New Business Culture: “The American Dream?” 3.Protestant (Puritan) “Work Ethic” Horatio Alger [100+ novels] 3.Protestant (Puritan) “Work Ethic” Horatio Alger [100+ novels] Is the idea of the “self-made man” a MYTH??
New Type of Business Entities 1.Pool 1887 Interstate Commerce Act Interstate Commerce Commission created. 2.Trust John D. Rockefeller 1.Pool 1887 Interstate Commerce Act Interstate Commerce Commission created. 2.Trust John D. Rockefeller Standard Oil Co.
Standard Oil Co.
John D. Rockefeller Rockefeller gave away $500 million Founded the University of Chicago which found cure for yellow fever Land for United Nations The Rise of Big Business
Standard Oil Trust Rockefeller was so successful at his death his personal fortune was estimated at $815,647,796 The Rise o Big Business
The Government Response 1890 Sherman Antitrust Act Outlawed any combination of companies that restrained interstate trade Was not effective against trusts Pro business courts had to interpret law The Rise of Big Business
New Type of Business Entities 2.Trust: Horizontal Integration John D. Rockefeller Merging companies that produce similar products 2.Trust: Horizontal Integration John D. Rockefeller Merging companies that produce similar products Vertical Integration: o Gustavus Swift Meat- packing o Andrew Carnegie U. S. Steel o Process where suppliers are bought out in order to control natural resources Vertical Integration: o Gustavus Swift Meat- packing o Andrew Carnegie U. S. Steel o Process where suppliers are bought out in order to control natural resources
Iron & Steel Production What information does this graph share? What do you think it means? Why does the graph change in this way?
The Reorganization of Work The Assembly Line a series of workers and machines in a factory each operating solely on one part of a whole creation. Allowed for fast production and assembly.
The ‘Bosses’ of the Senate
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. $ 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.” $ 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 Trusts 1877 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 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.
Carnegie Steel Arrive in American as a penniless Scottish immigrant Began to work to assist his family 1865 Andrew Carnegie was making $50,000 The Rise of Big Business
Carnegie Steel Entered steel business Stole Bessemer Process from Brits 1889 Established Carnegie Steel Company Controlled suppliers and competition 1899 Carnegie Steel produced more than Great Britain Carnegie Steel produced 80% of nation’s steel The Rise of Big Business
Robber Barons or Captains of Industry Carnegie once stated, “I entered this life poor and I wish to leave it the same.” Gave away $325 million = 90% of his wealth Carnegie Hall in NY City Carnegie Foundation 3,000 libraries across the US The Rise of Big Business
Edwin Drake – Ran the first successful steam engine to dig up oil Eugene Debs-Ran the American Railway Union and ran for president Christopher Sholes – Invented the Typewriter Mary “Mother” Jones – Organized mine workers to fight for better working conditions George Pullman- Railroad car owner who built a town for his workers