The Tycoons

Title: The Tycoons

Author: Charles R Morris

Publisher: Owl Books 2006 (First published: 2005)

ISBN: 978-0-8050-8134-3

Pages: 333

Carnegie, Rockefeller, Gould and J.P. Morgan are names we usually associate with charitable foundations, trusts or enormous bankers in the 21^st century. Few people know who these persons were, how they achieved the fame now attributed to them as a matter of right and rather curiously, whether they really deserve the credit freely heaped on them by a society removed from the pioneers by about a century. Charles R Morris attempts to tell the story in its minute details, at the same time not trying to present the protagonists in a sheen of supernatural faculties. Morris’ men are mere mortals, subjects to the compulsions and temptations of easy money, sometimes going slow on ethics and putting their peers or subordinates in a tight dilemma or downright dumping them off the cart. Nothing destroys public memory like success, catapulting these four adventurous businessmen to their positions which were astronomically high in shaping America’s super economy in the late 19^th century. Once they reached their coveted seats, fame gave way to honour. None of them, except J.P. Morgan had any claim to a prosperous family background, but fought hard and fast to achieve success.

The book traces the careers of Andrew Carnegie (steel), John D Rockefeller (oil), Jay Gould (railroad) and J.P.Morgan (banking) whose names are intricately connected to the development of U.S. economy in the late 19^th century. The author portrays these tycoons as resorting to even unethical practices to gain an upper hand on the competitors. Several examples are cited, of these men taking advantage of the nascent business opportunities on a scenario not burdened with anti-monopoly regulations. In fact, several of the unethical practices of these tycoons prompted harsh anti-trust and anti-monopoly laws which govern business at present.

Industry in the U.S. boomed by the first half of 19^th century over Britain. Command over vast natural resources, land and unburdened manpower intent on changing their social status through hard work and resultant monetary advantage made America the fastest growing economy in the world. Automated production became the standard, unfettered by labour unrest such a proposition would have evoked in Britain or other European nations and because of availability of educated workers. The resultant increase in productivity and reduction in cost helped these products successfully compete with and eventually outperform European products. Britons traveled to the U.S. to study and emulate the success stories across the Atlantic, the Enfield rifle being one of them. Students of Indian history might note the impetus the Enfield rifle provided to the first war of independence of 1857! U.S. per capita income equalled that of Britain by 1860.

The civil war (1861-65) under the presidency of Abraham Lincoln was the single most consequential event in American history. The North and the South clashed over the right to own slaves, which ended in a decisive win for the egalitarian North. Industrial progress witnessed soon after the war towards the end of the century was so great that it was not repeated anywhere in the world for a century or so. The great industrial progress of China, currently we are witnessing, may be the one event which outpaced even the American one! Railroads, coal mining, oil and steel production spearheaded the bandwagon. Even without posing for customers, rail lines surged ahead and crisscrossed and coast to coast lines became operational in no time. New processes catalysed steel production to never-before levels. Even on the face of large scale immigration of poor people from Germany, Ireland and Eastern Europe, the average income of a worker grew, with equal opportunities for those classes to move into middle class, a distinct invention of the U.S. Department stores, mail order companies, entertainment and personal artefacts flourished. Thus, the country that had been trembling on the brink of modernity at Lincoln’s death discovered thirty years later that it had made the leap.

Cut throat price wars prompted the companies to amalgamate and become huge entities. During 1890-1910 such large scale mergers took place that even cases where up to 40 companies were merged were seen. Scale of production and mechanization kept down prices, also helped also by the protective tariffs imposed on European products, which had a crippling effect on the imports. It is curious also to note that American business interests, which are the driving force behind anti-tariff regulations of the World Trade Organisation were in fact nurtured by the protective tariffs during its infancy.

The book is noted for its pointed approach, never deviating much from the business descriptions adroitly followed by the author. The statistics is precise and illuminating (one would, of course, only glance over it!) and the view is enlightening that the author is reviewing 19^th century incidents with the moral spectacles of 20^th century business ethics. The book would appeal to the workers of that century too, as Morris implicates the tycoons rather harshly whenever mass-action programs were undertaken against them.

On the other hand, the book is difficult to read, the language rather terse. It is too businesslike and the flow is constrained and forced at some places. Quite simply, it is uninteresting to read. It is also tarnished with an unnecessary and out of place attack on scientific management of Francis W Taylor. Though the vituperative remarks are mixed with humour and rather interesting, it casts a backward look on progress which can’t be allowed to creep into industry.

The book is recommended.

Rating: 2 Star