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Chapter 80 Status of Steel

"I think the most interesting thing is that Chicago is the center of steel, but our steel king is not in Chicago, but in Pennsylvania!" Sheffield finally followed Rockefeller Jr. and set off for Chicago. In order to solve the lonely journey, he met the man who had just

The confirmed partners started chatting.

"Carnegie, it's really hard to describe this man!" A hint of gloom flashed in the young Rockefeller's eyes, and he said in a somewhat unspeakable voice, "The relationship between him and my father is a bit delicate."

The old Rockefeller and Carnegie started in the same place, both in Pennsylvania, and they started almost at the same time. They can be regarded as giants of the same generation. The key is that Carnegie had a superior, Scott, who was both a teacher and a friend.

Under Rockefeller's expansion, Scott took more care of Carnegie.

Many years ago, Carnegie also tried to enter the oil field, but was pushed back by Rockefeller. Therefore, the relationship between these giants is still a bit complicated. Everyone will have companions to help them in the beginning, and there are also competitors. The railroad king Vanderbilt is

Carnegie, who had helped Rockefeller, was a competitor for some time.

The relationship between these giants is not so harmonious. The Rockefeller family has little contact with Morgan. Instead, it has a good relationship with the Boston Bank families who are suppressed by Morgan.

Sheffield need not think about it, there must be constant quarrels between these giants. Everyone hopes that there will be as few competitors at their own level as possible. If this is not possible, they will unite with giants who cannot compete with them as allies.

Sheffield is now grateful. Fortunately, many families in the south left their hometowns due to the defeat of the war, so they have an environment for rapid development of their own family. The decision-making mistake of immigrating to Brazil was fatal. Although it weakened the economy of the south, it raised his own family, and from personal

From a perspective, this is definitely a good thing.

However, although Rockefeller Jr. talked about some past events, he did not worry too much. It is very difficult to achieve monopoly in the two fields of steel and coal. The places of origin are too widely distributed. Although Carnegie is the largest steel giant

, but it only accounts for a small part of the steel production capacity of the United States. As for the coal field, there is no one with Carnegie's share.

This is different from the German Empire. There are giants in the domestic coal field in Germany. The larger the country, the less likely it is for monopoly giants to form. In fact, the agricultural field is the least likely area to form giants, because anyone can farm land, and the United States does not lack

Land. But there are disadvantages if the threshold is too low. Everyone can farm, but not everyone will farm, but everyone must eat. The field of agricultural products is extremely easy to be affected by external factors, which can easily lead to panic.

The giants have become kings in their respective fields. In addition to using huge amounts of funds to compete with others, they use agents to pass laws that suit their own interests and use legislation to build moats to protect themselves from competition.

This is what Carnegie did. The emergence of a large-scale steel industry in the Chicago area was a function of entrepreneurial efforts and geographical advantages. Steel mills could easily obtain large amounts of cheap iron ore raw materials from the Lake Superior area. Since the U.S. steel industry was in its

Most of the iron ore used in the rise was mined in Minnesota and Michigan, so steel plants located along the Great Lakes cost less than competitors elsewhere.

Pennsylvania's steel companies, represented by Carnegie, took advantage of the business scale formed by first-mover advantages. After passing the "Pittsburgh Price Increase Act", the "Pittsburgh Price Increase Act" protected Pennsylvania's steel plants from competition.

Rockefeller understood the key point from a young age. Sheffield seemed to have opened the door to a new world. He was still too young. He thought that he wanted to legislate to squeeze out undercapitalized enterprises. How notorious it was. Only now

I know this is what others have done.

No wonder Rockefeller Jr. was not surprised at all at that time and did not praise himself as a genius. It turns out that similar operations had already appeared. It is indeed a beacon of capitalist countries and the hope of mankind.

"If you want to survive in the United States, you have to be even more cold-blooded and evil-hearted!" Sheffield warned himself in his heart.

When they arrived in Chicago, Rockefeller Jr. took Sheffield and his party to visit some steel companies, introduced the production processes of these steel companies, and said reservedly, "In fact, in terms of scale, Chicago's steel industry has surpassed Carnegie's allies, but it has not yet

A giant could rival Carnegie."

"But the cheap source of this kind of iron ore, coupled with Chicago's geographical location, will eventually make the living space of Pennsylvania's steel companies smaller and smaller, until the Pittsburgh price increase law can no longer protect them." Sheffield pondered for a moment and gave his own opinion.

Judgment: "No wonder you are a little regretful but not worried about the relationship between Rockefeller and Carnegie."

Sheffield recalled that Carnegie eventually sold his business and turned it into the property of the Morgan family. It must have become increasingly difficult to sustain in the face of competition from the steel industry in Chicago and Detroit.

Carnegie had such a relationship with the Rockefeller family in the early years, so naturally he would not choose to sell to Rockefeller, but would choose Morgan, another giant in the north.

Originally, Sheffield only remembered Carnegie's sale of the steel industry to Morgan in his mind, and was prepared to wait for the opportunity to appear, and work with Rockefeller to seize the opportunity from Morgan.

Later, when I heard about the relationship between Rockefeller and Carnegie, I regretted that I might have missed this opportunity. In fact, this was all because I knew it but didn't know why. Without competition from Chicago's steel companies, Carnegie would not have felt that he could not contain his steel competitors.

Only after the development of the company does it seek to sell the enterprise.

But since there is such competition, wouldn't it be better for Sheffield to choose to establish a foothold in Chicago? Do you have to choose a company protected by law? Thinking about it now, Sheffield has no regrets at all.

"Master William, according to the telegram from the Farmers and Animal Husbandry Branch in Chicago, our German guests have landed from New York?" John Connor took a telegram and handed it to Sheffield.

"I might have to trouble John!" Sheffield took a few glances at the telegram and said to Rockefeller, "I'm not in Texas now, and the industrial center of the United States happens to be Chicago. How can I let these Hans read it?

Looking at the industrial strength of the United States, these provincial Hans look down on us."

Sheffield was never hesitant when asking for help, and Rockefeller Jr. was also very suitable. The Rockefeller family is the descendant of German immigrants.

"William, is this still a problem?" Rockefeller Jr. said without hesitation, "These Germans should also stop their condescending attitude!"
Chapter completed!
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