THE RISE OF AMERICAN BUSINESS, INDUSTRY, AND LABOR, 1865-1920 BUSINESS ORGANIZATION: -FOR BUSINESSES TO DEVELOP, THREE THINGS WERE REQUIRED: 1. LAND: NATURAL RESOURCES (ORE, LUMBER, COAL, WATER) *RAW MATERIALS AGRICULTURAL (TOBACCO, COTTON, GRAINS, LIVESTOCK) 2. LABOR: LARGE NUMBERS OF WORKERS (URBANIZATION, IMMIGRATION, EDUCATION) 3. CAPITAL: MONEY FOR INVESTMENT, MACHINERY, AND TOOLS BUSINESS ENTITIES: -A BUSINESS OWNED BY ONE INDIVIDUAL IS CALLED A PROPRIETORSHIP (1 OWNER) -A BUSINESS OWNED BY TWO OR MORE INDIVIDUALS IS CALLED A PARTNERSHIP (2/MORE OWNERS) -A BUSINESS OWNED BY A GROUP OF INDIVIDUALS IS CALLED A CORPORATION (MANY OWNERS) CORPORATIONS ARE SET BY CHARTERS ISSUED BY THE STATE. “LEGAL PERSON” CONCEPT. COPRPRATIONS REQUIRE THE SALE OF STOCK, FOR OWNERSHIP.

CAPITAL CONCENTRATION: -CAPITALISTS ARE PEOPLE WHO INVEST MONEY IN BUSINESSES. -MANY CAPITALISTS WERE ENTREPRENEURS, WHO INVENTED, INVESTED, AND SPECULATED FOR PROFIT. -THESE CAPITALISTS BEGAN TO WORK TOGETHER BY CREATING LARGER, COMBINED COMPANIES TO MAKE MORE MONEY. THIS IS CALLED CONSOLIDATION. NEW MARKETS AND CONSUMERS: -WITH ADVANCES IN TRANSPORTATION AND URBANIZATION, MANY NEW CONSUMERS EMERGED. -MERCHANDISING BECAME THE NEW FORM OF SELLING. GOODS WERE STOCKED FOR SALE. -DEPARTMENT STORES BEGAN TO APPEAR IN THE CITIES AND LARGE TOWNS. -NEW, MAIL-ORDER, CATALOG STORES BEGAN, MAKING IT EASIER FOR MANY RURAL PEOPLE TO GET MUCH OF THE URBAN GOODS DELIVERED TO THEIR HOMES WITH THE ADVANCES IN NEW FORMS OF TRANSPORTATION.

GROWTH IN BUSINESS AND INDUSTRY: -MANY ADVANCES WERE MADE IN TRANSPORTATION AFTER THE CIVIL WAR. THESE INCLUDED: -THE TRANSCONTINENTAL RAILROAD (1869) -LOCAL TRAIN, TROLLEY, AND FERRIES. ALSO CANALS, BRIDGES, AND ROADS. -THE AUTOMOBILE “HORSELESS CARRIAGE”, MODEL-T (1908) INNOVATION THROUGH INVENTION: -MANY ADVANCES WERE MADE IN USE OF CONCRETE, IRON, GLASS, STEEL, AND WOOD. -OTHER ENERGY DISCOVERIES AND INVENTIONS INCLUDED: COAL, OIL, ELECTRICITY, PETROLEUM, GASOLINE COMMUNICATION: -THE INVENTION OF THE TELEGRAPH BY SAMUEL F. B. MORSE ALLOWED COMMUNICATION DURING THE CIVIL WAR AND RAILROAD CONSTRCTION. (MORSE CODE) -ALEXANDER GRAHAM BELL INVENTED THE TELEPHONE. BOTH THE BELL TELEPHONE COMPANY AND THE AMERICAN TELEPHONE AND TELEGAPH COMPANY (AT&T) WERE FORMED. *PATENTS WERE ISSUED TO PROTECT INVENTORS FOR A PERIOD OF YEARS.

