youbet said:
I'd like to read about that. Where did you find it?
I read it YEARS ago......however I found another passage that is close. There was a group of socialites called the "Four Hundred" out of New York that ran most everything. Not all were enormously rich, but their influence certainly was.
I think it's in the biography of Rockefeller or Carnegie.....I need to look tonight.......
Meantime, here's another take on it:
Rise of new wealth
If the established social hierarchies were suffering from technological change, industrialisation and the corporation offered poor entrepreneurs unprecedented opportunities for personal enrichment. The amount of railroad track in operation in the United States quadrupled in the twenty years after 1877, reaching a total of over 240,000 miles by 1897.26 Between 1875 and 1900 the UK railway network grew from 16,658 to 21,855 miles.27 The railways succeeded in expanding so fast, since they were a more profitable investment outlet than property. Limited-liability corporations were less risky investments than unlimited liability partnerships; could attract large amounts of surplus capital from the money markets; and proved to give better returns - and Britain and the USA introduced Joint-Stock Companies Acts in the 1850s and 1860s, allowing the creation of limited liability companies.28 Large railway profits hugely boosted share values on the large metropolitan stock exchanges of New York and London - the Dow Jones RailRoad Average doubled just 53 months after it was launched in 1896; and rising prices enticed even more new capital into the market, either from the domestic market or from overseas.29 Joint-stock structures, and nationwide distribution via rail, enabled many other industries to grow. Yet financiers such as JP Morgan took special interest to avoid the competition unleashed by nationwide presence. The twin processes of amalgamation and vertical integration created cost-savings, which could lead to industrial behemoths - particularly in the coal and steel industries. The British firm of Dorman, Long and Co., for example began, in 1876, as ironfounders. Over the next two decades, it ventured into steelmaking; opened rolling-mills; acquired sheet-works and wire-works; and finally acquired its own mines, collieries and limestone quarries. In 1908 it expanded further, absorbing the North-Eastern Steel Co. - the combined firm controlled a capital of over £3 million.30 More impressive was the Carnegie Steel Company of Pittsburgh, which was founded by an immigrant as late as 1875, yet by 1901, the company was sold for $480m to Morgan's US Steel. An even more spectacular rise to dominance was the Standard Oil Trust, which was founded in 1870, and by the time it was broken up in 1899, it controlled 90% of all American oil refineries, and had given John D. Rockefeller a personal fortune of almost $1bn. More widely, the wealthiest 5% of the American population received a third of all disposable income by 1929.31
The main beneficiaries from growth in communications and big corporations were from the social élites. Andrew Carnegie explained the secret of his success to his humble, immigrant origins, by saying 'The emigrant is the capable, energetic, ambitious discontented man.'32 Later, he noted that 'An aristocracy of wealth is impossible. . . Wealth cannot remain permanently in any class if economic laws are allowed free play.'33 It is certainly true that the period saw a remorseless growth in the number of super-rich. Where in the period 1859-79, 30 people died in Britain leaving estates worth over a million pounds, forty years later this figure had more than doubled to 73 millionaires.34
By 1892 there were over 4,000 millionaires in the United States, and at the end of the century 10 per cent of the families owned some three-quarters of the national wealth.35 In Britain, it is likely that the richest commoner of the nineteenth century was the self-made textile warehouseman and merchant banker James Morrison, who left £4-6 million at his death in 1857, in addition to more than 100,000 acres of land. His financier heir Charles left nearly £11 million in 1909.36 Yet even these sums pale in comparison with the immense riches accumulated by American moguls. The railroad magnate James J Hill was worth $53m, JP Morgan left an estate worth $80m, Andrew Carnegie was for some time the world's richest man on retiring from business in 1901 with $250m, and by the time of his death in 1919, he had given away $311m. John D Rockefeller, by 1913, had acquired the staggering figure of $900m.37
Clearly, the balance of economic power was shifting away from old élites towards the plutocratic rich. Yet the prime social status remained with the community which formed High Society. In England just as in the United States, social leadership remained absolute, if not necessarily exclusive - and Society sought to maintain its dominant position by encouraging the new rich to join it. Edward Collins explained this, when he explained that 'A Tory is a man who believes England should be governed by gentlemen. A Liberal is a man who believes any Englishman may become a gentleman if he likes.'38 Since education was necessary to form a gentleman from a young man of means, education too could create gentlemen from mere plutocrats.