The Tycoons: How Andrew Carnegie, John D. Rockefeller, Jay Gould, and J. P. Morgan Invented the American Supercompany

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The Tycoons: How Andrew Carnegie, John D. Rockefeller, Jay Gould, and J. P. Morgan Invented the American Supercompany Page 51

by Charles R. Morris


  Phipps, Henry, 129, 207, 209–13, 215

  Phipps, Lawrence, 214

  Pigou, Arthur Cecil, 280

  Pillsbury, 111, 112, 177

  Pinkerton guards, 197–98, 200–201, 205, 236

  Pittsburgh and Bessemer Railroad, 287

  Platt, Orville, 218

  Polish immigrants, 117

  Poor’s, 105

  Pope, Albert A., 175, 181–82

  Popplewell, Frank, 274–76

  population growth, 102, 103

  Populism, 99, 217

  Porter, Theodore, 297

  Potter, David, 165

  Potts, Col. Joseph, 153–54, 156

  Pratt, Charles, 80, 151, 160

  Pratt, Zadock, 22–23

  precision machining. See manufacturing

  prices. See also railroad pools; rebates

  Carnegie and, xii, 134

  competition, mergers to rein in, xiii, 252–54, 256, 265–66

  fall of, 103–4, 106–9, 168, 289–90

  grain, telegraph and, 112

  railroad wars, 63, 67

  steel cartel and, 128

  trade tariffs and, 284, 286, 287

  Principles of Scientific Management (Taylor), 307

  printing industry, 4, 180, 253

  private enterprise, 288–91

  Procter & Gamble (P&G), 162, 163, 175

  productive capacity, supply shock and, 107

  productivity

  bonanza farms and, 111–12

  Carnegie plants and, 202, 257

  cost tracking and, 189

  U. S. vs. Britain, 55, 56, 273n, 278

  protectionism, 278–81

  providentialism, 294

  “Pujo” investigations (1911), 269–70

  Pullman Sleeping Car, 6, 91, 131, 298

  strike of 1894, 196

  Punch, 32

  purchasing-power parities (PPP), 171n

  Pure Oil Co., 221, 225, 226

  Quarterly Journal of Economics, 312

  Quincy Railroad, 145

  railroad pools, xiii, 67, 83, 88n, 132, 142–43, 207n, 217–19, 228, 241, 256

  railroad rebates, 81, 85–86, 88–90, 157–58, 218, 221–25, 227–28

  railroads, xii–xiii, 6, 8. See also Gould, Jay; rebates ; and specific railroads

  anti-trust fervor and, 216

  banking crisis of 1873 and, 99–101

  competition and, 77, 239

  conflicts of interest and, 95–96

  consolidation and, 143, 149–50, 219

  construction of, 102, 105–6, 137, 140

  consumer goods and, 163, 176

  control of, by Morgan, 236

  expansion of production and, 120

  farming and, 111–14, 116

  ICC and, 219

  labor and, 104–6

  laboratories and, 190, 191

  Lincoln’s funeral train, 2–7, 3

  oil shipping and rebates, 18, 79, 81–89, 153–58, 221–22, 224

  organizational controls led by, 298

  Pacific Railway Act and, 10

  rail shapes, 191

  rates, 85, 116n, 123, 134, 142–44, 191, 202, 216–18, 256

  refrigerated cars and, 114–15

  restructurings, 235–38

  revenues, 104

  routes cobbled together, 6–7

  Scott and Carnegie’s start in, 13–14

  securities and, 21, 26, 103, 130–31, 138, 191–92, 194, 231–32

  steel industry and, 123–24, 134, 287

  strikes of 1877, 97–99, 140, 236

  supply shock of 1870s and, 107

  Taylorism and, 312–13

  telegraph and, 146

  U.S. vs. British, 276

  wars, 4, 74, 240–42

  Reading Railroad, 145

  Republicans, 4, 7–10, 201, 247n

  research laboratories, 190–91, 223, 266, 297

  “restraint of trade,” 88–89, 218

  retail industry, 117, 161–68, 173–76, 182, 298

  Rhodes, Cecil, 271

  Ricardo, David, 281, 283

  RJR Nabisco deal (1987), 265

  Robbins and Lawrence company, 32, 35n, 48, 50, 53, 59, 181, 276

  Roberts, George, 230, 232

  Rockefeller, John D., 25, 136, 147, 293. See also Standard Oil

  background and character of, xii, xiii, 12, 16–20, 155, 167

  Carnegie steel buyout attempt and, 210

  Cleveland refineries and, 79–86, 90–91, 193

  financing and, 192

  flow-process business model and, 312

  Gould and, 79

  Indiana antitrust case and, 222–25

  labor relations and, 203

