Robber Barons and Rebels Capitalism vs. Socialism

Chapter 17 Vocabulary  Technology/Inventors  Transcontinental Railroad (1869)  Credit Mobilier  Grange  Public Utility  Bloc  Technology/Inventors  Transcontinental Railroad (1869)  Credit Mobilier  Grange  Public Utility  Bloc

Vocabulary  Holding Company  Merger  Monopoly  Trust  Interlocking Directorate  Rebates  Robber Barons  Capitalism v. Socialism  Social Darwinism  Holding Company  Merger  Monopoly  Trust  Interlocking Directorate  Rebates  Robber Barons  Capitalism v. Socialism  Social Darwinism

New Industries  Bessemer Process tons to 15 minute  Farming - 61 hours before the civil war to produce 1 acre of wheat.  Farming - 3 hours 19 minutes by 1900  Manufactured ice enabled the transport of food and then began the meat industry  Coal (14 million tons)  Coal ( 100 million tons)  Bessemer Process tons to 15 minute  Farming - 61 hours before the civil war to produce 1 acre of wheat.  Farming - 3 hours 19 minutes by 1900  Manufactured ice enabled the transport of food and then began the meat industry  Coal (14 million tons)  Coal ( 100 million tons)

New Industries  Steel ( 1million tons)  Steel (25 million tons)  Copper (30,000 tons)  Copper ( 500,000 tons) Why did the copper industry grow?  Steel ( 1million tons)  Steel (25 million tons)  Copper (30,000 tons)  Copper ( 500,000 tons) Why did the copper industry grow?

Growth of Cities  New York between (850,000 to 4 million people  Chicago (110,00 to 2 million people  Philidelphia (650,000 to 1.5 million)  Think of the social changes this rapid movement to the city made  New York between (850,000 to 4 million people  Chicago (110,00 to 2 million people  Philidelphia (650,000 to 1.5 million)  Think of the social changes this rapid movement to the city made

Inventors or Robber Barons  Thomas Edison - Electrical Devices  Gustavus Swift - Ice cooled railway car  James Duke - Cigarette rolling maching  Andrew Carnegie - Steel  JD Rockefeller - Oil  Jay Gould - Railroad  Thomas Edison - Electrical Devices  Gustavus Swift - Ice cooled railway car  James Duke - Cigarette rolling maching  Andrew Carnegie - Steel  JD Rockefeller - Oil  Jay Gould - Railroad

The Rise to riches  Social Darwinism - The explanation why all of these big businessmen succeeded and they are living the American Dream  90 percent of the big business men came from wealthy familys. There were self made stories - Andrew Carnegie  Social Darwinism - The explanation why all of these big businessmen succeeded and they are living the American Dream  90 percent of the big business men came from wealthy familys. There were self made stories - Andrew Carnegie

The Transcontinental Railroad  The Central Pacific: spent $200,000 in bribes in Washington to receive 9 million acres of free land, $24 million in bonds, and payed $79 million to a construction that was their own  The Union Pacific moving west paid for 12 million acres, and $27 million. It created the Credit Mobilier and gave them $94 million when the cost was $44 million  Both railroads accepted subsidies from towns  The Central Pacific: spent $200,000 in bribes in Washington to receive 9 million acres of free land, $24 million in bonds, and payed $79 million to a construction that was their own  The Union Pacific moving west paid for 12 million acres, and $27 million. It created the Credit Mobilier and gave them $94 million when the cost was $44 million  Both railroads accepted subsidies from towns

JP Morgan  Started as the son of a banker who sold stocks to the railroad after the civil war  Civil War he profited buying rifles for $3.50 and selling them to the union for $22. Shoot off thumbs but profited  Escaped service in the CW for $300  Linked Railroads to banks, banks to insurance companies and controlled 100,000 miles  Started as the son of a banker who sold stocks to the railroad after the civil war  Civil War he profited buying rifles for $3.50 and selling them to the union for $22. Shoot off thumbs but profited  Escaped service in the CW for $300  Linked Railroads to banks, banks to insurance companies and controlled 100,000 miles

John D. Rockefeller  Book Keeper to Merchant  Invested in the new industry of oil  Bought his first oil refinery in 1862  1872 set up the Standard Oil Company  Secret agreements with railroad companies driving competitors out of business.  Book Keeper to Merchant  Invested in the new industry of oil  Bought his first oil refinery in 1862  1872 set up the Standard Oil Company  Secret agreements with railroad companies driving competitors out of business.

