1. The Rise of Big Business

2. Horizontal Integration
Corporations
Complete control of a product or service
Monopolies
Businesses making the same product limit the production, keeping prices high
Cartels
Horizontal Integration
Consolidating many firms into the same business
Stock is assigned to a board of trustees, who then combines the different businesses into a new organization
Trust
Vertical Integration
System of gaining control of many different businesses that make up all the different phases of production

3. Debates about Big Business
Robber Barons? – some business leaders had capacity to swindle the poor
Captains of Industry? – business leaders can help serve the nation
The rise of big business provides jobs
Some business leaders help establish museums, universities and libraries
Social Darwinism – the theory that only the strongest in society survive

4. Railroad industry controls economy
Interstate Commerce Commission (ICC) created in 1887
ICC begins to monitor railroad operations within the states
Congress begins to investigate unfair business practices
Senate passes the Sherman Anti-Trust Act in 1890

5. Important Definitions
Interstate Commerce Act (1887)
First federal agency monitoring business operations, to oversee interstate railroad procedures
Sherman Anti-Trust Act (1890)
Law banning any trust that restrained interstate trade or commerce (often used against labor unions)

6. Labor Unions

7. American Federation of Labor International Workers of the World
Knights of Labor
American Federation of Labor
International Workers of the World
Founder/Date
1869 – Uriah Stephens
1900 – Samuel Gompers
1905 – “Big Bill” Haywood
Members
Skilled and unskilled
Skilled workers
migrant workers, miners, lumber, textile, African Americans, Hispanic
Goals
Improve working conditions, eliminated child labor
Same as Knights of Labor
Overthrow capitalism
Successes
1885 – forced Jay Gould to give up wage cuts – membership rose to 700, 000
1909 – “Uprising of 30,000” - women walked off the job
1912 – 20,000 workers on strike against textile mill in Massachusetts
Problems
As strikes became more violent, popularity dropped
Very radical, scared people off

8. Haymarket Square (1886) Demonstrations for an 8 hour workday
Someone threw a bomb – killed a policeman
8 anarchists tried for murder, 4 executed

9. Union on strike in response to a cut in wages
Homestead Strike (1892)
Union on strike in response to a cut in wages
Pinkertons (private police force) brought in to end the strike
Several strikers killed
Strike lasts two weeks

10. Pullman Strike (1893)
Pullman Railroad Car Company laid off workers, reduced wages by 25%
Workers went on strike
Mail delivery halted
Federal government had to break up strike, jailed leader Eugene Debs

11. Weapons of Organized Labor
Strikes – work stoppage intended to force an employer to meet certain demands
Sitdown strike: labor protest where workers stop working but don’t leave
Wildcat strike: going on strike without union permission
Sympathy strike: groups go on strike in sympathy with another union
Jursidictional strike: only certain groups go on strike, ex. Carpenters or artists union

12. Picketing: holding signs (without sticks) in protest of management
Boycotts: refusal to buy a certain product or to use a service
Union Label: buying only union made goods
Closed Shop: workplace open only to union members
Slow Down: when workers slowdown on purpose
Sick Call: when all workers call in sick on a certain day

13. Weapons of Management
Open Shop: union membership is an option, but not required
Lockouts: when employers lockout employees from a workplace
Blacklist: list containing names of people who shouldn’t be hired
Injunctions: court order prohibiting a certain activity
“Yellow-Dog Contract”: contract where an employee promises not to join a union
Strikebreakers: people who cross a picket line
Welfare Capitalism: approach to labor relations where companies meet some of their workers needs without the union asking for it – this prevents strikes and keeps workers happy