INVENTORS AND ENTREPRENEURS: -CYRUS MCCORMICK-THE MECHANICAL REAPER (1832) -JOHN DEERE-THE IRON PLOW (1840’S) -CORNELIUS VANDERBILT-NEW YORK CENTRAL RAILROAD (1869) NY TO CHICAGO NON-STOP! -ANDREW CARNEGIE- (BESSEMER PROCESS) U.S. STEEL COPRPORATION (1870’S) -J.P. MORGAN-BANKER, WHO BOUGHT U.S. STEEL FROM ANDREW CARNEGIE (1901) -JOHN D. ROCKEFELLER-STANDARD OIL COMPANY, OWNED 90% OF REFINERIES, STANDARD OIL TRUST, THEN BECOMES A HOLDING COMPANY. -SAMUEL F.B. MORSE-THE TELEGRAPH (MORSE CODE) -THOMAS A. EDISON-ELECTRIC LIGHT BULB, PHONOGRAPH (GENERAL ELECTRIC) -GEORGE WESTINGHOUSE-ALTERNATING CURRENT (WESTINGHOUSE COMPANY) -ALEXANDER GRAHAM BELL-THE TELEPHONE (BELL COMPANIES, AT&T) -PHILIP D. ARMOUR-MEAT PACKING AND PROCESSING -CHARLES A. PILLSBURY-FLOUR MILLING, PROCESSING, AND PACKING EACH OF THESE INVENTORS OR ENTREPRENEURS CONTRIBUTED TO THE GROWTH OF AMERICAN INDUSTRY AND BUSINESS DURING THE POST-CIVIL WAR ERA, LEADING TO CONCERN BY CITIZENS, GOVERNMENT, AND OTHER NATIONS.

POLICIES OF BUSINESS AND GOVERNMENT: ??? WERE BUSINESS LEADERS LIKE VANDERBILT, CARNEGIE, AND ROCKEFELLER CONSIDERED “CAPTAINS OF INDUSTRY”, OR “ROBBER BARONS” ??? BUSINESS TACTICS: -RAILROADS USED RATE “POOLING”-FIXING PRICES OF ALL COMPETITORS AT COMMON LEVELS. -MERGERS, OR COMBINING COMPANIES, WAS A COMMON PRACTICE IN THE RAILROAD INDUSTRY. -ROCKEFELLER CONVINCED RAILROADS TO GIVE HIM REBATES, TO HELP REMOVE COMPETITORS. -HE ALSO CONVICED COMPETITORS TO INVEST IN TRUST CERTIFICATES. -HOLDING COMPANIES WERE CREATED IN THE 1890’S TO AVOID GOVERNMENT REGULATION. THEY ALLOWED COMPANIES TO CONSOLIDATE, BUT STILL OPERATE INDEPENDENTLY. *BIG BUSINESS FEARED THE GOVERNMENT WOULD BREAK UP THEIR CONTROLS OVER THE PRODUCTION AND PROFIT. MANY WANTED A MONOPOLY OVER AN INDUSTRY…

FEDERAL REGULATION: -LARGE PROFITS WERE MADE BECAUSE AMERICA WAS A FREE-ENTERPRISE SYSTEM, WITH LITTLE GOVERNMENT REGULATION. -THIS COMES FROM THE THEORY OF LAISSEZ-FAIRE (LEAVE IT ALONE), SUGGESTED BY ADAM SMITH IN HIS BOOK WEALTH OF NATIONS. -MANY PEOPLE BELIEVED IN INDIVIDUALISM. THIS IS TIED TO “SOCIAL DARWINISM”, OR THE BELIEF IN “SURVIVAL OF THE FITTEST”. -HORATIO ALGER WROTE POPULAR BOOKS ABOUT THE RAGS TO RICHES STORIES OF BOYS WHO WORKED HARD. (ANDREW CARNEGIE?) THE INTERSTATE COMMERCE ACT: (1887) -THIS WAS PASSED WITH THE INTERSTATE COMMERCE COMMISION (ICC) TO REGULATE THE RAILROAD INDUSTRY. REGULATIONS ENFORCED: -RAILROAD RATES HAD TO BE “REASONABLE AN JUST” -POOLS WERE ILLEGAL -REBATES TO FAVORED CUSTOMERS WERE ILLEGAL -SHORT HAULS COULD NOT COST LESS THAN LONG HAULS SHERMAN ANTI-TRUST ACT: (1890) -ESTABLISHED THE IDEA THAT GOVERNMENT SHOUD “BREAK-UP” TRUSTS AND MONOPOLIES. NO “…RESTRAINT OF TRADE”