1. Ch 14 Sec 1-3
Gilded Age

2. 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.

3. 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

4. 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

5. 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

6. 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

7. 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.

8. Big Business and Labor
Ch 14 Sec 3

9. 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

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

11. 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

12. 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

13. 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)

14. 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

15. 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

16. 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)

17. 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

18. 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

19. Standard Oil P.C.