Warm Up: Identify a company that you think has unfair practices (to either its workers or customers). Explain why they are able to be unfair and how this should be changed.
Feb 22, 2016
Warm Up:
Identify a company that you think has unfair practices (to either its workers or customers).
Explain why they are able to be unfair and how this should be changed.
Railroad Corruption
• The worst case was the Crédit Mobilier• Jay Gould boomed and busted railroad stock,
making profit for himself all the way along. • “Stock Watering" where railroads would
artificially talk up the companystock would increase.
Railroad Corruption
• “Pools:" competitors agreed to cooperate as if they were one company.
• Rebates were given to large companies that shipped large quantities of goods.
Interstate Commerce Act/Commission (1887)
• Outlawed Rebates and Pools
Vertical Integration
• Ex. Sears, Roebuck and Company
Horizontal Integration
Andrew Carnegie• Son of Scottish
immigrantsclassic rags-to-riches story. – Carnegie entered the steel
industry. – Carnegie's U.S. Steel Corp.
• U.S. Steel produced 1/4 of the nation's Bessemer steel.
• Carnegie made $25 million, tax free.
• Gospel of Wealth: rich had a moral duty to spread the wealth
John Rockefeller • Standard Oil Company • Used vertical integration • Controlled 90-95% of the
oil in the U.S. • “Let us prey" (on the little
companies). • Interlocking directorates
own men would be placed on the board-of-directors for "competitors.".
J.P Morgan
• Banker/Financer • Insider Trading• Disregarded Workers• Gold Speculation• J.P. Morgan bought
Carnegie Steel and built U.S. Steel into the world's first billion dollar company ($1.4 billion).
Cornelius Vanderbilt
• Railroads and Shipping
• Built Grand Central Station
• Gave money for Vanderbilt University
Sherman Anti-Trust Act
• Enacted in attempt to outlaw trusts or monopolies.– Effected Labor Unions– Didn’t become as effective until 1914
Formation of Labor Unions
• Low Wages• Unsafe Conditions• Long Hours• Management lack of concern for workers– Unions formedoften got entangled in violent
strikes
Knights of Labor
• skilled and unskilled, women and blacksonly banned "non producers"
• The Knights sought workers' cooperatives, better working conditions, and the 8 hour workday.
• Got 8 hour day in several places• BUT the Haymarket Square Incident damaged
them.
American Federation of Labor
• The AF of L was made up of skilled craftsmen, made up of small, independent unions.