Big Business- Industrialization

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Big Business- Industrialization

  1. 1. The Rise of American Business, Industry, and Labor (1865 - 1920) • Civil War changed everything! • North was already industrializing (bullets, railroads, etc) • South was ruined!  (NEW SOUTH)
  2. 2. RAILROADS!!!!!
  3. 3. Before the Civil War…. • …most businesses were sole proprietorships (single owners).  Factories need more start-up capital($$) then a single person business.  The birth of corporations!  What is a corporation?
  4. 4. What do these terms mean? (homework) • 1) Monopoly • 2) Conglomerate • 3) Merger • 4) Trust • 5) Holding Company • 6) Capitalism • 7) Communism • 8) Entrepreneurs •9) Laissez-Faire •10) Social Darwinism •11) Robber Barons •12) Philanthropists •13) Labor Union •14) Collective Bargaining •15 Sherman Antitrust Act
  5. 5. Entrepreneurs! • Andrew Carnegie • John D. Rockefeller • J.P Morgan • Henry Ford
  6. 6. Entrepreneurs! • Andrew Carnegie  Scottish Immigrant who started working in a factory at age 12.  Invested wisely and entered the steel industry at age 38.  By 1901 sold his steel company for $250,000,000!  Gave hundreds of millions to charities (libraries)  Wrote the book: Gospel of Wealth
  7. 7. Entrepreneurs! • John D. Rockefeller  Entered the oil-refining business during the Civil War.  Used ruthless means to eliminate his competition.  By 1882 his company, Standard Oil Company, controlled 90% of all American oil refining.  Created the Standard Oil Trust to control more aspects of oil production.  Gave hundreds of millions to charities.  Rockefeller Center
  8. 8. Entrepreneurs! • J.P Morgan  Banker who made many loans to up and coming businesses.  Purchased and reorganized many bankrupt businesses (profit).  Bought Carnegie Steel and reorganized it into the United States Steel Corporation (the world’s largest).
  9. 9. Entrepreneurs! • Henry Ford  Ford Motor Corp (cars)  Created the assembly line  Paid laborers a good wage
  10. 10. Laissez-Faire (hands off) • The government largely kept “hands off” towards American business.  Businesses were booming! The economy was doing well. Foreign trade reached new heights.  Why did this change around the end of the 1800’s?
  11. 11. HANDS ON • Why?  1) The economy took a turn for the worse  2) Growing criticism that big business made profits on the backs of the American poor/immigrant  3) Growing political pressure for change
  12. 12. RAILROADS!!! (again) • In the late 1800’s, railroads developed a number of business practices that hurt farmers and small businesses (pricing).  These small business lobbied to have the government change these policies.  Railroads lobbied to allow them to stay the same
  13. 13. Please research the following Supreme Court Cases from this era: (homework) 1) Munn v. Illinois (1877) 2) Wabash, St. Louis & Pacific Railway v. Illinois (1886) 3) United States v. E.C. Knight Company (1895) 4) In re Debs (1895)
  14. 14. RAILROADS!!! (again) • List several reasons why railroads were so important to so many people. • What was it about railroads? How did they effect American society? • How did railroads effect other businesses? Did railroads create a market for other businesses? Like what?
  15. 15. Public Pressure: ICC • Public pressure forced Congress to pass the Interstate Commerce Act  Created the ICC which regulated railroads and ended abuses like rebates.  (precedent)
  16. 16. Public Pressure: Sherman • Late 1800’s: some business had no competition (monopoly)  Public outcry was significant  Politicians passed the Sherman Antitrust Act (see vocabulary)  Business combination Illegal: “in restraint of trade or commerce”  US v. E.C. Knight Company  Precedent
  17. 17. Labor Rising • Conditions for working people had slowly improved with time  However, wages were still low,unemployment was uncertain and could end suddenly.  Business owners had tremendous power over employees!
  18. 18. Labor Rising • Union Tools:  Collective Bargaining  Strikes  Pickets
  19. 19. Knights of Labor • Formed in 1869 - Terence Powderly • Haymaker Riot ended their influence in 1886 • Welcome skilled, unskilled, and African-Americans • Fought for broad social reforms  8 hour work day  end to child labor  equal opportunities for women
  20. 20. American Federation of Labor • AFL - Samuel Gompers • 1886 • A collection of craft unions. • Fought for “bread and butter” issues  Higher wages, better hours, better working conditions • Extremely powerful with over 1,000,000 members by 1900
  21. 21. Labor Conflict • Describe the following events for homework:  Great Railway Strike of 1877  Haymaker Riot  Homestead Strike  Pullman Strike Give details, who - what - when - why - results?
  22. 22. Great Railway Strike of 1877 Great Railway Strike of 1877 - Railroad workers went on strike after several pay cuts. (several states) - President Rutherford B. Hayes sent federal troops to end the strike - Workers got very little
  23. 23. Haymaker Riot Haymaker Riot - Labor Rally (organized by Knights of Labor) that ended in a bomb blast - 7 police died - Chicago - 1886 - Public blamed Knights of Labor despite the fact they had nothing to do with the violence.
  24. 24. Homestead Strike Homestead Strike - 1892 - Union members went on strike (pay cuts) at the Carnegie steel plant - Homestead, Pennsylvania - Violence ensued - 16 people died- fewer then 25% of the strikers got their jobs back - Set the steel labor movement back 20 years
  25. 25. Pullman Strike Pullman Strike - 1894 - Railroad workers went on strike in Illinois - Tied up other rail lines. - President Grover Cleveland sent in troops to end the strike - In re Debs

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