The Men Who Built America

Rockefeller's business was in trouble - threatened by the rising use of electricity. What did Rockefeller do to save his business ?

Tried to find a use for an oil refining byproduct - gasoline. He had his men create internal combustion engines.

How was Ford's factory different from the way other cars were manufactured?

Used an Assembly line

Vanderbilt pioneered the technique of rapidly buying a large amount of another company's stock. What is this called ?

hostile takeover

Vanderbilt knew that a good entrepreneur finds something that people lack and give it to them. What product did Vanderbilt decide to sell ?

kerosene (or oil - the video uses both terms and kerosene is an oil product)

Describe the new era America was entering.

prosperous - more than ever before. People worked a decent work week for decent pay, building things that they could afford to purchase themselves.

Carnegie eventually sold his company. On what amount did he and Morgan agree?

$480 Million

J.P. Morgan went to visit Edison because the noise of the generator was bothering his wife. As the conversation progressed, what did Morgan decide to do (besides purchasing an electric train for his daughter) ?

Build a generator to power the entire city of New York.

Why were working conditions a problem for the Homestead plant workers ?

Because there were no laws to protect workers or because people were willing to do anything to make money.

William Jennings Bryan saw an opportunity to rise to the presidency as the voice do the poor. What did Bryan promise to do to the big trust ?

Break them apart

What is "Morganization" ?

Bringing competitors together to find a way to get them to compromise that reduces competition and increases profits. Also, maximize profits at the expense of all else - of them by slashing the workforce

William Jennings Bryan used worker anger to try and win the White House. What did the powerful corporate heads decide they need to do to counter Bryan ?

Buy the presidency

How did J.P Morgan make his money?

Buying out failing companies and returning them profitability - mostly by consolidating them and eliminating unnecessary competition

Vanderbilt's rivals stopped believing he was a strong business adversary. What did Vanderbilt do to convince them he was still powerful ?

Closed the Albany Bridge, cutting off New York

What did the titans of Wall Street decide to do about Bryan's fun for presidency ?

They essentially bought their own candidate. Spend massive amount of money to ensure the election of Wm. McKinley. They suggested headlines and orchestrated P.R. campaigns aimed at getting McKinley elected.

When Henry Ford's application was rejected by ALAM, what did he decide to do?

Make a name for himself by challenging the owner of the nation's biggest car company to a race.

What did the powerful capitalists decide to do about Roosevelt?

Make him vice president, so he'd be completely useless.

People knew the South Fork dam might break. Why did they fail to evacuate, even after the warning came ?

They had seen the same warning many times before

Bryan continued to grow in the polls - leading the captains of industry to try fear tactics. What did they do?

They told their workers that if Bryan were elected they'll close up shop - costing the employees their jobs.

How did Gould & Fisk prevent Vanderbilt's takeover (and get rich in the process) ?

Printing a lot of stock or "watering down" the stock

According to Mr. Trump, "The people that really succeed in life are those who don't ..... "

Quit

How did the "new breed of businessman" differ from the older group?

They took their products directly to average consumers while paying their employees a livable wage for a normal workweek.

How did the public view the events at Homestead ?

They blamed Frick almost exclusively. They were outraged.

Frick built the South Fork Fishing and Hunting Club around the private lake held back by the South Fork dam. Why did Frick decide to lower the dam, even though it made it weaker ?

To widen the road so his carriage get across

In the court case United States vs. Standard Oil Co. et al, how did Rockefeller answer most of the charges?

"I don't remember"

Describe the damage caused by the Johnstown Flood.

2,000 dead (1/3 so mutilated that they could not be identified.) 1600 homes destroyed. Over 4 sq. miles of the town completely leveled.

Of all the buildings Carnegie built with his money, what was the most famous ?

Carnegie Hall

Carnegie and Rockefeller negotiated for months. In the end, what did they do?

Carnegie agreed to buy all of the output from Rockefeller's mines; Rockefeller agreed not to build a steel mill.

How was Carnegie different from Rockefeller or Vanderbilt?

Carnegie didn't have the win-at-all costs attitude.

How did the train crash affect Rockefeller ?

Changed his attitude - he began to view himself as a man of destiny rather than a failed businessman.

