The Men Who Built America 1

Video Notes: The Men Who Built America

April 14th, 1865
5 days after the end of the Civil War, Abraham Lincoln is assassinated
An Industrial Revolution begins (5 decades)
Notable People:

Rockefeller
Vanderbilt
Ford
Carnegie
JP Morgan

Cornelius Vanderbilt
Vanderbilt buys a ferry boat at age sixteen on a loan. He gained a reputation as a
cutthroat business man. He got in scraps with other men. Ferry boat becomes flee
and he becomes a big name in shipping. He became known as the commodore.
Over the next forty years he builds a vast shipping empire. He realizes the
importance of the transcontinental railroad and sells all of his ships. He invested all
of his money in the railroad and since they provided a cheap ways to transport
goods across America. He decision to invest in the railroad pays off and he becomes
the richest man in America after the civil war. He lost his favorite son George to the
war. He had groomed George to take over the family business but he had to prepare
his other son, William, to take over the family business after George died. The
competition no longer saw Vanderbilt as a man to fear so Vanderbilt seized his
chance to assert his dominance. He owns the only rail bridge into New York. He
closes the Albany Bridge so every other railroad could not enter New York City.
Leaves millions of pounds of cargo unable to reach the rest of the country. He
bleeds his competitors dry and people start selling stocks. In days Vanderbilt takes
control of the rival railroad company, the largest single railroad company in the
country. He built Grand Central station in New York City. To make his empire
complete, he needed to take control of the Erie line. Over 50,000 miles of railroad
tracks provided many jobs.
Vanderbilt made his agents buy stocks of the Erie
Line. 2 men named Gould and Fiske prints thousands and thousands of shares for
the Erie Line to water down the stocks, so that Vanderbilt had to buy more stock to
own the majority of the company. Vanderbilt continues to buy stock unaware, and
he ended up buying $7M of watered down stock. Gold and Fiske defeat and
humiliate Vanderbilt publically. Vanderbilt vows to never be defeated again. He
needed to find a new freight to get an edge. Oil was changing the way Americans
live with Kerosene. Vanderbilt saw the demand of kerosene skyrocketing across the
county and he realized that he needed to find a supplier to take back control.

John D. Rockefeller

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Cleveland is sitting on top of one of the largest oil fields in the world. John D.
Rockefeller is the man Vanderbilt decides to pick from obscurity. At the age of 27
Rockefeller is just getting started with his refinery business, but it is failing.
Vanderbilt invites Rockefeller to meet with him, which for Rockefeller is the
opportunity of a lifetime. Rockefeller missed the train that would have carried him
to certain death. He goes to meet Vanderbilt again and makes a deal to fill all of
Vanderbilts trains. He promised more than he could produce and therefore had to
find a new way to produce kerosene that was faster and more efficient. From a
young age Rockefeller supported his family due to his father being a con man.
Rockefeller was forced to quit school and get a job to support his family. He
becomes fixated on finding a big idea and taking a chance. He realizes that oil has
the potential to change the world and make him rich. He didnt like how inefficiently
oil was obtained. Whoever could control the refining process could control the
industry. The deal with Vanderbilt gave him cheap shipping rates and control of the
market. He needs investors, but kerosene has a bad name, since the high demand
caused refiners to ship highly volatile kerosene. Rockefeller saw that the fears of
the public needed to be calmed. Rockefellers standard Oil becomes the most
demanded kerosene in the country. Tom Scott gives Rockefeller a better deal than
Vanderbilt. Scott wants to control the railways and through him, Rockefeller can
supply every home in America with Kerosene. Rockefeller bought out all of his
competitors and he wanted to own all of the oil refineries. He was looking to
expand his company and maximize his profit. By the time he was finished,
Rockefeller controlled 90% of Americas Oil supply. Vanderbilt realizes that the
railroads have to work together to combat Rockefeller. Vanderbilt and Scott form an
alliance and agree to not compete with each other. Rockefeller needed to find a
way around the problem, by finding a way to transport his oil without trains. Oil in
refineries was transported through pipes, so Rockefeller realized that pipelines could
be used to transport oil over long distances. The workers worked around the clock,
laying 1.5 miles of pipeline a day. When the pipeline was complete, it was over
4,000 miles long. Rockefeller revolutionized the way oil was transported, which was
a big blow to rail companies. The railways are desperate for cargo and passengers,
and stocks plummeted. By the end of the crash 1/3 rd of the US rail companies had
gone bankrupt. The Stock Exchange shut down and stayed closed for 10 straight
days. Workers got laid off and Rockefeller bought out bankrupt Oil companies for
little to nothing. Vanderbilt died at the age of 82.

