1. Rise of Big Business
Ch.3 Sec.2 Cont…..

2. Big Business By 1900 Big factories dominated economy
Businesses owned vast amounts of factories, warehouses, offices, distribution centers

3. Corporations New Big businesses not possible w/o “Corporations”
Biz not owned by a single person / owned by many people
Owned by “shares” called “Stocks” Stocks
Stocks allowed for co. to raise large amounts of $$ and spread out the risk

4. Building Industry
To increase manufacturing & build Business – They Consolidated
Andrew Carnegie Co. owns all the businesses it depends on for its operation
ie – Vertical Integration

5. Vertical Integration Ex - Andrew Carnegie- U.S. Steel
When a business consolidates entire supply line of good into one business
Burger
McDonalds
All owned by McDonalds
Lettuce
Bun
Beef
Farm
Bakery
Ranch

6. Horizontal Integration
Combining many firms in the same business into a large corporation
Struggling companies would get bought out by the larger co.
John Rockefeller – owned about 90% of oil refinery business
When a company owns the entire market is called a monopoly
To preserve competition, states made monopolies & horizontal integration illegal

7. Horizontal Integration
Combining many firms in the same industry into one large corporation
J.D. Rockefeller – Standard Oil Co.
Standard Oil Co.
Big Oil Co.
Baby Oil Co.
Tiny Oil Co.

9. Working in the U.S.
Industrialization improved the standard of living for most
Wages went up an average of 50%
Most worked in dangerous conditions, breathing toxic fumes, dust, and operating heavy machinery w/o safety devices
Felt need for unions

10. Wages from 1860 - 1890 Average weekly wage for 60 hours a week:
Occupation 1860,  1870,  1880,  1890
blacksmith, 10.68, 18.24, 15.54, 16.26
carpenter,    10.92, 24.60, 16.56, 19.32
machinist,     9.48, 15.60, 13.62, 14.58
laborers,        5.88,   9.36,   8.10,   9.06

11. Cost of Living
Wheat flour — $7.14/barrel Rice — 7 cents/pound Granulated sugar — 8 cents/pound Roasting beef — 11 cents/pound Soup beef — 4 cents/pound Cheese — 13 cents/pound Eggs — 20 cents/dozen Hard wood — $6.49/cord Rent for 4 rooms — $4.45/month Room and board for men — $2.79/month Room and board for women — $1.79/month

12. Rise of Unions Working conditions not the best for employees
Major problem = No laws protecting workers rights
Early unions began to protect skilled workers
Most companies overlooked unions

13. Struggle to Organize Companies tried to break unions
Required workers to sign contracts / take oaths
Hired detectives
Lockout employees / Black list / Fired
Many confrontations developed

14. American Federation of Labor
Samuel Gompers Leader
Wanted to “Negotiate” work contracts
Fought for “Collective Bargaining Agreements”
Pushed for “Closed Shops” – hire only union workers
Promoted 8 hr work day

15. Knights of Labor - Union
1st Nationwide industrial union
Led two strikes:
Great RR Strike 1877
Pullman Strike 1894
Haymarket Riot – led to down fall of the Knights of Labor

16. Questions???????