Warm-up 9/30/2011
Land Grants Lincoln ordered the building of the transcontinental Rail Road The two companies to build it were the union and central pacific railroad companies. In order for the rail roads to gain money to build railroad the government would issue the companies land grants The companies could sell these land grants to virtually anyone at any price.
Land Grant Corruption Those in the railroads took notice how easy it was to make money off of land grants. The companies begin to bribe government officials for the grants.
Credit Mobile Scandal A construction company Credit Mobilier became a major investor in the Union Pacific Railroad. By doing so they were able to choose the construction company for the rail road. They charged a large construction fee knowing that the railroad would have to pay no matter what and they made millions
How is this relevant? Today we are talking about the rise of big business and……….
Read pages What are corporations and stock? How do they help business’s grow? What are economies of scale? What are pools? Why are they important to our study of companies at the time?
The Rise of Big Business Where there a lot of big businesses before the civil war? No! Its during this industrial period that we find the rise of industry Corporations begin to take shape during this period Corporation: An organization owned by many people but treated by law as though it were one person. Stock also develops at this period which allows people to invest in a company Why is stock important? Stock allows a company to raise money while sharing the risk.
Economies of scale With the money they raised from stocks, corporations could invest in: new technologies, hire large workforces & purchased new machinery. This greatly increased efficiency! Economies of scale: reduction in cost of a good brought about especially by increased production
Pools Many large businesses did not like competing with each other. Businesses began to come together and develop the idea of pooling. Pools: Agreements to between companies to keep prices at a certain level When taken to court though pools were hard to defend.
Read pages Who are the people that take advantage of this period of economic growth? What kind of techniques do companies us to grow during this period? What is a Monopoly? What is a trust? How are the two different?
Carnegie What was Carnegie’s background before he started his company Carnegie came to the U.S. with very little money. He slowly worked his way up to place of power in the Pennsylvania Railroad. He began to invest in companies that were part of the rail road industry
Carnegie’s efficiency idea As his wealth grew Carnegie began to trips to Europe where he found a way to make cheap steel. Using this idea Carnegie opened his own steel company, which grew strength through the use of vertical integration Vertical integration: The company owns all the different businesses that it depends on for its operation.
John D. Rockefeller What is Rockefeller known for? Rockefeller founded standard oil the largest oil refiner. Rockefeller worked at making his company efficient through horizontal integration Horizontal integration: The idea of combining firms in same business into one large corporation. In other words he swallowed up his competition.
What happens when a company takes control Monopoly: When a single company achieves control of an entire market. Why are people afraid of monopolies? The company in control can charge whatever they want. How does the Government handle monopolies? States made it illegal for companies to stock in other businesses.E END
Warm-up 10/2/ Name two inventors we have spoken about during the industrial revolution. What are they known for making? 2.Name two major business men of the industrial revolution. What successful businesses were they behind? 3. What is vertical integration? What is Horizontal integration? Why are they important to our study of companies?
Mining conditions
Manufacturing Conditions
In Class Open your book to page 428 Read What are the two types of unions emerging during this period? Why are they necessary? How did companies try and stop unions? What kind opposition did unions face?
Why do we need unions Poor working conditions. Deflation: A rise in the value of money Causes prices to fall. Builds resentment between workers and company owners
General Unions Split unions into two groups in the beginning 1. Trade Unions: consist of craft workers Craft workers: Had special training and were paid better then most workers. 2. Industrial Unions: All workers in a particular industry Which was feared more by employers? Industrial
Company opposition How did companies oppose the formation of unions? Oaths and contracts not join unions Those forming unions were black listed to keep them from being hired Lock outs: Actually keep union members out of work to keep them from working. Companies would hire other workers.
Political Opposition Overall were companies successful in stopping unions? Why? Yes Unions suffered from the aspect that they were viewed as un-American Some unions were painted as Marxists
New Union Development The Knights of Labor: Developed in 1869 The union itself did not believe in striking. There belief was that they could achieve their goals by boycotting items. They also supported arbitration Arbitration: Process in which a third party helps workers and owners reach an agreement.
STRIKE For awhile we see rising success in the knight’s strikes What was the Homestead strike and who did it involve: Owner: Carnegie, and Henry k. Flick Frick attempted to cut wages by twenty percent and locked strikers out Pinkertons and strike breakers were sent leading to a number of deaths.
Strike Who was involved in the Pullman strike and what was it about Owner George Pullman Eugene V. Debs and the American Railway Union strike to deal with the company store issue. Eventually an injunction or formal court order, is filed against the union and Debs is sent to Prison.
AFL AFL: American Federation of Labor Several trade unions come together to form it. Who was Samuel Gompers? What is a closed Shop?