THE
Robber Barons
THE GREAT AMERICAN CAPITALISTS
1861-1901
by Matthew Josephson
There are never wanting some persons
of violent and undertaking natures,
•who, so they may have power and
business, will take it at any cost.
FRANCIS BACON
A Harvest/HBJ Book
Harcourt Brace Jovanovich
New York and London
CONTENTS
PART ONE
ik **HE NATIONAL SCENE: THE NATIONAL CHARACTER
The Civil War: flowering of our industrial revolution - The early
republic as an agrarian-mercantile democracy - Calvinism and the
pecuniary spirit-Benjamin Franklin-Legend of the Self-made
Man-Slater, Astor, Vanderbilt, Drew-The Yankee Trader at
the frontier-Perpetual land boom-California: a parable-The
new barons confront the democracy.
J
fit. WHAT THE YOUNG MEN DREAM
Childhood and youth of captains of industry - The race for fortune-Environment of poverty and optimism-The training for
ruse -Beginnings of Jay Cooke, Jay Gould, Andrew Carnegie,
Pierpont Morgan, John D. Rockefeller and others.
32
III. OF EMPIRE-BUILDERS
The young entrepreneurs stay behind the lines-The new order
and the new business chances-Partition of the public domainJay Cooke as the government's banker-His new-financialtechnique-The war profiteers-Morgan's speculations in carbines Jay Gould's dealings in gold - Rise of the Erie ring - Vanderbilfs
rotten ships-His entrance into railroads-The Harlem corner Vanderbilt's conflicts with Erie.
50
•*?. THE WINNING OF THE WEST
Manifest destiny in the Great West-Coming of the Iron HorseWartime railroad grants - A "national plan" for railways to the
Pacific-Festival of the Golden Spike-The Western land and
town booms-Jay Cooke's "Banana Belt" -Cookers Northern Pacific project.
75
V, TWO CAPTAINS OF INDUSTRY
The new tempo of business enterprise - Carnegie becomes an
ironmaster-Skill in promotion-In using others-His large ven-
IOO
ture in Bessemer steel - Rockefeller enters the oil trade - Disorder
of the oil market - Expansion of Rockefeller's company -Founding of Standard Oil - Use of freight rebates - Birth of a great
monopoly: "The South Improvement Company."
VL THE FIGHT FOR ERIE
Vanderbilt's contests with Erie for key positions-His buying of
Erie stock - Treachery of Drew, Gould and Fisk - Vanderbilt
prosecutes - Flight of the Erie ring to New Jersey-The "boodle
war" in Albany-Triumph
of Gould and Fisk-The Albany &
Susquehanna incident- Morgan wins his spurs-Jay Gould's gold
conspiracy -"Black Friday" 1869.
121
VII. GRANDEURS AND MISERIES OF EMPIRE-BUILDING
The golden age of speculation - The alliance of undertakers with
politicians - Rumblings of scandal: the Erie Revolution- Assassination of Jim Fisk - Ejection of Gould - Uprisings against Rockefeller in the Oil Regions-The Credit Mobilier exposures-The
vulnerability of Jay Cooke-The Northern Pacific bubble-Failure of Jay Cooke & Co.-Panic of 1873.
14$
PART TWO
VIII. RISING FROM THE RUINS
Gains of the strongest undertakers during panic-Reign of unbridled competition-Concentrated
struggle for railway lines Advance of the Vanderbilt dynasty - Death of the CommodoreNew York Central under Billy Vanderbilt-"The
public be
damned/" - Blackmail of the railroad barons.
177
DC. MEPHISTOPHELES
192
Gould's tactics: blockage of the industrial system-Encirclement
of Union Pacific - Its purchase of Gould's rival trunk lines ~ Rise
of the Missouri-Pacific -Raiding the telegraph field-Capture of
Western Union-Seizure of New York elevated lines-Betrayal .
of Cyrus Field-Gould's empire in the United States-Its decline - The great railway strike: 1886 - The gathering of enemies Near-catastrophe.
