Economic growth (Vanderbilt)

• What is Cornelius Vanderbilts background?

  • made money as a street fighter and worked with his father who operated boats that ferried cargo
  • bought his first boat at 16 - started in shipping
  • known as the commodore, king Of the railways
  • launched a steamship service
  • opened Grand central depot in 1871 - symbol of his empire, largest building in America
  • controlled Hudson River traffic
  • shut off the Alberti bridge - cut off competitors
  • ended up with a monopoly
• When Vanderbilt realised there were too many railroads what did he do?

  negotiated a deal with John D Rockefeller - to transport his oil at a cheap freight price
• Why is Vanderbilt considered a robber baron?

  Monopolistic practices and exploitation of workers.
• What is oil to the development of the economy and society?

  fuel, oil lamps and heating
• The key facts of John D Rockefeller

  • 1870 - established standard oil
  • early 1880s controlled 90% of US refineries and pipelines
  • critics -> accusations of engaging in unethical practices e.g. predatory pricing, colluding with railroads