The Trust Titan

The Trust Titan - The Trust Titan a Andrew Carnegie...

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The Trust Titan a. i. He and other tycoons (a wealthy businessman or industrialist) found ways to circumvent competition. For example: 1. His miners dug steel in the Mesabi Range 2. His ships floated it across the Great Lakes 3. His railroads delivered it to the blast furnaces of Pittsburgh ii. This is called vertical integration – combining into one organization all phases of manufacturing iii. He wanted to use this method to: 1. Make supplies more reliable (if he controlled all the supplies, then he could get them and didn’t have to compete with others for them) 2. Control the quality of the product at all stages of production 3. Eliminate middlemen’s fees b. i. Trust – Allying with competitors to monopolize a given market ii. Stockholders in various smaller oil companies assigned their stock to the board of his Standard Oil Company. Soon, nearly all the oil market was under the company iii. Weaker competitors were forced to join the trust c. i. Shrink the number of rival enterprises by accepting them into his banking syndicate ii. Ensure harmony by placing officers of his own banking syndicate on their various boards of directors X. Supremacy of Steel a. Importance of Steel i. Early on it was expensive and rare ii. It was only used for cutlery iii. Iron was in its place iv. Used for: 1. Railroads 2. Skyscrapers v. Provided food, shelter, and transportation b. By 1900, How Did America Produce As Much As Britain and Germany Combined? i. Bessemer-Kelly Process (1850s) 1. A British inventor, Bessemer, had discovered the process a few years earlier 2. William Kelly, a Kentucky manufacturer of iron kettles, discovered that cold air blown on red-hot iron caused the metal to
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became white-hot by igniting the carbon and thus eliminating impurities 3. He applied the new “air-boiling” technique to his own product
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This note was uploaded on 02/04/2012 for the course HISTORY 104 taught by Professor Reed during the Spring '11 term at Rutgers.

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The Trust Titan - The Trust Titan a Andrew Carnegie...

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