Andrew Carnegie
Tom Scott and Andrew Carnegie survived the Depression. Tom Scott tries to build a
pipeline of his own, but Rockefeller shut down his oil refineries in Pittsburg, causing
Scott to lose over half of his income and lay off many of his workers. The workers
riot and light a fire in Scotts train yard. Around 39 buildings are burned to the
ground, and Rockefeller becomes the richest man in America. Scott was buried
outside of Philadelphia. The loss of Scott is a huge blow to Carnegie, who blames
Rockefeller for Scotts death. At age 12 Carnegie started working for a railroad in
Pittsburg. Scott took a liking to Carnegie and hired him as his personal assistant.

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Scott quickly advances Carnegie through the ranks and Carnegie is promoted to
manager of the company at age 24. Scott wanted to build a bridge over the
Mississippi river, which was impossible with the Bridge building materials of the
time. Carnegie invested all he had in the bridge, and decided to use Steel to build
it. He needed to find a way to produce a large amount of steel, faster and for a
lower cost. Carnegie built the first bridge to span the Mississippi River. Carnegie
proves the strength of the steel bridge, by leading an elephant over it. After the
stunt, he gets more requests for his steel than h can handle. He goes back to Scott
for funds, and builds his first steel plant. Carnegie wants revenge on Rockefeller.
The railroads wanted steel tracks to replace the ones they already had. But they go
back on their word, and Carnegie loses his market for steel. Because of a
population surge, buildings are being built as fast as possible. The worlds first
skyscraper was built in Chicago with Carnegie steel. The skyscraper boom makes
Carnegie one of the wealthiest people in America, but it isnt enough. He believes
he has to surpass Rockefeller to avenge Tom Scotts death. Carnegie hired Henry
Frick to get Carnegies steel into shape. In the end hiring Frick may have been the
worst decision of Carnegies career. Frick builds a country club for the richest men
in America in the hills outside of Pittsburg. Frick weakens the south fork dam which
breaks during a rain storm flooding the valley below. When the water stops, more
than 2000 people are dead. Most of the blame falls on the country club members.
Carnegie feels responsible and starts a campaign to fix Johnstown. Johnstown was
the town in the valley that was hit the worst by the flood. He begins building public
monuments across the country, because he wants to be remembered for the good
he had done. He creates Carnegie Hall in NY. Rockefeller still wealthier than
Carnegie and they spend the next 10 years battling each other, sparring with
Christmas gifts. Steels becomes the product of choice for construction, and
Carnegie steel promotes the upward expansion of Americas cities. Frick makes the
men work harder for longer hours and for lower pay. Accidents on the floor keep
multiplying until one proves fatal. The workers go on strike and Frick calls in
reinforcements. When the fighting stops 9 Carnegie steel workers are dead, and
many sustained injuries. The PA Governor sends in the state militia to settle things
down. People blame Henry Frick and want vengeance for the dead. Carnegie
extends his stay in Scotland. Anarchists form a group targeting Frick. Frick gets
shot and stabbed by an anarchist, but lives. Carnegie cuts short his trip abroad and
returns to Pittsburgh. Carnegies relationship with Frick dissolves and Frick attempts
a hostile takeover of the company.

JP Morgan
JP Morgan is a banker who dominated financing in the country. He consolidated
companies and restored them to profit. Carnegie fear that he might become
Morgans next target. Carnegie kicks Frick out of the country, and Morgan continues
to target failing companies. Morgan was born into the banking business, taught
that there was only one way to do business, the Morgan way. He had a strained
relationship with his father, and by age 40 he wanted to form an identity of his own.

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Morgans father told him not to take big risks. He wanted to not only buy
businesses, but to build them from the bottom up. Thus setting his sights on
Thomas Edison. The lightbulb captures Morgans eye. He sees that electric light
will revolutionize the world. Morgan invests in Edisons company, and hires him to
install electric lighting in his home. Morgan invites his father, and many other
people to his home to show them the electric lighting. His father is disappointed in
him because of the risk he took with electricity. Electricity becomes a must have for
the nations elite except for Rockefeller. Rockefeller realizes that electricity has the
power to completely replace kerosene lighting. Morgan invests everything in
electricity. As Edisons power grid expands, the amount of people needing kerosene
decreased.

