Chapter 80: Steel status

"I think the most interesting thing is that Chicago is the steel center, and our steel king is not in Chicago, but in Pennsylvania!" Sheffield eventually set off to Chicago with Rockefeller Jr. In order to solve the lonely journey, he and this just The identified partners chatted.
"Carnegie, it's really hard to mention this person!" Little Rockefeller's eyes flashed a little haze, and some difficult to say, "He has a delicate relationship with my father."
Old Rockefeller and Carnegie started in one place, both in Pennsylvania, and started almost at the same time. The two are also considered giants of the same generation. The key is that Carnegie had a superior Scott who was also a teacher and a friend. With the expansion of Rockefeller, Scott took care of Carnegie.
Carnegie also tried to enter the oil field many years ago and was rocked back by Rockefeller. Therefore, the relationship between these giants is still a bit complicated. Anyone who started out will be helped by a companion, as well as competitors. Railroad king Vanderbilt was the one who helped Rockefeller, and Carnegie was a competitor for some time.
The relationship between these giants is not so harmonious, the Rockefeller family and Morgan rarely have contact, but instead have a good relationship with the Boston Bank family that was held down by Morgan.
Sheffield needn't think about it. These giants must be constantly running away. Everyone hopes that the fewer competitors at their level, the better. If they can't do it, they will not be able to ally with their rival giants.
Sheffield is now glad that many families in the South have lost their homes because of the defeat, so they have a high-speed development environment. Mistakes in immigration to Brazil are fatal. Although they have weakened the economy of the South, they have raised their families From a perspective, this is definitely a good thing.
However, although Rockefeller Jr. said some past events, he did not worry much. It is very difficult to achieve monopoly in the two fields of steel and coal. The origins are too large. Although Carnegie is the largest steel giant, it only accounts for a small part of the steel production capacity of the United States. As far as the coal sector is concerned, there is not even a share of Carnegie.
This is different from the German Empire. There are giants in the domestic coal field in Germany. The larger the country, the easier it is to form a monopoly. In fact, the agricultural field is the most unlikely field to form a giant, because anyone can grow land, and the United States does not lack land. But the threshold is too low and there are disadvantages. Everyone can farm land, but not everyone will go to farm land, but everyone must have to eat. The agricultural product field is extremely easy to be affected by external factors and it is easy to form panic.
The giants are kings in their respective fields, competing against each other in addition to using massive amounts of capital. It is through agents that pass laws that are in their own interest and use legislation to build a moat to protect themselves from competition.
This is what Carnegie does. The large steel industry that emerged in the Chicago area is the result of entrepreneurial efforts and geographic advantages. Steel mills can easily obtain large quantities of cheap iron ore raw materials from the Lake Superior area. Because most of the iron ore used by the US steel industry during its rise was mined in Minnesota and Michigan, the cost of steel mills along the Great Lakes is lower than competitors elsewhere.
Pennsylvania ’s steel companies represented by Carnegie facilitated the scale of enterprises formed with first-mover advantage. After passing the
Pittsburgh Markup Act
, the
Pittsburgh Markup Act
protected Pennsylvania ’s steel plants from competition.
Rockefeller understood the key point from childhood. Sheffield seemed to have opened the door to a new world. He was still too young. He thought it was notorious that he wanted legislation to squeeze out undercapitalized enterprises. Now I know that these are things that others have done.
No wonder Little Rockefeller was not surprised at the time, and did not praise himself as a peerless genius. It turned out that similar operations had already appeared. Sure enough, it is the beacon of capitalist countries, the hope of mankind.
"If you want to stay in the United States, you have to be more cold-hearted!" Sheffield warned herself in this way.
When they arrived in Chicago, Rockefeller Jr. took Sheffield and his party to some steel companies and introduced the production processes of these steel companies. They said, "Actually, Chicago's steel industry has surpassed Carnegie's allies in terms of scale. A giant can rival Carnegie. "
"But this cheap source of iron ore, combined with Chicago's geographic location, will eventually make Pennsylvania's steel companies have less and less space to survive, until the Pittsburgh markup law cannot protect them." Sheffield gave himself a moment 'S judgment, "No wonder the origins of Rockefeller and Carnegie are mentioned. You just have some regrets, but you are not worried."
Sheffield remembered that Carnegie eventually sold his business and became the property of the Morgan family. It must be more and more unsustainable in the face of competition in the steel industry in Chicago and Detroit.
Carnegie and the Rockefeller family had such a relationship in the early years. Naturally, they would not choose to sell to Rockefeller, but chose another giant in the north, Morgan.
Originally Sheffield was just thinking about it, remembering Carnegie's sale of the steel industry to Morgan, and preparing to wait for that opportunity to appear, and to take food from Morgan with Rockefeller.
Later, when I heard about the relationship between Rockefeller and Carnegie, I felt sorry that I might miss this opportunity. In fact, this is all knowing why, without Chicago's steel companies competing, Carnegie will not feel that it can't contain the development of steel competitors, so they seek to sell the company.
But since there is such competition, is it better for Sheffield to choose a foothold in Chicago? Must choose a company protected by law? Thinking about it now, Sheffield has no regrets.
"Master William, according to the telegram from Chicago's Agriculture and Livestock Branch, our German guests have landed from New York?" John Connor took a telegram and handed it over to Sheffield.
"May be troublesome John!" Sheffield glanced at the telegraph and said to Rockefeller Jr., "I'm not in Texas now, and the industrial center of the United States is just Chicago. How do I show these Hans Looking at the industrial strength of the United States, these provincial Hans look down on us. "
Sheffield was never ambiguous when he asked for help, and Rockefeller Jr. was also very suitable. The Rockefeller family is a descendant of German immigrants.
"William, is this still a problem!" Rockefeller Jr. said unconcernedly. "The Germans should also be put away with superior attitude!"
What did you say? The Germans are the most anti-German! Sheffield looked at the German version of Banana Rockefeller! But having said that, my family seems to be British.