  managerial talent of, 158–60

  mergers and, 252

  Mesabi ore and, 208–9

  Morgan and 1907 crash, 265n

  oil industry consolidated by, 145, 150–58

  post–Civil War America and, 12, 28–29

  prices, markets, and profits and, 107, 143

  retirement of, 160n

  scale shift and, 120–21, 289

  SIC and, 79, 83–85

  Standard breakup and wealth of, 223, 226–27, 331–33

  Tarbell case vs., 86–91

  U. S. Steel buyouts of, 263–65

  wealth of, 151n, 194

  Rockefeller, John D., Jr., 203n, 264–65

  Rockefeller, William “Big Bill” (father), 16–17, 300

  Rockefeller, William (brother), 19, 83, 153, 156, 160n, 252, 264

  Roeblings, père et fils, 92

  Roebuck, Alvah, 174

  Rogers, Henry, 80, 152, 160, 224, 252, 264–65

  Roosevelt, Theodore, 246, 249–51, 269

  Root, Elisha K., 49, 51

  Rosenberg, Nathan, 55

  Rosenwald, Julius, 176–77

  Rothschild, James, 266

  Rothschild, Nathan “Natty,” 271

  Rothschild family, 100, 101, 233, 237, 247

  Royal Dutch Shell, 225

  Russia, 272

  Baku oil fields, 225, 226

  Sage, Russell, 139, 145

  St. Joseph & Denver City Railroad, 144

  St. Louis Bridge, 92–94, 95, 128–31, 145

  St. Louis Exposition (1904), 295, 296, 297

  St. Louis Post-Dispatch, 206

  St. Louis Vulcan Works, 133

  Sanger, Margaret, 186

  Santa Fe Railroad, 307, 313

  Saxe, Marshal, 44n

  Scale and Scope (Chandler), 314

  Schiff, Jacob, 235, 244, 245

  Schumpeter, Joseph, 149, 289. See also “creative destruction”

  Schwab, Charles, 208, 210, 212, 215, 228, 256–57, 259–63, 265, 295, 319n, 323, 329

  Scientific American, 55, 290

  Scientific Management, 293, 295–317, 296, 309

  Scott, Tom, 13–15, 69, 75, 82–83, 85, 87, 92–95, 97, 99, 105, 124, 129–31, 140–42, 153–56, 264

  Scranton, Phillip, 311

  Scranton, Walter, 256–57

  Sears, Richard, 174, 176

  Sears catalog, 174, 176, 182

  semiconductors, 283

  sewage systems, 170

  sewing machines, 50, 180, 312

  Sharps, Christian, 48

  Sharps Rifle Co., 181

  Sheffield steel, 96, 124, 125, 273, 274

  Sherman Antitrust Act (1890), 88n, 89, 216–18, 227–28, 246

  Shinn, William, 129

  Shop Management (Taylor), 301–2

  Siemens, Charles, 125–26

  “open hearth” method, 125–28, 274, 278

  Singer, Isaac, 41, 49–50, 180

  Singer Sewing Machine, 105, 117, 181

  Slater, Samuel, 38

  slavery, 7–9, 103n

  Sloan, Alfred, 293

  small merchants, 117–18, 216–17

  Smith, Adam, 281n

  Smith, Henry, 73

  Smith, Merritt Roe, 41n, 48

  Social Darwinists, 251

  soci
ology, 296–97

  software industry, 253n

  Solvay process, 278

  Southern Pacific Railroad, 244

  South Improvement Company (SIC), 77–79, 83–87, 89, 90, 193, 225

  Soviet Union, 314n

  Spanish American war, 290

  Speyers, Albert, 73, 74

  Springfield Armory, 36–37, 39, 41, 46, 48, 53, 55, 59, 180

  standardization, 275, 299–300. See also interchangeability of parts

  Standard Oil Co.

  antitrust suits and breakup of, 89, 219–27, 223

  buyouts and ethics and, 151–52

  consolidates Cleveland refineries, 80–86, 89–91

  consolidates national oil industry, 150–58

  global dominance by, 251

  image of, unfair, 20

  industrial securities market and, 193–94

  integrates backwards, 158

  labor and, 203

  management of, after Rockefeller, 160

  new technologies and, 80–81, 312

  paperwork and cost tracking, 189

  profitability of, 86, 151, 225, 226, 330–33

  research laboratory and, 190–91

  Rockefeller’s managerial gifts and, 158–60

  shipping and, 236

  Tarbell’s case vs., 86–91

  trade tariffs and, 283, 284

  Standard Oil Co. of New Jersey, 193–94, 221

  Standard Oil of Indiana, 221–27

  Stanford, Leland, 144

  Stanley Committee hearings (1910), 225, 319

  Stanton, Edwin, 1, 2, 4

  Stanton, Francis, 40

  steam turbine engine, 278

  steel industry, 123–36. See also Bessemer process; Carnegie Steel; Holley, Alexander; Siemens, Charles; U. S. Steel

