For many of us, the rich people of our time seem to be the most successful in the world. However, if you look at how rich people of the 19th century are, you can doubt the level of wealth of today's oligarchs. Wealthy people of the 18th and 19th centuries had so much money that their entire lives were not enough to spend it. Why was this? In fact, there are many reasons for this.

This is how rich gentlemen dressed in the 19th century

Incredible wealth in the 19th century came to those who knew how to set goals for themselves and, breaking barriers, go towards them. In general, today persistent people are also achieving financial independence. However, even if we compare the rich people of today and the wealthy of the 19th century, the difference in capital is quite high. In those days, the income level was many times higher.

However, there is a significant difference between the rich of those times and the present. Today, people who achieve success in one of the business sectors become rich, sometimes opening several types of activities. It is by running this business that they achieve success. Nevertheless, even the richest person of our time does not have even one tenth of the wealth that wealthy citizens had in the 19th century. Why? The answer is quite simple.

TOP richest people of the 19th century

There were quite a lot of rich people in the 19th century. And this is not easy to say, but is actually confirmed and proven by concrete facts. The list of the most prosperous inhabitants of the globe in the nineteenth century included the following personalities.

Anika Stroganov

He lived during the government of Ivan the Terrible. Anika was a very important entrepreneur of those times. He is responsible for the northern trade in products and goods delivered from England. Also, Anika was the discoverer of many lands in those days.

Images of Anika Stroganov's house in Solvychegodsk

He was involved in the development of the salt industry. Anika also organized Ermak’s expedition. The total amount of his wealth is not precisely known. But without a doubt, his level of wealth was several times higher than that of the current Russian oligarchs.

Portrait of Yakovlev Savva Yakovlevich

When Catherine took power over the people, Savva collected enough money to build six factories in the Ural region and buy sixteen ready-made factories. In history, besides Savva Yakovlev, there have been no people recorded who became so rapidly and significantly enriched in a short period.

Potemkin Grigory

Many people know that Potemkin was the most beloved gentleman of Catherine II. It is clear that Catherine had enough funds. Nevertheless, Potemkin was persistent and wanted to achieve success and wealth on his own.

Potemkin Grigory with Empress Catherine II

The noble army commander led military forces during several wars. After the victory over the enemies, Potemkin found himself in possession of a huge amount of land, which was donated by the empress herself. These plots made Potemkin the wealthiest man in Russia at that time.

Orlov Grigory

Gregory became one of the participants in the coup d'etat aimed at expelling Peter the Third from the throne. After which the government was headed by Catherine the Second. When Empress Catherine ascended the throne, she thanked Grigory Orlov very generously.


As a reward, the Orlovs received expensive and rich houses and estates, impressive sums of funds, as well as the title of count. But Gregory’s enrichment did not end there; in 1771, he successfully completed the mission of organizing and restoring the situation with the plague epidemic that broke out in Moscow.

Perlov Vasily

Vasily Perlov managed to achieve incalculable financial well-being thanks to tea. He became the first in Rus' who was able to conquer the tea market. It was he who introduced packaged tea to consumers. But he did not stop there, also conquering Europe.

Trademark of Vasily Perlov

They supplied him with tea from China, where tea products have always been of high quality and recognized among consumers. Perlov Vasily even organized a company and opened tea shops in different countries of the world. The tea industry brought Vasily a huge amount of money, because financial streams poured into his hands from different parts of the globe.

Polyakov Samuil

Samuel made his fortune by handing out railroad concessions. By contributing his funds to the construction of the tracks, Samuel was able to receive huge savings.

Polyakov used his capital very wisely; he spent it on opening educational institutions. In 1913 the wealth was $544 billion.

Patron of arts Pavel Tretyakov

Pavel Tretyakov's fortune at the end of his life amounted to almost four billion rubles.

Knop Lev

Knop had at his disposal a factory that was directly involved in the production of cotton products. Many believe that Knop got rich due to the fact that he could always keep in touch with the right people at a feast, however, in any situation and regardless of the amount of alcohol he drank, he remained sane.

This is what Lev Knop looked like during his lifetime

His wealth was $187 billion.

Smirnov Petr

Peter founded a factory for the production of vodka products. His goods were in high demand, so the income from his activities was significant, more than fifteen billion rubles a year.


Overall, Peter Smirnov’s wealth amounted to more than ninety-five billion dollars.

John Rockefeller

This man opened the largest corporation for refining and selling oil. He was deservedly called the first oil tycoon. And this is not surprising, because his idea is still popular today.

Photograph of John Rockefeller

John's wealth exceeds $300 billion. The most interesting thing is that Rockefeller achieved his success himself, because he was born into a rather poor family. Watch the video biography and life story of John Rockefeller.

William by inheritance became the owner of the royal empire.

Through proper management and action, he was able to acquire a fortune of more than $230 billion.

It is worth noting that William was prepared for government on the throne from a very early age.

Portrait of William Henry Vanderbilt

His father treated his son strictly and without mercy. However, we can say that he helped the heir become financially literate for those times.

Ford Henry

A very popular character who led a prosperous life thanks to his efforts. Henry was born into a poor family, where the lot was to work in the fields and enjoy what nature gives. However, Henry Ford was not going to settle for little. Since childhood, Henry Ford dreamed of being a mechanic; when he turned sixteen, he went to work at a factory.

Half of the world's super-rich people now live in the United States. However, in terms of the number of billionaires per capita, the United States is traditionally inferior to Switzerland, Hong Kong and Singapore. In US history, there have been times both favorable and unfavorable for the emergence of millionaires. Bradford DeLong, a professor of economics at the University of California, believes that there were periods in US history in which acquiring a million-dollar fortune was almost impossible. This was the case, for example, before 1870 and from 1929 to the 1980s. At other times (between 1870 and 1927, as well as in the last two decades), the American economy provided opportunities for relatively quick enrichment.

According to De Long's calculations, in 1900, 45% of the national wealth was concentrated in the hands of 1% of the US population. This is the highest level of capital concentration in US history. After this, this share began to decrease, primarily due to the creation of a more advanced tax system, social insurance system, state policy in the field of wages, etc.

In 1900, there were 22 billionaires in the United States. Nine billion fortunes were made from the construction of railways. Three fortunes were inherited. Five were made based on financial transactions. Other gold mines of the time were retail trade, real estate, forestry, steel, and urban transportation. This was the era of classic “wild capitalism”, when the rules of the game were determined by the participants themselves, and all possible methods were used in competition, including criminal ones.

By the mid-1920s, there were slightly more billionaires in the United States—about 30. The steel, oil, mining, food, chemical, finance, railroad, etc. industries brought in money. 6% of billion-dollar fortunes were acquired through the development of fundamentally new industries - photography and automobile manufacturing. The American economy at that time could in many ways be considered oligarchic. The influence of billionaires on the state of the economy has been enormous. They were able, through municipal and state authorities, to attack not only real, but also potential competitors. The situation changed after an unprecedented economic collapse - the Great Depression, which broke out in 1929. US public opinion quickly named three “B”s responsible for what happened - Bankers, Brokers, Businessmen. By the time the crisis began, 1% of Americans had ultra-high incomes, 42% had ultra-low incomes. In 1929, approximately 100 large corporations controlled half of America's corporate finances. The depression led to the state establishing stricter and fairer rules for doing business and reforming the financial market. As a result, the crisis was overcome, and the number of billionaires in the United States decreased significantly.

In 1957, only 16 Americans were worth billions. A third of the fortunes came from aluminum production, a fifth from oil. A quarter was inherited. Since the 1980s, the number of billionaires in the United States has been rapidly increasing. In 1982, there were 23 of them, in 1989 - already 132. In 1996, there were 196 billionaires living in the United States (three of them worked for Microsoft). It is curious that for the first time in US history, a third of billion-dollar fortunes were inherited. The number of economic sectors in which billionaires operated has increased significantly. For the first time in practice, it was proven that big money can be made in the media market, electronics, pharmaceuticals, entertainment, cosmetics, insurance, etc.

The unprecedented stock market boom of the past decade led to an increase in the number of billionaires in the late 1990s and a decrease in the 2000s. For example, according to Forbes magazine, in 2001 there were 538 billionaires in the world. In 2002, their number decreased to 497, in 2003 - to 476. The average wealth of a billionaire decreased from $3.2 billion to $3.1 billion. The wealth of the world's super rich people decreased by $1.54 trillion. in 2002 to $1.4 trillion. in 2003. However, this capital exceeds the gross domestic product of all countries of the Middle East and North Africa combined and the income of about half of humanity. If in the mid-1990s American billionaires made up about a third of the total, then in 2003 they occupied almost half of the ranking lines (222 out of 476). Among the 11 richest people in the world, whose wealth exceeds $20 billion, there are only two non-Americans. In the 2003 ranking, Europe is represented by 134 billionaires, and Russia – 17 (9 in 2002).

