business find loopholes

Vertical Integration – owns all businesses for which it depends on

Carnegie needed – iron, limestone, coal, ships and trains – He bought them all

Horizontal integration – buyout competing companies , particularly w/ OIL refineries

-buy out an entire market - monopoly-US passed laws to make it illegal

Holding Companies – does not produce anything-owns stocks of companies that do

-essentially merging

BUSINESS FIND LOOPHOLES

U. S. CORPORATE MERGERS

Explain the concepts of vertical integration and horizontal integration. List a historical figure for each business

practice.

BELL RINGER 8/29

NEW FINANCIAL BUSINESSMANThe Broker:

J. Pierpont Morgan

WALL STREET – 1867 & 1900

THE REORGANIZATION OF WORK

Frederick W. TaylorThe Principles of Scientific Management (1911)

THE REORGANIZATION OF WORK

The Assembly Line

% OF BILLIONAIRES IN 1900

% OF BILLIONAIRES IN 1918

THE PROTECTORS OF OUR INDUSTRIES

THE ‘ROBBER BARONS’ OF THE PAST

CORNELIUS [“COMMODORE”] VANDERBILT

Can’t I do what I want with my money?

WILLIAM VANDERBILT

$ The public be damned!

$ What do I care about the law? H’aint I got the power?

THE GOSPEL OF WEALTH:

RELIGION IN THE ERA OF INDUSTRIALIZATION

Russell H. Conwell

$ Wealth no longer looked upon as bad.

$ Viewed as a sign of God’s approval.

$ Christian duty to accumulate wealth.

$ Should not help the poor.

“ON WEALTH”

Andrew Carnegie

$ The Anglo-Saxon race is superior.

$ “Gospel of Wealth” (1901).

$ Inequality is inevitable and good.

$ Wealthy should act as “trustees” for their “poorer brethren.”

REGULATING THE TRUSTS1877 Munn. v. IL

1886 Wabash, St. Louis & Pacific Railroad Company v. IL

1890 Sherman Antitrust Act in “restraint of trade”

“rule of reason” loophole

1895 US v. E. C. Knight Co.

BELL RINGER 9/3/2013

What is this political cartoon depicting?

LABOR AND UNIONSDURING INDUSTRIALIZATION

• Worker’s wages rose 50% from 1860 to 1890• Still only 22cents/hour• 59 hours/week

• Deflation - rise in the value of money• Causes prices to fall• Buying power goes up

Trade unions – craft workersApprox. 32 nat’l TU’s by 1873

Industrial Unions- factory unionsBusiness’s hated unions

LABOR UNIONS

Activity: Observe the following photographs and identify the different

impacts industrialization on labor. While viewing each photograph think about the

following:Who is doing the work?What are the hazards?

What type of work are they doing? Would they need training? (skilled vs. unskilled)Think about these questions when you are

looking at the pictures!What was it like to live during this time

period?

WORKING CONDITIONS- WHAT DO YOU SEE?

EVERY YEAR APPROXIMATELY 200 MINERS PER MINE DIED. HERE IS AN EXAMPLE OF A CEMETERY WHERE THE

INDUSTRY THAT MAY HAVE PUT THEM THERE IN THE BACKGROUND.

A GROUP OF MINERS POSE FOR A PICTURE……. 2000 FEET UNDERGROUND!!!!! THAT IS ALMOST ½ OF A MILE!

3 miners waiting to use the primitive elevator to lower them into the mining shaft

for a days work!

How is Big Business treating its workers according to the picture?

Children stand on the machine while it is in motion!!!!

HERE IS A SIX YEAR OLD GIRL WORKING IN A COTTON MILL

LOOK CAREFULLY, WHAT IS MISSING?

DAYDREAMING……. WHAT IS SHE THINKING ABOUT?

WHAT OCCUPATIONAL (JOB) HAZARDS CAN YOU FIND IN THIS PICTURE?

A candle would be placed into his hat to provide light while working in the mines!

