1. I will analyze the rise of big business in America.
Big Business and Labor
I will analyze the rise of big business in America.

2. Create notes on the following topics using pages 241-244:
Andrew Carnegie
Carnegie’s Business Strategies
Vertical Integration
Horizontal Integration
Social Darwinism
John D. Rockefeller
Trusts
Holding Companies
Monopolies
Sherman Anti-trust Act
Cornell Notes
Topic- Big Business and Labor
Essential Question: How did tycoons consolidate and create the country's largest companies?

3. Andrew Carnegie Born in Scotland to penniless parents
Immigrated to the U.S. in 1848 (12 years Old)
Worked as superintendent of the Pennsylvania Railroad
His boss gave he the opportunity to buy stock.
One of the first moguls to make his own fortune
Made his money by going in into the Steel industry and put the Bessemer process in action.
By 1899, Carnegie’s factories made more steel than all of Great Britain.

4. New Business Organization
Sole-Proprietorship
New Business organization:
Corporation- a company sells stock or pieces of ownership in a company, investors buy stock which entitles them to a share in the profit
Owners of stock- have limited liability, they are not personally responsible for loses in the business and can not lose more than their investment
Companies incorporate to eliminate liability, raise money from sale of stock
Spurs the growth of corporations and the middle class
Dividend- a return on profits, paid to stock holder

5. Carnegie’s Business Strategies
Carnegie searches for ways to make better products more cheaply
Incorporated new machinery and an accounting system to track costs.
Hires talented staff
offers company stock to employees
promotes competition among assistants

6. Vertical and Horizontal Integration
Horizontal Integration: expansion of one corporation or owner takes over other businesses in and industry, example Standard Oil- forces out of business other oil companies.
Vertical Integration: form of business expansion where one industry controls aspects of the business, raw materials, to the distributor example: Carnegie began with steel mills, then railroads, coal mines, iron mines, and distributor of

10. Principles of Social Darwinism
Darwin’s theory of biological evolution: the best-adapted survive
Social Darwinism, or social evolution, based on Darwin’s theory
Strongest companies and individuals will survive
Economists use Social Darwinism to justify doctrine of laissez faire
Laissez faire economics- Market Place should not be regulated by the government
Success and failure of business were governed by natural law and no regulation was needed.

11. A New Definition of Success
Idea of survival and success of the most capable appeals to wealthy- because they were successful
4000 New Millionairs
Notion of individual responsibility in line with Protestant ethic
See riches as sign of God’s favor
Poor must be lazy must be inferior

12. Growth and Consolidation
Businesses try to control industry with mergers— buy out stock from competitors
Buy all other companies led to monopolies—
control
production
wages
prices
Holding companies buy all the stock of other companies
Holding Company: trust or corporation that buys stock or owns businesses in other industries, oil refinery owns a railroad.

13. Trusts and Holding Companies
Holding Company: trust or corporation that buys stock or owns businesses in other industries, oil refinery owns a railroad.
A corporation that does nothing but buy out the stock of other companies
Trust: A large corporation made up of many companies that receive certificates entitling them to dividends on profits earned by all the companies combined.
transfer stocks to a group of trustees, in exchange for shares in the trust itself
Both helped to create monopolies

14. John D. Rockefeller Forms Trust Founds Standard Oil
Refines oil into Kerosene
Bought out all competitors in Oil Refining
Refined 90% of country’s oil
Rockefeller profits by paying low wages, underselling others
- when controls market, raises prices
• Critics call industrialists robber barons
- industrialists also become philanthropists

16. Rockefeller, cont. Over One Billion Given
At death, gave over one billion dollars in philanthropy
University of Chicago - $180 million
Arts, medicine, black Baptist churches, etc.

17. Major gifts given by Rockefeller by his death in 1937:
American Baptist Foreign Mission Society $6,845,688
American Baptist Home Mission Society $6,994,831
American Baptist Missionary Society $1,902,132
General Education Board $129,209,167
Laura Spelman Rockefeller Memorial $73,985,313
Rockefeller Foundation $182,851,480
Rockefeller Institute for Medical Research $59,931,891
University of Chicago $34,708,375
Yale University $1,001,000
YMCA $2,295,580
TOTAL $506,816,041

19. “There is a great responsibility resting upon the possessors of wealth, and I believe there is on the part of many a growing appreciation of that responsibility.”
-John D. Rockefeller

20. “It will be a great mistake for the community to shoot the millionaires, for they are the bees that make the most honey, and contribute most to the hive even after they have gorged themselves full.”
-Andrew Carnegie

22. Sherman Antitrust Act
• Government thinks expanding corporations stifle free competition
• Sherman Antitrust Act: trust illegal if interferes with free trade
• Prosecuting companies difficult; government stops enforcing act

23. Business Boom Bypasses the South
South recovering from Civil War, hindered by lack of capital
North owns 90% of stock in RR, most profitable Southern businesses
Business problems: high transport cost, tariffs, few skilled workers

25. DOL
In a 7 sentence constructed response, explain how big business took over America. Be sure to include details on the following:
Andre Carnegie
John D. Rockefeller
Horizontal Integration
Vertical Integration
Monopolies
Trusts
Holding Companies

26. Big Business…was it good for America?
I will analyze to what extent big business was for America.

27. Stations Activity Instructions
Create a T-Chart (Full 2 Pages)
Positives and Negatives of Big Business
For each document your analyze, determine what that document displays as positive or negative aspects of Big Business.
In complete sentences, add those positives and negatives to your t-chart.
Remember that you do not get the documents to keep, so be sure to include the source and other key information.
Purpose: The purpose of this activity is to gain a deeper understanding for the industrial era by closely reading primary and secondary source documents located at various stations. Each station is organized around a unifying theme and includes a series of documents that provide a window into the era.

29. DOL
In a OER, justify to what extent was the rise of big business good for America.
Be sure to include a strong thesis and key details from the documents.

31. Dynamo
Dynamos and Generators convert mechanical rotation into electricpower. Dynamo - a device that makes direct current electric power using electromagnetism. It is also known as a generator, however the term generator normally refers to an "alternator" which creates AC power

32. How does this document prove that the Industrial leaders were captains of industry or Robber Barons?

36. Homework due Next Week DBQ- Due Wednesday OER- Due Tuesday
Should the American leaders of the Gilded Age (Industrial Revolution) be remembered as Robber Barons or Captains of Industry?
Justify to what extent was the rise of big business good for America.