Gilded Age: Titans of Industry

Homestead Strike

(1892) Iron and steel workers went on strike in Pennsylvania against the low pay and horrible working conditions at Carnegie Steel. Henry Frick called in the Pinkertons to end the strike. Conflict ensued and the Pinkertons killed 9 Homestead workers.

Improvements that benefited railroads

1. the steel rail, which were much stronger and safer than the traditional iron rails. 2. a standard gauge of track width.

Philanthropy

Literally the love of humanity. The practice of giving money and time to help make life better for other people

Robber Barons

Negative name for business owners during the Gilded Age. Implies that these men gained their vast wealth by treating workers badly with low wages and long hours and by using ruthless means to drive out competitors

Union

an organization of workers formed to protect the rights and interests of its members, especially in reference to working conditions and wages.

Why did the US go through such rapid industrial growth?

1. Natural resources became easier to get to 2. Increased labor supply because of the large waves of immigration in the late 1800's 3. Free enterprise system 4. New inventions

Why were people able to become so wealthy and have businesses so large?

1. the governmental policy of laissez-faire, which put no regulations on business 2. No income taxes 3. No restrictions on child labor or labor practices in general 4. Government allowed monopolies

Gilded Age

1870 - early 1900s. Term coined by Mark Twain. Means that America looked good on the surface as its industries and wealth grew but underneath the surface America was suffering from corrupt politics and a growing gap between rich and poor.

Andrew Carnegie

A Scottish-born American industrialist and philanthropist. He founded Carnegie Steel and dominated the American steel industry. His obsession to surpass Rockefeller in wealth and continue to achieve more profits leads Carnegie to leave Henry Frick in charge of implementing lower pay and longer working hours. Frick's harsh tactics lead to the Homestead Strike and subsequent massacre. Carnegie achieves his goal of surpassing Rockefeller and becomes the richest man in America when his sells his company to Morgan for $480 million dollars. He becomes a leading philanthropist donating millions to build public libraries, Carnegie Hall in Manhattan and many other public buildings.

Entrepreneur

A person who starts a business and is willing to assume the risk in order to make money.

horizontal integration

A technique used by John D. Rockefeller. It is the act of joining or consolidating with ones competitors to create a monopoly. Rockefeller was excellent with using this technique to monopolize certain markets. It is responsible for the majority of his wealth.

John D. Rockefeller

An American industrialist who takes control of the petroleum (oil) industry in America. He creates the Standard Oil Company and controls 95% of the oil industry by refining oil into kerosene to lit people's homes. Late in life becomes a great philanthropist. Two of his philanthropic endeavors were founding the Rockefeller Foundation and University of Chicago.

Henry Ford

Created the first car affordable to the ordinary American. He perfects the assembling line and is able to produce cars quickly. He also pays his workers a good livable wage and has them only work an 8 hour day.

Trust

Firms or corporations that combine for the purpose of reducing competition and controlling prices, thus establishing a monopoly.

Free Enterprise System

Freedom of private business to organize and operate for profit in a competitive system with no or little interference by government.

Nikola Tesla

Inventor of an electric motor that used alternating current. Had been an apprentice to Thomas Edison until their differing belief over whether DC or AC is better caused him to resign.

Thomas Edison

Inventor of the light bulb. Created the first electric generating station in Manhattan. Promoted the use of direct current. Was nicknamed the Wizard of Menlo Park. In his quest to prove that alternating current is harmful, Edison invented the electric chair.

vertical integration

It was pioneered by tycoon Andrew Carnegie. It is when you combine into one organization all phases of manufacturing from mining to marketing. This makes supplies more reliable and improved efficiency. It controlled the quality of the product at all stages of production.

Standard Oil Company

Massive oil company founded by John D. Rockefeller. The United States Supreme Court ruled the company to be a monopoly under the Sherman Antitrust Act and forced it to be broken up into 34 smaller companies. Two that still exist today are ExxonMobil and Chevron.

Carnegie Steel

Massive steel company started by Andrew Carnegie and headquartered in Pittsburgh, PA.

laissez-faire

Policy that government should interfere as little as possible in the nation's economy, thus leaving businesses alone.

Titans of Industry

Positive name for wealthy business owners during the Gilded Age. Implies that they helped the United States become strong through their business pursuits.

J.P. Morgan

U.S. banker who makes many by consolidating and buying frail companies and making them profitable again. Created the electrical industry when he invests in Thomas Edison's light bulb. Eventually, he creates General Electric, the first billion dollar company, and creates U.S. Steel after buying Carnegie Steel and merging it with other companies, which creates a steel monopoly.

Teddy Roosevelt

United States President that believed that government should be more involved in the regulation of business. He was known as a trustbuster because he broke-up monopolies. Used the Sherman Anti-trust Act to break up powerful trusts like Rockefeller's Standard Oil Trust.

Cornelius Vanderbilt

United States financier who accumulates vast wealth by first dominating the shipping industry and then by dominating the railroad industry. After the railroads are overbuilt, Vanderbilt still continues to dominate the railroad business by making lucrative deals with people, like Rockefeller, to carry their cargo.

Sherman Antitrust Act (1890)

allowed monopolies to be broken up under the premise that monopolies restrained trade. Vague language made it hard to enforce. It was the first act through which Congress tried to regulate the business and allowed for the future governmental regulation of the excesses of the free enterprise system.

Monopoly

complete control of a product or business by one person or group.