US history Chap 14 big business
Vertical & Horizontal Integration
vertical- company taking over suppliers and distributors and transportation systems to gain control over quality and cost of its product Horizontal- merging of companies that made similar products
Samuel Gompers
led the AFL (American Federation of Labor), a skilled craft union, fought for wages and working conditions, they went on strike, boycotted and used collective bargaining
Work of Immigrants
most factories and sweat shops hired immigrants because they had no skills and sometimes did not know the language and willing to work for anything so wages kept very low.
Holding Company
a form of business which does not create anything itself; instead, it owns the stock of companies that do produce goods
Cornelius Vanderbilt
"Commodore"; Built the New York Central Railroad System-made millions from steamboat business, and used the money to merge local railroads to the New York Central Railroad;, a railroad owner who built a railway connecting Chicago and New York. He popularized the use of steel rails in his railroad, which made railroads safer and more economical; founded Vanderbilt University in TN
Edwin L. Drake
In 1859 successfully used a steam engine to drill for oil near Titusville Pennyslyvanis. This in which started the oil boom.
Henry Ford
1863-1947. American businessman, founder of Ford Motor Company, father of modern assembly lines, and inventor credited with 161 patents.
New inventions - causes & effects
1867 typewriter and 1876 telephone both changed the way offices would run. 1879 light bulb and system to deliver electricity made machines run, allowed factories to be built away from energy sources like rivers because could get electricity. 1873 electric motor made factory machines run better.
Sherman Antitrust Act
1890 congressional legislation designed to break up industrial trusts such as the one created by John D. Rockefeller and Standard Oil. The bill stated that any combination of businesses that was "in the restraint of trade" was illegal. Because of the vagueness of the legislation and the lack of enforcements tools in the hands of the federal government, few trusts were actually prosecuted as a result of this bill. It was actually initially misused against labor unions as strikes would restrain trade.
Monopoly/Trust
Business that eliminates competition and thus gains total or near total control of an entire market for a particular good or service.
Pullman Company Strike
Company laid off thousands and cut wages of the rest without cutting cost of homes. Boycotting of Pullman trains by the American Railway Union. Strike went violent. Troops sent in. Eugene V. Debs in jail.
Interstate Commerce Act
Established the ICC (Interstate Commerce Commission) - monitors the business operation of carriers transporting goods and people between states - created to regulate railroad prices, prohibited rebates and pools, required railroads to publish rates, forbade discrimination against shippers, and outlawed charging more for short haul than for a long one over the same line
American Federation of Labor (AFL)
Founded in 1886. The AFL sought to organize craft unions into a federation. The loose structure of the organization differed from its rival, the Knights of Labor, in that the AFL allowed individual unions to remain autonomous. Eventually the AFL joined with the Congress of Industrial Organizations to form the AFL-CIO.
Industrial Workers of the World (IWW)
Founded in 1905, this radical union, also known as the Wobblies aimed to unite the American working class into one union to promote labor's interests. It worked to organize unskilled and foreign-born laborers, advocated social revolution to run the nation like one giant union, and led several major strikes. Stressed solidarity and was focused geographically in the West (founded in Butte, Montana). Its most successful strike occurred in Lawrence, Massachusettes, but failed miserable later in 1912 at Paterson, New Jersey, which, along with WWI, ended the party's significance. Headed by "Big Bill" Haywood.
Eugene V. Debs
He was the president and the organizer of the American Railway Union. He organized the Pullman Strike and helped organized the Social Democratic party., labor leader arrested during the Pullman Strike (1894); a convert to socialism, Debs ran for president five times between 1900 and 1920. In 1920, he campaigned from prison where he was being held for opposition to American involvement in World War I.
Child Labor
In the late 1800s a significant portion of the labor force was made up of children under the age of 15, some as young as 5 years old. These child laborers did not attend school. They worked in sweat shops which were workshops in tenements rather than factories.
Labor Unions - Success & Failure
Initially they were looked on as violent and many workers would not join because they were scared they would be fired. Later they became more accepted and popular. But very hard to start. Sherman Anti trust laws used against them and strikes broken up by army troops. Two types of unions one which included skilled workers like AFL and the CIO. Others included unskilled but in a specific industry like the American Railway Union
Christopher Sholes
Invented the typewriter in 1867 and changed the world of work.
J.P. Morgan
Investment banker whose firm J. Pierpont Morgan and Company, under various names, channeled European capital into America and grew into a financial power; he also controlled one-sixth of the nation's railway system, and consolidated the steel industry with the United States Steel Corporation, the first billion-dollar corporation., Business man -refinanced railroads during depression of 1893 - built intersystem alliance by buying stock in competeing railroads - marketed US governemnt securities on large scale, 1837-1913: learned banking in NY; position of power in domestic and international finance unprecedented; sold defective weapons to union and used a telegraph to determine the price of gold during the Civil War. He monopolized railroads by combining them under one holding company. Built G.E. by merging Edison General and Thompson-Houston. In 1901: Merged Carnegie's steel company with others to create US Steel.The merging led to the power of the US being put in the hands of very few men: the great bankers and the industrial titans. JP Morgan was a philanthropist and an art collector.
Homestead Strike
It was one of the most violent strikes in U.S. history. It was against the Homestead Steel Works, which was part of the Carnegie Steel Company, in Pennsylvania in retaliation against wage cuts. The riot was ultimately put down by Pinkerton Police and the state militia, and the violence further damaged the image of unions.