Oligarchs of America

There have been many millionaires in US history. But only a few of them became legendary figures, whose lives still attract historians and writers. It is curious that most of America's legendary super-rich began their rise to wealth and fame from the very bottom. Some of them (for example, Astor and Soros) were born and raised in Europe, others (for example, Carnegie and Getty) lived a significant part of their lives outside the United States.

Most of America's legendary millionaires are extremely controversial figures. They were both honest and dishonest people, boundless generosity did not prevent them from periodically showing pathological greed, and declarations of respect for the law did not prevent them from changing laws and breaking them.

Bill Gates (born 1955). Founder and permanent manager of Microsoft (software production, Internet, telecommunications, etc.). The richest man in the world for several years, despite the fact that compared to that. that his fortune has decreased by 60% compared to 1998. Now Gates's fortune, most of which consists of Microsoft shares, is estimated at $40 billion. He entered the prestigious Harvard University, but dropped out. In 1999, Gates published the book Business@Speed ​​of Thought. Windows software is installed on approximately 90% of the world's computers. In 1999, US authorities began pursuing Microsoft under the Antitrust Act. In total, Bill Gates has donated more than $24 billion to various projects in the fields of medicine and education.

George Soros (born 1930). Operates in the field of finance and securities trading. He has the unofficial titles of “Mozart of the Stock Exchange” and “The Man Who Collapsed the Pound Sterling.” Soros is also called a man whose speculation contributed to the destabilization of the economies of Asia and Latin America. Several times Soros's predictions about the future of currencies and securities came true, but in the early 2000s, the assets of his companies decreased by 20% compared to the early 1990s. He is influenced by the ideas of the philosopher Karl Propper, the creator of the concept of an open society. Soros also supports the anti-globalization movement and is actively involved in charity work. For a long time, his Open Society Foundation actively supported various scientific and humanitarian programs in the former USSR. Founder of the Central European University in Budapest. Author of several books, including “Discovering the Soviet System”, “The Alchemy of Finance”, “The Crisis of Global Capitalism”, “Open Society: Reforming Global Capitalism”.

Warren Buffett (born 1930). Holder of the unofficial title “Genius of the Stock Exchange” and “Largest Investor of the Modern Stock Market”. He is best known as the head of the investment company Berkshire Hathaway. As an illustration of Buffett's genius, the following calculation is usually cited: if a person had invested $10,000 in Berkshire Hathaway shares in 1965 (the year Buffett bought it), he would now be worth $51 million. If the investments were evenly distributed among listed stocks in the Standard & Poor stock index (taking into account shares of the largest US companies), then the investor would have received $497.4 thousand. Buffett once revealed the secret of his extraordinary stock market success: “You should invest in things that will be forever popular in the market: people will always buy bread , milk and potatoes." Buffett leads an extremely modest lifestyle. For 40 years he has lived in the same house, drives his own car, buys suits in cheap clothing stores and practically never visits expensive restaurants.

Paul Getty (1892-1976). Transformed a small family oil company into one of the largest oil companies in the world - Getty Oil Company. Managed the work of more than 200 concerns. In 1975, his personal fortune was estimated at $3 billion. He is the founder of the large Getty Museum, which houses one of the world's best collections of ancient and medieval art.

JP Morgan (1837-1913). He worked in finance, railroads, and steel production. Founder of companies such as AT&T (dominated the US telephone market for decades), General Electric (originally a manufacturer of electrical and electrical equipment) and U.S. Steel (the largest steel company in the world) and JP Morgan bank. He had a reputation as a tough, unprincipled businessman and “pirate.” However, Morgan has repeatedly stated that he prefers to replace unrestrained competition with financial stability. Now considered one of the creators of the modern US economy. He collected a huge collection of works of art. In 1920 it was valued at $60 million - today its value could be several billion dollars.

Cornelius Vanderbilt (1794-1877). Railway tycoon. He was actively involved in maritime transport, finance, and trade. Built several important railways. In most cases, he resolved business conflicts using civilized methods, but did not hesitate to use bribery and blackmail. Donated $1 million to Vanderbilt University, which he founded.

Jay Gould (1836-1892). Railway tycoon. He created a fortune based on speculation in shares of railway companies, for which he used unscrupulous and cruel methods. Gould has been involved in numerous corruption scandals. Among the people to whom he gave bribes were members of the US President's family. Founder of Western Union, which became the largest telegraph company in the world. Gould himself called himself "the most hated American of the late 19th century."

His struggle with Vanderbilt for control of one of the railroads entered into the annals of business. The railroad that Gould controlled and that Vanderbilt wanted to acquire was constantly attacked by gangs hired by Vanderbilt. Gould repelled their attacks with artillery guns and even created a special military flotilla to guard the bridges. After Wapderbilt managed to buy a controlling interest in the disputed road on the stock exchange, Gould issued counterfeit shares and kept the property in his hands.

John Rockefeller (1839-1937). Oil king. He also acted in the fields of finance, industry and trade. Founder of the largest US oil company Standard Oil and one of the world's largest steel producers - United States Steel Corporation. In 1911, he became a victim of the law: the US Supreme Court decided to divide Standard Oil into 39 small companies in order to end the monopoly in the oil sector (Rockefeller controlled 90% of the US oil market). Considered the founder of the “intellectual business style”. He was the first oligarch to publish his own autobiography.

Rockefeller constantly spent 10% of his income on charity - throughout his life he donated more than $500 million to the needs of education, medicine, religion and culture. He transitioned philanthropy to a business basis and, for the first time, hired employees to manage the funds allocated to him for charitable purposes. In 1913, one of the largest charitable foundations in the world was created - the Rockefeller Foundation, which is still active today. Rockefeller also founded the University of Chicago and financed its work for a long time.

Andrew Carnegie (1835-1919). Carnegie's main commercial interests lay in the areas of steel production, coal and iron mining, railroads and finance. Carnegie tried to run an "ethical" business and stated that he always acted strictly within the law. At the same time, he fought fiercely against trade unions. Carnegie was the first to formulate one of the axioms of modern business: the need to increase production capacity long before demand for a given product appears, which subsequently makes it possible to offer the product at lower prices than competitors.

Carnegie is considered the father of modern American philanthropy. In 1889, he published an essay, “The Preaching of Wealth,” in which he argued that rich people have a duty to help the poor. Carnegie was a supporter of the ideas of the British philosopher Herbert Spencer and tried to apply the ideas of neo-Darwinism to modern politics. In particular, he tried to introduce the ideas of peacekeeping and international arbitration into politics. One of the most famous think tanks in the United States, the Carnegie Endowment for the International Peace, as well as the Peace Palace (now the International Court of Justice in The Hague) were founded by Andrew Carnegie. In addition, he opened more than 2.8 thousand free libraries in the United States. Carnegie was also involved in foreign policy - he advocated the peaceful resolution of international conflicts.

John Astor (1763-1848). He made a fortune in the fur trade. He was the first US businessman to establish trade with China. Founded a library that became the basis for the creation of the New York Public Library. His son William invested in the hotel business. Some of the enterprises he founded still exist: these are the Astor Hotel and Waldorf - Astoria hotel chains.

According to Forbes magazine, Rockefeller, Carnegie, Vanderbilt, Astor and Gates are the richest Americans in US history. This conclusion was made based on a comparison of their capital with the size of the US gross domestic product of their era.

One of the most authoritative and well-known economic publications in the world, Forbes magazine, published a ranking of the richest people in the world for 2013. A year later, the top of the list was occupied by Mexican media tycoon Carlos Slim ($73 billion) and one of the founders of Microsoft, American Bill Gates ($67 billion), in third place was the founder of the Zara chain Amancio Ortega ($57 billion), who for the first time supplanted the legendary Warren Buffett ($53.5 billion) from the top three. These four are known to everyone for their achievements and incredible capital, but can they be called the richest people in the entire history of mankind? Probably not, since they are not yet included in the top ten “best” ones.

Last place“TOP 10” is occupied by American philanthropist and industrialist Cornelius “Commander” Vanderbilt. He is called the head of one of the wealthiest families in American history and third on the list of the richest Americans of all time. His $185 billion fortune came from a variety of sources, starting with a small barge transporting people from Manhattan to Staten Island, followed by steamships, starting his own shipping business, and so on. Vanderbilt became even richer after successfully investing in railroad construction in the 1860s.