X. CAESAR BORGIA IN CALIFORNIA
The sack of California - Entrenchment of the Pacific Associates Seizure of the Sierra passes -Huntington's lobbying in Washing-
J|C
ton-Triumph of the Southern Pacific monopoly-Rule
"Octopus" over the Pacific states.
of the
XI. GIANTS OF THE NORTHWEST
The Northwest open to all comers-James Hill and Henry Villari scan the field-Hill's operations in Minnesota-His technical
tnill and ruthlessness - Rise of the Great Northern system - Henry
Villard preempts the Oregon coast ships and railways-Stops the
westward approach of Northern Pacific-Capture of Northern
Pacific by the "blind pool"-Its completion to the sea-Sapping
action of Hill-Triumph
and downfall of Villard-Failure &f
popular rebellions against the Railway Barons.
23I
XII. CERTAIN INDUSTRIALISTS AROSE
The coming of large-scale industry-The fortune of Carnegie's
steel works-His rapacity and enthusiasm-Carnegie as "business
pirate"-Henry Frick, baron of coke-His "efficiency" -Union
with Carnegie: a "vertical" combination-Renewed campaigns of
Rockefeller for monopoly - Terrorism in oil - The pipe-line warThe completion of the great Trust-The industrial pools: their
weakness and strength-Success of the meat-packers' combination-The cavemen of capital.
253
XIII. MORGAN AND THE RAILWAYS
The banker old and new-Disastrous railroad financing-An appeal to the House of Morgan - The Pennsylvania's squabbles with
Vanderbilt-Morgan as arbiter-New disorders fomented by Harriman and others-Passage of Interstate Commerce Act, 1881Conspiracy of the Railway Barons to nullify the Act-"Gentle'
men's Agreement" effected by Morgan-Morgan's drive fm supreme control.
29C
XXV. THE ROBBER BARONS
"Popular consent" won by the new-rich-Religious piety of the
barons-Wooing of the barons by the churchmen-Conquest of
the school -The new gold rush to the social heights -Acceptance
of the pecuniary standard-Merger of the parvenus Vanderbilts
and the "old" Astors - Varieties of conspicuous consumption Pursuit of titles and culture-Mr. Maecenas in the New World.
315
XV- AGAIN THE ROBBER BARONS
347
Toward the capture of popular political institutions - Machiaveltian technique of barons-Indifference to parties -Populist revolts
of the '90's - The superior strategy of Mark Hanna - The attitude
toward labor remains medieval-Implacable resistance to unions Jay Gould defeats the Knights of Labor-Henry Frick and the
steel-workers-Bloody Homestead-Doctrine of "divine right" of
capital.
XVI. CONCENTRATION: THE GREAT TRUSTS
1893: renewal of panic-Expropriation of the lesser capitalists Expansion of the great monopolies in depression-The craze for
Trusts after Standard Oil-Framing of Trusts by lawyers and
bankers-Strength and inherent weaknesses of the 7 rusts-Va*
solidation of Carnegie's steel kingdom - The materials of conflict
in steel -Penetration of the Standard Oil monopoly into new industries-The "money machine" at 26 Broadway-The
Rockefeller alliance with Harrrman-Preparations for final conflicts by
three dominant financial groups.
$75
XVII. THE EMPIRE OF MORGAN
Morgan as investment banker-His rule of the money Trust*
Organization of the House of Morgan-Its campaign for "community of interest" - Its chain of industrial and railway combinations-Anxieties of Carnegie-His quarrel with the "disloyal"
Frick - Carnegie makes war upon the Morgan steel combinations The demoralization of heavy industry.
404
XVIII. BATTLE OF GIANTS
Termination of the steel war-Purchase of Carnegie Steel company by Morgan-Formation of the United States Steel TrustFrenzied finance - Expansion of Morgan-Hill combination in the
Northwest-Fierce opposition of Rockefeller-Harriman groupThe Northern Pacific panic - A last "battle of titans" - The peace
conference at the Metropolitan Club —Formation of the Northern Securities Company - Achievement of "community of interest" - Roosevelt attacks the Morgan-Rockefeller holding company ^Dissolution of Northern Securities-Lasting harmony ana.
dissimulation of the combined monopolists-The
end of the
tether.
ij.24
BIBLIOGRAPHY
45$
INDEX
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