business find loopholes
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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 - PowerPoint PPT PresentationTRANSCRIPT
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!