The next place was taken by the Commander's compatriot, founder of the Ford Motor Company. Henry Ford. Born in 1863 in Greenfield, Michigan, Ford was not the first inventor of the automobile; he was credited with designing, producing, and producing the first automobiles for the middle class. Ford factories produced “cars for everyone,” the cheapest cars at the beginning of the automobile manufacturing era. The total value of the inventor and author of 161 US patents after his death in April 1947 was estimated at about $199 billion.

Muammar bin Muhammad Abu Menyar Abdel Salam bin Hamid al-Gaddafi, also better known as Colonel Gaddafi, ruled Libya for over 4 decades. He became chairman of the Libyan Revolutionary Command Council after the September 1969 coup d'etat and the overthrow of King Idris.

At the time of his death, Muammar Gaddafi's personal fortune was estimated at the equivalent of about $200 billion. The dictator's Airbus A340 M plane alone cost about £73 million, and the 333-meter cruise ship Phenicia was purchased by the Italian Mediterranean Shipping Company in 2012 for $697 million

The first Norman king, a descendant of the Vikings, also entered the top ten richest of all times. William I. He reigned for over 20 years, from 1066 until his death in 1087. He accumulated his wealth by invading the territories of other kingdoms, which earned him the nickname “Conqueror.” When he died in 1087, the entire fortune, equivalent to $229.5 billion, passed to his sons.

Sixth place ranking thanks to assets worth about $236 billion. Osman Ali Khan(Asaf Jah VII), who was the last ruler of the Principality of Hyderabad from 1911 to 1948, after which the princely state became part of India. During his reign, Osman Ali Khan was the richest man in the world, owning a gold collection worth more than $100 million, jewelry worth more than $400 million, including the famous Jacob diamond weighing 184.75 carats and worth $93 million. According to According to unconfirmed reports, the former leader had at his disposal more than 50 different models of Rolls-Royce and many sea vessels.

Tsar Nicholas II Emperor of All Russia came to power after the death of his father Alexander III, then Nicholas was 26 years old. Tsar-Martyr Nicholas remained in power for more than 20 years and became the last emperor of the Russian Empire.

The Tsar’s assets by today’s standards are estimated at $300 billion, including jewelry, gold and silver reserves, as well as the huge fleet of the Romanov family, which included the Tsar’s favorite yacht “Standart” with a displacement of 4,500 tons (in total, the Romanov dynasty used about 10 imperial ships, among which “Alexandria I”, “Standart”, “Derzhava”, “Princess”, “Livadia”, “Polar Star” and others).

Another billionaire Andrew Carnegie played an important role in the expansion and growth of American industry. The Scottish-born steel magnate also became a renowned philanthropist of his time. He began his career as a telegraph operator, and in the 1960s he already made his first investments in the construction of railway sleeping cars, oil rigs and bridges. Today, Andrew Carnegie's total assets would be worth about $310 billion.

John Davison Rockefeller, born in the USA in 1839, became the first “dollar” billionaire in human history. The entrepreneur founded the Standard Oil Company in 1870, which became a leader in the oil industry and was the first business trust in the United States. With a fortune of $340 billion, Rockefeller was recognized as the richest American of all time.

Came to second place on the list Rothschild family, whose total capital amounted to about $350 billion. The Frankfurt banking dynasty dates back to the 1760s, since then its members have been considered the richest people in the world. Their total capital reaches $350 billion. Many believe that the Rothschild family controls more than $1 trillion. banking assets and real estate.

However, who became the richest man of all times and peoples? Leadership is given to the famous ruler of the medieval state of Mali in the 14th century Manse Musa. This Malian emperor built his fortune on the production of salt and gold, providing more than 50% of the world's supply of the precious metal. Today, taking into account inflation, Mansa Musa's total wealth would be worth about $400 billion.

Alena Androshchuk, especially for

20. Marshall Field

Marshall Field made his fortune by developing the Marshall Field and Co chain of retail stores in Chicago. The network was founded during the American Civil War. These were the first chain stores where the “customer is always right” rule was elevated to absolute. [C-BLOCK]

Enterprises that serviced the stores were located even in Australia. Field's maximum fortune, according to Peter Bronstein, was $66.1 billion (adjusted for inflation). Field's will was read in court and went down in history as one of the longest (22 thousand words). He appointed two grandchildren as the main heirs.

19. Stephen van Renseller

Runseller inherited his fortune. He was the last representative of the influential family of Dutch "patrons" in the state of New York, which since 1630 owned the largest estate in the Albany area - Rensellerswick.

Runseller was a state senator and then lieutenant governor. In 1824 he founded the Rensselaer Polytechnic Institute. The New York Times estimated Runseller's maximum wealth at $68.5 billion.

18. Jay Gould

Jay Gould was called the "robber baron." Gould earned his fortune, which The New York Times experts estimated at $71.2 billion, from railroads and gold speculation. [С-BLOCK] Jay Gould actually made a transport revolution in the USA in the 19th century. With financier James Fisk, he bought enough gold from the market to directly influence that market.

Buffett is an American entrepreneur, the world's largest investor, his fortune as of March 1, 2015 is estimated at $72.7 billion. Known by the nicknames "The Seer", "The Wizard of Omaha" and is the largest philanthropist in human history. The investor promised to give away 99% of his funds.

16. Carlos Slim

Carlos Slim is a Mexican businessman of Arab descent, the son of Maronite immigrants from Lebanon. According to Forbes, Slim was the richest person in the world in 2010, 2011, 2012 and 2013. Already in 2008, his fortune was $61.8 billion, in 2013 - $73 billion. Slim's largest source of income is telecommunications companies.

15. Henry Lancaster

An English aristocrat and diplomat, one of the founders of the Order of the Garter, Henry Lancaster inherited his fortune. It was estimated by experts at $77.5 billion. From 1390 to 1392, he led the life of a knight errant in continental Europe and Palestine, including participating in the civil war in the Grand Duchy of Lithuania.

14. Frederick Weyerhauser

According to Peter Bronstein, Weyerhauser's maximum wealth was $79.4 billion. He can be called the “king of logging.” It was this activity that became his ticket to becoming rich. When Weyerhauser moved from Germany to the United States, he founded one of the largest logging companies there, and by the beginning of the twentieth century he became one of the richest landowners in the country.

13. A. T. Stewart

Stewart made his capital in the retail trade. Economist Peter Rubinstein estimated it at $88.9 billion. Stewart opened his first department store in Manhattan, then significantly expanded the chain.

12. John Gaunt

Founder of the House of Lancaster, to which the English kings Henry IV, Henry V and Henry VI belonged. Gaunt, one of the heroes of Shakespeare's works, regent of Richard II, received his fabulous fortune, estimated by historian William Rubinstein at $101 billion, as an inheritance.

11. Stephen Girard

A French-born merchant and banker who was directly involved in saving the U.S. government's economy from financial collapse during the War of 1812, Girard was one of America's richest men. Experts estimate that Stephen was the fourth richest man in American history. His fortune is estimated at $105 billion. Stephen Girard opened his own bank, Girard's Bank, in the United States.

10. Richard Fitzalan, 10th Earl of Arundel

William Rubinstein estimated that the Earl of Arundel's maximum wealth was $108 billion (adjusted for inflation). Sources of income are wars. He fought in the Hundred Years' War and the Scottish Wars of Independence. His fortune was inherited.

9. John Jacob Astor

A Harvard graduate, John Jacob Astor made his fortune ($121 billion) through trading and investing. He began with the fur trade, and in this area by 1900 he had virtually established a monopoly. He then switched to real estate investing, primarily in New York City. Astor is also known as a writer and inventor. Died during the sinking of the Titanic.

8. William de Warenne

The Norman William I de Warenne became a billionaire for his valor. He took part in the Battle of Hastings and was rewarded with possessions in Sussex, Norfolk and Yorkshire, becoming the first Earl of Surrey. [С-BLOCK] Historian William Rubenstein estimates that de Warenne's maximum wealth was $134 billion (adjusted for inflation).

Bill Gates's fortune peaked in 1999 at $136 billion. In the period from 1996 to 2007, in 2009 and in 2015 - the richest person on the planet according to Forbes magazine. His fortune in March 2015, according to Forbes magazine, was estimated at $79.2 billion.

6. Alan Rufus

According to William Rubinstein, Alan Rufus's maximum wealth was $149 billion (adjusted for inflation). [С-BLOCK] He “amassed” his capital through conquests, and was also generously rewarded for his service. The Norman joined William the Conqueror in his invasion of Britain. He later owned 250,000 acres of land (more than 100,000 hectares) from Yorkshire to London. He also owned Richmond Castle in North Yorkshire.

