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Hero or villain? How would you describe a person in business who has made his wealth on the backs of his workers but has donated millions to charity and bettering society? In the 19th century, during America's Gilded Age, wealthy entrepreneurs rose to dominate American business. However, many industrialists of the era had characteristics of both captains of industry and robber barons. So which one is it? Were these men philanthropists that improved society or monopolists that controlled prices for their benefit? Continue reading to find out more about famous robber barons, their characteristics, significance, and more.
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Sign up for freeWhy were industrialists called Robber Barons?
Which Robber Baron preached about workers' rights to unionize?
What were Captains of Industry?
Though viewed as unfavorable, Robber Barons ushered in industrial advancements during this time. Name two examples of this.
What union strike tainted Andrew Carnegie's reputation?
What industry did Cornelius Vanderbilt enter after being involved with the steamship industry?
What Robber Baron controlled 90% of the US oil?
During what time frame did Robber Barons and Captains of Industry exist?
What was the core purpose of the Sherman Anti-Trust Act?
Why were industrialists called Robber Barons?
Which Robber Baron preached about workers' rights to unionize?
What were Captains of Industry?
Though viewed as unfavorable, Robber Barons ushered in industrial advancements during this time. Name two examples of this.
What union strike tainted Andrew Carnegie's reputation?
What industry did Cornelius Vanderbilt enter after being involved with the steamship industry?
What Robber Baron controlled 90% of the US oil?
During what time frame did Robber Barons and Captains of Industry exist?
What was the core purpose of the Sherman Anti-Trust Act?
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Team Robber Barons Teachers
In late nineteenth-century newspapers, the term "robber baron" referred to wealthy industrialists such as J. P. Morgan, John D. Rockefeller, Andrew Carnegie, and Cornelius Vanderbilt. A robber baron was a derogatory slur against business people who grew their wealth through unethical and cruel methods.
Often, industrialists and businesspeople of the Gilded Era were put into both the robber baron and captain of industry categories. Their actions as philanthropists often characterized them as captains of industry. However, unethical, ruthless, and questionable business practices identified these men as robber barons. Historians have argued what titles should be attributed to the monopolists and industrialists of the era. Therefore, we must look at both arguments to identify what made a man a Robber Baron or a Captain of industry.
Philanthropist:
A person who promotes the welfare of others generally through large donations of money to charitable causes.
While several industrialists were termed "robber barons," a few prominent industrialists are well known.
Cornelius Vanderbilt. Wikimedia Commons
Cornelius Vanderbilt, nicknamed the Commodore, was a railroad and shipping magnate who became one of the country's wealthiest men by the end of the nineteenth century. Before entering the railroad industry, Vanderbilt spent years operating in the steamboat industry. In the first thirty years of his career, he amassed a fleet of thirty steamships before transitioning to the railroad. Eventually, Vanderbilt purchased enough stock to gain control of the New York and Harlem railroad lines in 1863. Later on, Vanderbilt, never previously interested in philanthropy, eventually donated one million dollars to Central University (later named Vanderbilt University).
John D. Rockefeller became a well-known industrialist and philanthropist, making his name in the oil industry. Founder of the Standard Oil Company, Rockefeller revolutionized the oil industry, and his company became the first United States trust. Standard Oil eventually came to own 90% of the oil in the U.S., becoming a monopoly. Rockefeller employed ruthless and unfair business practices but believed in his philanthropic responsibility. One of the wealthiest men in American history, Rockefeller was termed a Captain of Industry and a Robber Baron.
As seen in the following statement, he had always been keen on what money could do for him from a young age.
The impression was gaining ground with me that it was a good thing to let the money be my servant and not make myself a slave to the money…"1
–John D. Rockefeller
Trust:
A monopoly or big business in the nineteenth and twentieth centuries that made agreements to carry on exclusive power-control over a particular industry.
Andrew Carnegie. Wikimedia Commons
Born in Scotland, Andrew Carnegie emigrated to America in 1848, hoping for new opportunities. He began work as a bobbin boy and then became a messenger for a telegraph company. The Civil War spurred the iron industry, and seeing the potential, Carnegie opened Carnegie Steel, which ultimately manufactured more steel than Britain. Contradictory to many other industrialists of the time, Carnegie frequently preached on the right of workers to unionize. However, Carnegie's actions against his workers seemed hypocritical. Carnegie Steel employees subjected to poor working conditions organized a strike against the company resulting in the Homestead Strike of 1892. The strike resulted in workers being locked out of the factory, and several were killed. Though his reputation was tainted, Carnegie Steel continued to turn a profit.
