HIST 1312 1st Edition Lecture 7 Outline of Last Lecture I Transportation A Suspension Bridges NYC II Communication A Telephone B Marconi s Wireless III Literature A International Copyright Agreement B Etiquette Books IV Art V Sports VI Education Outline of Current Lecture I Protective Tariffs II Andrew Carnegie A Steel B Definition of a Vertical Monopoly III John D Rockefeller A Oil B Definition of a Horizontal Monopoly IV J P Morgan A Banking V Railroads Current Lecture l In the 1800 s the government starts putting money into industry A tariff is an import duty on selective things the government wants to tax A revenue tariff is only about 20 at this time In 1816 the Protective Tariff is instilled to protect new American industries from foreign industries Other countries were able to sell things for less in America than American companies So by These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute putting a tariff on foreign companies American companies could now make a profit selling in America ll A Andrew Carnegie came to America from Scotland as a young boy He wanted to start a steel business so to do this he gets investors but makes sure he can buy them out later so he can have his company all to himself To create steel he needs iron ore instead of paying to mine on someone s land he buys a mountain to mine on his own land with his own company To transport his materials to other places he uses ships instead of the railroads so he makes more profit this way B A vertical monopoly is the control of all means of production By owning everything himself Andrew Carnegie creates a vertical monopoly lll A John D Rockefeller wanted to make a name in oil So he buys oil fields and uses his own rigs to drill To transport this oil he needs to use the railroad so he tells the railroad company that his oil will bring in so much profit that they don t need to ship anyone else s He ll pay the railroad fee but so much money will be coming in that he wants the railroad company to give him a rebate at the end of the month so he pays much less for railroad fees He also had refineries where he hired chemists to invent things that used the leftover stuff from mining oil They invented kerosene lamps and developed petroleum or gasoline He became the first billionaire and gave back to the U S by endowing the University of Chicago Medical School and the Rockefeller Institution 100 million dollars each B By controlling the means of distribution Rockefeller creates a horizontal monopoly lV A Between the late 1830 s and the early 1900 s when there was no national bank J P Morgan ran the banking system He was so wealthy and well known that he set the interest rates for the country and gave loans to people He was so rich that when the country of France was going bankrupt he bailed them out and he did the same for the U S economy as well V America needed railroads in the 1800 s so they would give land grants and pay railroad companies to build a railroad in certain places with no land cost Fielder railroads and Vanderbilt railroads were very popular at this time They would get paid 24 000 per mile to build a railroad on flat land 36 000 per mile to build on a midrange road and 48 000 per mile to build on the Rocky Mountains So in doing this railroad companies made a lot of money
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