5. Cornelius Vanderbilt

Economist Bernstein estimated the fortune of railroad magnate Cornelius Vanderbilt at $185 billion. [С-BLOCK] In 1862, Vanderbilt began buying up railroad lines; in addition, he made large profits from shipping - he leased ships, including to the government during the Civil War. Vanderbilt is one of the most successful entrepreneurs of the 19th century, the founder of the plutocratic Vanderbilt dynasty.

In 2012, the American portal Celebrity Net Worth compiled a ranking of the twenty-five richest people of the millennium. In this ranking, Nicholas II was in fifth place in the overall list. Celebrity Net Worth estimated his fortune at $300 billion (in modern money terms). Since the royal family was canonized, Nicholas II is listed in the ranking as “the richest saint.”

Peter Bernstein (Forbes) estimates Carnegie's wealth at $309 billion (adjusted for inflation). [С-BLOCK] Andrew Carnegie was the “king of steel.” He invested in steel production at a time when the market was booming and became the head of the United States Steel corporation.

According to an estimate by economist Peter Bernstein for Forbes magazine, John Rockefeller's fortune was estimated at $336 billion. The main source was oil refineries. In 1870, at age 31, Rockefeller founded Standard Oil. Subsequently, he bought up most of the US oil refineries. And today the Rockefellers control up to 90% of the American oil business.

1. Nathan Rothschild

Nathan Rothschild was the richest man of his time; he supported both Napoleon and his opponents with money in the Napoleonic Wars. According to a well-known legend, Rothschild earned 40 million pounds sterling in 24 hours from misinformation about Napoleon’s victory at the Battle of Waterloo alone. In 1816, England demonetized silver and adopted the gold standard. By this time, the Rothschilds controlled a significant part of the gold reserves and fixed its price. [C-BLOCK]

Today, the Rothschilds' fortune is estimated by experts at $350 billion, but some experts talk about $1 trillion in family assets.

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Introduction

Chapter I. Financial dynasties

1.1 John Davison Rockefeller (1839--1937), John Pierrepoint Morgan (1837--1913), Andrew Carnegie (1835--1919)

1.2 Prerequisites for industrialization in the USA

Chapter II. Industrial boom in the USA at the end of the 19th - beginning of the 20th century. or "The Heroic Age of American Enterprise"

2.1 Trusts and monopolies

2.2 What contribution did big business make to the development of culture, business, and production at the national level?

2.3 Comparative statistical study by P.A. Sorokina

Conclusion

List of sources and literature used

Appendix No. 1

Appendix No. 2

Appendix No. 3

Appendix No. 4

Introduction

This topic is closely related to the periods of both the formation of the American economy and a number of economic fiascoes at the beginning of the 20th century, and specifically the series of crises of 1903, 1907-1908, 1913. I consider the topic I am researching to be relevant for study in the current, not entirely favorable, economic climate in Russia at the “today” period.

Wealthy people as a special social group have been studied very little to date. There are books on this topic, but most of this literature is far from science. Scientific works and studies like the books of F. Taussig “Inventors and Money Makers”, W. Sombart “Bourgeois” or T. Veblen “The Theory of the Leisure Class” mainly examine the psychology and lifestyle of the rich. On the other hand, the studies of Bertillon, Stewart, Dijney, Heron, Pearson, Paulis and other statisticians touch only on some of the problems of life of the wealthy classes and do not study separately the richest group of people. And there are even more reasons to say this about American millionaires and multimillionaires.

The purpose of this work is to study the personalities of American millionaires of the early twentieth century, namely John Davison Rockefeller (1839 -1937), John Pierrepoint Morgan (1837 - 1913), Andrew Carnegie (1835 - 1919), as well as to explore the financial side of the studied dynasties by studying research carried out by the outstanding sociologist of the twentieth century, the founder of the Russian and American sociological schools - P. A. Sorokin.

1. Cover the biographical aspect of the famous financial magnates of the early twentieth century:

a) John Davison Rockefeller (1839--1937),

b) John Pierrepoint Morgan (1837 -- 1913),

c) Andrew Carnegie (1835-1919);

2. Answer the question of who the studied personalities remain in the memory of the American people, their contribution to the development of culture, business, and production at the national level.

3. Identify the main financial monopolies and trusts in the light of political events of the time.

This work consists of an introduction, two chapters of three paragraphs, a conclusion and appendices.

The first chapter provides a local biographical overview of three famous millionaires of the late 19th and early 20th centuries, namely John Davison Rockefeller (1839 -1937), John Pierrepoint Morgan (1837 - 1913), Andrew Carnegie (1835 - 1919);

In the second chapter, it is somewhat more extensive than the first; it talks about the emergence of major trusts and monopolies, the contribution that big business made to the development of culture, business, and production at the national level, and the author also studies a comparative statistical study by P.A. . Sorokina.

In conclusion - results, conclusions.

ChapterI. Financial dynasties

1.1 John Davison Rockefeller (1839--1937gg.)

John Davison Rockefeller See Appendix No. 1 Fig. and was born in 1839. Like many great entrepreneurs, Rockefeller came from a wealthy family. He recalled the “commercial” atmosphere that surrounded him since childhood.

The father, a small businessman, loved to play trading games with his son and taught him how to buy and sell with the greatest profit. Seven-year-old John started his first business under the guidance of his mother - he fed and sold turkeys. Market relations were so rooted in the family that when, 15 months before coming of age, he asked his father for his share of property - $1 thousand to open his own business, he gave it to his son at a high usurious percentage.

Rockefeller's education did not last long, which was typical for most businessmen of that time: three years of school and three months of accounting courses. He later admitted that he was a “difficult student” and no book fascinated him more than accounting. At the age of 16, John was already working as an assistant accountant for the company. And with such intellectual baggage, Rockefeller became the leader of American business. The reason is that his era needed precisely those qualities that his parents raised. What was required was not the education and erudition of B. Franklin and T. Jefferson, but the cold rationalism of the organizer of large-scale production. John Rockefeller became one of them.

He became the first person in history whose fortune exceeded $1 billion. He became the first self-made-men Translation from English - he made all his money himself. , his other characteristic was extreme stinginess. John Davison was a modest Puritan - he did not drink, did not smoke, always carried a Bible in his pocket and lived to be almost a hundred years old. Rockefeller's net worth today would be approximately $190 billion, taking into account all his charitable donations.

John Pierrepoint Morgan (1837 -1913 gg.)

John Pierpoint Morgan See Appendix No. 1, Fig. b one of the most prominent entrepreneurs in the United States of the late 19th century, Morgan became the personification of the era at the turn of the century, an era when free trade had become obsolete. Translation from English. - free trade. , for which more than one generation fought at the beginning of the century, led to the trusting of the economy and the formation of colossal monopolies. But even among these colossuses, J.P. Morgan's enterprises stood out for their gigantism.

On the other hand, Morgan was an outstanding patron of art - for example, the head of the Metropolitan Museum of Art, and he collected an excellent library of ancient manuscripts. Belle da Costa Green, a woman who had devoted herself to library work since childhood and was considered the best librarian in the United States, was invited to keep the library. Oddly enough, this strong-willed, educated and intelligent man kept an astrologer with him, answering questions: “To become a millionaire, just chance is enough. To become a billionaire, you need a good astrologer" Magazine "Banzai" No. 11 (49), December, 2006, pp. 100-102 //http://www.nashgorod.ru/n11/news_300.html.

J.P. Morgan was a sickly boy as a child, like all Morgans, he suffered from lupus, which disfigured his face. But health problems only developed his ability to overcome obstacles. He received an excellent education in Europe - the University of Göttingen, where he learned to appreciate art.

At 23, he became head of the New York office of his father's company.

In 1861, John Pierrepoint Morgan founded J.P. Morgan & Co, a company that originally served as a New York office for the sale and distribution of European securities guaranteed by his father's firm, Junius Spencer Morgan (1813 - 1890) - father of J. P. Morgan, becomes a partner of the famous entrepreneur and philanthropist George Peabody (1795 -- 1869) at Peabody, Morgan & Co. It serviced British contributions to the US economy and was based in London. 1864 After George Peabody retired, Junius S. Morgan took sole ownership of the company and renamed it J.S. Morgan & Co. , J.S. Morgan & Co - as we remember, initially the foundation of the Morgan empire was located in London. J.P. Morgan would later take it to the USA.

Andrew Carnegie (1835--1919gg.)

Of the three leaders of American entrepreneurship, only Andrew Carnegie See Appendix No. 1 Fig. came from a poor family (Rockefeller is the son of a small businessman, Morgan is a millionaire).

