million this was before income tax but Carnegie fearing ridicule for possessing

Million this was before income tax but carnegie

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million (this was before income tax), but Carnegie, fearing ridicule for possessing so much money, spent the rest of his life donating $350 million of it to charity, pensions, and libraries. i. Meanwhile, Morgan took Carnegie’s holdings, added others, and launched the United States Steel Corporation in 1901, a company that became the first billion-dollar corporation (it was capitalized at $1.4 billion) in the world. XII. Rockefeller Grows an American Beauty Rose 1. In 1859, a man named Drake first used oil to get money, and by the 1870s, kerosene , a type of oil, was used to light lamps all over the nation. 2. However, by 1885, 250,000 of Edison’s electric light bulbs were in use, and the electric industry soon rendered kerosene obsolete, just as kerosene had made whale oil obsolete. 3. Oil, however, had its profits from the gasoline-burning internal combustion engine .
4. John D. Rockefeller, ruthless and merciless, organized the Standard Oil Company of Ohio in 1882 (five years earlier, he had already controlled 95% of all the oil refineries in the country). 5. Rockefeller crushed weaker competitors—part of the natural process according to him—but his company did produce superior oil at a cheaper price. 6. Other trusts, which also generally made better products at cheaper prices, emerged, such as the meat industry of Gustavus F. Swift and Philip Armour . XIII. The Gospel of Wealth 1. Many of the newly rich had worked from poverty to wealth, and thus felt that some people in the world were destined to become rich and then help society with their money. 2. The Reverend Russell Conwell of Philadelphia became rich by delivering his lecture, “ Acres of Diamonds ” thousands of times, and in it he preached that poor people made themselves poor and rich people made themselves rich; everything was because of one’s actions only. 3. Corporate lawyers used the 14 th Amendment to defend trusts, the judges agreed, saying that corporations were “big people” entitled to their property, and plutocracy ruled. XIV. Government Tackles the Trust Evil 1. In 1890, the Sherman Anti-Trust Act was signed into law; it forbade combinations in restraint of trade, without any distinction between “good” and “bad” trusts. i. It proved effective because it couldn’t be enforced. ii. Not until 1914 was it properly enforced and those prosecuted for violating the law were actually punished. XV. The South in the Age of Industry 1. The South remained agrarian despite all the industrial advances, though James Buchanan Duke developed a huge cigarette industry in the form of the American Tobacco Company and made many donations to what is now Duke University. 2. Men like Henry W. Grady , editor of the Atlanta Constitution urged the South to industrialize. 3. However, many northern companies set rates to keep the South from gaining any competitive edge whatsoever, with examples including the rich deposits and iron and coal near Birmingham, Alabama, and the textile mills of the South.

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