#142 Teddy Roosevelt and J.P. Morgan

53 snips

Aug 30, 2020

Dive into the rivalry between Theodore Roosevelt and J.P. Morgan, two titans navigating the turbulent waters of early American capitalism. Uncover how Roosevelt’s commitment to public accountability clashed with Morgan’s authoritative control over industrial power. Explore their contrasting leadership styles and the impact of personal histories on their ambitions. The podcast reveals their tense interactions during financial crises, showcasing the evolving perceptions of both men in a changing economic landscape.

Ask episode

AI Snips

Chapters

Books

Transcript

Episode notes

INSIGHT

Morgan's Influence

J.P. Morgan, though not the richest, held immense influence due to his commanding presence.
He prioritized order and stability, viewing them as crucial for America's economic growth and global power.

INSIGHT

Paternal Influence

Junius Morgan's overbearing nature profoundly shaped J.P. Morgan's life and career.
Despite attempts to retire, J.P. Morgan continued working in banking due to his father's refusal.

ANECDOTE

The Great Upheaval

The 1877 strike, marked by violence and upheaval, underscores the recurring nature of labor disputes.
Workers protested for basic necessities, leading to military intervention and widespread unrest.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

The House of Morgan

An American Banking Dynasty and the Rise of Modern Finance

Ron Chernow

This book is a rich, panoramic story of four generations of the Morgan family and their secretive firms that transformed the modern financial world. It traces the trajectory of J.P. Morgan’s empire from its obscure beginnings in Victorian London to the financial crisis of 1987. Chernow explores the family’s private saga, their involvement in major infrastructure projects, their influence on foreign policy, and their relationships with prominent figures like Charles Lindbergh, Henry Ford, Franklin Roosevelt, Nancy Astor, and Winston Churchill. The book is a masterpiece of financial history, awarded the 1990 National Book Award for Nonfiction and selected by the Modern Library as one of the 100 Best Nonfiction Books of the Twentieth Century.

The Hour of Fate

Theodore Roosevelt, J.P. Morgan, and the Battle to Transform American Capitalism

Susan Berfield

The Hour of Fate explores the pivotal clash between Theodore Roosevelt and J.P. Morgan, focusing on the Northern Securities case and the anthracite coal strike of 1902. These events marked significant milestones in the battle to regulate big business and establish labor rights in America. The book provides a nuanced portrayal of both men, highlighting their contrasting views on capitalism and government oversight.

Meet You in Hell

Andrew Carnegie, Henry Clay Frick, and the Bitter Partnership That Transformed America

Les Standiford

This book tells the riveting story of Andrew Carnegie and Henry Clay Frick, two founding fathers of American industry, and their bitter rivalry that emerged from their partnership. The narrative focuses on the 1892 Homestead steel strike, which was one of the deadliest labor disputes in U.S. history. Standiford captures the majesty and danger of steel manufacturing, the rough-and-tumble business world, and the fraught relationship between 'the world’s richest man' and the ruthless coke magnate. The book explores themes of industrialization, labor conflicts, and the personal idiosyncrasies of these two industrial titans[1][4][5].

Go Like Hell

A.J. Baime

Jones Allen

Go Like Hell by A.J. Baime tells the story of Henry Ford II's ambitious quest to conquer the 24 Hours of Le Mans, challenging Enzo Ferrari's dominance. The book chronicles the development of the Ford GT40 and the strategic partnership with Carroll Shelby, highlighting the technological innovations and human determination that defined this era of motorsport. The rivalry between Ford and Ferrari not only reshaped the racing world but also left a lasting impact on the automotive industry.

Empires of Light

Edison, Tesla, Westinghouse, and the Race to Electrify the World

Jill Jonnes

Empires of Light by Jill Jonnes explores the intense competition between Thomas Edison, Nikola Tesla, and George Westinghouse as they battled to create a vast electrical empire in the late 19th century. The book delves into the technological innovations, legal battles, and societal impacts of their work, which ultimately transformed the world through the widespread adoption of AC power. It highlights the complex and often contentious process of technological change during this pivotal period.