Andrew Carnegie was born in the Scottish town of Dunfermline into the family of William and Margaret Carnegie. His paternal great-grandfather, according to legend, was the grandson of the Scottish Earl James Carnegie, who participated in the Stuart uprising in 1715 and died an exile in France. It is also reliably known that Andrew’s ancestors were good at the weaver’s craft. As for the Morrisons, relatives on their mother's side, they were considered excellent shoemakers, and grandfather Thomas was a successful leather merchant in Edinburgh before he went bankrupt. As Andrew recalled, both his grandfathers, all his uncles and his father spoke at meetings as radicals, with Dunfermline for a long time being known as the most radical town in the whole kingdom.

At that time, both the English and the Scots were very concerned about the issue of universal suffrage, and at times the country was on the verge of a civil explosion. Although Scotland benefited more prominently than other parts of the United Kingdom from the parliamentary reform of 1832, expanding the electorate from 4,500 to 65,000 ROYLE., WALVIN J, English Radicals and Reformers: 1760-1848. Lexington.1982, p. 147 / Historical portraits. Andrew Carnegie / A.Yu. Salomatin // Questions of history.-1996: No. 2 p. 28, the inhabitants of its cities were not satisfied with the modest political concessions and demanded more. Anti-monarchist talk was popular in the Carnegie family at that time, and the republican form of government and the United States as its embodiment were extolled. And Andrew “was ready, even as a child, to kill a king, duke or lord and would consider such a murder a merit to the state and a heroic act” CARNEGIE A. Autobiography. Lnd. 1920 // Historical portraits. Andrew Carnegie / A.Yu. Salomakhin Questions of history.-1996: No. 2 p. 28. Once upon a time, dreams of a remote and free America should have become a reality. The first to emigrate overseas were the mother's sisters and their husbands. By the end of the 1840s. it was the turn of William and Margaret with their two children.

Perhaps the Carnegie family would not have decided to make the troublesome move if the 1840s had not brought about disaster for the Dunfermline weavers. The industrial revolution in England, which began victoriously in the second half of the 18th century, a few decades later reached a Scottish town with a population of 11,000 inhabitants and 3.5 thousand looms. 1836 was still a good year for Carnegie: the family managed to move to a larger house and bought three looms. But just two years later, as a result of mechanization, prices fell, and the situation did not improve any further. In 1843

A textile factory opened in Dunfermline, finally leaving the artisan Carnegie without a market.

And in 1848, 43-year-old William, 33-year-old Margaret, 13-year-old Andrew and five-year-old Tom left Scotland, selling all their property.

These four Carnegies were one of the 188 thousand people who emigrated that year from Great Britain to the USA. The emigration surge in general then increased sharply. The reasons for the increasing pilgrimage from Europe were the “potato disease” and famine in Ireland, crop failure in Germany and Scandinavia and the economic crisis in England, which then spread to other countries. .

Next they had to get to Pittsburgh up the river. Ohio. The trip lasted three weeks. Later, the same route was made by railroad in 10 hours, and in the middle of the century the railroad to Ohio had not yet been built.

Pittsburgh was significantly larger than Dunfermline, ranking third in population among all cities west of the Appalachian Mountains, and had over 30,000 thousand inhabitants. Conveniently located at the confluence of the Monongahela and Allegheny rivers, it became an industrial outpost in Western Pennsylvania, specializing in textile and metallurgical production. It was with the first of them that the new stage in the life of father and son Carnegie was connected.

But as you know, the 1840s are considered the apotheosis of the industrial revolution in the textile industry and the period of the formation of the preconditions for capitalist industrialization of the United States. Having failed to establish sales for the tablecloths they produced, Carnegie’s father, and at the same time his son, entered the cotton factory of the Scot Blackton, while their wife and mother worked as an outworker for four dollars a week!

And when he then went to work at the reel factory, for another Scotsman, his routine duties were supplemented by the owner’s assignment to keep the company’s accounts. However, Andrew did not work in his new place for long, since he soon had the opportunity to become a messenger at a telegraph station that was in the center of public attention. The telegraph, after the famous discovery of the telegraph electromagnetic apparatus by the artist S. F. B. Morse (1837), was still in its infancy. But telegraph lines multiplied rapidly. Although such astute entrepreneurs as E. Cornell, S. Field, P. Cooper and G. Sibley rushed into this business, the telegraph business still gave good chances to succeed to its ordinary participants. The first commercial telegraph line, Baltimore - Washington, operated successfully . The year 1850 was truly a turning point in Andrew's life. From the dark basement, where he, smeared with soot, tinkered with a steam engine for two dollars a week, Andy was now transported “to heaven”; among the rays of sunlight, he was surrounded by newspapers, pens, pencils, and the work of a delivery boy seemed interesting and promising to him, because it promised not only cash tips and everyday treats in the form of apples and cakes, but also acquaintance with influential people to whom he delivered telegrams.

The question of when young Carnegie would ascend to the next rung of the social ladder was only a matter of time. Less than a year had passed before he was taken to work in the office, and soon, having mastered the telegraph apparatus, he found himself as a reserve telegraph operator

By that time, Andrew had already adapted as an American and began to live in the interests of his new homeland. His correspondence with Scottish relatives gives a certain idea of ​​his state of mind in those years. He wrote to his uncle Lauder, for example, about the political situation in 1852 in the USA: “You will laugh if you know how low politicians are forced to bow before the holders of sovereign rights, that is, the people. Of the two most distinguished candidates whom I must call warriors, one is General, American Commander-in-Chief Scott, he is a Whig; The Whigs here are for protective tariffs against foreign workers and for a national bank, so they are conservatives. Democrats demand freedom of trade and the prevention of the organization of a National Bank. I take considerable interest in local politics and believe that when I become an adult man I will plunge into it a little. I will be a democrat, or rather a free-soil democrat; The Free Soilers got their name from their hatred of slavery and slave labor. Slavery, I hope, will soon be abolished in the country... Father said this morning that it would certainly happen, and noted just for you that the greatest reform of the century begins here: a law passed by the House of Representatives giving 160 acres of vacant land to everyone to the man who will cultivate it, and when he dies, his children will receive this land... The law has not yet entered into force, but will soon come into force.” . CARNEGIE A. Autobiography. Lnd. 1920 // Historical portraits. Andrew Carnegie / A.Yu. Salomatin K. I. n. Assoc. Penza State University/Questions of History.-1996: No. 2 p. 28

1.2 Prerequisites for industrialization in the USA

The main specificity of the industrial development of the United States, where industry was created as a vast territory was developed, at different stages of interconnected European and American capitalism: from the manufacturing period of the 17th-18th centuries. before imperialism. The first working machines appeared in the Atlantic states with the presence of crafts and manufacturing there, and the colonization of Western lands began mainly at the factory stage of capitalism. Having freed itself from colonial dependence, the US government began to implement a policy of extensive territorial expansion. New areas were annexed on the basis of the conclusion of unequal treaties, trade deals, through direct military violence and seizures. Louisiana (1803) and Florida (1819) became part of the United States. In 1823, the United States proclaimed the “Monroe Doctrine,” according to which any interference by European countries in American affairs was considered a threat to the United States. Thus, the United States gained the opportunity to unleash wars of conquest against Mexico. The following seizures and annexations followed: Texas (1845), New Mexico (1849), Upper California (1848), Oregon (1846). Only in the first half of the 19th century. The territory of the United States increased by 3.5-4 times. Expanding its territories, the United States pursued a policy of systematic extermination and displacement of the indigenous Indians of the mainland to the worst lands. The rights of the Indians and the treaties concluded with them were violated, and enmity was incited between the Indian tribes. Any protests of the Indians were suppressed, tribal leaders were killed, and entire tribes perished. This is how the Cherokee tribe, which had its own alphabet, schools, printing houses and newspapers, perished. Having discovered gold deposits on their territory, the American government drove the Cherokees to reservations allocated to them far to the West. During the resettlement, 4 thousand Indians died - this path went down in history as the “Road of Tears.”

The backwardness and fragmentation of the Indian tribes certainly facilitated the territorial expansion of the Americans.

It should be noted that constant wars in Europe contributed to the rapid growth of American capitalism. The United States, geographically located on another continent, did not participate in these wars, and therefore avoided large expenditures on the army, did not experience military devastation and received income from trade with all the warring countries of Europe. By supplying them with weapons and goods, American capitalists became significantly richer.

As a result of territorial expansion by the middle of the 19th century. the number of states increased from 13 to 30.

Territorial expansion led to important demographic changes: rapid population growth, active migration to the West and gradual urbanization. The following data shows the population rate: in 1790, 3.9 million people lived in the USA, in 1860 - already 31.4 million people. This means that every 25 years the population doubled - no other country in the world has known such a rate of population growth.

