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Summary of the chapter 7 'life with the giants'

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Industry Giants Summary Chapter 7: Electoral Strategy Group # 7    

Stefania Granadillo Jose Reyes Luiggy Ortega Marianne Gutierrez

1.- Date (period) and precursor Year 1896 to 1901 Precursors: Jhon D. Rockefeller, Andrew Carnegie, J.P. Morgan. 2. - Is there a monopoly? If there are monopolies. Williams Jennings Bryan running for president (Democrat) fought against the country's elite, promising equality for all. He wanted to dismantle the companies of the titans and send them to prison. It was the age of rampant monopolies. The Titans supported Republican William Mckinley and he won the election on November 3, 1896. Mckinley reduced regulations and the Titans' profits skyrocketed. He was reelected for a second term and Theodore Roosevelt was elected as vice president. In September 1901, a former worker at a JP Morgan company assassinated Mckinley, which made Roosevelt ascend to the presidency. He campaigned against monopolies. The first was JP Morgan and the railroad industry from it. He sued, it was the first antitrust lawsuit which Roosevelt won. This split Morgan's rail monopoly. Roosevelt was elected to a second term, in which he made ANTITRUST demands. John D. Rockefeller's standard oil had lasted through the years through multiple administrations. Standard Oil was the example of large companies that accumulate too much power with nothing

nor anyone to contain it.

The government sued standard oil, it was the biggest antitrust case in the country, Rockefeller was cited and he fled. America's most powerful man had become a fugitive from justice, evading subpoenas for months, but turned himself in and agreed to testify in defense of Standard Oil and a form of business he had helped create. 3.- Is there rivalry? Yes, there is a rivalry between the three titans: Rockefeller, Carnegie and Morgan. Rockefeller got into the steel industry, he wanted to build a steel plant to compete with Carnegie. 4.- Competition? Yes. There is always competition between the titans of the industry, as each wanted to be the most powerful. 5.- Is there an entrepreneurial vision? Yes. Rockefeller looked for where to invest, he bought an iron ore deposit, north of Minnesota, this was the raw material for the production of iron. He began to devise a strategy to defeat his rival. Steelmakers (Andrew Carnegie's competition) bought iron ore from Rockefeller for really low prices. Carnegie's clients began to emigrate. The impact was devastating in months their profits decreased. Rockefeller would build a steel plant to compete with Carnegie. They negotiated for months to reach an agreement. Carnegie bought all the iron production from Rockefeller in exchange for Rockefeller getting out of the steel business and giving up the idea of ​​building a plant. Rockefeller made millions (a fortune) by having Carnegie buy the iron ore from him. After this, JP Morgan also wanted to get involved in the steel business, they wanted to consolidate the steel industry. JP Morgan met with Carnegie's right-hand man to try to buy Carnegie Steel. Carnegie eventually sold his company for $480 million.

Andrew Carnegie became the richest man in America. He had a fortune of $300 million (current money). JP Morgan exchanged Carnegie Steel for US Steel valued at about $1 billion.

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