1-4. The Growth of Big BusinessKey Terms Washington Duke John D Rockefeller Andrew CarnegieStandard Oil Horatio Alger The Forgotten ManThe Gospel of Wealth Social DarwinismI. The Ingredients of the Industrial Boom1. Abundant Raw Materials2. Large and Growing Labor Supply3. Surge in Technological Innovation4. Ambitious, Talented Entrepreneurs5. Helpful Federal Government6. Growing American MarketII. The CorporationsCut-Throat Competition Leads to a Small Number of CompaniesControlling Large Parts of Industries1. American Tobacco (Washington Duke) risk taker 2. Standard Oil (John D. Rockefeller)3. United States Steel (J.P. Morgan)III. The Defense of Capitalism1. “The American Dream” (Horatio Alger)2. “Survival of the Fittest” (The Forgotten Man)3. Gospel of Wealth (Andrew Carnegie)1. Washington Duke- Non slave owner, white farmer, loses wealth during war-At 44yrs drafted in Federal Army, shipped to Carolina- 50 cents and no farm - Tobacco grew in N. Carolina, farmers got letters from soldiers wanting tobacco in cigs - 1870’s sent sons to college and hired black men- 1884 made $300,000 from tobacco and bought posters to advertise, Durham Smoking Tobacco- Bought paten from teenager, Bonsack, for a machine that rolls cigs 200 a minute- Risk taker, ruthless, advertised with celebrities in cig packs- Bought Trinity College and turned it into Duke U2. John D. Rockefeller- raised in a single parent home, Baptist background- Saved all of his money, promoted by employers quickly- Bought oil and sold it to others- Negotiated contacts with railroad to transport only his oil- Name change, standard to Exxon- Ruthless, self-made, driven, risk taker - Gave away $5 million3. Andrew Carnegie- honest, promoted quickly- Saved money and made steel factories- Looked for innovative workers- His competitors hired anybody off the street; this made them not stay in business long - Sold out to J. P. Morgan, changed name to U. S. Steel- After he sold his business he spent the rest of his life being a philanthropist - The true man of wealth, once he has taken care of his family, should give the rest to others- Gave away 90% of his wealth, built more than 2,000 public libraries, Carnegie Hall4. J. P. Morgan- bought out Rockefeller and his steel business, turned it into U.S. Steel 1892 gov’t passed anti- trust act, used to break up labor unions Capitalist owned all the moneyThe American Dream- Horatio Alger wrote books about people who, through their own hard work, made a good life for themselves- Each year more people were recorded as having more moneySurvival of the Fittest- William Summer wrote, The Forgotten Man- Argued that the capitalist system weeds out the lazy and drunk- Tried to improve society- Middle class American is the forgotten man- Summers said give your money to a savings bank which goes to building a business instead of charity which goes to the