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15 Cards in this Set
- Front
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Horizontal integration
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a strategy of gaining as much control over a single industry as possible, oftentimes by creating trusts and holding companies; this strategy was utilized by John D. Rockefeller and Standard Oil
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Vertical Integration
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a strategy of gaining as much control over a single industry as possible by controlling the production, marketing, and distribution of the finished product. Andrew Carnegie and U.S. Steel are the best example from the era of this approach
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"Gospel of Wealth"
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the philosophy of Andrew Carnegie who believed that wealthy industrialist had an obligation to help local communities and philanthropic organizations
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American Federation of Labor
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national labor union formed b Samuel Gompers in 1886. Original goal was to organize skilled workers by crafts.He simply wanted “more,” and sought better wages, hours, and working conditions.
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Samuel Gompers
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formed the national labor union in 1886. Goal was to organize skilled workers by crafts.He simply wanted “more,” and sought better wages, hours, and working conditions.
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Cornelius Vanderbilt
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Older eastern railroads, like the New York Central, headed by Cornelius Vanderbilt, often financed the successful western railroads. First guy to use steel on his railroads
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J. Pierpoint Morgan
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having already made a fortune in the banking industry and in Wall Street, was ready to step into the steel tubing industry, but Carnegie threatened to ruin him, so after some tense negotiation, Morgan bought Carnegie’s entire business at $400 million (this was before income tax). But Carnegie, fearing ridicule for possessing so much money, spent the rest of his life donating $350 million of it to charity, pensions, and libraries.
Meanwhile, Morgan took Carnegie’s holdings, added others, and launched the United States Steel Corporation in 1901, a company that became the world’s first billion-dollar corporation (it was capitalized at $1.4 billion). |
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United States Steel
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Morgan took Carnegie’s holdings, added others, and launched the United States Steel Corporation in 1901, a company that became the world’s first billion-dollar corporation (it was capitalized at $1.4 billion).
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Bessemer Process
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This was due to an invention that made steel-making cheaper and much more effective: the Bessemer process, which was named after an English inventor even though an American, William Kelly, had discovered it first:
Cold air blown on red-hot iron burned carbon deposits and purified it. America was one of the few nations that had a lot of coal for fuel, iron for smelting, and other essential ingredients for steel making, and thus, quickly became #1. |
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Yellow Dog Contract
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Corporations had many weapons against strikers, such as hiring strikebreakers or asking the courts to order strikers to stop striking, and if they continued, to bring in troops. Other methods included hiring “scabs” or replacements or “lockouts” to starve strikers into submission, and often, workers had to sign “ironclad oaths” or “yellow dog contracts” which banned them from joining unions.
Workers could be “blacklisted,” or put on a list and denied privileges elsewhere. |
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John D. Rockefeller
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John D. Rockefeller, ruthless and merciless, organized the Standard Oil Company of Ohio in 1882 (five years earlier, he had already controlled 95% of all the oil refineries in the country).Rockefeller crushed weaker competitors—part of the natural process according to him—but his company did produce superior oil at a cheaper price.master of “horizontal integration,” simply allied with or bought out competitors to monopolize a given market.
He used this method to form Standard Oil and control the oil industry by forcing weaker competitors to go bankrupt. |
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Andrew Carnegie
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Andrew Carnegie used a method called “vertical integration,” which meant that he bought out and controlled all aspects of an industry (in his case, he mined the iron, transported it, refined it, and turned it into steel, controlling all parts of the process).
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Trusts
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Giant, monopolistic corporations
uniting of companies to fix rates in a particular industry |
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Haymarket Riot
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In Chicago, home to about 80,000 Knights and a few hundred anarchists that advocated a violent overthrow of the American government, tensions had been building, and on May 4, 1886, Chicago police were advancing on a meeting that had been called to protest brutalities by authorities when a dynamite bomb was thrown, killing or injuring several dozen people.
Eight anarchists were rounded up yet no one could prove that they had any association with the bombing, but since they had preached incendiary doctrines, the jury sentenced five of them to death on account of conspiracy and gave the other three stiff prison terms. |
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Jay Gould
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8th worst CEO, 9th richest in US history led scams and often workers protested against his work ethic
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