J.P. Morgan &Trusts, Monopolies, and Cartels...

September 21, 2015

• 1837 – 1913• Born in Connecticut

– Wealthy family• Made BILLIONS being a FINANCIER• Financier = BANKING• 1850s: Banking in NYC• By 1900 – Focus on RAILWAYS across

country• 1901: bought out 3 dozen steel

companies to form U.S. Steel Corporation– Including Carnegie’s

• BAD: Morgan controlled economy• U.S. Steel GOOD – Prices LOW• U.S. Steel BAD – Prices HIGH

– People can’t afford• Net Worth at death: $41.5 Billion

– Today’s Value: Over $400 Billion

Trusts, Monopolies, and Cartels&

John D. Rockefeller

September 22, 2015

• Trust: business owned by one person, but is broken up into stock & given to board of trustees– Trustees make decisions for

business – Also known as: corporation– Example: FaceBook

• Cartel: association of business owners who work together to coordinate prices/ production– Example: OPEC

• Monopoly: when one business owner controls the ENTIRE industry– Example: Toothpaste

• 1839 – 1937: John D. Rockefeller• Born in New York

– 15 yrs old: family moves to OH• 1870: formed Standard Oil Company

– Buy up weak competitors• 1882: Standard Oil Co. dominates WHOLE industry• 1911: U.S. Supreme Court orders Rockefeller to break up

Standard Oil– Monopoly– Rockefeller retires

• Highly religious– Gave money to churches & YMCA

• Formed University of Chicago• 1901: $500 million for Rockefeller Institute for Medical

Technology (NY)• Son continued charity work

– Land for UN Headquarters; Williamsburg, VA funding; Rockefeller Center