What I learned from reading The Hour of Fate: Theodore Roosevelt, J.P. Morgan, and the Battle to Transform American Capitalism by Susan Berfield.

----

[0:17] Morgan was the most influential of these businessmen. He wasn’t the richest but that didn’t matter; he was commanding in a way none could match.

[0:38] Morgan had an aristocrat’s disdain for public sentiment and the conviction that his actions were to the country’s advantage, no explanations necessary.

[0:50] Roosevelt thought big business was not only inevitable but essential. He also believed it had to be accountable to the public, and Roosevelt considered himself the public.

[1:04] Each [Morgan and Roosevelt] presumed he could use his authority to determine the nation’s course. Each expected deference from the other along the way.

[2:18] “I’m afraid of Mr. Roosevelt because I don’t know what he’ll do,” Morgan said. “He’s afraid of me because he does know what I’ll do,” Roosevelt replied.

[5:24] Morgan had trusted his father to set him on the right path and steer his career, even when his father was overbearing, Morgan never mounted a challenge. The creator of the biggest companies the world had ever known was very much the creation of paternal influence.

[9:58] Morgan said he could do a year’s work in nine months, but not twelve. His impatience could be withering.

[10:17] Roosevelt adopted his father’s motto, “Get action.”

[10:35] Roosevelt never sat when he could stand. When provoked, he would thrust, and when he hit, he hit hard.

[11:11] Theodore loved to row in the hottest sun, over the roughest water, in the smallest boat.

[12:09] When they attacked Roosevelt, he would fire back with all the venom imaginable. “He was the most indiscreet guy I ever met.”

[16:36] When one of the gentlemen complained later about Morgan’s interference in their roads, Morgan snapped: “Your roads? Your roads belong to my clients.”

[19:26] John D. Rockefeller said his company was efficient. Critics said it was untouchable.

[23:04] James J. Hill had built the Great Northern with deliberate thrift and brutal efficiency. His railroad would become among the most profitable in the Northwest. He didn’t need Morgan the way other railroad executives did.

[25:52] “A soft, easy life is not worth living, it impairs the fiber of brain and heart and muscle. We must dare to be great.”, Roosevelt said.

[29:18] Harriman secretly bought up shares in Northern Pacific. This was revenge. Hill and Morgan had effective control over the Northern Pacific, but they didn’t own a majority of the shares. Morgan had never found it necessary to own a company outright in order to exert influence.

[35:02] The president had asked his attorney general to prosecute Northern Securities for violating the Sherman Act. Roosevelt should have warned him, Morgan grumbled. They could have worked out a deal in private. Presidents didn’t keep secrets from the captains of industry, and the House of Morgan had never before been surprised by the White House.

[37:29] After Morgan left, Roosevelt marveled at the financier’s imprudence. “That is the most illuminating illustration of the Wall Street point of view. Mr. Morgan could not help regarding me as a big rival operator, who either intended to ruin all his interests or else could be induced to come to an agreement to ruin none.”

[39:06] Roosevelt understood how panic could outrun reality.

[47:00] People will love Roosevelt for the enemies he has made.

[50:21] Morgan repeated the advice he had received from his father long ago: “There may be times when things are dark and cloudy in America, when uncertainty will cause some to distrust and others to think there is too much production, too much building of railroads, and too much development in other enterprises. In such times, and at all times, remember that the growth of that vast country will take care of all.”

----

Founders Notes gives you the ability to tap into the collective knowledge of history's greatest entrepreneurs on demand. Use it to supplement the decisions you make in your work. Get access to Founders Notes here.

----

“I have listened to every episode released and look forward to every episode that comes out. The only criticism I would have is that after each podcast I usually want to buy the book because I am interested so my poor wallet suffers. ” — Gareth

Be like Gareth. Buy a book: All the books featured on Founders Podcast