America's natural resources
Land, timber, iron, coal, Having natural resources, strong government support for business, growing urban population for labor and markets of products and cities with ports and a railroad system all made US a good place for industrialization
Factory Conditions
Long hours seven days a week under dirty, unsafe, conditions.Coal dust destroyed the lungs of minors and constantly breathed air with lint. breathing in soot, lint. If workers were sick or injured they woul loose their jobs. The factories were freezing in the winter and roasting in the summer
The Triangle Shirtwaist Factory Fire - Causes & Effects
March 1911 fire broke out at the factory. Fire spread quickly to the upper floors. The company had locked all but one of the exit doors to prevent theft and people not working. The unlocked door was blocked by the fire. There were no sprinkler systems and the fire escape was collapsed. 146 young immigrant women workers died. This made New York look at the factory working conditions and to make changes to make it more safe.
Bessemer Process & Steel
Method of making steel. Improved on iron because it did not rust and was lighter. Enabled the construction of skyscrapers and railroads.
Leland Stanford
Multimillionaire railroad builder, he founded Stanford University in memory of his only son, who died young. He founded the Central Pacific Railroad., president of the transcontinental railroad; drove in the golden spike at Promontory Point. later became Governor of California
Grangers vs. Railroad Companies
Organization of Farmers that revolted against high railroad prices, led to government regulation of railroads and other monopolies.
Laissez Faire
Policy based on the idea that government should play as small a role as possible in the economy
Andrew Carnegie
Scottish-born industrialist who developed the U.S. steel industry; his is a rags-to-riches story as he made a fortune in business and sold his holdings in 1901 for $447 million. He spent the rest of his life giving away $350 million to worthy cultural and educational causes., Creates Carnegie Steel. Gets bought out by banker JP Morgan and renamed U.S. Steel. Andrew Carnegie used vertical integration by buying all the steps needed for production. Was a philanthropist. Was one of the "Robber barons"
Social Darwinism
The application of ideas about evolution and "survival of the fittest" to human societies - particularly as a justification for their imperialist expansion., Applied Darwin's theory of natural selection and "survival of the fittest" to human society -- the poor are poor because they are not as fit to survive. Used as an argument against social reforms to help the poor.
Haymarket Affair
a demonstration and unrest that took place on Tuesday May 4, 1886, at the Haymarket Square in Chicago. It began as a rally in support of striking workers. An unknown person threw a dynamite bomb at police as they dispersed the public meeting. The bomb blast and ensuing gunfire resulted in the deaths of seven police officers and at least four civilians and the wounding of scores of others.Public opinion turned against the unions because they were associated with violence
The Pullman Strike
The owner of the Pullman Palace car company wnated to be more competitive and cut wages by 25% but did not lower rent prices in the communities he created. Workers found it intolerable and went on strike. Eugene Debs and the American Railway Union became involved and it became a national railway strike. Under threat to the U.S. mail, federal troops were brought in., Took place in Chicago in 1894 when the Pullman Palace Car Company began to cut wages about one third. The workers fought back and brought the railway traffic from Chicago to New York to a standstill. The AFL did not agree to promote the strikers which enhanced their reputation for "respectability". The strike was eventually ended by bringing in federal troops due to Cleveland's request. This is significant because this episode was seen as further evidence of a coalition between business and the courts.
Populists
They demanded government help with falling farm prices and regulation of railroad rates. They also called for an income tax, an eight hour workday, and limits on immigration. They also wanted FREE SILVER. They wanted all silver mined in the West to be coined into money. They said that farm prices dropped because there was not enough money in circulation. Free silver would increase the money supply and make it easier for farmers to repay their debts.
Robber Baron vs. Captain of Industry
Two opinions of people like Rockefeller, Carnegie, Vanderbilt and Morgan. Some people called them robber barons because they would do anything to be successful, stole, and broke laws. Some people respected them because they came from little or no money and made a big success and became very rich. They also gave a lot of money away.
Nativists
U.S. Citizens who opposed immigration because they were suspicious of immigrants and feared losing jobs to them.
Alexander Graham Bell
United States inventor (born in Scotland) of the telephone (1847-1922), Inventor of the telephone, which was patented in 1876; later formed the National Bell Telephone Company.
Transcontinental railroad
a railroad that connected the eastern United States to the western United States. The railroad firmly bonded the West Coast the Union, created a trade route to the far-east, and helped the western expansion, Completed in 1869 at Promontory, Utah, it linked the eastern railroad system with California's railroad system, revolutionizing transportation in the west
Treatment of Workers
a) long hours b) low wages c) terrible safety conditions in the factories
John D. Rockefeller
an American industrialist and philanthropist. Rockefeller revolutionized the petroleum industry and defined the structure of modern philanthropy. In 1870, Rockefeller founded the Standard Oil Company and ran it until he retired in the late 1890s. He kept his stock and as gasoline grew in importance, his wealth soared and he became the world's richest man and first U.S. dollar billionaire, and is often regarded as the richest person in history
George M. Pullman
built a factory for manufacturing sleepers and other railroad cars on the Illinois prairie. Made a town for his workers called Pullman, Illinois. Was very nice but he controlled all aspects of his workers' lives
Thomas Alva Edison
established the world's 1st research lab, invented the light bulb, established power plants to generate electricity, This scientist received more than 1,300 patents for a range of items including the automatic telegraph machine, the phonograph, improvements to the light bulb, a modernized telephone and motion picture equipment.
Credit Mobilier Scandal
scandal in the 1870s when a railroad construction company's stockholders used funds that were supposed to be used building the Union Pacific Railroad for their own personal use; to avoid conviction, stockholders even bribed congressmen and the vice president
Agricultural technology
the application of science and inventions in agricultural work; the use of science to develop new ways of doing things
Women in the workplace
women worked in sweatshops and factories. Made about 1/2 of what men made.