraph offices, and eventually he became superintendent of the eastern military and telegraph lines. On top of all this by 1900 Carnegie’s wealth had reached an impressive 350 million, making him the second richest man in the world. And with this money, he built libraries, donated to education foundations, and promoted causes of peace. From this perspective it is clear that Andrew Carnegie was a captain of industry. On the other hand Carnegie could definitely be seen as a robber baron, he was also known for the Homestead Strike in 1892. This strike happened because of the wage cuts that were being delivered to the workers of the plant in Homestead, Pennsylvania. The laborers were fearing the loss of their jobs, and were obviously angry about the pay cuts, but within days the strike was broken and many were dead or injured. Another example of possibly unsportsmanlike business behavior was the fact that during the economic depressions Carnegie took advantage of the low prices and saw it as an opportunity to further his own businesses, while the rest of the country was plagued with poverty.

These two men both showed extreme talent in their industries, pushing and testing the limits of the economy. They donated to many foundations, for the causes of the community and for the purposes of giving back. From this point of view they can be seen as captains of industry, but they were also robber barons. In the case of Rockefeller, he had a tough reputation because of his cut-throat tactics, and was even suspected of using illegal methods. Andrew Carnegie cut the wages of hard working and poor workers so his company could advance. He also prospered off the overwhelming depression of the economy.