Corporate Development During the
 Industrial Revolution 
 
 The Standard Oil Company founded by
 John D. Rockefeller and the U.S. Steel Company
 founded by Andrew Carnegie.  The Standard Oil 
 Company and U.S. Steel Company were made
 successful in different ways due to the actions 
 of their different owners.   The companies differed
 in their labor relations, market control, and
 structural organization.
 
 In the steel industry, Carnegie developed a system
 known as vertical integration.  This means that
 he cut out the middle man.  Carnegie bought his 
 own iron and coal mines because using independent
 companies cost too much and were inefficient.
 By doing this he was able to undersell his 
 competetors because they had to pay the competitors
 they went through to get the raw materials.  Unlike 
 Andrew Carnegie, John D. Rockefeller integrated 
 his oil business from top to bottom, his 
 distinctive innovation in movement of American 
 industry was horizontal.  This meant he followed 
 one product through all its stages.  For example,
 rockrfeller controlled the oil when it was  
 drilled, through the refining stage,
 and he maintained control over the refining process 
 turning it into gasoline.  Although 
 these two powerful men used two different methods 
 of management their businesses were still very 
 successful (Conlin, 425-426).
 
 Tycoons like Andrew Carnegie, "the steel king,"
 and John D. Rockefeller, "the oil baron," exercised
 their genius in devising ways to circument
 competition.  Although, Carnegie inclined to be 
 tough-fisted in business, he was not a monopolist and 
 disliked monopolistic trusts.  John D. 
 Rockefeller came to dominate the oil industry.  With 
 one upward stride after another he organized 
 the Standard Oil Company, which was the nucleus 
 of the great trust that was formed.  
 Rockefeller showed little mercy. 
 He believed primitive savagery prevailed in 
 the jungle world of business, where only
 the fittest survived.  He persued the policy 
 of "ruin or rule."  Rockefeller's oil monopoly 
 did turn out a superior product at a 
 relatively cheap price.  Rockefeller belived in ruthless 
 business, Carnegie didn't, yet they both had
 the most successful companies in their industries.
 (The American Pageant, pages 515-518)
 
 Rockefeller treated his customers
 in the same manner that Andrew Carnegie 
 treated his workers:  cruel and harsh.  The 
 Standard Oil Company desperately wanted every 
 possible company to buy their products.  Standard
 Oil used ruthless tactics when Rockefeller 
 threatenedto start his own chain of grocery 
 stores and put local merchants out of business 
 if they did not buy oil from Standard Oil Company.  
 Carnegie dealt with his workers with the same cold 
 lack of diplomacy and consideration.  
 Carnegie would encourage an unfriendly 
 competition between two of his workers and he goaded 
 them into outdoing one another.  Some of his 
 employees found working under Carnegie unbearable.  
 These rivalries became so important to the 
 employees that somedidn't talk to each other 
 for years (McCloskkey, page 145). Although 
 both Carnegie and Rockefeller created extermely 
 successsful companies, they both used unscrupulous 
 methods in some aspect of their corporation 
 building to get to the top.    
 
 The success of the Standard Oil Company and U.S. Steel
 company was credited to the fact that their owners
 ran them with great authority.  In this very 
 competetive time period, many new businesses
 were being formed and it took talented businessmen 
 to get ahead and keep the companies running and make
 the fortunes that were made during this period. 
 
 
 Terra Harnish
 Heather Rodgers 
 Carly Wolfensberger
 
 
 
 
 BIBLIOGRAPHY
 
 Conlin, Joseph R. History of the U.S.:  Our Land,
 Our Time.  pp. 425-426.  1985.
 
 Bailey, Thomas A. and David M. Kennedy:  The 
 American Pageant.  pp. 515-518.  1987.
 
 Latham, Earl:  John D. Rockefeller; Robber Baron Or
 Industrial Statesman? (Problems in American 
 Civilization Series).  pg. 39.  1949.
 
 McCloskey, Robert Green:  American Conservatism In 
 The Age Of Enterprise 1865-1910.  pg. 145.  1951.