Robber Barons In The 19th Century
At the end of the Civil War in 1865, America found itself in a state of economic chaos. As it experienced a second Industrial Revolution after the Civil War, the United States emerged as an industrial colossus and world power. While capitalists undeniably facilitated America’s industrial and economic development between 1875 and 1900, the intention with which they did so has been a topic of dispute. While some historians described these capitalists as “captains of industry” others believed they were better described as “robber barons”. Of these two characterizations, the title of “robber barons” was more appropriate as most of them gained their wealth and power by fraudulent means — defying government regulation, using ruthless business schemes
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According to an excerpt from A Call To Action, by Populist presidential candidate James B. Weaver, capitalists often silenced the “interfering” government by using “threats, intimidation, bribery, fraud, wreck, and pillage.” Weaver and his Populist followers alike stood firmly to protect the traditional American ideals of social opportunity; they believed private greed should be subordinated to public need. Consequently, the Sherman Antitrust Act of 1890 was instituted to thwart the formation of trusts, but proved to be rather ineffective as seven of the first eight cases were ruled against the government. Along with the government, the American people became a target of the unethical practices instigated by greedy industrialists. Cornelius Vanderbilt, one of many tycoons, was guilty of discriminating against passengers, charging a greater amount for shorter haul than longer hauls on the same railway line, and demanding unwritten fees. Other magnates engaged in a practice known as stock watering, in which companies sold stocks and bonds at a price much higher than its real value. By disregarding the rules and regulations of the United States government and ethical human behavior, capitalists proved how deserving of the title “robber barons” they …show more content…
John D. Rockefeller created an oil empire, the Standard Oil Company, in this manner. Rockefeller monopolized the oil market through horizontal consolidation, buying out competitors, or driving competitors out of business by initiating rate wars. His cold-hearted mentality was highlighted when he claimed, “Individualism has gone, never to return.” In his testimony to the United States Industrial Commission, Rockefeller boasted about the “power to give the public improved products at less prices and still make a profit for stockholders”, but failed to recognize that consolidation left the poorer class suddenly unemployed. Many magnates also followed Andrew Carnegie’s entrepreneurial tactic of vertical consolidation, in which every stage of manufacturing a product was in the hands of a single corporation. According to James B. Weaver, such schemes allowed trusts to “control the articles which the plain people consume in their daily life.” The American people were forced to cope with the sugar trust, the leather trust, the harvester trust, the tobacco trust, and Rockefeller’s dominant Standard Oil trust. Along with the development of trusts, the invention of machinery allowed rich industrialists to hire less workers for lower wages. By cutting employees and saving money, the corrupt barons were
According to an excerpt from A Call To Action, by Populist presidential candidate James B. Weaver, capitalists often silenced the “interfering” government by using “threats, intimidation, bribery, fraud, wreck, and pillage.” Weaver and his Populist followers alike stood firmly to protect the traditional American ideals of social opportunity; they believed private greed should be subordinated to public need. Consequently, the Sherman Antitrust Act of 1890 was instituted to thwart the formation of trusts, but proved to be rather ineffective as seven of the first eight cases were ruled against the government. Along with the government, the American people became a target of the unethical practices instigated by greedy industrialists. Cornelius Vanderbilt, one of many tycoons, was guilty of discriminating against passengers, charging a greater amount for shorter haul than longer hauls on the same railway line, and demanding unwritten fees. Other magnates engaged in a practice known as stock watering, in which companies sold stocks and bonds at a price much higher than its real value. By disregarding the rules and regulations of the United States government and ethical human behavior, capitalists proved how deserving of the title “robber barons” they …show more content…
John D. Rockefeller created an oil empire, the Standard Oil Company, in this manner. Rockefeller monopolized the oil market through horizontal consolidation, buying out competitors, or driving competitors out of business by initiating rate wars. His cold-hearted mentality was highlighted when he claimed, “Individualism has gone, never to return.” In his testimony to the United States Industrial Commission, Rockefeller boasted about the “power to give the public improved products at less prices and still make a profit for stockholders”, but failed to recognize that consolidation left the poorer class suddenly unemployed. Many magnates also followed Andrew Carnegie’s entrepreneurial tactic of vertical consolidation, in which every stage of manufacturing a product was in the hands of a single corporation. According to James B. Weaver, such schemes allowed trusts to “control the articles which the plain people consume in their daily life.” The American people were forced to cope with the sugar trust, the leather trust, the harvester trust, the tobacco trust, and Rockefeller’s dominant Standard Oil trust. Along with the development of trusts, the invention of machinery allowed rich industrialists to hire less workers for lower wages. By cutting employees and saving money, the corrupt barons were