Later in his life, Carnegie focused on philanthropy and eventually gave ninety percent of his wealth away. Not agreeing with charity, Carnegie set to establishing libraries and universities. His strong belief in philanthropy often earned him the title of Captain of Industry, though his actions did not always match his words.
John Pierpont Morgan was a financier and industrialist who became one of the richest and most powerful men in the business world. He began his career in the New York financial industry and then transitioned into the railroad industry. In 1879 Morgan purchased shares in the New York Central Railroad. Then in 1901, Morgan purchased Andrew Carnegie's steel company for almost $500 million. Like other industrialists of the era, Morgan engaged in questionable business practices to eliminate competition and increase profit. For example, Morgan eliminated his competition by forming a monopoly and cutting the labor force (along with their pay) to increase his profits. Concerned about business regulations, Morgan and others also gave large amounts of money to ensure William McKinley was elected president in 1896.
At the end of his life J. P. Morgan, owning an astounding art collection, left behind this legacy to the public in his ornate library. Eventually, unveiled in the 1920s as the Morgan Library and Museum, the library became available to the public. Through his philanthropic work does not rival Rockefeller and Carnegie, J. P. Morgan contributed significantly to the American industry.
Political Cartoon: The Protectors of Our Industries 1883. Source: Wikimedia Commons (Public Domain).
Like the one above, political cartoons depicted the growing negative public sentiment towards big business practices during the Gilded Era. These business practices spurred massive industrial development throughout the nineteenth and early twentieth centuries, but at what cost? In "The Protectors of Our Industries (1883)," you can see business magnates Jay Gould, Cornelius Vanderbilt, Russell Sage, and Marshall Field floating atop a raft on the backs of laborers. This cartoon shows that industrialists often reaped their wealth off the backs of their workers, who generally worked long hours for little pay. While the workers deal with the rising tide (hard times), the industrialists stay in the safety and comfort of the raft with support from their millions.
Symbolism:
This list comprises industrialists and businessmen considered Robber Barons throughout the Gilded Age. However, this list is not exhaustive, and historians have argued that some men on this list should be identified as Captains of Industry. The most well-known Robber Barons are highlighted in yellow.
| Robber Barons | |
|---|---|
| Name | Industry |
| John Jacob Astor | Fur |
| Jay Cooke | Finance |
| Andrew Carnegie | Steel |
| John D. Rockefeller | Oil |
| Cornelius Vanderbilt | Railroad |
| JP Morgan | Finance |
| James Fisk | Finance |
| Henry Clay Frick | Steel |
| Henry Ford | Automobile |
| Jay Gould | Railroads |
| Leland Stanford | Railroads |
Biltmore Estate, home of George Vanderbilt. Source: Wikimedia Commons.
The contentious views surrounding Robber Barons continue even today. However, whether these men were captains of industry or robber barons does not negate their essential contributions to industrial development. While many industrialists were concerned with their profit margin, they also revolutionized how the industry functioned. For example, Andrew Carnegie successfully used the Bessemer Process in his steel company, and John D. Rockefeller revolutionized oil through his refining process. Though these men made significant contributions, their unregulated business practices eventually ended with government legislation.
The negative public opinion of robber barons spurred business legislation aimed at trusts and monopolies. One of the most critical pieces of business legislation came with the passing of the Sherman Anti-Trust Act in 1890. This act did not stop the robber barons but ended unregulated business practices. The core purpose of the act was to end interference in economic competition and powerful business combinations that resulted in monopolies. The act's effectiveness is still in question today, but the development of business regulation was significant.
1. Keith Poole, "Biography: John D. Rockefeller, Senior," (n.d).
2. Thomas Ladenburg, "Robber Baron or Industrial Statesman," 2007.
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Who were the four robber barons?
The four robber barons were Andrew Carnegie, John D. Rockefeller, J. P. Morgan, and Cornelius Vanderbilt.
Were the robber barons good or bad?
Robber barons were considered bad due to their ruthless, unregulated business practices that were used to increase owners' profits. However, these men also participated greatly in philanthropic endeavors.
Why are they called robber barons?
They are called robber barons because they were viewed as robbing their own workers to reap benefits for themselves.
What are robber barons?
Robber barons are wealthy business owners who made their wealth off the backs of their workers.
Was John D. Rockefeller a robber baron?
John D. Rockefeller was considered both a robber baron and captain of industry. He employed questionable business tactics to increase profit, but he also believed in philanthropy and donated millions to charity.
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