Introduction
The gilded age was maybe the cradle of capitalism with its problems and opportunities, wealth and poverty, the growth of the economy, and social issues. There seems to be no agreement on whether this period and its main actors were positive or negative events of American history. It appears that almost any era and its historical figures have brought something of value to the development of many spheres of life.
The American Dream as Rockefeller, Carnegie, Morgan, and others saw it and forged it to be seen by others contributed meaningfully to the values of the American people and the priorities of a nation. Due to these considerations, the stories of American tycoons were not entirely stories of greed and ego or genius and hard work, but rather an interplay of those concepts where the first two were prevalent.
The Financial and Economic Genius of Tycoons
In modern times, the number of large-scale corporations is significantly smaller than that of small businesses. The reason for that is that organization of a business structure that incorporates lots of suppliers, contractors, workers, materials, financial and legal issues is a non-trivial task. A venture like that requires exceptional business skills, vision, knowledge, and talent. However, there is a thin line between a true financial genius and a skillful negotiator.
The art of negotiation was probably one of the most significant qualities that helped many of the financial and industrial magnates. For instance, Morgan used to have many connections to major railroad figures, members of Congress, and Senate manipulating whom he achieved his own goals (“J. Pierpont Morgan”). Yet, it seems that there is no genius involved and many others had connections and friendly ties to higher layers of the banking world.
Manipulation is certainly a way to overcome struggle, but in comparison to other solutions, it seems easier. Buying out other firms to create a steel monopoly and increase profit by underpaying his workers was easier than organizing a series of effective factories that would profit because of smart managerial decisions (“America’s Gilded Age: Robber Barons and Captains of Industry.”). Thus, the negotiation was certainly helping, but there was no need to be a genius manipulator to offer a large sum of money to buy one’s competitors.
On the other hand, Henry Ford managed to bring his company to prosperity by sustaining innovation and making bold decisions that could be attributed to his genius managerial skills. The invention of a conveyor belt, implementation of an 8-hour working day made him the king of the auto industry in the Gilded Age and beyond. Using leverage and connections to thrive and avoid competition seems easier than emerging victorious in a competitive war.
Hard Work
Morris (223) suggests that the head of Drexel & Morgan bank, his father Junius Morgan, died and Morgan simply inherited the company. His aspiration to power began from the already established and wealthy firm that under his guidance thrived further. It cannot be said, however, that Morgan or other wealthy colleagues of his such as Rockefeller were lazy and the wealth miraculously landed on them. They worked long hours to became people of national significance. Rockefeller, for instance, used to work as a bookkeeper negotiating freight agencies, captains, and assessing transportation expenses. His excellence at that trade was rewarded by his employers.
As a result of his planning and efficient management, his oil company was one of the first to implement the reuse of 40% of what was dumped as sludge and sell it as by-products (Folsom and McDonald 78). Above that, he invested in modern technologies and equipment, product packaging, diversification, and other spheres. By doing this, he managed to scale down the production of kerosene so low that he pushed alternative products such as whale oil and coal oil used to light American houses and streets.
All these activities required notorious intellectual labor, inquiries, pacts, market studies, and exceptional knowledge. Hard work was that made Rockefeller one of the wealthiest people in America. Unlike Morgan, he was not born into an upper-class family and had to pave his road to success from the bottom. Therefore, hard work was a large part of the tycoons’ financial success. For many, Rockefeller became the role model of a self-made man, a personified American Dream.
Greed
The lust for money was certainly fueling the ambitions of tycoons and wealth was the beacon towards which they strived. Out of greed came corruption, embezzlement, bribery, and unhealthy protectionism that represented the dirty side of the Gilded Age. Books reveal many examples of improper business practices and tycoons utilized them rather often. In fact, this was a large part of the reason why they managed to increase their wealth to such heights.
One example of greed can be illustrated by Gould and Fisk who were involved in the Erie war. At the end of the 1860s Erie railroad company was struggling and shareholders were trying to make the most of the situation (Morris 63). Normally, the situation would be nothing unusual, and there would be no criminal intent in shareholders trying to save their money. However, it was the methods Gould and Fisk used that forged the main reason for antipathy towards tycoons. For financial machinations with the company’s shares, Gould was arrested, but a bribe to a judge allowed him to stay free.
On the other side of the battle, Vanderbilt also used the “services” of a paid judge and tried to force a sentence for Gould and take his share of the company. Senators Tweed and Sweeny were also paid sufficient sums of money to support Gould and Fisk in their rights (Morris 66). This was a typical interaction scheme when wealthy business figures ensure their interests are preserved by paying off government officials and judges. Such machinations darken the image of a “good businessman” make one question the true motives of these people. As bribery requires substantial amounts of money, one may assume that individuals resorting to such actions are already financially successful, yet out of the desire for more, they overstep the bounds of law and stimulate corruption.
Ego
Not only money but also power and self-worshipping were also among the vices that tainted the American Dream personified by tycoons. Morgan, for instance, was described by his contemporaries as a person “very much inclined to look down on other men” (Morris 264).
The power and position in society for him were of great significance, and money was one of the ways to achieve them. In an aspiration to retain his position as America’s greatest banker of the time, he financed McKinley campaign and made some illegal arrangements, tampering with elections to make sure his candidate won the presidency in 1896 (“America’s Gilded Age: Robber Barons and Captains of Industry.”). Such predatory actions characterize tycoons as robber barons and make people wonder why a person would require so much money if not forego and self-worshipping.
One would argue here that besides their machinations and bribes financial magnates used to donate large sums of money to charity and helped address social issues. As such, Morgan would financially aid the government to withstand the crises of 1895 and 1907. Carnegie was a known philanthropist and the founder of the New York Public Library. Yet, by acting so generously, Morgan probably was more concerned about the financial state of his own banking corporation that would have certainly lost more if the country were hit by default.
Carnegie’s motives were perhaps more honorable, but at the same time he was trying to lower the earnings of the employees at his refinery facilities to cut on expenses which led to the strike and six lives claimed (“America’s Gilded Age: Robber Barons and Captains of Industry”). Thus, it may be argued that at least partially these charitable acts were made to establish a name in society, leave a positive imprint in history and atone for the financial sins they committed.
Conclusion
Thus, it could be seen that American tycoons were neither pure evil nor absolute good. They were experts at financial schemes and investing, and some of them were excellent managers who emerged victorious in the competition. Their economic impact was immense, and the U.S. thriving commerce, oil, banking, car, and other business is, in large part, their hard labor. However, this might be regarded as merely the side effect of their desire to become financial and industrial gods whose ego stimulated corruption, poverty and even resulted in people’s lives lost.
Works Cited
“America’s Gilded Age: Robber Barons and Captains of Industry.” Maryville Online, n.d. Web.
Folsom, Burton W., and Forrest McDonald. The Myth of the Robber Barons: A New Look at the Rise of Big Business in America. 6th ed., Young America’s Foundation, 2018.
J. Pierpont Morgan. Federal Reserve History, n.d. Web.
Morris, Charles R. The Tycoons: How Andrew Carnegie, John D. Rockefeller, Jay Gould, and J. P. Morgan Invented the American Supereconomy. Macmillan, 2006.