Robber Barons

Hero or villain? How would you describe a person in business who has made his wealth on the backs of his workers but has donated millions to charity and bettering society? In the 19th century, during America's Gilded Age, wealthy entrepreneurs rose to dominate American business. However, many industrialists of the era had characteristics of both captains of industry and robber barons. So which one is it? Were these men philanthropists that improved society or monopolists that controlled prices for their benefit? Continue reading to find out more about famous robber barons, their characteristics, significance, and more.

Robber Barons: A Definition

In late nineteenth-century newspapers, the term "robber baron" referred to wealthy industrialists such as J. P. Morgan, John D. Rockefeller, Andrew Carnegie, and Cornelius Vanderbilt. A robber baron was a derogatory slur against business people who grew their wealth through unethical and cruel methods.

Robber Barons vs. Captains of Industry

Often, industrialists and businesspeople of the Gilded Era were put into both the robber baron and captain of industry categories. Their actions as philanthropists often characterized them as captains of industry. However, unethical, ruthless, and questionable business practices identified these men as robber barons. Historians have argued what titles should be attributed to the monopolists and industrialists of the era. Therefore, we must look at both arguments to identify what made a man a Robber Baron or a Captain of industry.

Famous Robber Barons

While several industrialists were termed "robber barons," a few prominent industrialists are well known.

Cornelius Vanderbilt. Wikimedia Commons

Cornelius Vanderbilt

Cornelius Vanderbilt, nicknamed the Commodore, was a railroad and shipping magnate who became one of the country's wealthiest men by the end of the nineteenth century. Before entering the railroad industry, Vanderbilt spent years operating in the steamboat industry. In the first thirty years of his career, he amassed a fleet of thirty steamships before transitioning to the railroad. Eventually, Vanderbilt purchased enough stock to gain control of the New York and Harlem railroad lines in 1863. Later on, Vanderbilt, never previously interested in philanthropy, eventually donated one million dollars to Central University (later named Vanderbilt University).

John D. Rockefeller

John D. Rockefeller became a well-known industrialist and philanthropist, making his name in the oil industry. Founder of the Standard Oil Company, Rockefeller revolutionized the oil industry, and his company became the first United States trust. Standard Oil eventually came to own 90% of the oil in the U.S., becoming a monopoly. Rockefeller employed ruthless and unfair business practices but believed in his philanthropic responsibility. One of the wealthiest men in American history, Rockefeller was termed a Captain of Industry and a Robber Baron.

As seen in the following statement, he had always been keen on what money could do for him from a young age.

Andrew Carnegie. Wikimedia Commons

Andrew Carnegie

Born in Scotland, Andrew Carnegie emigrated to America in 1848, hoping for new opportunities. He began work as a bobbin boy and then became a messenger for a telegraph company. The Civil War spurred the iron industry, and seeing the potential, Carnegie opened Carnegie Steel, which ultimately manufactured more steel than Britain. Contradictory to many other industrialists of the time, Carnegie frequently preached on the right of workers to unionize. However, Carnegie's actions against his workers seemed hypocritical. Carnegie Steel employees subjected to poor working conditions organized a strike against the company resulting in the Homestead Strike of 1892. The strike resulted in workers being locked out of the factory, and several were killed. Though his reputation was tainted, Carnegie Steel continued to turn a profit.

Later in his life, Carnegie focused on philanthropy and eventually gave ninety percent of his wealth away. Not agreeing with charity, Carnegie set to establishing libraries and universities. His strong belief in philanthropy often earned him the title of Captain of Industry, though his actions did not always match his words.

J. P. Morgan

John Pierpont Morgan was a financier and industrialist who became one of the richest and most powerful men in the business world. He began his career in the New York financial industry and then transitioned into the railroad industry. In 1879 Morgan purchased shares in the New York Central Railroad. Then in 1901, Morgan purchased Andrew Carnegie's steel company for almost $500 million. Like other industrialists of the era, Morgan engaged in questionable business practices to eliminate competition and increase profit. For example, Morgan eliminated his competition by forming a monopoly and cutting the labor force (along with their pay) to increase his profits. Concerned about business regulations, Morgan and others also gave large amounts of money to ensure William McKinley was elected president in 1896.

At the end of his life J. P. Morgan, owning an astounding art collection, left behind this legacy to the public in his ornate library. Eventually, unveiled in the 1920s as the Morgan Library and Museum, the library became available to the public. Through his philanthropic work does not rival Rockefeller and Carnegie, J. P. Morgan contributed significantly to the American industry.

Political Cartoon: The Protectors of Our Industries 1883. Source: Wikimedia Commons (Public Domain).

Robber Baron Examples

This list comprises industrialists and businessmen considered Robber Barons throughout the Gilded Age. However, this list is not exhaustive, and historians have argued that some men on this list should be identified as Captains of Industry. The most well-known Robber Barons are highlighted in yellow.

Robber Barons Significance

Biltmore Estate, home of George Vanderbilt. Source: Wikimedia Commons.

The contentious views surrounding Robber Barons continue even today. However, whether these men were captains of industry or robber barons does not negate their essential contributions to industrial development. While many industrialists were concerned with their profit margin, they also revolutionized how the industry functioned. For example, Andrew Carnegie successfully used the Bessemer Process in his steel company, and John D. Rockefeller revolutionized oil through his refining process. Though these men made significant contributions, their unregulated business practices eventually ended with government legislation.

The negative public opinion of robber barons spurred business legislation aimed at trusts and monopolies. One of the most critical pieces of business legislation came with the passing of the Sherman Anti-Trust Act in 1890. This act did not stop the robber barons but ended unregulated business practices. The core purpose of the act was to end interference in economic competition and powerful business combinations that resulted in monopolies. The act's effectiveness is still in question today, but the development of business regulation was significant.

1. Keith Poole, "Biography: John D. Rockefeller, Senior," (n.d).

2. Thomas Ladenburg, "Robber Baron or Industrial Statesman," 2007.