Industrial development in early United States came up with several opportunities that made some people wealthy. It is at this time some of the American business became giants. In this paper I will look on how J.P. Morgan, Cornelius Vanderbilt and John D. Rockefeller built their businesses, whether they could have managed to flourish as they did if they were in another era and the prudence they had in exploiting the opportunities that emerged or came on their way.
How J.P. Morgan, Cornelius Vanderbilt and John D. Rockefeller built empires in America
J.P. Morgan was a financial market titan. He must have been influenced by his father who was a partner in London-based financial firm to pursue a career in banking. Although, Morgan rose to be an authority in the financial market, his empire was built using unfair business practices. For example, Morgan was accused of colluding with a small group of banking elite for their own gain. This group used to manipulate the financial market to their advantage and as result could make millions of dollars (History.com, 2021).
Although, Cornelius Vanderbilt had an immense experiencing in steamship business after being in it from his childhood, his wealth in the industry was earned through price wars with other industry players. Cornelius was even corrupted by his rivals with huge amount of money to stop the unfair pricing. John Rockefeller on his side bought rival refineries in order to enjoy monopolistic advantages. He used the wealth he had from oil business to destroy competition and intimidate other refiners to join his company the Standard Oil (History.com, 2021). These three men though able to leave behind successful businesses, those businesses were created out of exploitation, opportunism and manipulation.
Could have these business giants succeeded in a different moment in history?
These men became business giants because the business laws and regulations were not in place. If they were doing business in another era they could not have succeeded. They could not have withstood the three Antitrust Laws. How could J.P. Morgan and Rockefeller survive the axe of the Clayton Antitrust laws? The two giants were marred with cases of mergers and acquisition in order to regulate the market. The Sherman Anti-Trust Act could have prohibited Cornelius from engaging in price wars. The federal Commission Act could not also leave these giants unpunished due to their predatory pricing of their products (Consumer.ftc.gov, 2021).
These early businesses had an opportunity to merge at will or through corrupt means so as to have more power in the market. This was unhealthy to companies in the same field. These companies’ owners could also sit on boardrooms and have talks that would define business that favored them. The government of the day also was almost on their hands. If J.P Morgan could afford to bail federal government leave alone sinking financial institutions, then it means the government could not take any action against him (History.com, 2021). The same to Cornelius he had given the federal Navy the fastest steamboat during the Civil War. These people must have formed links with the government to protect themselves.
What foresights did these opportunists envision?
These men were able to see potential in America during and after the Civil War. They knew the economy would grow and therefore they sought for opportunities which they would exploit. They knew financial market, rails, oil and sea voyages would contribute a lot in industrialization. They decided to invest and take control of these sectors of the economy. No wonder J.P. Morgan become instrumental in the finance market, Cornelius became a giant in the sea field and Rockefeller controlled oil refineries and its products.
The inventions of their products were led by demand and the advice of the scientist these giants employed. The federal government wanted to have a good rail connection in the continent but it had no funds to meet the demand and therefore had to approach private investors. The Kerosene had become like staple food, and Rockefeller had to find other ways of how oil products could be used. The American industries were expanding and international trade was gaining acceptance and therefore more opportunities emerged in the marine transport. The California Gold Rush also made Cornelius to devise a cheaper and shorter route (History.com, 2021).
All in all, these business moguls were aggressive in pursuing opportunities they had, though questionable in ethical grounds. But, they left a legacy that businesses started by Americans can thrive on global stage and survive for decades. Their dealings also made the federal government to come up with regulations to instill best business ethics in organizations. Today, businesses cannot use mergers and acquisition and other unethical business practices to restrain trade.
How J.P. Morgan, Cornelius Vanderbilt and John D. Rockefeller built empires in America
J.P. Morgan was a financial market titan. He must have been influenced by his father who was a partner in London-based financial firm to pursue a career in banking. Although, Morgan rose to be an authority in the financial market, his empire was built using unfair business practices. For example, Morgan was accused of colluding with a small group of banking elite for their own gain. This group used to manipulate the financial market to their advantage and as result could make millions of dollars (History.com, 2021).
Although, Cornelius Vanderbilt had an immense experiencing in steamship business after being in it from his childhood, his wealth in the industry was earned through price wars with other industry players. Cornelius was even corrupted by his rivals with huge amount of money to stop the unfair pricing. John Rockefeller on his side bought rival refineries in order to enjoy monopolistic advantages. He used the wealth he had from oil business to destroy competition and intimidate other refiners to join his company the Standard Oil (History.com, 2021). These three men though able to leave behind successful businesses, those businesses were created out of exploitation, opportunism and manipulation.
Could have these business giants succeeded in a different moment in history?
These men became business giants because the business laws and regulations were not in place. If they were doing business in another era they could not have succeeded. They could not have withstood the three Antitrust Laws. How could J.P. Morgan and Rockefeller survive the axe of the Clayton Antitrust laws? The two giants were marred with cases of mergers and acquisition in order to regulate the market. The Sherman Anti-Trust Act could have prohibited Cornelius from engaging in price wars. The federal Commission Act could not also leave these giants unpunished due to their predatory pricing of their products (Consumer.ftc.gov, 2021).
These early businesses had an opportunity to merge at will or through corrupt means so as to have more power in the market. This was unhealthy to companies in the same field. These companies’ owners could also sit on boardrooms and have talks that would define business that favored them. The government of the day also was almost on their hands. If J.P Morgan could afford to bail federal government leave alone sinking financial institutions, then it means the government could not take any action against him (History.com, 2021). The same to Cornelius he had given the federal Navy the fastest steamboat during the Civil War. These people must have formed links with the government to protect themselves.
What foresights did these opportunists envision?
These men were able to see potential in America during and after the Civil War. They knew the economy would grow and therefore they sought for opportunities which they would exploit. They knew financial market, rails, oil and sea voyages would contribute a lot in industrialization. They decided to invest and take control of these sectors of the economy. No wonder J.P. Morgan become instrumental in the finance market, Cornelius became a giant in the sea field and Rockefeller controlled oil refineries and its products.
The inventions of their products were led by demand and the advice of the scientist these giants employed. The federal government wanted to have a good rail connection in the continent but it had no funds to meet the demand and therefore had to approach private investors. The Kerosene had become like staple food, and Rockefeller had to find other ways of how oil products could be used. The American industries were expanding and international trade was gaining acceptance and therefore more opportunities emerged in the marine transport. The California Gold Rush also made Cornelius to devise a cheaper and shorter route (History.com, 2021).
All in all, these business moguls were aggressive in pursuing opportunities they had, though questionable in ethical grounds. But, they left a legacy that businesses started by Americans can thrive on global stage and survive for decades. Their dealings also made the federal government to come up with regulations to instill best business ethics in organizations. Today, businesses cannot use mergers and acquisition and other unethical business practices to restrain trade.
