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19 robber barons who built and ruled America

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robber barons political cartoon

America's 19th and early 20th century tycoons, pejoratively nicknamed "robber barons," built massive empires and accumulated unprecedented wealth.

Many of these men gained their fortunes either at the expense of their factory workers or by methods that were considered unscrupulous even back then — a time when insider trading wasn't yet outlawed.

However, many of them also gave away their fortunes to build universities, hospitals, libraries, and museums that still stand to this day.

Given that the debate about morality and business practices rages on to this day, we figured it was a good opportunity to take a look at the ruthless business practices and accomplishments of 19 tycoons who built — and ruled — America.

Editor's note: This feature is inspired by an earlier version written by Gus Lubin, Michael Kelley, and Rob Wile.

John Jacob Astor was America's first multimillionaire and built America's first monopoly.

John Jacob Astor was a German immigrant who got involved in trading furs with Native American tribes. Eventually, he built the American Fur Company, which is referred to as America's first business monopoly.

He was also briefly dabbled in smuggling opium to China via his American Fur Company ships — even though China banned the drug about two decades earlier.

His will left a huge sum of money to create a free, public library, which eventually became the Astor Library.

Source: Britannica, History



Cornelius Vanderbilt dominated the steamship business in Long Island Sound, and built an empire of railroads around New York City.

Cornlius Vanderbilt, aka the "Commodore," bought his first small ferry boat with a $100 loan at age 16 and turned it into the world's largest shipping empire.

He sold everything before the Civil War to invest in railways, and became the richest man in the US by the war's end. However, he also lost his favorite son in the war, which caused him to fall into a "drink fueled depression."

He later assumed control of railroads around New York City, and also opened the Grand Central Depot. (Notably, today the station is adjacent to Vanderbilt Ave.) And he donated $1 million to Vanderbilt University, where the sports teams are now called "the Commodores."

Bonus fact: Once, in a letter to business rivals, Vanderbilt wrote, "Gentlemen: You have undertaken to cheat me. I won't sue you, for the law is too slow. I'll ruin you."

Source: History

 



Jay Cooke is known as the man who financed the Union in the Civil War.

Jay Cooke opened his own bank, Cooke & Co., in 1861. Soon after the beginning of the Civil War, Cooke floated a war loan of $3 million to the state of Pennsylvania. 

The Treasury Department later engaged him for the sale of $500 million worth of bonds in 1862 — and he reaped a huge commission from the sale. 

He was forced into bankruptcy in the aftermath of the Panic of 1873, but eventually rebuilt his fortune by 1880 after investing in a Utah silver mine.  

Source: Britannica, National Parks Service



See the rest of the story at Business Insider

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