us ch 14 s 3 (big businesses)

QUIZ CH 14 S 11. HE PERFECTED THE INCANDESCENT LIGHT BULB2. HE INVENTED THE TELEPHONE3. PERSON WHO ASSUMES RISK FOR BUSINESS VENTURE4. THEY INVENTED THE AIRPLANE5. HE INVENTED THE TELEGRAPH6. HE INVENTED THE STEAM ENGINE7. TERM FOR INDIVIDUAL OR CORPORATION CONTROL

MEANS OF PRODUCTION FOR PROFIT8. HE DEVELOPED A BETTER METAL CALLED STEEL9. HE INVENTED THE STEAM BOAT10. NAME THE COMPLETE LOCATION WHERE THE FIRST

TRANSCONTINENTAL RAILROAD WAS COMPLETED

BIG BUSINESSESCHAPTER 14 S 3

ANDREW CARNEGIE

• MILLIONAIRE STEEL MILL OWNER

• PRODUCE STEEL INEXPENSIVELY

VERTICAL INTEGRATION• STEPS REQUIRED TO

TURN A RAW MATERIAL INTO A FINISHED PRODUCT

• BOUGHT RAIL LINES• ORE SHIP• PIG IRON PLANTS

• GAVE TOTAL CONTROL OVER QUALITY AND COST

• TO ENSURE STEADY SUPPLY OF PRODUCT

GOSPEL OF WEALTH• COMMANDED THE WEALTHY TO DONATE THEIR MONEY TO WORTHY CAUSES

• CARNEGIE REPORTEDLY GAVE $350 MILLION OF HIS $400 MILLION FORTUNE TO CHARITIES, INCLUDING $60 MILLION TO BUILD LIBRARIES.

JOHN D. ROCKEFELLER• FORMED THE STANDARD OIL COMPANY

• HORIZONTAL INTEGRATION

• COMPANIES COMBINED WITH ANOTHER COMPANIES TO PRODUCE SIMILAR PRODUCTS

• GIVES HIM CONTROL OVER PRODUCTION AND PRICES

• ABLE TO CONTROL OVER 90% OF OIL REFINERIES

Became the world’s richest man and first American billionaire

MONOPOLY• CONTROL ALL MEANS OF

PRODUCTION (ELIMINATE COMPETITION)

• STANDARD ALL USED VERTICAL AND MONOPOLIZE THE OIL INDUSTRY

• BOUGHT BARREL OF COMPANIES AND RAILROADS

• MANUFACTURE AND INSTALL OWN PIPELINES

GOSPEL OF WEALTH

CORNELIUS VANDERBILTCORNELIUS VANDERBILT

•  HE BUILT HIS WEALTH IN SHIPPING AND  RAILROADS THROUGH CONSOLIDATION

• ACT OF UNITING OR COMBINING

• LARGE COMPANIES BOUGHT SMALLER ONES OR FORCED THEM OUT OF BUSINESS.

Merger/Consolidation Combining small companies to

form a larger ones

+ =

MERGER/CONSOLIDATION• COMBINING SMALL COMPANIES TO FORM A

LARGER ONES

+ =

+ =

J.P. MORGANJ.P. MORGAN• FINANCIER, BANKER

• DOMINATED CORPORATE FINANCE AND INDUSTRIAL CONSOLIDATION

SOCIAL DARWINISM• THEORY OF FREE COMPETITION ENSURE SURVIVAL

OF THE FITTEST• JUSTIFY THE ACCUMULATION OF WEALTH

CHAPTER 14

• PG 444 MAIN IDEA C• PG 445 MAIN IDEA D• PG 448 MAIN IDEA A• PG 449 MAIN IDEA B• PG 450 MAIN IDEA C• PG 450 MAIN IDEA D• PG 451 MAIN IDEA E

CHAPTER 14 S 31. NAME THE 20TH PRESIDENT J G2. ILLEGAL USE OF POLITICAL INFLUENCE FOR PERSONAL GAIN G3. TIME PERIOD WHERE POVERTY AND CORRUPTION THAT EXIST IN

SOCIETY G A4. PORTION OF EARNING OR BRIBE K5. NAME THE 22ND AND 24TH PRESIDENT G C6. ORGANIZED GROUPS THAT CONTROL ACTIVITIES OF A POLITICAL

PARTY P M7. NAME THE BIGGEST BOSS IN NY W M T8. NAME THE 23RD PRESIDENT B H9. GIVING GOVERNMENT JOBS TO SUPPORTERS P10. NAME THE 21ST PRESIDENT C A

The Changing American

Labor Force

Ch 14 S 3

THE WORKFORCE• MANY FACTORY

WORKERS WERE IMMIGRANTS

• THE BEST JOBS WENT TO NATIVE-BORN WHITES OR EUROPEAN IMMIGRANTS.

• LESS WELL-PAYING JOBS WERE OPEN TO AFRICAN AMERICANS, AS HOUSEHOLD HELP OR LABORERS.

• BY 1900, ONE IN SIX CHILDREN BETWEEN THE AGES OF 10 AND 15 HELD FACTORY JOBS.

WORKING CONDITIONS• 10HRS- 6 DAYS A

WEEK.• NO BENEFITS • THEY HAD NO PAID VACATION

AND NO SICK LEAVE.

• SPEED OF PRODUCTION LED TO TERRIBLE ACCIDENTS.

• INJURED WORKERS WERE REPLACED.