  abandoned mills, 316

  antitrust sentiment and, 217

  blast furnaces named after wives, 128n

  British vs. U.S., 54, 273–78, 280, 287

  cartels, xii, xiii, 16, 128

  consumer goods and, 163

  “de-skilling” of labor in, 195–96

  efficiency and, 189

  finished vs. primary, 257–58

  growth of, in 1870s and, 102, 104–5, 107–8

  heavier rail crisis, 189–90

  high-durability and slower methods, 190

  Holley vs. Taylor and, 292–93

  mergers, 202, 253. See also U. S. Steel

  open-hearth, 190, 208, 258n

  plant design, Holley and, 49

  process developed, 124–28

  railroads and, 68, 79

  scale shift and, 120

  structural, 189–90, 208

  Taylor’s high–speed, 303–4

  trade tariffs and, 279–83, 285–87

  U.S. and domestic consumption, 288–91

  Steichen, Edward, 233, 234

  Stevens, Simon, 27, 76–77

  Stewart, A. T., 161

  Stillman, James, 250

  Stokes, Ned, 76

  Stowe, Catherine, 150

  Stowe, Harriet Beecher, 150

  Strategy and Structure (Chandler), 314, 316

  Strong, Benjamin, 250

  Studebaker, 105

  Sullivan, Louis, 92, 188

  Sulzbachs investment house, 92

  Sun Oil, 226

  Sweeney, Peter, 66

  Swift Packing Co., 114, 115, 117

  Swope, Gerard, 312

  système Gribeauval, le, 39

  Taft, William H., 88n

  Tailer, Edward, 167

  Tammany machine, 4, 64

  Tarbell, Ida, 19, 20, 86–88, 90, 151, 158–59, 219, 223, 263

  tariffs, protective, 8, 278–87, 282

  Taussig, Frank, 284

  Taylor, Frederick W. (Taylorism), 292–93, 297–318

  telegraph industry, xii, 56, 91–92, 107, 112, 141, 143, 146–47, 163

  telephones, 2, 110–11, 238–39 251

  Tennessee Coal and Iron Co. (TC&I), 250n

  Texaco, 226

  Texas & Pacific Railroad (T&P), 130, 140, 142, 144

  textile industry, 4, 8, 38–41, 57, 105, 122, 280

  Thomas-Gilchrist process, 125, 273

  Thompson, Sanford, 301

  Thomson, Frank, 230

  Thomson, J. Edgar, 14, 75, 75, 92, 93, 95, 123–24, 129, 153

  Thomson-Houston, 255n

  Thorndike, Israel, 40

  Thornton, William, 42–44

  Tidewater pipeline, 156–57, 225, 226, 236

  Tin Plate Co., 284

  tin plate industry, 258

  merger of, 252–54, 257, 265

  tariffs and, 283–85

  Titanic, 268

  Tocqueville, Alexis de, 164–65, 183, 288–89

  Towne, Henry, 298–99

  Toyota system, 317–18

  trade. See also tariffs

  deficit of 1872, 101

  “fair,” 280–81

  free, 278–85

  surpluses, 107, 248–49

  transcontinental railroad, 94, 136–37, 138n, 140, 144

  Trollope, Anthony, 7

  trusts. See also Sherman Antitrust Act;