The increase in population occurred due to internal factors (natural increase), as well as external ones (the influx of immigrants and the import of slaves). The presence of a huge land fund became an attractive force for the influx of immigrants from Europe. In addition, immigration was encouraged by the government as the growing economy needed labor. Among the immigrants were hundreds of thousands of skilled artisans, engineers, workers, and inventors. For 1821-1860 Over 5 million immigrants arrived in the USA, mainly from Ireland, Germany, and England. Most of them are skilled workers and artisans forced to leave Europe as a result of the industrial revolution. In addition to the creation of an army of wage labor, mass immigration and population growth contributed to the creation of a large domestic market, which, in turn, led to an increase in demand for industrial goods, i.e. served as an incentive for the development of production.

Changes in the demographic situation were reflected in urbanization. The deepening of the social division of labor led to an increase in the urban population. Cities became centers of industry and trade. The share of the urban population increased from 5% in 1790 to 20% in 1860. If in other countries factory centers were populated due to the dispossession of rural residents, then in America - due to industrial and craft elements from among immigrants. New York, Cincinnati, Philadelphia, Chicago, Cleveland, St. Louis, etc. became major cities in the United States.

Before the Civil War 1861-1865. Within the framework of a single capitalist mode of production in the United States, systems of slavery and wage labor coexisted. It is obvious that in such conditions the type of industrial development could not be uniform for the entire country. The conflict between free enterprise and plantation slavery can also be viewed as a conflict between two forms of ownership and diametrically opposed types of labor organization by capital: slavery excludes wage labor, and vice versa. Both claimed Lebensraum (free lands) and dominance in the American political system. The country was led to the Civil War by a fatal dilemma: to be or not to be slavery? Although no European power practiced anything like plantation slavery, historians often compare the American Civil War to the bourgeois democratic revolutions. What they had in common was that rapidly growing capitalism eliminated any institutions that interfered with it - absolute monarchy, political fragmentation, remnants of feudalism, as well as slavery. Undeveloped capitalism could not exist without slavery, and when it matured, it destroyed it.

The main result of the Civil War was the abolition of slavery. The remaining components of the American economy - industry, trade, farm agriculture - were successfully developing before it, and in the northeastern United States the industrial revolution was completed by the 60s. The Civil War temporarily reduced the rate of economic growth, but ultimately it paved the way for the development of capitalism on a much broader and freer basis. The Homestead Act adopted in 1862 became the most progressive solution to the agrarian question in world history, and the leadership of the Republican Party, while in power from 1861 to 1884, carried out a whole series of events in the interests of entrepreneurs.

As for the South, even after the Civil War it lagged behind the North and West of the United States in development. Some of the plantations lost their owners and passed to new owners, some were divided into small plots and leased out. Mostly blacks still worked on the plantations, but now as farm laborers or tenant sharecroppers (croppers), who gave the owner part of the harvest (this form of land use is backward in nature and is similar to the “working off” of the former serfs of Russia on the land of the landowners). Along with it, the share of family farming in the South increased significantly, and people from the northern states also acquired land.

The abolition of slavery created a decisive prerequisite for the formation of a labor market in the South, but it did not fully develop even during the years of radical Reconstruction. The American Civil War was also a reflection of the industrial revolution. It cleared the way for the rapid development of capitalism in the United States in all spheres of the economy: industry, agriculture, trade

In the post-war period, the economic development of the United States experienced an upswing. For 1860-1870 Coal production increased fivefold, iron smelting increased threefold, and the length of railroads increased sixfold. And by 1870, the United States took second place in the world in industrial development. Quantitative growth was accompanied by significant qualitative changes: the process of concentration of production was intensive, the structure of industry changed, and new branches emerged. Giant enterprises were created. Their equipment corresponded to the latest achievements of science and technology. The most significant changes occurred in mechanical engineering. New models of metal-cutting machines have emerged - turret and milling machines. The US machine park has surpassed the European one in quantity and quality. This determined the complete independence of American industry from England. The World Exhibition in Vienna in 1873 clearly and vividly demonstrated the advantage of the United States.

Conclusion: so we see that in the last third of the 19th century. The US is undergoing a phase of economic recovery. Heavy industry sectors are developing intensively: electrical, chemical, mechanical engineering. The absence of remnants of feudal society determined the rapid pace of development of the United States compared to the main industrial countries of Europe. The USA takes first place in the world in terms of industrial production. The process of creating monopolistic associations in the form of trusts is underway. In 1890, the Sherman Antitrust Act was passed. As a result, a more flexible form of holding company associations has emerged. Monopoly associations controlled 80% of heavy industries. There was also a concentration of banking capital.

A feature of entrepreneurship in the United States was the intensive system of exploitation, which by the beginning of the 20th century had become form of scientific organization of labor. Thanks to the scientific developments of F. Taylor, F. Gilbreath, G. Ford, labor productivity at American enterprises increased several times. But in terms of industrial injury rates, the United States ranked 1st in the world. The raw material base of the industry expanded, and the demand for building materials, equipment, and manufactured goods increased. The machine tool industry is developing, milling and new designs of planing and grinding machines have been invented. The production of products begins, cheaper and in larger volumes than in Western Europe. Pennsylvania has a growing oil and rubber industry. By the beginning of the 20th century. The volume of foreign trade has increased. The export of capital to colonial countries increased (cheap raw materials were exported from Canada and Latin America).

Thus, by the beginning of the 20th century. The growth rate of the American economy was very high, the United States became an advanced industrial power.

ChapterII. Promyshlesignificant rise in the USA at the end of the 19th century -early XXV. or "The Heroic Age of American Enterprise"

2.1 Trusts and monopolies

Last third of the 19th century. - the time of the formation of large production and big business in America. This period is sometimes called the "Heroic Age of American Enterprise." True, representatives of big capital, in addition to flattering assessments - “heroes of the nation”, “captains of industry” - also received others. Farmers called them “robber barons,” and corporations called them “monsters” and “octopuses.”

They even talked about the arrival of a “new feudalism.”

At that time, in the United States, thanks to the widespread introduction of machinery, small-scale farming was replaced by large-scale mass production. The steam engine replaced horsepower. Heavy industry developed rapidly. More railways were built in the country than in the whole of Europe. The mechanization of the economy caused a huge increase in production and its concentration in large enterprises. During the period from 1860 to 1900, the cost of industrial products increased 5 times, agricultural products - 3 times. As a result, America by the beginning of the 20th century. has become the first industrial power in the world, overtaking the former leader Great Britain in terms of total production. The creation of large-scale production was stimulated by the domestic market, the most capacious in the world due to the large number of land owners - farmers, and high wages of workers.

Large-scale production required new methods of organization, management and financing. The independent manufacturer - owner of the enterprise was replaced by a joint stock company, or corporation, as it was called in America, which made it possible to unite small capitals in the country. A joint stock company is an organized business with collective rather than individual ownership. In it, the function of capital ownership was separated from management, which passed into the hands of specialists - managers. By 1900, corporations owned 60% of the nation's industrial output.

The owner's personal experience in managing an enterprise turned into a scientific system. The creator of the first theory of scientific management was the American engineer Frederick Taylor. Frederick Taylor's contributions to the development of management / World of business and money // http://woldbizz.ru/index.php?newsid=9 date of visit 04/12/09. In the 1880s. he conducted experiments to improve labor productivity and management efficiency. Then the number of business schools grew rapidly: by the beginning of the 20th century there were already 320 of them with 70 thousand students. The USA and Germany were the first to undertake the training of professional managers with higher education. In 1881, the Wharton School of Finance and Commerce was opened at the University of Pennsylvania, then at the University of California and the University of Chicago. In 1903, the Harvard Graduate School of Government was founded, becoming a national center for such education.

Large volumes of production, mass production of products, and the growing interdependence of individual industries did not allow the market to successfully cope with the function of a spontaneous regulator of the economy. The “invisible hand,” as A. Smith called the market, stopped working successfully. To regulate production in certain industries, associations of joint stock companies - pools, trusts - were created. In 1882, a monopoly in industry arose - the Standard Oil oil company, which became the first modern large corporation, and its creator John D. Rockefeller (1839 -1937) became the leader of American big business.

Success in business has not always been achieved by honest means. The history of American big business has many dark pages. The rise of Rockefeller and his company is a classic example of this.

The joint stock company Standard Oil of Ohio was formed in 1870. It included brothers John and William Rockefeller and three other businessmen. At that time, the Cleveland Rockefeller company owned no more than 10% of the country's oil refining, but by 1879 it controlled 90 - 95%, and its capital grew from 1 to 70 million dollars. One of the most important reasons for success is the establishment of close ties with the owners of the railroads that ensured control over the transportation of oil.

