1. Monopolies
ESWBAT: Draw conclusions regarding 3 effects monopolies had on business in the u.s. in the early 1900s by analyzing and discussing in groups documents depicting the Companies power.
Do now: After watching the video clip think and jot down possible positive and negatives you think to having monopolies in the u.s.

2. Capitalism aka “Free Enterprise System”
Businesses are owned by private individuals
2 types of businesses
Private & Corporations
Business owners decide
What to make
How much to produce
What to charge
Where to sell items

3. Steel Industry Steel much stronger than iron
Bessemer Process made steel affordable
Mostly used for RR tracks and skyscrapers.
Pittsburgh became the steel capital.
Caused environmental problems.

4. Andrew Carnegie Bought out competition
Had Vertical Integration of steel
Able to charge cheaper prices
Believed in the “Gospel of Wealth”

5. Oil Industry John D. Rockefeller
Bought out competition
Created the Standard Oil Company
Eventually led to a monopoly of the oil industry

6. Are trusts/monopolies good or bad?
Competition ruined business
Put people out of work
Giant businesses brought lower prices to consumers
Eliminated competition
High prices/poor products
Few rich & many poor

7. Banks + Corporations What did J.P Morgan do?
Big factories were replacing small town factories (cheaper prices)
Railroad boom helped distribute goods nationally
Big factories needed capital ($) to cover their costs
Created corporations (business owned by investors) See next slide
Banks loaned businesses $

8. Private v. Corporations
One person
Controls all finances
High risk/high reward
Corporation
Group of people
Sell stocks (called shares)
Pay dividends to investors

9. Corporation Business owned by investors
Investors buy stocks (small share of the company)
Investors hope to receive dividends (only if the company is doing well)
Company uses $ from investors to run the company
Corporations have less risk than private business

10. Word Definition Paraphrase Network System of connected railroad lines.
Gauge
Width of a train track
Corporation
Business that is owned by investors
Stock
Share of ownership in a corporation
Dividend
Share of a corporations profit
Trust
Group of corporations run by a single board of directors
Monopoly
One company has control over an entire industry
Patent
License for a new invention
Sweatshop
Workplace where people work in poor condition for low pay
Sherman Anti-Trust Act
1890 – law banned trusts and monopolies in the US

11. VERTICAL AND HORIZONTAL INTEGRATION
Vertical Integration You control all phases of production from the raw material to the finished product
Coke fields
Iron ore deposits
Steel mills
Ships
Railroads
purchased by Carnegie
Coke fields
Iron ore deposits
Steel mills
purchased by Carnegie
Coke fields
Iron ore deposits
Steel mills
Ships
purchased by Carnegie
Coke fields
Iron ore deposits
purchased by Carnegie
Coke fields
purchased by Carnegie
Horizontal Integration Buy out your competition until you have control of a single area of industry
MONOPOLY

14. Sherman Anti-Trust Act
Passed in 1890
Outlawed all trusts and monopolies
Difficult to prove

15. Changes in Daily Life Life in the 1860s Life in the 1900s
No indoor electric lights
No refrigeration
No indoor plumbing
Kerosene or wood to heat
Wood stoves to cook with
Horse and buggy
In 1860, most mail from the East Coast took ten days to reach the Midwest and three weeks to get to the West Coast.
A letter from Europe to a person on the frontier could take several months to reach its destination.
Life in the 1900s
US Govt issued 500,000 patents—electricity
Refrigerated railroad cars
Sewer systems and sanitation
Increased productivity made live easier and comfortable.
Power stations, electricity for lamps, fans, printing presses, appliances, typewriters, etc.
New York to San Francisco to 10 days using railroad.
1.5 million telephones in use all over the country
Western Union Telegraph was sending thousands of messages daily throughout the country.