Child Labor

LABOR UNIONS• ORGANIZATIONS TO AID WORKERS

• USE STRIKES (WORK STOPPAGE) AS STRATEGY TO GET RESULTS

• EMPLOYERS STRUCK BACK AT ORGANIZED LABOR, FORCING EMPLOYEES TO SIGN DOCUMENTS SAYING THEY WOULD NOT JOIN A UNION.• BLACKLISTS OF PEOPLE DEEMED TROUBLEMAKERS WERE MADE AND SHARED BY EMPLOYERS, WHO REFUSED TO HIRE ANYONE LISTED.• STRIKING WORKERS WERE REPLACED WITH “SCABS,” OR STRIKEBREAKERS.

The Knights of Laborù Eight-hour workday.Eight-hour workday.ù Ban child laborBan child laborù Safety codes in the Safety codes in the

workplace.workplace.

The American Federation

of Labor: 1886• SAMUEL GOMPERS (LEADER) • AID SKILLED WORKER.• USED COLLECTIVE

BARGAINING, ALL WORKERS ACTED TOGETHER, TO NEGOTIATE WITH MANAGEMENT

Haymarket Riot (1886)• WORKERS STRIKES

• WORK STOPPAGE • SOMEONE THREW A BOMB• 8 COPS DIED (MANY (MANY

INJURED AND 14 INJURED AND 14 WORKERS DEATHWORKERS DEATH

• 8 ANARCHIST ACCUSED.• FOUR MEN WERE CONVICTED

AND EXECUTED, AND ONE COMMITTED SUICIDE IN PRISON, ALTHOUGH THE PROSECUTION CONCEDED NONE OF THE DEFENDANTS HAD THROWN THE BOMB.

• LOWERED UNION MEMBERSHIP

Homestead Steel Strike

(1892)• WORKERS REFUSE TO WORK FASTER

• INDUSTRIAL LOCKOUT  AND STRIKE

• BATTLE BETWEEN STRIKERS AND PRIVATE SECURITY AGENTS

• 14 DEATHS• RESULTED IN MAJOR

DEFEAT FOR THE UNION,

The Pullman Strike of 1894

• COMPANY LAID OFF WORKERS AND REMAINING ONES WAGES WERE CUT

• NATIONWIDE• 3,000 EMPLOYEES STRIKES (STOP

WORKING)

• FEDERAL TROOPS WERE CALLED IN, STRIKES STOPPED

• INVOLVED SOME 250,000 WORKERS IN 27 STATES 

TRIANGLE SHIRTWAIST FIRE

• DEATHS OF 146 GARMENT WORKERS, MOSTLY WOMEN,

• LED TO LEGISLATION REQUIRING IMPROVED FACTORY SAFETY STANDARDS 

deaths of deaths of 146 garment 146 garment workers, workers, mostly mostly women, women,

led to led to legislation legislation requiring requiring improved improved factory safetfactory safety standards y standards 

deaths of deaths of 146 garment 146 garment workers, workers, mostly mostly women, women,

led to led to legislation legislation requiring requiring improved improved factory safetfactory safety standards y standards 

• DEATHS OF 146 GARMENT WORKERS, MOSTLY WOMEN,

• LED TO LEGISLATION REQUIRING IMPROVED FACTORY SAFETY STANDARDS 

- After the fire, new laws were passed to protect factory workers.

A FAVORABLE CLIMATE FOR BUSINESS

FREE MARKETS • WITH CAPITALISM,

COMPETITION DETERMINES PRICES AND WAGES, AND MOST INDUSTRIES ARE RUN BY PRIVATE BUSINESSES.

• IN THE 1800S, BUSINESS LEADERS BELIEVED IN LAISSEZ-FAIRE CAPITALISM WITH NO GOVERNMENT INTERVENTION.

• THEY BELIEVED GOVERNMENT REGULATION WOULD DESTROY SELF-RELIANCE, REDUCE PROFITS, AND HARM THE ECONOMY.

SOCIAL DARWINISM• MANY THINKERS BELIEVED

THAT INEQUALITIES WERE PART OF THE NATURAL ORDER.

• CHARLES DARWIN BELIEVED THAT MEMBERS OF A SPECIES COMPLETE FOR SURVIVAL IN A NATURAL SELECTION PROCESS.

• APPLIED TO SOCIETY, STRONGER PEOPLE, BUSINESSES, AND NATIONS WOULD PROSPER, AND WEAKER ONES WOULD FAIL IN A “SURVIVAL OF THE FITTEST.”

The American ideal was one of self-reliant individualism. A strong work ethic made one successful, and entrepreneurs risked their money and talents in new ventures.

• ROBBER BARONS

• RUTHLESS LEADER DROVE SMALL COMPANIES OUT OF BUSINESS

• POLLUTE THE ENVIRONMENT

• EXPOSE WORKERS TO INJURY

• WASTED RAW MATERIALS

industrial industrial statesmenstatesmen

use innovative use innovative methods methods bringing order bringing order and efficiencyand efficiency

invented and invented and perfected perfected technologiestechnologies

brought lower brought lower production and production and pricesprices

raiser wages raiser wages and better and better quality of lifequality of life

The “Formula

”

unions unions + violence + strikes + socialists + violence + strikes + socialists + immigrants immigrants = anarchistsanarchists

Labor Union Membership

The Rise & Decline of Organized Labor

Management vs. Labor

““Tools” of Tools” of ManagementManagement

““Tools” of Tools” of LaborLabor

““scabs”scabs” PinkertonsPinkertons lockoutlockout blacklistingblacklisting yellow-dog yellow-dog

contractscontracts

Collective Collective BargainingBargaining

informational informational picketingpicketing

organized organized strikesstrikes

A Striker Confronts a SCAB!

The Great Railroad Strike of 1877