Big Business and Its Leaders American History 12.3 & 12.4.

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Presentation transcript:

Big Business and Its Leaders American History 12.3 & 12.4

Big Business Corporations – a company owned by many people through shares Stock – shares Economies of Scale Development of Pools

JOHN D ROCKAFELLER

Andrew Carnagie

Andrew Carnegie Steel Tycoon Rags to riches Henry Bessemer (High quality steel cheaper) – Bessemer Process Used Vertical Integration

John D Rockefeller Standard Oil: Oil refineries Horizontal Integration: Combined firms in the same business into one large cooperation Monopoly – 90% of all oil refineries owned by Rocefeller

New Business Organizations Trusts formed in response to states making monopolies illegal – Legal arrangement allows one person to manage another persons property Holding Companies: doesn’t produce anything itself but owns stock in companies that do Investment Banking

Horizontal Integration

Early Unions Trade Unions – Usually succeeded in negotiating Industry Unions – Hated by Business leaders Blacklist – Used to punish workers who went on strike “Lockouts”

Thoughts on Unions Employer's – Viewed unions as trouble makers – Interfered with property rights Marxism – Workers should own their own labor – Seen as Un-American

Knights of Labor Use boycotts instead of strikes Supported arbitration Welcomed Women and African American

Homestead Strikes Used the Pinkertons Steel Mill owed by Andrew Carnegie

Haymarket Riot Nation wide strike for 8 hour working day Anarchist group protests shooting by police Bombing, kills 6 police officers Critics blame unions

Pullman Strikes American Railway Union (ARU) Strike on Gorge Pullman Rail Road Company Town ARU around the country support the Pullman Strikers Attached mail cars to Pullman cars Interjection: Court order ending boycott

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