1. Age of Big Business
Chapter 14 Section 3

2. Consolidation
Horizontal Integration: Combining companies that make similar products
Vertical Integration: controlling all phases of the production process

3. Creating Monopolies
Holding company: a corporation that bought out the stock of other companies
Trust: monopoly formed by combining the ownership of several companies under a board of trustees who run the separate companies like one large corporation

4. John D. Rockefeller Created 1st trust: Standard Oil Company
Controlled 90% of oil market

5. J.P. Morgan Used holding companies
Made money in finance industry & railroads

6. Andrew Carnegie
Scottish immigrant
Created Carnegie Steel

7. Robber Barons Low wages to workers Tried to eliminate competition
Charged customers high prices

8. Social Darwinism
Applied Darwin’s theories of evolution and survival of the fittest to society
Only the strongest companies/businessmen survived

9. Sherman Anti-Trust Act (1890)
Trust is illegal if it interferes with free trade
Difficult to prosecute companies