Large Corporations in America

1865- 1910

Corporate Giants

• Carnegie Steel – Andrew Carnegie

• Standard Oil – John D Rockefeller

• Railroad – Cornelius Vanderbilt

Monopoly Tactics

• Vertical integration: the control of resources from the raw materials to the final product

• Horizontal integration: owning companies that made similar products, thus eliminating any competition

Robber Barons

• Term applied to the industrialists because they made huge profits at the expense of the “little guy” and used tactics that were harsh and illegal.

• Laissez-faire: our governments approach. “hands off:

Sherman Anti Trust Act

• Made it illegal to form a trust that interfered with free trade

• Gave the government limited power to regulate monopolies

• Supreme court through out most cases against corporations

Ida Tarbell

• Journalist who wrote about the illegal practices of Standard Oil, which helped bring about reform

Philanthropists

• Carnegie, Rockefeller, Vanderbilt

• Gave away millions of dollars for various causes

• University of Chicago (Rockefeller)

• Medical institute – cured yellow fever

Poor working conditions

• Dangerous

• Low wages

• Gave rise to Unions

• Unions: viewed the huge profits of the industrialists as unacceptable when the laborer made hardly enough to live on

• Conflict between corporations and the unions

Labor Unions

• Formed as a response to the actions of Corporations

Problems

• 1882 – 675 workers were killed or injured each week in job related accidents

• 6 days a week 12 hours a day

• Dirty, poor ventilated workplaces

• No vacation or sick leave

• Children worked - as young 5yrs old

• Sweat shops were the same as factories

Knights of Labor - union

• Uriah Stephens

• “An injury to one is a concern to all”

• Supported the 8 hour workday

• Equal play equal work

• 1886- 700,000 members

American Federation of Labor

• 1886

• Samuel Gompers

• AFL organized skilled workers

• Carpenters

• Plumbers

• Used STRIKE to force management to accept union demands

Effect of Unions

• 1890 -1915 the average wage of union trade workers rose from $17.50 to 24:00

• Hours per week declined from 54 to 49 hours per week.

Haymarket Riot• 1866• Striking workers at McCormick Harvester Works

in Chicago• Fight between police and workers• Six workers killed • Protest on police brutality followed• Bomb tossed into police line• 7 policemen and 4 civilians killed• Knights of Labor blamed• Union membership declined

Homestead Strike

• Striking workers at Carnegie Steel Mill

• Violence erupted between security and striking workers

• 12 people died

• Pennsylvania National Guard had to be called in

Women

• Banned from other unions

• Organized: International Ladies Garment Workers Union

• 1909 20,000 workers striked

• 1911 – fire at Triangle Shirtwaist: 142 women immigrants were killed

• Public outrage and reform resulted