1. Big Business and Labor Ch 6, Sec 3

2. 1.Where was Andrew Carnegie originally from? Scotland He came to the U.S. in 1848, at age 12 2. In 1873, Andrew Carnegie—having prospered in a railroad company—entered what industry? The Steel Industry

3. 3. By 1899, the Carnegie Steel Company manufactured more steel than what? All of the steel mills in Great Britain 4. Carnegie engaged in vertical integration. What is that? The ownership of sources of supplies that are essential in the manufacture of the final product For example, Carnegie not only owned steel mills, but also sources of iron ore, coal, and railroad lines.

4. 5. What is horizontal integration? The process of buying out and owning sources of business competition. For example, Carnegie sought to buy steel companies that competed against him. 6. Upon the sale of his business in 1901, Carnegie controlled most of what in the U.S.? The Steel Industry

5. 7. What was Social Darwinism? A philosophy in which the principles of Charles Darwin’s Theory of Evolution are applied to human society In evolutionary theory, the species that survive and thrive are those that adapt to their environment, thus you have the “survival of the fittest.” In Social Darwinism, the fittest members of human society can and should prosper. Those who fail are less fit. Social Darwinists tended to believe that society should let nature take its course and weed out the unfit. Social Darwinists tended to believe that government should not regulate markets, and businesses should be allowed to do largely as they please.

6. 8. According to Social Darwinism, material riches were a sign of what? One’s fitness and personal virtue Some even said it was a sign of God’s favor 9. According to Social Darwinism, the poor should be viewed how? As inferior to the successful As getting what they deserved

7. 10. What is a corporate merger? A situation when one business buys out and combines with another business 11. Once a situation in created in which one business controls an entire industry, you have a what? A monopoly Absolute monopolies were rare, but near monopolies were not in the late 1800s and early 1900s.

8. 12. What is a Holding Company? A company that does nothing but own other companies through the ownership of company stock. 13. By the way, who “owns” a corporation? The people or businesses who own the shares of stock of the company. Whoever controls a majority of the stock controls the company. In some situations, on one person or business owns a majority of the stock; therefore, a combination of shareholders must control the company

9. 14. Who bought Carnegie Steel in 1901? U.S. Steel U.S. Steel became the world’s largest business 15. Who led U.S. Steel? J.P. Morgan, a banker 16. Who created the Standard Oil Company? John D. Rockefeller