Andrew Carnegie  Started as a telegraph clerk at age 17  Secretary to the head of the Pennsylvania Railroad  Broker on Wall Street for railroads  Went to London discovered Bessemer steel process - set up his own company  Government passes tariffs to protect  $40 mIllion - Sold for $492 million  Started as a telegraph clerk at age 17  Secretary to the head of the Pennsylvania Railroad  Broker on Wall Street for railroads  Went to London discovered Bessemer steel process - set up his own company  Government passes tariffs to protect  $40 mIllion - Sold for $492 million

Mergers  Morgan bought the steel company and formed US Steel  Tariffs were passed to keep foreign steel out closing out competition and keeping steel $28 ton; working 200,000 men twelve hours a day for low wages  The banks also had interest as well as the government in these monopolies  Morgan bought the steel company and formed US Steel  Tariffs were passed to keep foreign steel out closing out competition and keeping steel $28 ton; working 200,000 men twelve hours a day for low wages  The banks also had interest as well as the government in these monopolies

What are some businesses today?  Which ones are local and which are national corporations.  Supersize me  Do big companies have interests in government today.  Do we really have the ability to have upward mobility today.  Which ones are local and which are national corporations.  Supersize me  Do big companies have interests in government today.  Do we really have the ability to have upward mobility today.

The Interstate Commerce Act  The interstate commerce act was passed to regulate railroads and other monopolies by the Federal Government  This formed a very tight bond between the government and railroads.  Although the ICC was formed it was week and could only control short runs within states.  Sherman Anti Trust Act  The interstate commerce act was passed to regulate railroads and other monopolies by the Federal Government  This formed a very tight bond between the government and railroads.  Although the ICC was formed it was week and could only control short runs within states.  Sherman Anti Trust Act

Grover Cleveland vetoes  Although the presidency switched political parties it didn’t stop the ties to big business  Grover Cleveland vetoed a bill $100,00 to help farmers because he said the government is not the parent of farmers  The same year he used the gold surplus to pay bondholders $45 million  Although the presidency switched political parties it didn’t stop the ties to big business  Grover Cleveland vetoed a bill $100,00 to help farmers because he said the government is not the parent of farmers  The same year he used the gold surplus to pay bondholders $45 million

Education mirrors industry  The industrial Rows  Bells  Developing Managers and middle people  Colleges are donated by wealth - Johns Hopkins, Conrelius Vanderbilt, James Duke, Leland Stanford, Rockefeller  The industrial Rows  Bells  Developing Managers and middle people  Colleges are donated by wealth - Johns Hopkins, Conrelius Vanderbilt, James Duke, Leland Stanford, Rockefeller

The 14th amendment  The 14th amendment protected who?  In 1886 the court did away with 230 state laws regulating big business.  It declared big corporations were people and their money was protected by due process.  19 - African Americans big corp.  The 14th amendment protected who?  In 1886 the court did away with 230 state laws regulating big business.  It declared big corporations were people and their money was protected by due process.  19 - African Americans big corp.

Popular Novels  Progress and poverty - The basis of wealth is land, and land is being monopolized, a single tax on land could help even out society  Looking Backward - The author falls asleep and wakes up in year 200 to find a socialist system - sold millions of copies  Progress and poverty - The basis of wealth is land, and land is being monopolized, a single tax on land could help even out society  Looking Backward - The author falls asleep and wakes up in year 200 to find a socialist system - sold millions of copies

Test tomorrow  Vocab and essay questions