At that time, John Rockefeller told his brother Frank, who worked for one of the competing firms in Cleveland: “We have entered into an alliance with the railroads and intend to buy up all the oil refining in Cleveland. We will give everyone the opportunity to join... Those who refuse will be destroyed." In less than a month, 20 of the 25 owners transferred their business to Standard Oil. Independent entrepreneurs turned to Pennsylvania authorities for help and got the deal terminated. However, J. Rockefeller had already established control over all of Cleveland, and no measures by the authorities could break his relations with the railroads, whose leaders, Vanderbilt and Scott, soon became shareholders of Standard Oil. Transportation benefits for the corporation have resumed.

Equally strong relationships were established with the owners of oil pipelines, which also came under the control of Rockefeller. Standard Oil prevented the creation of independent oil pipelines: it delayed the passage of a law in Pennsylvania allowing their construction; bought land through which the oil pipeline was supposed to pass. The most common method of dealing with competitors is the principle of “different prices for different manufacturers.” The company sold kerosene 10-12% cheaper in each new region and in this way eliminated rivals in oil refining.

The most famous case is that of George Rice of Marietta, Ohio. The energetic engineer founded an oil refining plant in 1876. Standard Oil, in order to destroy its competitor, began selling kerosene to Rice's clients at lower prices, but Rice refused to give up his business. He appealed to the authorities, the press, the court - everything was useless. Rice was ruined, like many of Rockefeller's rivals.

An alliance with railroads and control of oil pipelines allowed Standard Oil to suppress or annex, following Cleveland, all the major oil regions of the country. Control over transportation and refining, in turn, ensured the corporation's dominance in oil production. Thus, in 1879, the entire US oil industry, until then torn apart by fierce competition, was united. True, the unification took place through no less brutal means, which resulted in the formation of a monopoly, and with it centralized management of the entire industry.

In the same 1879, an investigation into abuses on the railroads began in the state of New York, which forced Rockefeller and his partners to think about the legal form of their association, which, while maintaining a single management, would leave all companies the appearance of independence. It was proposed by Standard Oil lawyer S. Dodd. He resorted to the long-standing practice of English common law - management by proxy. By agreement of 1879, the stockholders of Standard Oil and its related companies transferred their shares to three trustees, receiving certificates in return. This made it possible during the investigation to deny Standard Oil’s connections with other companies. The proposed form was successful, and a new agreement followed in 1882, in which 40 companies participated. This time, the nine largest investors, led by J. Rockefeller, acted as trustees. Of the 70 million dollars of total capital, the trustees owned 46 million, and more than half of this amount belonged to J. Rockefeller himself. 1882 is usually considered the date of birth of a new form of association - the trust.

Standard Oil's experience quickly spread, and from 1887 the number of trusts began to grow. Only this year trusts appeared - lead, sugar, whiskey. 1887 - 1897 - the heyday of trusts. When a new wave of mergers began in 1898, it was no longer the trust that turned out to be the most common form of association, but the holding company, which out of habit was also called a trust, because its essence remained the same - the unification of production and distribution. Only the form of financing has changed: the holding holds in its hands the shares or property of companies that were formally independent under the trust. A significant role in the emergence of the holding was played by the Sherman Antitrust Act adopted in 1890. The Sherman Act - in the USA - the first federal antitrust law of 1890, which: - declared monopoly, restriction of trade, attempts to establish a monopoly and restrict trade, the creation of a union of firms and the entry into criminal offenses in conspiracy for the same purpose; and - provided the federal government or the injured party with the right to bring legal proceedings against those who commit such crimes. .

However, monopolization did not become the leading trend of the 20th century economy, as predicted by V.I. Lenin in his work “Imperialism as the highest stage of development of capitalism.” It also did not lead capitalism to decay and the socialization of production, although monopoly does harbor a tendency toward stagnation and loss of dynamism. Capitalism turned out to be more flexible, and the monopoly period was short-lived. Almost no association managed to maintain a monopoly for long. Under private ownership, ever-increasing production invariably prepares the way for new competitors. This happened with Standard Oil, which lost control over oil production at the beginning of the 20th century, when new fields were discovered in Kansas, Oklahoma, and Texas. It owned only 1/6 of the production, but it continued to lead in oil refining and sales.

In addition, the enormous scale of production outgrew the capabilities of effective centralized management; in the 1920s. monopoly in the United States was replaced by oligopoly—dominance in the industry by several large corporations. In addition to the oil industry, Rockefeller extended his influence to other industries: railroads, gas, coal, lead, and shipbuilding. By the beginning of the 20th century. his capital was invested in copper, steel, tobacco trusts, and in many small enterprises. From industry he moved into banking - he owned National City Bank. As a teenager, Rockefeller told a classmate: “I want to be worth a hundred thousand dollars.” He realized his dream and became the richest man in America, the owner of a one and a half billion dollar fortune.

If Rockefeller started in industry and later came to banking, then John Pierrepoint Morgan (1837-1913) immediately took up financial transactions, spreading in the 1880s. its control over transport and industry. He headed another financial and industrial empire.

Railways especially needed centralized control, so from the 1870s. the process of their unification began. They became the first American big business. As a result, by the end of the last century, six giant railway systems operated in the United States, covering half of all roads in the country. The leading role here belonged to Morgan. In the 1880s. A real “organization” of the railways was taking place. Only two of the six systems did not fall within Morgan's sphere of influence. By the beginning of the twentieth century. he was the director of 21 railroads, three insurance companies, Federal Steel, General Electric, Western Union corporations, a Pullman car company, etc. This is how an integrated financial and industrial system arose, inevitable with the development of large-scale mass production.

Of the three leaders of American entrepreneurship, only Andrew Carnegie (1835-1919), as we mentioned above, came from a poor family. Originally from Scotland, from a weaver's family, at the age of 12 he began working first at a weaving factory for $1.20 a week, then at the Pennsylvania Railroad, and only in his mature years left the service, going into independent business. In 1864, Carnegie organized the Rail Manufacturing Society in Pittsburgh, then, together with Pullman, founded the Sleeping Car Society. In the 1870s switched to metallurgy.

At that time, the Bessemer method of steel smelting was rapidly spreading. In the middle of the 19th century. Due to the rapid growth of production, the demand for steel increased sharply. The critical processing, crucible steelmaking and puddling that existed at that time could not satisfy this need.

At the end of 1854, at the height of the Crimean War, a powerful artillery shell designed by the Englishman Henry Bessemer was tested at the Vincennes training ground in France. The head of the expert commission, Captain Minier, noted that the matter is small: create a cannon to fire such shells. This prompted Bessemer to begin developing a new gun.

The first is a material that can withstand significant stress when firing large-caliber projectiles. The bronze and cast iron used at that time did not suit him and he decided to obtain cast iron of a higher quality. Bessemer first carried out his experiments in a small forge, then in a fiery (pudding) furnace. During another experiment, he noticed several pieces of cast iron that, despite the intense heat, did not melt. The inventor released a strong stream of air to enhance combustion. Half an hour later, Bessemer saw that only thin films of decarbonized iron remained from the pieces of cast iron. So, atmospheric air can decarbonize cast iron, turning it into malleable iron without puddling or other operations. Bessemer himself explained what happens in the metal when it is exposed to air as follows: the carbon contained in cast iron “cannot be in the presence of oxygen under conditions of white-heat heat, without combining with it and, thus, not producing combustion... Consequently , it is enough to bring oxygen and carbon into contact so that significant quantities of them are subject to mutual action in order to obtain a temperature not yet achieved in the largest furnaces.” Although in fact more heat is released when silicon, rather than carbon, reacts with oxygen, the essence of the idea did not change; in order to decarbonize molten cast iron, it should be blown with air.

This brilliant idea, which soon revolutionized metallurgy, at first seemed absurd to many, to say the least. Thus, when Bessemer told the foundry worker hired to conduct the practical melting that he wanted to blow cold air through the liquid metal, he said without a doubt: “The metal will soon turn into a lump.” And the master was very surprised when, after blowing into the mold, a dazzling stream of metal flowed down the chute. Bessemer wrote: “I am unable to convey how I felt when I saw this red-hot mass slowly rising from the mold. It was the first large ingot of cast iron that the human eye has ever seen.” // http://myrt.ru/news/inter/1092-lite-stali.html. He immediately allowed us to move on to its mass production. “Within 20 minutes,” Carnegie wrote in his memoirs, “we received the same amount of cast steel as was produced in 24 hours using previous methods.” CARNEGIE A. Autobiograpraphy. Lnd.1920 historical portraits. Andrew Carnegie/A.Y. Salomatin // Questions of history. - 1996 No. 2 p. 41.

