Ch 14 Sec 1-3 Gilded Age

Ch 14 Sec 2 Realizing that railroads were critical to the settlement of the West and the development of the nation, the federal government made huge land grants and loans to the railroad companies.

The Age of the Railroads Benefits Drawbacks The railroad companies built transcontinental and local lines. transformed country from collection of regions into a united nation Railroad time became the nation’s standard time The unchecked power and greed of the railroad companies led to widespread corruption and abuse of power

The Age of the Railroads Which problems did employees of the railroad companies face What was it like to live as a Pullman employee in the town of Pullman? Life-threatening working conditions, low pay, and discrimination (Chinese Exclusion Act) A clean safe environment, but too controlling, since residents had no say in the town rules

The Age of the Railroads Who was involved in Credit Mobilier, and what was the purpose of this company? In what ways did the railroad companies use their power to hurt farmers? Railroad magnates, stockholders, and federal officials in the Union Pacific Railroad siphoned off railroad profits for themselves Sold land grants to other businesses instead of settlers Fixed prices to keep farmers in debt to them

The Age of the Railroads Why didn’t the Interstate Commerce Act immediately limit the power of the railroads? Why didn’t the decision in the Munn v. Illinois case succeed in checking the power of the railroads? Ruled that a state could not set rates on interstate commerce (ICC is created) ICC was hampered by long legal battles from the railroads Supreme Court ruled that the ICC couldn’t set limits on rates

Fun Facts Ice Cream is Chinese food! It takes a drop of ocean water more than 1,000 years to circulate around the world. Check your map! Virginia extends farther west than West Virginia. The water of the Antarctica is so cold that nothing can rot there.

Big Business and Labor Ch 14 Sec 3

Industrialism Quotes “Rights and interests of the laboring man will be protected and cared for ------ not by the agitators, but by the Christian men to whom God has given control of the property interests of the country” George F. Baer President of a mining company “I regard my workers as I regard my machinery. So long as they do my work for what I choose to pay them, I keep them, getting out of them all I can” Factory Owner

Capitalism What is the difference between a “mom and pop” business and “big business”

How did it help businesses such as U.S. Steel and Andrew Carnegie? Vertical Integration What is it? How did it help businesses such as U.S. Steel and Andrew Carnegie? The process by which a company buys out all its suppliers Gave a company total power over the quality and cost of its product and helped to create Monopolies

Horizontal Integration What is it? How did it help businesses such as U.S. Steel and Andrew Carnegie? The process in which a company buys out, or merges with, its competitors Gave a company control over its competition and helped create a Monopoly

How did it help businesses such as U.S. Steel and Andrew Carnegie? Social Darwinism What is it? How did it help businesses such as U.S. Steel and Andrew Carnegie? An economic theory based on Darwin’s theory of biological evolution It asserted that free competition would ensure success or failure in business Glorified big business and tycoons Discouraged government interference with big business To fight against big business, workers created unions like An example is the AFL (for only skilled laborers)

How did it help businesses such as U.S. Steel and Andrew Carnegie? Monopoly What is it? How did it help businesses such as U.S. Steel and Andrew Carnegie? Complete control over an industry’s production, quality, wages, and prices Eliminated a company’s competition allowing it to increase profits

How did it help businesses such as U.S. Steel and Andrew Carnegie? Holding Company What is it? How did it help businesses such as U.S. Steel and Andrew Carnegie? A corporation that does nothing but buy out stock of other companies Helped get control of companies and create monopolies

How did it help businesses such as U.S. Steel and Andrew Carnegie? Trust What is it? How did it help businesses such as U.S. Steel and Andrew Carnegie? A large corporation made up of many companies that receive certificates entitling them to dividends on profits earned by all the companies combined Helped create monopolies (This is how Rockefeller gained control of Standard Oil)

How did it harm businesses such as Standard Oil and tycoons like John D. Rockefeller The perception of tycoons as “Robber Barons” Put tycoons on the defensive Turned public opinion against them and their businesses Encouraged government regulation

How did it harm businesses such as Standard Oil and tycoons like John D. Rockefeller Sherman Antitrust Act Made trusts (and monopolies) illegal in interstate and international trade Made it possible (but not easy) to prosecute companies To promote fair industrial competition

Standard Oil P.C.