Name ____________________________
Date: ____________
Philanthropy vs. Robber Baron
Andrew Carnegie
John D. Rockefeller
Andrew Carnegie was the largest owner of the steel industry in the United States. John D. Rockefeller was the
largest owner of the oil industry in the United States. Both men have been considered the richest in the nation.
They have also been accused of being cruel to workers by paying them unfair wages and working them extremely
hard in poor working conditions. Small business owners were driven out of business because of ruthless business
practices. However, both men were also considered philanthropists by many, giving thousands of dollars away to
the poor, for research, education, and establishments for the public.
Directions:
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
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Read each document
Complete the graphic organizer
Write a 4 paragraph argumentative essay answering the following central
question:
Were the Industrialists of the 19th Century Philanthropists or Robber Barons?
*Be sure to use text evidence to support your answer in your essay.
____________________________________________________________________
Document #1: During the 1930’s a time when there was many popular feelings
against big business, the historian Matthew Josephson wrote the following description
of some of John D. Rockefeller’s business tactics….
A manufacturer of improved lubricating oils (Mr. Morehouse) set himself up innocently in
Cleveland, and became a customer of the Standard Oil Company for his whole supply of oils. The
Rockefeller Company encouraged him at first, and sold him 85 barrels a day according to a
contract.
He prospered for three years, then suddenly when Rockefeller began to build his monopoly, his
supply was cut down to twelve barrels a day. The price for some reason increased, and the
shipping costs over the railroads also increased. It became impossible for him to supply his trade.
He offered to buy 5,000 barrels of oil from Rockefeller and store it so that he might assure
himself of a future supply. This was refused. “I saw what this meant” said Morehouse “That
means squeeze you out, buy out your works…They paid me $15,000 for what cost me $41,000.
Rockefeller usually put pressure on persuasive pressure on people who did not see things his
way. One example of this turning of the screw is that of a merchant in Nashville Tennessee who
refused to come to terms and buy from Standard Oil. He first found his shipments were reported
to the enemy and then by a mysterious coincidence his freight rates were raised 50% then
doubled, even tripled….
The documents show that the independent oil dealer clients (grocery stores) were menaced in
every way by the Standard Oil Company, it threatened to open competing grocery stores, to sell
oats, meat, sugar, and coffee, at lower prices. If you do not buy our oil we will start a grocery
store and sell goods at cost and put you out of business.
Document #2: Andrew Carnegie made a fortune in the steel industry in the late
1800s. He gave away millions to schools, libraries, and the cause of world peace. In
the following excerpt from his essay titled "Wealth," Carnegie describes his belief
that the rich had a right to make money and a duty to spend it for the public good.
The problem of our age is the proper administration of wealth, so that the ties of brotherhood may
still bind together the rich and poor in harmonious relationship. … This, then, is held to be the
duty of the man of Wealth: First, to set an example of modest, unostentatious living, shunning
display or extravagance; to provide moderately for the legitimate wants of those dependent upon
him; and after doing so to consider all surplus revenues which come to him simply as trust funds,
which he is called upon to administer, and strictly bound as a matter of duty to administer in the
manner which, in his judgment, is best calculated to produce the most beneficial results for the
community—the man of wealth thus becoming the mere agent and trustee for his poorer brethren,
bringing to their service his superior wisdom, experience, and ability to administer, doing for
them better than they would or could do for themselves. …
[The] best means of benefiting the community is to place within its reach the ladders upon which
the aspiring can rise—parks, and means of recreation, by which men are helped in body and
minds; works of art, certain to give pleasure and improve the public taste; and public institutions
of various kinds, which will improve the general condition of the people—in this manner
returning their surplus wealth to the mass of their fellows in the forms best calculated to do them
lasting good. …
The laws of accumulation will be left free; the laws of distribution free. Individualism will
continue, but the millionaire will be but a trustee for the poor; intrusted for a season with a great
part of the increased wealth of the community, but administering it for the community far better
than it could or would have done for itself. … Such, in my opinion, is the true Gospel concerning
Wealth, obedience to which is destined some day to solve the problem of the Rich and the Poor,
and to bring "Peace on earth, among men Good-Will."
