1. The Rise of American Business, Industry, and Labor (1865 - 1920)
Civil War changed everything!
North was already industrializing (bullets, railroads, etc)
South was ruined!
(NEW SOUTH)

2. RAILROADS!!!!!

3. …most businesses were sole proprietorships (single owners).
Before the Civil War….
…most businesses were sole proprietorships (single owners).
Factories need more start-up capital($$) then a single person business.
The birth of corporations!
What is a corporation?

4. What do these terms mean? (homework)
1) Monopoly
2) Conglomerate
3) Merger
4) Trust
5) Holding Company
6) Capitalism
7) Communism
8) Entrepreneurs
9) Laissez-Faire
10) Social Darwinism
11) Robber Barons
12) Philanthropists
13) Labor Union
14) Collective Bargaining
15 Sherman Antitrust Act

5. Entrepreneurs! Andrew Carnegie John D. Rockefeller J.P Morgan
Henry Ford

6. Entrepreneurs! Andrew Carnegie
Scottish Immigrant who started working in a factory at age 12.
Invested wisely and entered the steel industry at age 38.
By 1901 sold his steel company for $250,000,000!
Gave hundreds of millions to charities (libraries)
Wrote the book: Gospel of Wealth

7. Entrepreneurs! John D. Rockefeller
Entered the oil-refining business during the Civil War.
Used ruthless means to eliminate his competition.
By 1882 his company, Standard Oil Company, controlled 90% of all American oil refining.
Created the Standard Oil Trust to control more aspects of oil production.
Gave hundreds of millions to charities.
Rockefeller Center

8. Entrepreneurs! J.P Morgan
Banker who made many loans to up and coming businesses.
Purchased and reorganized many bankrupt businesses (profit).
Bought Carnegie Steel and reorganized it into the United States Steel Corporation (the world’s largest).

9. Entrepreneurs! Henry Ford Ford Motor Corp (cars)
Created the assembly line
Paid laborers a good wage

10. Laissez-Faire (hands off)
The government largely kept “hands off” towards American business.
Businesses were booming! The economy was doing well. Foreign trade reached new heights.
Why did this change around the end of the 1800’s?

11. HANDS ON Why? 1) The economy took a turn for the worse
2) Growing criticism that big business made profits on the backs of the American poor/immigrant
3) Growing political pressure for change

12. RAILROADS!!! (again)
In the late 1800’s, railroads developed a number of business practices that hurt farmers and small businesses (pricing).
These small business lobbied to have the government change these policies.
Railroads lobbied to allow them to stay the same

13. Please research the following Supreme Court Cases from this era: (homework)
Munn v. Illinois (1877)
Wabash, St. Louis & Pacific Railway v. Illinois (1886)
United States v. E.C. Knight Company (1895)
In re Debs (1895)

14. RAILROADS!!! (again)
List several reasons why railroads were so important to so many people.
What was it about railroads? How did they effect American society?
How did railroads effect other businesses? Did railroads create a market for other businesses? Like what?

15. Public Pressure: ICC
Public pressure forced Congress to pass the Interstate Commerce Act
Created the ICC which regulated railroads and ended abuses like rebates.
(precedent)

16. Public Pressure: Sherman
Late 1800’s: some business had no competition (monopoly)
Public outcry was significant
Politicians passed the Sherman Antitrust Act (see vocabulary)
Business combination Illegal: “in restraint of trade or commerce”
US v. E.C. Knight Company
Precedent

17. Labor Rising
Conditions for working people had slowly improved with time
However, wages were still low,unemployment was uncertain and could end suddenly.
Business owners had tremendous power over employees!

18. Labor Rising
Union Tools:
Collective Bargaining
Strikes
Pickets

19. Knights of Labor Formed in 1869 - Terence Powderly
Haymaker Riot ended their influence in 1886
Welcome skilled, unskilled, and African-Americans
Fought for broad social reforms
8 hour work day
end to child labor
equal opportunities for women

20. American Federation of Labor
AFL - Samuel Gompers
1886
A collection of craft unions.
Fought for “bread and butter” issues
Higher wages, better hours, better working conditions
Extremely powerful with over 1,000,000 members by 1900

21. Labor Conflict Describe the following events for homework:
Great Railway Strike of 1877
Haymaker Riot
Homestead Strike
Pullman Strike
Give details, who - what - when - why - results?

22. Great Railway Strike of 1877
Railroad workers went on strike after several pay cuts. (several states)
President Rutherford B. Hayes sent federal troops to end the strike
Workers got very little

23. Haymaker Riot
Haymaker Riot
Labor Rally (organized by Knights of Labor) that ended in a bomb blast
7 police died
Chicago
1886
Public blamed Knights of Labor despite the fact they had nothing to do with the violence.

24. Homestead Strike Homestead Strike
Union members went on strike (pay cuts) at the Carnegie steel plant
Homestead, Pennsylvania
Violence ensued
16 people died- fewer then 25% of the strikers got their jobs back
Set the steel labor movement back 20 years

25. Pullman Strike Pullman Strike
Railroad workers went on strike in Illinois
Tied up other rail lines.
President Grover Cleveland sent in troops to end the strike
In re Debs