  Interstate Commerce Act

  fervor against, 216–19

  first created, 193–94

  Roosevelt vs., 246, 251–52, 269

  science of management vs., 295

  Standard Oil case, 219–27

  Twain, Mark, 7, 179

  Tweed, William M. “Boss,” 66, 76, 78, 104

  Union Iron Mills, 91, 93, 128–30, 132

  Union Oil, 226

  Union Pacific Railroad, 113, 251

  Carnegie and, 91, 94, 95, 207

  Gould and, 21–22, 136–41, 143–44, 146, 148–49, 240–42

  Harriman and, 243–45

  United States Bureau of Corporations, 219, 225

  U.S. Congress, 11, 46–47, 107, 137, 141, 213, 228, 279, 310

  antitrust laws and, 217, 225, 246

  U.S. Constitution, 9

  U.S. government bonds, 26

  U.S. House of Representatives, 154

  U.S. Industrial Relations Commission, 311

  U. S. Steel, xiii, 28, 251, 279, 295

  Morgan buyout of Carnegie creates, xiii, 16, 250, 254–66, 269, 319

  prices and tariffs, 284

  Sherman Act and, 218

  unions and, 202

  U.S. Supreme Court, 11, 89, 146, 218–20, 251

  U.S. Treasury, 73–74, 247–48

  Valley Oil Works, 152

  Vanderbilt, “Commodore” Cornelius, 75, 79, 82, 83, 87, 88, 138, 143

  Erie Wars and, 60–66, 68

  SIC and, 84–85

  Vanderbilt, William H., 85, 143, 145–47, 149, 231–33, 236, 237

  Vandergrift, J. J., 85

  Verizon, 226

  vertical integration, 233, 239–40, 255, 257–58, 318

  Victoria, Queen of England, 30

  Visible Hand, The (Chandler), 314, 318

  Vulcan Iron and Steel Works, 128, 13

  Wabash Railroad, 144

  Wadsworth, Decius, 39

  wages, 103n, 104, 117, 172, 292

  Homestead and, 197–98, 202–3, 205

  piece rates and, 299–301, 303

  U.S. vs. British, 275

  Walker, Samuel, 49

  Wall, Joseph Frazier, 330

  Wallis, George, 52

  Wal-Mart, 239

  Wanamaker, John, 161, 163, 164, 174, 177, 182

  Ward, Montgomery, 174

  Warner, Thomas, 48

  War of 1812, 37, 44

  Washington, George, 39, 43

  Waters, Asa, 34–35, 57, 59

  Watertown Arsenal, 313n

  Watson, Peter, 77–79, 83, 84, 90–91

  Webster, Daniel, 7, 8, 40

  Weed Sewing Machine Co., 181–82

  Welch, Jack, 158

  Wellington, Duke of, 31

  Western Union, 92, 141–42, 146–48, 148, 240

  Westinghouse, George, 95
, 213, 255n

  Westinghouse company, 278, 298

  West Point, 39

  West Shore Railroad, 231

  wheat farming, 110–11, 117, 217

  Whigs, 7, 8, 10, 99, 136–37

  Whiskey Trust, 194

  White, Maunsel, 303, 304

  White Star line, 268

  Whiting, Indiana, refinery, 221–24

  Whitman, Walt, 120, 164, 167

  Whitney, Eli, 41, 44, 48

  Whittier, John Greenleaf, 119

  Whitworth, Joseph, 52, 53, 55–56

  Willard, Edward, 73

  Willcox and Gibbs, 48, 181

  Williamson, Harold, 87

  Wilmington Railroad, 145

  Wilson, William, 310

  Winchester rifle, 48

  wire and nail makers, 253, 257, 265

  women

  department stores and, 161–62, 166–67

  family life and, 185–86

  middle-class, 170–71

  work and, 166–68, 172, 192

  textile industry and, 57

  Woolworth, Frank, 177

  Worldcom, 239

  XIT ranch, 113

  Zunz, Olivier, 167

  Illustration Credits

  1. Prelude

  Page 3. Lincoln funeral train route: From Stefan Lorant, Lincoln: A Picture Story of His Life.

  Page 25. Andrew Carnegie (upper left): The Carnegie Library of Pittsburgh; John D. Rockefeller (upper right): Courtesy of the Rockefeller Archive Center; Jay Gould (lower left): Lyndhurst, an historic site of the National Trust for Historic Preservation in the United States; J. P. Morgan (lower right): Archives of The Pierpont Morgan Library, New York.

  2. “. . . glorious Yankee Doodle”

  Page 32. The Yacht America: Courtesy of the Hagley Museum and Library.

  Page 36. Blanchard gun-stock machine: Courtesy of the American Precision Museum, photograph by John Alexander. Labels by the author.

  Page 46. Rifle gauging set: National Museum of American History, Smithsonian Institution.

  Page 58. Evans’s grist mill: Rare Books Division, New York Public Library, Astor, Lenox and Tilden Foundations.

  3. Bandit Capitalism

  Page 65. Jim Fisk: Collection of the New-York Historical Society.

  Page 78. Erie ouster: Provided courtesy of HarpWeek, LLC.

  Page 95. St. Louis Eads Bridge: Scientific American, November 15, 1873.

  4. Wrenchings

  Page 98. Pittsburgh strike: Corbis.

  Page 111. Bonanza farm: Fred Hultstrand History In Pictures Collection, NDIRS-NDSU, Fargo.

  5. Mega-Machine

  Page 121. Corliss engine: Courtesy of the Hagley Museum and Library.

  Page 126. Bessemer converter: Courtesy of the Hagley Museum and Library.

  Page 148. Gould cartoon: Culver Pictures.

  Page 155. John D. Rockefeller: Courtesy of the Rockefeller Archive Center.

  6. The First Mass Consumer Society

  Page 163. Wanamaker’s: From Herbert Adams Gibbons, John Wanamaker.

 

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