Was Henry Ford a Robber Baron or Captain of Industry?

The Legacy of J.P. Morgan: Robber Baron or Captain of Industry?

During the second industrial revolution, many men found ways to make fortunes in the quickly developing economy. These people who lived over a hundred years ago were the first to invent the countless business schemes and scams that are so heavily frowned upon and regulated today. Many of these men constructed their monopolies through corruption, greed, and a lack of government regulation without attention from the media to stymie their success.

J.P. Morgan was, arguably, not one of the men who weren’t willing to stop at almost anything to beat their competition and secure their monopolies, often sacrificing human lives in the process. Morgan’s ambitions were not to dominate the financial arena but to ensure that economics were running efficiently and soundly.

Morgan’s Early Life and Philanthropic Deeds

Born to a rich family and a pragmatic personality is what kept Pierpont’s focus not on money or competition but on process and order. Although he did become one of the wealthiest men in the U.S., it is stated multiple times that his motivation was setting up finances to be the most productive and effective, which is what set him apart from the robber barons of his era. Being the son of a famous banker, he was, from the beginning, a man born into considerable wealth. He attended Boston English High School and later enrolled in the Prestigious German University of Gottingen. John used his knowledge of money and financing, along with his connections, to earn his name as the most influential individual in the country. Whenever possible, Morgan would treat his workers fairly, even going as far as rewarding them for their hard work. He would spend significant portions of his wealth on philanthropy; he donated to charities, churches, hospitals, and schools. After his death, his son donated his enormous $900 million art collection throughout his career would help America financially in times of need. On multiple occasions, he helped struggling businesses along with railroad companies, making millions throughout the process.

Morgan’s Business Ventures and Controversies

The reason why J.P. Morgan being a Captain of industry is considered doubtful is primarily because, despite being an influential figure in the growth of the American economy, J.P. Morgan didn’t treat his workers well overall. He was in the run for establishing complete, unrivaled monopolies, for the sake of which he would often drastically reduce workforce numbers and pay in order to dominate the competition. This business practice later became known as “organization” and would cause numerous deaths. Prior to the 1896 election, there was growing outrage at Morgan’s methods. However, they ended once William Mckinley became president. However, it is important to remember that despite this, Morgan did significantly contribute to the rise of the American economy during the Second Industrial Revolution.

Morgan’s Contributions to American Business and Culture

J.P. Morgan didn’t have to work his way up from poverty; he never considered himself a self-made success. He was born into a rich family; his father was a famous banker and financier, the founder of J. S. Morgan & Co., whose connections greatly benefited John’s career. Young J.P. lived in fancy houses and went to the best schools. Before continuing in his father’s footsteps, J.P. Morgan learned the French and German languages while in Europe, which proved to be useful; by 1860, Morgan had already established his own foreign exchange office. And by 1871, he had already become a partner in the New York City firm of Drexel, Morgan, and Company, which soon became the main source of U.S. government financing. After his father’s death, Morgan inherited his father’s position along with a 12 million dollar fortune. Throughout his whole life’s career, Morgan’s business plans remained almost the same; first, he would buy struggling companies, reduce the prices, change their structure, and seek out new customers. When many railroad companies were growing too quickly without creating good business plans prior, and the railroad industry was in danger of falling apart, J.P. Morgan saw a financial opportunity. He conducted and managed the reorganization of the failing railroads and funded them in exchange for a share or stock in the companies. This strategy eventually allowed him to gain control over about one-sixth of America’s railroads along with their profits.

In 1901 he bought Carnegie’s Steel Company for only $480 million and quickly transformed it into the nation’s first billion-dollar company. Morgan helped to create or finance other major American companies, including General Electric and American Telephone and Telegraph, now known as AT&T. He also lent money to Adolph Ochs in 1896, who owned the Chattanooga Times, to purchase The New York Times, which was then financially unstable and failing. With Morgan’s support, Ochs reorganized the paper’s finances and newsroom, building what is still a newspaper of the highest reporting and writing standards. Wanting to replace John D. Rockefeller as the man who lit America, Morgan ignored his father’s admonitions and invested his savings into Edison’s invention to form the Edison Electric Company. Morgan is known as a philanthropist at large due to the fact that he would lend the government money during critical situations in order to avoid financial crises. Twice during financial panics, he allowed the federal government to purchase his immense gold supplies to stop the spiral of deflation. Some people may be surprised to learn that J.P. Morgan also had many interests outside of business.

He enthusiastically collected art and books, accumulating one of the largest and most valuable art collections in the world, filled with masterpiece paintings and sculptures. He also collected rare books and manuscripts, which today are housed in the Morgan Library and Museum in New York City. He would donate parts of the collection to various organizations. After his death at age 75, his whole remaining $900 million collection was donated to the Metropolitan Museum of Art. During the 1900s, he donated money to William Mckinley, who was a presidential candidate at the time. He donated to charities, churches, hospitals, and schools. Morgan was a captain of industry because he drove the economy forward and prevented two nationwide financial crises. He helped finance and manage many major American corporations. Morgan used his influence to help stabilize American financial markets during several economic crises, including the Panic of 1907. Morgan became an inspiration for many others before leaving his immense fortune to his son. John Pierpont Morgan was a very inspirational figure for his time; his endeavor greatly benefited the majority of the nation’s population. Morgan was a leader of his time. Today, a good leader is one whose activity brings positive changes into the lives of the people and is capable of driving the nation forward.

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