Nikola Tesla
Tesla invented Alternating Current. Edison believes AC is dangerous, so Tesla goes
to start his own company. He finds an investor in Westinghouse. He does
demonstration across the country, creating high demands for AC. Morgan is staking
everything on Edison, which sends him down a dark path. Edison used AC in many
experiments trying to scare the public, but it doesnt work. A NYS prison is looking
for an alternative to hanging, an Edison envisions a simple design to use electricity.
Edison agrees to make an electric chair using AC. The experiment fails, and the
public new that electricity was used to kill a man, and Edison was behind it. Morgan
is still convinced that electricity is the future. A company at Niagara Falls is starting
construction on a Massive power plant. Once complete the falls will generate more
power than that in the entire country altogether. The Niagara power plant will
power the entire northeast, but the company has not decided who will power the
plant. Getting the contract will require a vast investment. Morgans father dies in a
terrible carriage crash, and leaves JP in charge of the house of Morgan. Morgans
net worth quadruples, and he suddenly has a lot more money, which he plans to use
on the contract. Westinghouse is drowning in debt after the companys rapid
expansion. Morgan capitalizes on a fall in the economy, and within days
Westinghouses company is almost bankrupt. The contract between Tesla and
Westinghouse is ended, so Westinghouse could make a profit. Chicago is about to
host the worlds fair, and Westinghouse secures the contract for lighting it.
Westinghouse ends up winning he contract for the Niagara power plant. Morgan
has been defeated, but he forces Westinghouse to sign over the patents for AC.
Morgan breaks up the company with Edison, and decides to streamline the company
and eliminates Edison. Morgans General Electric Company is one of the most
powerful companies in the world. He switches it to AC. Rockefeller needs to find a
product to replace Kerosene, and targets a byproduct of producing oil called
gasoline, which no one has found a use for. He hires a team of scientists to figure
out a use for gasoline, which leads to the development of the internal combustion
engine. Rockefeller uses these engines in his factories. Gasoline is used for
horseless carriages. Morgan developed Morganization. Rockefeller and Carnegie
adopt the same approach and the gap between the rich and poor grows. William
Jennings Bryan is a rising political force who is against the rich business men, and is

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catering to the opinions of the people. NYC 1896, working conditions are almost
unbearable. William Jennings Bryan tried to use the anger of the poor to get him to
the White House. Bryan vows to take down the monopolies. And put Morgan
Rockefeller, and Carnegie behind bars. He is a threat to the businessmen, so they
put their full support behind Ohio Governor William McKinley. They each give over
$200K to McKinley. Bryan fights back by making the first whistle stop tour to talk to
the people. He publically attacks the nations most powerful men, so the men turn
to fear tactics, saying that if Bryan wins, there wont be any work. The 1896
election is the battleground for the future of the nation. McKinley wins the election
and the country remains in the businessmens control. McKinley rolls back
regulation. The uneasy alliance begins to fray after they achieve their common
goal. Rockefeller discovers a large supply of iron Ore, and sees it as a way to
overtake Carnegie. Steel manufactures immediately figure out how to use it, and
Rockefeller began to sell it at rock bottom prices. In just months Carnegies profits
begin to crater. Rockefeller decides to build a steel plant, but Carnegie calls a
meeting with Rockefeller to try to intimidate him out of the Steel business. The
negotiations last for months. Carnegie has no choice but to buy all of Rockefellers
steel output, in order to prevent him from building a steel plant. Morgan saw that
he could apply his method on steel companies, and he wants to end the cut throat
competition in steel. He needs to stage a complete takeover of the Carnegie steel
empire. Morgan sets up a meeting with Carnegies right hand man Charles Schwab.
Carnegie is considering his future. He know that he can stay on top if he wants to.
Carnegie wrote down $480M as his selling price. The price is greater than the
budget of the US government, but Morgan buys it anyway. Carnegie has finally
surpassed Rockefeller with a net worth of $310B in todays money. Morgan calls the
new corporation US Steel. Their control of the big companies catches the attention
of US politician Theodore Roosevelt. Roosevelt was from a wealthy NY family. He
enlisted in the army and became a hero in the Spanish American war. He became
NY Governor. The next election it is McKinley vs Bryan again, and the monopolies
convince McKinley to let Roosevelt become his next Vice President. Because the VP
was a powerful position. McKinley is elected president again. In buffalo McKinley
gives a speech and an anarchist shoots him. He dies 8 days later, and Theodore
Roosevelt comes into power. Roosevelt launches a campaign against the largest
trusts. His first target was a large railroad conglomerate owned by JP Morgan.
Roosevelt wins and the Railroad Company is broken up. Roosevelt is elected to a
2nd term.
Standard Oil was able to stay together, and the government files suit
against it. Rockefeller ran from the law, until he gets a grandson, which causes him
to turn himself in.

Henry Ford
Young entrepreneur Henry Ford has created a new kind of car. Cars were seen as a
luxury, and he spent years making his car for the common man. Fords application
is rejected and Ford challenges the owner of the countrys largest car company to a
race. Ford has never raced a car before, yet he still wins. His win makes him

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famous, and he raises $700k to build his car company. He is producing 15 cars a
day with prices low enough for the average American. The car company sues him
over their patent for the automobile. A panel of Federal judges decides whether or
not Ford can continue to sell his cars. Ford continues building and selling his cars,
and pays his workers a livable rate. Ford creates the assembly line, and Standard
Oil is broken up.