Robber Barons

• The Belmont Stakes horse race is named after 19th century financier August Belmont.horse race image by pearlguy from Fotolia.com
  
  The term "robber baron" refers to the 19th century industrialists and financiers who created vast empires in oil, steel, railroads, banking and finance. Building railroads that crisscrossed the continent was a major undertaking requiring huge influxes of cash. Railroads hired Wall Street firms to find investors and push railroad debt. The firms increased their business influence, and railroad magnates grew their personal wealth. Railroad barons of the time included Henry Flagler, Jay Gould, Edward Harriman and Leland Stanford.
  
  

Wartime Financiers

• A colorful character and financier of the era was James Fisk (1835-1872). He made his fortune through dubious schemes during the Civil War. After the war he became a stockbroker and railroad magnate. He was shot and killed by a romantic rival. Cornelius Vanderbilt (1794-1877) was another colorful character. The first part of his fortune was made in water transportation -- ferries, steamboats, and shipping. He later foresaw the importance of railroads and became a railroad entrepreneur. He was the richest man in the nation by the time of his death. His son William Vanderbilt (1821-1885) expanded the family's railroad empire.
  
  

The Panic of 1873

• Investment banker George Peabody (1852-1938) backed industrial enterprises, including electric companies that eventually consolidated into General Electric.light bulb image by Photosani from Fotolia.com
  
  By the second half of the 19th century investment firms greatly influenced the nation's financial existence. In fact, a wealthy financier and investment banker started the Panic of 1873. Jay Cooke (1821-1905) helped finance the Civil War. After the war he established his own investment firm, Jay Cooke and Company, and heavily invested in the Pacific Northwest Railway. Overestimating his capital, he and his firm were forced into bankruptcy in September, 1873. The stock market plummeted, businesses failed and thousands of people lost their jobs. The recession lasted five years. Cooke personally recovered, eventually becoming wealthy once again as the owner of a successful Utah silver mine.
  
  

The Birth of the Gilded Age

• The growth of big business began in earnest after the Civil War. In 1860 there were 400 millionaires in the country; by 1892 there were 4,047. Anthony Drexel (1826-1803) began his career in his father's banking establishment at the age of 13. He eventually partnered with J. Pierpont Morgan to form one of the most influential banking houses in the country. The end of the 19th century experienced the rise of the super-wealthy, the increase in the middle class and the birth of major companies. Banker J. P. Morgan (1837-1913) orchestrated the birth of many of these companies, including AT&T, General Electric and U.S. Steel.
  
  

The Witch of Wall Street

• Hetty Green (1834-1916) is the only woman financial magnate of the era. She began with some inherited money and died the richest woman in the world. She invested in real estate, railroads, and lent money to individuals, businesses, and governments. Extremely eccentric and thrifty, she was branded the Witch of Wall Street.