Document # 3: Rockefeller retired from business in 1897. He became a selfproclaimed philanthropist and devoted himself to giving away much of the fortune that
he had accumulated in the oil business. He established several charitable corporations
called foundations. It is estimated that he gave away about $550 million dollars. (This
is reprinted from the New York Times in 1937)
American Baptist Foreign Mission Society…………..6,845,688.52
American Baptist Home Mission Society…………….6,994,831.62
General Education Board…………………………….129,209,167.10
Rockefeller Foundation of New York………………..182,851,480.90
Rockefeller Institute for Medical Research………….. 59,931,891.62
University of Chicago………………………………….34,708,375.28
Yale University…………………………………………1,001,000.00
Y.M.C.A. International Committee…………………….2,295,580.73
Carnegie and oil tycoon John D. Rockefeller were rivals in the field of philanthropy.
The newspapers kept score. Here's a snapshot of the race to give it away:
Year
Newspaper
The Box Scores
Carnegie
Rockefeller
1904
The Times of London
$21,000,000
$10,000,000
1910
The New York American
$179,300,000
$134,271,000
1913
The New York Herald
$332,000,000
$175,000,000
Document # 4 – Carnegie’s mansion on Millionaire’s Row
Andrew Carnegie found "ostentatious living" profoundly distasteful
and the conduct of most New York millionaires strictly
irresponsible, yet he also believed "that the houses of some should
be homes for all that is highest and best in literature and the arts....
Without wealth there can be no Maecenas." He resided on
Millionaires' Row for over three decades, first in a brownstone
adjoining the Vanderbilt chateau at 51st street, then in this fourstory, sixty-four room mansion at 91st.
Document # 5 – The description of life of a Carnegie steel worker….
The life of a 19th-century steel worker was grueling. Twelve-hour shifts, seven days a week.
Carnegie gave his workers a single holiday-the Fourth of July; for the rest of the year they
worked like draft animals. "Hard! I guess it's hard," said a laborer at the Homestead mill. "I lost
forty pounds the first three months I came into this business. It sweats the life out of a man. I
often drink two buckets of water during twelve hours; the sweat drips through my sleeves, and
runs down my legs and fills my shoes."
For many the work went without a break; others managed to find a few minutes here and there.
"We stop only the time it takes to oil the engine," a stop of three to five minutes, said William
McQuade, a plate-mill worker in 1893. "While they are oiling they eat, at least some of the boys,
some of them; a great many of them in the mill do not carry anything to eat at all, because they
haven't got time to eat.
The demanding conditions sapped the life from workers. "You don't notice any old men here,"
said a Homestead laborer in 1894. "The long hours, the strain, and the sudden changes of
temperature use a man up." Sociologist John A. Fitch called it "old age at forty."
For his trouble, the average worker in 1890 received about 10 dollars a week, just above the
poverty line of 500 dollars a year. It took the wages of nearly 4,000 steelworkers to match the
earnings of Andrew Carnegie.
Document #6: The next selection was first published in 1903 by Ida M. Tarbell a
magazine writer. She belonged to a group of reformers known as “Muckrakers” who
between 1904 and 1910 exposed corruption and fraud in many area of life.
Very often people who admit the facts, who are willing to see that Mr. Rockefeller has employed
force and fraud to get what he wanted. Can we justify him by declaring “It’s Business”? This
saying “It’s business” has come to be an excuse for hard dealings, sly tricks, and special
privileges.
Document
#1
Document
#2
Document
#3
Document
#4
Document
#5
Document
#6
Who is this
document
describing?
Is this
evidence of
being a
philanthropist
or a robber
baron?
Do you agree
with what the
author of this
document is
trying to say?
Explain.
Short Answer: Do you think Andrew Carnegie and John D. Rockefeller were robber barons or
philanthropists? Explain with details. Honors- 4 paragraphs Non-Honors- 3 paragraphs.