John D. Rockefeller had helped support his family because of his troubled father. What was the occupation of William A. Rockefeller ?

Con man

There was one thing especially difficult about westward expansion - and Scott challenged Carnegie to solve the problem for his business. What was that problem ?

Crossing the Mississippi

What improvement did Bessemer make to the manufacture of steel ?

Cut the time from 2 weeks per rail to 15 minutes

Soon after acquiring his first ferry, what reputation did Vanderbilt earn ?

Cutthroat - win at all cost

How did Vanderbilt's upbringing affect his business attitude ?

He had to fight for everything he had - this led to the competitive attitude that served him well in the business world.

Nikola Tesla wanted the higher voltage alternating current (A.C.) to be standard. Why was Edison unwilling to listen to Tesla's ideas ?

Edison worried A.C. was too dangerous and Tesla was his junior employee, so he thought his ideas were beneath notice.

J.P. Morgan wanted to be a big capitalist like Rockefeller or Carnegie, but he needed to invest in a new idea. What did he find ?

Electric lights

Morgan felt the need to "streamline" Edison Electric. What changes did Morgan make ?

Eliminate Edison and change the name to General Electric.

When things turned personal, Frick called in the Pinkerton Detectives. Who were they ?

Essentially a private army for hire, with more weapons than the U.S. army.

According to advertising mogul Donny Deutsch, the Gilded Age entrepreneurs found a great motivator in their own ...........

Failure

Edison's attempt with the electric chair didn't go as he hoped. How did it backfire on Edison ?

It basically cooked the man alive. People began to equate death by electricity with Edison not with alternating current.

What did the court decide in the case between Ford and ALAM?

For Ford - ALAM had no copyright on the design of the car

Who finally invested in Tesla's idea?

George Westinghouse

What problems did Carnegie run into with his bridge ?

It cost too much and was going up too slowly .

What did Rockefeller do with the profits from his deal with both major railroads ?

He bought out his competitors.

Once the bridge was completed, the people of St. Louis were afraid to use it - they had never seen a steel bridge. How did Carnegie solve this problem ?

He capitalized on a prevalent superstition and sent an elephant across at the head of a parade. (superstition is an elephant will never walk on an unstable structure)

How did Rockefeller attempt to solve the problem created by Vanderbilt ?

He decided to transport the oil by pipeline.

In response to the flood, Carnegie reacted differently than other South Fork members. How was his response different ?

He felt a sense of responsibility and donated millions to help rebuild his image and Johnstown.

Why did Rockefeller choose the name "Standard Oil"?

He guaranteed a uniform consistency, or standard for his kerosene.

Jerry Weintraub (Hollywood Producer) said, "When I believe in something and I want to sell it to somebody, I want to put it in the best light." How did J.P. Morgan demonstrate his new investment ?

He had Edison install it in his own home, then had a fancy party to show it off.

Carnegie did not want to hurt his image by the steps taken to make the Homestead Steel Mill more profitable. How did he get around this problem ?

He had Henry Frick do it for him.

Why did Leon Czolgosz decide to assassinate President McKinley?

He had been fired from one of J.P. Morgan's factories, then hooked up with the anarchist movement. He wanted to end the government's relationship with big business.

How did U.S. Steel avoid the anti-cartel lawsuits that plagued Rockefeller?

He had performed several actions on behalf of the United States, using his power and influence for the benefit of the nation. At the time, he was building the Panama Canal.

The United States was in a dangerous financial situation gat was at risk of getting much worse. What did J.P. Morgan do about this problem ?

He loaned over $100 million to the U.S. treasury, saving it from collapse.

After Roosevelt broke up a number of trusts, the government finally went after Standard Oil. How did Rockefeller attempt to avoid being served a subpoena?

He moved from place to place all over the country.

How did the breakup of his company affect John D. Rockefeller's personal finances?

He owned stock in all of the new companies - making him the richest man in the history of the world. He actually benefitted from it.

Frick decided to strike first against the union. What action did he take ?

He put up notices that the company would no longer recognize the Amalgamated Association of Iron and Steel Workers Union.

The elite all wanted electrified homes - except Rockefeller. Why did Rockefeller fear electricity ?

He sold kerosene oil and recognized that electricity could replace it - causing his business to fail.