The first Bessemer steel was smelted in Pittsburgh in 1875 at the plant of the Edgar Thompson steel company, whose partner was E. Carnegie. Gradually, the business expanded, and coal and iron ore mines and coke production came under Carnegie’s control. G. K. Frick, the grandson of a wealthy farmer who made a half-million fortune by producing whiskey, fulfilled his youthful promise to himself to become a millionaire. With enviable obsession, he bought, with money borrowed from relatives and friends, areas with open deposits of well-coking coal, and by 1873 he became the owner of more than 400 acres of such deposits and 200 furnaces for converting it into coke. This business, which had previously not brought any noticeable profits to anyone, became profitable for Frick, because as metallurgy developed, the demand for coke increased sharply. Two, then three, then four dollars per 1 ton, the prices for the fuel needed by the metallurgical industry grew and grew. Having entered into an alliance with Carnegie, Firk received the opportunity to increase the capital of his company to $2 million in 1883; expanded assets to 3 million, and Carnegie and his partners received in return over 50% of the shares of Frick's company. Andrew, through Frick, not only found access to valuable fuel, but also found a manager who was tenacious in business./A.Yu. Salomatin // Questions of history p. 35, railways. In 1881, all enterprises were merged into one company, which later became known as the Carnegie Steel Company. Its initial capital was $5 million, but already in 1892 it grew to 25 million, of which 14 million belonged to Carnegie himself, and by the end of the century - up to 320 million. The company became the largest steel and coke producer in the world . Its enterprises employed 30 thousand people.

Carnegie's important acquisition was the Homestead steel mill near Pittsburgh. “We produced there,” Carnegie recalled, “absolutely everything that could be made of steel, starting with thin nails and ending with twenty-inch beams... This was the last link in our Pennsylvania chain” CARNEGIE A. Autobiograpraphy. Lnd.1920 historical portraits. Andrew Carnegie/A.Y. Salomatin // Questions of history. - 1996 No. 2 p. 41. Carnegie was the first in metallurgy to create a production vertical, combining the entire process of steel production - from the mines where iron ore was mined, to casting and transportation of finished products. His experience was used in other regions.

Carnegie loved to publicly proclaim the brotherhood of capitalist and worker, and his support for the right to trade unions, as sacred as the rights of businessmen. However, in real life things were different. Many trusts did not tolerate trade unions, preferring to hire unskilled workers, mostly immigrants. Carnegie's plants, like Standard Oil's, had a secret service hunting down agitators. One of the first major clashes between workers and corporations occurred at the Carnegie plant. It was the Homestead strike in 1892. The mistakes of the American socialists, the isolation of the AFL as an organization of trade unions, the decline of the Order of the Knights of Labor - all this caused irreparable damage to the labor movement, which, in the conditions of the economic crisis and the general aggravation of the social situation in the first half of the 90s years was left without proper leadership, without a clearly developed platform uniting the allies of the proletariat in the anti-monopoly struggle, in the general democratic movement. In the strikes of 1892-1894, in clashes with such powerful trusts as Carnegie, not only unorganized workers were defeated, but also members of the AFL trade unions.

In the 90s, the leading sectors of heavy industry, mining, and railway transport were covered by the strike movement. “Events developed against the backdrop of a severe economic crisis that broke out in 1893, as a result of which by March 1894 the wages of metallurgists, miners, and textile workers were reduced by 10-20%, and, according to AFL estimates, 6 million people lost their jobs. Unemployment was widespread. Rallies of the unemployed took place in industrial cities. In Boston, they attacked official buildings. The governor called the police to disperse people demanding work 50.

Masses of unemployed people from all over the country marched on Washington in the spring of 1894 to demand that the federal government take measures to combat unemployment, set out in the Unemployment Relief Bill, drawn up by the leader of the campaign, J. S. Coxey. This movement, called the “Army of the Common Welfare,” relied on the sympathy and support of many populist organizations, trade unions (AFL representative in California Carl Brown was one of the organizers of the campaign), and local ORT assemblies. Along the route of the unemployed, rallies arose with the participation of workers and farmer organizations, and propaganda campaigns were carried out to explain the goals and objectives of the campaign. Reinforcements from unemployed and bankrupt farmers joined the ranks of “General Coxey’s army.” According to Justice Department agents,

About 60-70 thousand people approached Washington 51. Official Washington ignored the demands of the unemployed, Coxey and Brown were arrested.

The strike movement of these years, which reached its greatest heights in 1894 (610 thousand participants) 52, began with major demonstrations in 1892 by workers of New Orleans, switchmen in Buffalo, and miners in Tennessee. In the summer of 1892, the famous steel strike broke out

Homestead versus Carnegie monopoly. The main reason for the discontent was another sharp reduction in prices and worsening working conditions. The owner of the company and the manager took an irreconcilable position, and the United Association of Steel and Iron Workers, an influential member of the AFL, a union of skilled workers, which led the strike, weakened its position, refusing to cooperate with the unorganized proletarians of this industry / Kuropyatnik G.P. Farmer movement in USA: From the Grangers to the People's Party, 1867-1896. M.. 1971, p. 231./

US Department of Labor. Strikes..., p. 29.// http://www.history.vuzlib.net/book_o071_page_18.html, which became an excellent commentary on the businessman’s declarations of love for the working man.

At that time, 12 thousand people lived in the city, most of them worked at the Carnegie plant. Half of the workers are immigrants. Only a small part of the qualified personnel belonged to the union - the United Iron and Steel Workers Association, one of the largest American unions, with more than 24 thousand members. Carnegie wanted to get rid of him, believing that he was too expensive for the company.

In 1892, when the agreement with the trade union was expiring, plant manager G. Frick announced a 30% wage reduction due to the crisis. Carnegie himself chose to hide in his castle in Scotland. The workers did not agree and went on strike. They were supported by all employees of the enterprise, about 4 thousand people. The 300 Pinkerton secret police guards called by the administration were rebuffed and were captured by the strikers. The workers took over the entire city, creating a militia. For a whole month, Homestead was ruled by a strike committee, until the governor of Pennsylvania called in the state militia. The strike was crushed, and with it the metallurgists' union, which lost its influence.

Until the beginning of the 20th century, fierce competition continued in the American metallurgy, until in 1901 Carnegie decided to sell his company to Morgan, completely retiring from business and devoting the rest of his life to charity. As a result of this transaction, the super-union United States Steel Company arose, which became the largest US corporation, the first with a billion-dollar capital ($1.4 billion). It controlled 65% of the national metallurgy.

The emergence of big business awakened in US society a never-fading suspicion of large property. Americans saw the concentration of wealth as a threat to economic and political freedom, which is why all social movements at the turn of the nineteenth and twentieth centuries. adopted an anti-monopoly character. Farmers opposed big capital, considering it hostile to society. They called railroad owners "robber barons." The average American has long identified big business with the idea of ​​robbery. F. Norris in the novel “Octopus” Norris Frank is an American writer and journalist. Born in Chicago, into the family of a wealthy businessman. He studied at an art studio in Paris, at the University of California and Harvard University. He began his creative career as a journalist. He was a war correspondent in South Africa and Cuba, and editor of Wave magazine (San Francisco). Norris's first novels are marked by the influence of Emile Zola - Vandover and the Beast (1895, published in 1914), McTeague (1899). The pinnacle of Norris's work is considered to be the novel "Octopus" (1901) - the first part of the unfinished trilogy "The Epic of Wheat". Its second part - "Whirlpool" - was published in 1903, but the third - "Wolf" - was never written. Norris also penned a collection of literary critical works (1903). Died October 25, 1910 in San Francisco. conveyed the attitude of farmers towards railway corporations as an exorbitant monster, beyond the control of human will. The liberal intelligentsia also came out in the press with revelations about the activities of the trusts. Writer A. Beers published several articles against the Central Pacific company. He said: “We consider these people to be enemies of society and real criminals.” Beers was a public prosecutor in the trial of tycoon C. Huntington, who was convicted despite attempts to bribe the writer. Journalist Henry D. Lloyd became best known as an opponent of trusts thanks to his book about Standard Oil. It was the beginning of the “maccraker” movement, i.e. muckrakers who told the public about the abuses of large corporations. L. Steffens “Shame of the Cities”, E. Sinclair “The Jungle” and others wrote on these topics.

However, as large corporations grew stronger, so did their defenses. The ideal of the farmer-worker and politician was replaced by the cult of business. The press was literally flooded with materials about the lives and activities of the rich. Society was persistently indoctrinated that big business was useful, and its representatives were the color and hope of the nation. Such articles were published not only by paid journalists, but also by businessmen themselves. These ideas are especially characteristic of E. Carnegie's journalism.

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