to make a beautiful rose, you have to cut off the buds around it f. turned out a product that WAS superior product (not just a profit) g. good product at a really good price h. monopoly i. trust - legal device i.i. invited remaining competitors to join with him in what became known as this trust i.ii. didn’t just immediately knock them out i.iii. “come with us, let us p rey ” i.iv. this gigantic oil company was known as a trust j. now word trust is now synonymous with any large scale business company that ‘takes care’ of many other little companies k. many other trusts created (not by Rockefeller, just in general) l. Questinos about Rockefeller:
l.i. Company of need? l.i.1. Yes! l.ii. Efficient enterprise? l.ii.1. Yes! l.iii. Did it in a way that was basically illegal (probably couldn’t do it today) l.iv. Rockefller knew not to reaise prices ridiculously l.iv.1. But had the power to do so 6. Sugar trust, tobacco trust, leather trust, harvester trust a. Created wealth that lasted many generations b. Trust would have 2 or three key people as opposed to one c. In meat area- Swift and Armor (2 key figures) 7. Centralization makes sense in some aspects of life a. Telephone business- dominated by one company eventually (American telephone and telegraph company- at&t 8. Lighting Business a. Just one company – PECO b. General Electric (GE)- two companies merged to create this 9. Life insurance a. Insurance business b. 3 big giants in life insurance- New York Life, Mutual life, and Equitable 10. Retailing a. Department stores created b. Covered an entire city block, employed a lot of people c. John Wanamaker’s – in phillayyyyyyy d. Martial field – in Chicago e. Emphasized efficient service, a variety of products, high volume for large profits, etc 11. American Landscape of late 19 th century- industrialization a. Controlled by giganitic companies b. Mass produced stuff c. Americans started to get nervous about this stuff c.i. What was happening was that monopolists were threatening democratic institutions and destroying economic c.ii. 1900 1/10 of people owned and controlled 9/10 of the nation’s wealth c.ii.1. saying that a few people who are really rich and having a gigantic growing divide between the rich and the poor c.ii.2. belief was common d. concern that these companies were dominanting American life and going to be able to control everything (fear that wealth and power were going to be overcome the gov’t) e. led to a series of arguments htat the well to do made to support their position in society e.i. to justify this reality e.ii. gospel of wealth - godliness is inleauged with riches e.ii.1. acknowledged that the good lord gave him his money e.ii.2. his material success was a sign of god’s favor
e.iii. social Darwinian argument –Darwin figured out that within a species certain members a species who are superior survive while the weak ones didn’t e.iii.1. Herbert spencer was the one who coined the term survival of the fittest e.iii.2. Group of thinkers ( William sumner , prof at yale; and
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- Fall '10
- Standard oil, Interstate Commerce Commission