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U.S. History I

U.S. History I. Chapter 4 Section 2 “The Rise of Big Business” Clockwise from top left: Standard Oil, Vanderbilt Mansion, Monopoly Board Game, J.P. Morgan Chase Building. The Corporation. Corporation : Many people “share” ownership of ONE company

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U.S. History I

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  1. U.S. History I Chapter 4 Section 2 “The Rise of Big Business” Clockwise from top left: Standard Oil, Vanderbilt Mansion, Monopoly Board Game, J.P. Morgan Chase Building

  2. The Corporation • Corporation: Many people “share” ownership of ONE company • Monopoly: Complete control of a product or service • Cartel: Businesses agree to make same product and limit supply to drive up prices. (OPEC-oil, De Beers-diamonds) • J.D. Rockefeller: Standard Oil/ Controlled Railroads to “corner” oil market • J.P. Morgan: Developed research labs • Cornelius Vanderbilt: Railroad tycoon: N.Y. to Chicago direct rail line.

  3. Horizontal Integration: Consolidate many firms into one business (Super Company) ** Was Illegal Trust: Companies assign stock to board of TRUSTEES who get paid with stock profits (Made Horizontal Integration Legal) Vertical Integration: Control ALL businesses involved in product development (Monopoly: Own the Board) Andrew Carnegie: U.S. Steel/Pittsburgh, PA Vertical/Horizontal Integration

  4. Support: “Captains of Industry” 1. Efficient 2. Lower Prices 3. Provided Jobs 4. Made U.S. Powerful 5. Philanthropists: Helped fellow man Against: “Robber Barons” 1. Unfair Advantages 2. Drove Small businesses out 3. No Competition 4. Monopolies would RAISE prices 5. “Swindle” Poor The Big Business Debate

  5. Big Business Debate

  6. Social Darwinism • Charles Darwin: On the Origin of Species • Animals evolved through Natural Selection • “Survival of the fittest” • Social Darwinism: Wealth was a measure of one’s value and those who had it were “fit” Those who do not should “adapt” • * Many used theory as a way to discriminate against minorities and other “poverty-stricken” Americans and Immigrants because of their “unfitness”

  7. Government Regulations • Interstate Commerce Commission (ICC): Could monitor railroads that cross state lines. Then refer records to Congress to address “unfairness” • Sherman Anti-trust Act: Outlawed Trusts/Monopolies that limited trade among several states • Read Wealth: Page 113: Andrew Carnegie

  8. U.S. History I Organized Labor Movement Chapter 4 Section 3 2.1, 2.4, 9.3

  9. Immigrants and poor exploited by big business: (Low Wages) Long Days: (12 Hour/ 6 Days per week) Unsafe conditions: Sweatshops: Small, hot, dark, and dirty: Triangle Shirt waste Co. NYC (Top) Children exploited (20% 10-16 Employed 1890’s) Company Towns: Pullman Town-Chicago (Bottom) Isolated communities owned by company Company Stores: Workers forced to shop at company owned stores that overcharged them http://www.ernieford.com/SixteenTons.htm Worker Hardships

  10. Collective Bargaining: negotiating with employer as a group: Strikes used to force negotiation (Top Left) Socialism: Favors PUBLIC control of property/ Opposite of Capitalism (Private Ownership) (Karl Marx: CommunistManifesto) Knights of Labor: Industrial Union: Uriah Stephens 1881: Terence Powderly : Became president (Bottom) American Federation of Labor: Samuel Gompers: “Skilled worker” Union (Top) Labor Unions Form

  11. Railroad Strike of 1877: First major strike in U.S. History (Wages): Government sided w/ Business and Violence Erupted Haymarket Riot: 1886: Chicago: Knights of Labor (Fair Wages/ 8 HR Work Day) Anarchists: Anti-government: Joined protest: Bomb Exploded: Dozens Killed/ Including Police Strikes Rock the Nation

  12. Homestead Strike: Pennsylvania: U.S. Steel (protest wage cuts during depression) Pinkerton: Private “Strike Breaking” Police Force (intimidate workers) *Anarchist tried to assassinate Henry Frick: (Carnegie’s Partner) *Government Sided w/ Business Strikes Rock the Nation

  13. Strikes Rock the Nation • Pullman Strike: 1893: Pullman Palace Car Company: Chicago • Eugene Debs: American Railway Union President *Workers blocked trains from running during strike. *Pullman attached MAIL CARS to his *Grover Cleveland sent troops to end strike *Eugene Debs arrested for “federal offense”

  14. Effects on Labor Movement • Trend: general course of events • Government trend was to side with business • Socialism spread through U.S. • Eugene Debs: Ran for President in 1900 • *Radical ideas continued to spread because of Industrial worker’s “perception” of unfairness

  15. During a coal miner’s strike in 1921, miners in West Virginia (Battle of Blair Mountain) wore red handkerchiefs around their necks to show unity. They were nicknamed “rednecks”! …Oh yeah… and the color red is usually associated with Communism (Marxism), too! DID YOU KNOW?

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