How did Rockefeller respond to the loss of his customers to electricity ?

He started a propaganda campaign to convince people electricity was dangerous

How did J.P. Morgan try to take down Westinghouse ?

He started a smear campaign to devalue Westinghouse stock and drive Westinghouse further into debt.

Scott realized he needed to diversify or lose. What did he begin doing ?

He started building his own pipeline.

J.P. Morgan's investments was at risk. He told Edison to do anything to stop alternating current. How did Edison try to take down Tesla ?

He tried to convince everyone that A.C. was dangerous. He would do things like kill animals with alternating current in front of an audience. He then proved it could kill people with the electric chair.

How did they finally get John D. Rockefeller

He turned himself in because he wanted to see his newly-born grandson

Explain why Edison decided to develop an electric chair.

He used an alternating current (his rival, Tesla's, design). He wanted to demonstrate that the A.C was dangerous in order to push his direct current.

To achieve his dream, J.P. Morgan had to purchase Carnegie Steel. Why did Carnegie even consider selling?

He wanted to use his money to benefit mankind. Charles Schwab convinced him that if he sold, he could spend the rest of his life using his money for the greater good.

What effect did closing the bridge have on the New York Central Railroad, and how did Vanderbilt profit from it ?

It drove their stock value into the ground. Vanderbilt bought the stock and gained control of the railroad.

Why did they Vanderbilt "The Commodore" ?

He was heavily involved with shipping

What was the problem with Rockefeller's deal with Cornelius Vanderbilt ?

He was only presently capable of producing half of the amount of oil

Unlike most politicians of the day, Theodore Roosevelt clashed with the powerful businessmen. Why?

He was trying to be a man of the people - so he set to destroying the trusts.

Rockefeller created America's first monopoly. Vanderbilt realized that Rockefeller was too powerful and decided to "take him down." How did Vanderbilt try to accomplish this ?

He went to Mr. Tom Scott, his competitor, and decided together to pull all of Rockefeller's deals.

Andrew Carnegie returned to Pittsburgh to rebelling workers and injured chairman. Who did Carnegie blame for his problems ?

Henry Frick - he said that if he had been there none of it would've happened .

Carnegie met Tom Scott, his mentor, when young Andrew started working at age 12. Why did he start working so so young ?

His family could not survive without sending him to work.

Describe J.P. Morgan's relationship with his father.

His father was demanding and their relationship strained. His father insisted he start learning how to earn money "the Morgan Way" from the time he could count. He really wanted to make his own name and do things his own way.

How did Vanderbilt's son, George, die ?

In the Civil War

Advertising mogul Donny Deutsch said, "You have to have someone to hate him to aim for. Having an enemy, having an archenemy, having a competitor is what ups the game for everybody." What does Deutsch mean by the phrase "ups the game" ?

Increase the competition or makes the competition more fierce.

Why did Carnegie begin working with steel?

It is stronger than iron - he needed something stronger to make the bridge he needed.

How did Rockefeller's actions affect the railroads ?

It made it so they couldn't fill the trains. They lost cargo and therefore began to lose money.

What did J.P. Morgan decided needed to happen to the U.S. steel industry?

It needed to all come under one umbrella company - cutting the competition

How did the Morganization process affect the working class ?

It really hurt them - it made their lives absolutely miserable, with longer hours in terrible conditions for less pay.

How was Ford's car different from other automobiles in production in that era?

It was affordable enough to be purchased by the "common man"

Most Americans were really struggling, but Rockefeller was still doing quite well - even buying up struggling companies. How did Rockefeller view himself here ?

It's survival of the fittest - and Rockefeller was the fittest of all.

As far as Carnegie is concerned, one man drove Tom Scott to his grave. Who did Carnegie blame ?

John D. Rockefeller

How did the man who lost the Niagara contract attempt to win in spite of his setback ?

Morgan threatened to sue for patent infringement, which Westinghouse couldn't afford, unless Westinghouse turned the patents over to him.

How does monopoly lead to an uneven playing field?

One person can do whatever they want - they can raise prices, create scarcity, and basically manipulate the entire market.

The governor of Pennsylvania sent in the state militia to restore order. Did the governor sir with the workers or the owners ?

