Large Corporations in America

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 ,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 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 ,000 workers striked 1911 – fire at Triangle Shirtwaist: 142 women immigrants were killed Public outrage and reform resulted