3…most businesses were sole proprietorships (single owners). 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?
4What do these terms mean? (homework) 1) Monopoly2) Conglomerate3) Merger4) Trust5) Holding Company6) Capitalism7) Communism8) Entrepreneurs9) Laissez-Faire10) Social Darwinism11) Robber Barons12) Philanthropists13) Labor Union14) Collective Bargaining15 Sherman Antitrust Act
5Entrepreneurs! Andrew Carnegie John D. Rockefeller J.P Morgan Henry Ford
6Entrepreneurs! 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
7Entrepreneurs! 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
8Entrepreneurs! 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).
9Entrepreneurs! Henry Ford Ford Motor Corp (cars) Created the assembly linePaid laborers a good wage
10Laissez-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?
11HANDS 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/immigrant3) Growing political pressure for change
12RAILROADS!!! (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
13Please research the following Supreme Court Cases from this era: (homework) Munn v. Illinois (1877)Wabash, St. Louis & Pacific Railway v. Illinois (1886)United States v. E.C. Knight Company (1895)In re Debs (1895)
14RAILROADS!!! (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?
15Public Pressure: ICCPublic pressure forced Congress to pass the Interstate Commerce ActCreated the ICC which regulated railroads and ended abuses like rebates.(precedent)
16Public Pressure: Sherman Late 1800’s: some business had no competition (monopoly)Public outcry was significantPoliticians passed the Sherman Antitrust Act (see vocabulary)Business combination Illegal: “in restraint of trade or commerce”US v. E.C. Knight CompanyPrecedent
17Labor RisingConditions for working people had slowly improved with timeHowever, wages were still low,unemployment was uncertain and could end suddenly.Business owners had tremendous power over employees!
19Knights of Labor Formed in 1869 - Terence Powderly Haymaker Riot ended their influence in 1886Welcome skilled, unskilled, and African-AmericansFought for broad social reforms8 hour work dayend to child laborequal opportunities for women
20American Federation of Labor AFL - Samuel Gompers1886A collection of craft unions.Fought for “bread and butter” issuesHigher wages, better hours, better working conditionsExtremely powerful with over 1,000,000 members by 1900
21Labor Conflict Describe the following events for homework: Great Railway Strike of 1877Haymaker RiotHomestead StrikePullman StrikeGive details, who - what - when - why - results?
22Great 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 strikeWorkers got very little
23Haymaker RiotHaymaker RiotLabor Rally (organized by Knights of Labor) that ended in a bomb blast7 police diedChicago1886Public blamed Knights of Labor despite the fact they had nothing to do with the violence.
24Homestead Strike Homestead Strike Union members went on strike (pay cuts) at the Carnegie steel plantHomestead, PennsylvaniaViolence ensued16 people died- fewer then 25% of the strikers got their jobs backSet the steel labor movement back 20 years
25Pullman Strike Pullman Strike Railroad workers went on strike in IllinoisTied up other rail lines.President Grover Cleveland sent in troops to end the strikeIn re Debs