THE TALLER BOY STANDING TO THE RIGHT OVERSEES THE BREAKER BOYS WHO SEPARATE THE COAL FROM THE STONES DURING MINING. THE MACHINE USED IS

MOVING QUICKLY AND THEY ARE NOT ALLOWED TO WEAR GLOVES! WHY MIGHT THIS BE DANGEROUS?

WOMEN IN THE WORKPLACE

MOM AND CHILDREN WORKING TOGETHER IN

THE SEAFOOD INDUSTRY!

WOMEN SEWING IN A GARMENT FACTORY.

WOMEN CANNING FRUITS IN ORDER TO PRESERVE THEM!

WORKERS PUT SPOKES ON THE WHEELS OF A FUTURE

CAR.

FINISHED PRODUCT!- A CAR ROLES OFF OF THE END OF AN ASSEMBLY LINE!

URBANIZATION, GROWTH OF CITIES AND LIVING CONDITIONS- WHAT DO YOU SEE?

TENEMENT- HOUSE SLUMS- VERY CROWDED HOUSING

FOR WORKERS AND FAMILIES DURING

INDUSTRIALIZATION. CITIES WERE COVERED

WITH THIS KIND OF HOUSING!

INSIDE A TENEMENT HOUSE!

ANOTHER VIEW OF A TENEMENT HOUSING

COMPLEX!

=founded by Samuel Gompers=made up of skilled workers who had belonged to national

trade unions-gain better working conditions

-higher pay & shorter hours-favored the use of strikes

-1900 AFL = leading union in the US

THE AMERICAN FEDERATION OF LABOR (AFL)

The great Railroad Strike of 1877 began

on July 16, when railroad workers for the Baltimore and

Ohio Railroad staged a spontaneous strike

after yet another wage cut. After

President Rutherford Hayes sent federal

troops to West Virginia to save the

nation from “insurrection,” the

strike spread across the nation.

A picture of burned railroad cars during

the mass strike

THE GREAT RAILROAD STRIKE OF 1877

Management vs. Labor

“Tools” of Management

“Tools” of Labor

“scabs” P. R. campaign Pinkertons lockout blacklisting yellow-dog

contracts court injunctions open shop

boycotts sympathy

demonstrations informational

picketing closed shops organized

strikes “wildcat” strikes

A Striker Confronts a SCAB!

Knights of Labor

Terence V. Powderly

An injury to one is the concern of all!

Knights of Labor

Knights of Labor trade card

Goals of the Knights of Laborù Eight-hour workday.

ù Workers’ cooperatives.ù Worker-owned factories.ù Abolition of child and prison labor.ù Increased circulation of greenbacks.ù Equal pay for men and women.ù Safety codes in the workplace.ù Prohibition of contract foreign labor.ù Abolition of the National Bank.

The Great Railroad Strike of 1877

The Great Railroad Strike of 1877

80,0000 railroad workers walked off100 people died

Over $10 million in RR property damage

GREAT RAILROAD STRIKE OF 1877

Haymarket Riot (1886)

McCormick Harvesting Machine Co.

8 hour workday70,000 people went on strike

100 people injured8 men convicted – 4 executedUnions gaining bad reputation

HAYMARKET RIOT (CHICAGO)

The American Federation

of Labor: 1886

Samuel Gompers

How the AF of L Would Help the

Workersù Catered to the skilled worker.ù Represented workers in matters of

national legislation.ù Maintained a national strike fund.ù Evangelized the cause of unionism.ù Prevented disputes among the many

craft unions.ù Mediated disputes between

management and labor.ù Pushed for closed shops.

Homestead Steel Strike

(1892)

The Amalgamated Association of

Iron & Steel Workers

Homestead Steel Works

Big Corporate Profits!

A “Compa

nyTown”:Pullman

, IL

Pullman Cars

A Pullman porter

The Pullman Strike of 1894

The Pullman Strike of 1894

Government by injunction!