Owners

To overtake Rockefeller as the richest man, Carnegie rebuilt the Homestead steel mill. What did he do to make it more profitable ?

Reduces wages and increase working hours

Rockefeller didn't want to take the risk from finding oil wells. He avoided it by taking over another step in the process. What was that step ?

Refining the oil

Scott ran the only railroad between Pittsburgh and New York - and therefore the only way for Rockefeller to transport oil. What did Rockefeller do about this problem, and what was the result ?

Rockefeller shut down the Pittsburgh refineries. This led to a riot that destroyed 30 buildings and over 1200 rail cars.

Once the election was over, Rockefeller decided to expand his investments. What industry did he decide to go into next? Most importantly, why?

Steel production - because he was Carnegie's rival and he wanted to beat Carnegie at his own game.

With the railroad market destroyed, Carnegie was in bad straits. What industry did he turn to next ?

Structural steel - building buildings

Carnegie was afraid that J.P. Morgan would next try to take over Carnegie Steel. What action did Carnegie take ?

Terminated Henry Frick

Who saved Westinghosue? How?

Tesla - he tore up his royalties contract giving Westinghouse all rights to his patents.

What decision did the court reach in the United States vs. Standard Oil Co. et al?

That Standard Oil was a trust and must be broken up within six months.

Listen to Rockefeller's answer to the accusation that Standard Oil has been a destructive influence. What does Rockefeller believe about his actions?

That he has taken chaos and created order. That he created an industry out of an ineffective market. That he made the country money. That he has simply been engaged in enterprise.

There was a new movement in America at this time. Who were they and what did they decide to do about Frick ?

The Anarchists - kill him.

Vanderbilt wanted to advertise his power as a railroad magnate. What enormous New York building did he help build ?

The Grand Central Depot (this was its original name before demolition & expansion o the head house in 1899)

Once the railroad stock crashed, they had to close the stock market. What did this "bubble burst" mean for the average American ?

The Panic of 1873 triggered the first full blown, national depression.

Describe what happened at the barricade when the Pinkertons faced off against the strikers.

The Pinkertons said to tear down the barricade. Words were exchanged, fists were thrown, then rocks. The Pinkertons opened fire on the workers, killing 9 and wounded many others.

J.P. Morgan's father told him to get rid of his electric shares. What event allowed J.P. Morgan to invest as he wished ?

The death of his father

In 1866, Vanderbilt was especially struggling. What recent loss affected him so deeply ?

The death of his favored son, George.

How did the wealth of then great entrepreneurs compare with the lives of the poor ?

The gap between rich and poor is as big as its ever been. Over 90% of Americans survives in less than a dollar a day in terrible conditions.

Why did Roosevelt believe that the government should have more power than the big capitalists?

The government was elected by the people - the capitalists were not.

When Carnegie built his steel mill, what was wrong with his timing ?

The railroad market was saturated and struggling. Also, he built the mill right before Rockefeller pulled his oil from the railroads.

Rockefeller's great-grandson gives him credit for being sick a good businessman. For what does his great-grandson NOT give him credit ?

The way that he became that powerful

J.P. Morgan passed away peacefully at the age of 75. At his death, Carnegie and Rockefeller changed their competition. Instead of trying to be richest, what did they do now?

They turned to philanthropy. (67 billion given away by Carnegie in today's money; 100 billion in today's money by Rockefeller)

The partnership between Carnegie and Henry Frick worked very well. According to Dallas Mavericks Mark Cuban, what was good about it ?

They were opposites.

What are the problems with working conditions at the Homestead Steel Mill ?

They were working twelve hour days, six days a week - the exhaustion was dangerous. They were not making a living wage.

Officials in charge of the Niagara station chose ____________ to power their generators.

Westinghouse or A.C.

Mark Cuban said, "Wherever there's change, wherever there's uncertainty, there's opportunity." How did Rockefeller demonstrate this principle ?

Whenever things went wrong, Rockefeller was there to adjust - and make money.

14. In the words of the narrator, "They didn't discover this modern America; they __________ it."

built

John D. Rockefeller was en route to a meeting with Vanderbilt. What happened on the trip there ?

the train crashed

The objective of the super rich is often not to make money, it is to ........

win