History: Big Business + Labor Unions Flashcards
Carnegie
Used two ways to produce steel (Bessemer process and Open Hearth), used vertical integration, gospel of wealth
Carnegie’s Gospel of Wealth
What to do with your wealth- 1) leave to family when die 2) give to public when die 3) distribute during lifetime
Vertical Integration
Company buys out all of it’s suppliers
Rockefeller
Founder and chairman of Standard Oil (1890, 90% of oil refinery business in US), used vertical integration and horizontal integration, grouped his companies into a trust (a group of corporations that unite in order to reduce competition and control prices in a business or industry) to try to control oil production and prices(monopoly)
Rockefeller’s tactics
Gave a rebate on railroads that carried his oil
Rebate
A partial refund on a product
Stanford
Sold mining equipment to miners. Helped found the California Central Pacific railroad
Vanderbilt
Largest railroad tycoon in Eastern US. Used horizontal integration
Horizontal integration
Buying out or merging with your competitors
Morgan
Morganization-taking over troubled businesses to reorganize them.
Social Darwinism
Survival of the fittest
Monopoly
A company that controls all production and sales of a certain good…only provider of a certain good(commodity)and trusts
Transcontinental railroad
Omaha, Nebraska to Sacramento, California, completed in 1869. Built by Chinese immigrants
Sherman Antitrust Act
Made trusts(and monopolies) illegal and interstate and international trade. Made it possible (but not easy) to prosecute companies
Sholes
Invented typewriter
Graham Bell
Invented telephone
Westinghouse
Invented air brake
Swift
Invented refrigerated railcar
Wilbur and Orville Wright
Invented airplane
Henry Ford
Invented the use of mass production; the use of interchangeable parts and assembly lines to make large quantities of identical goods
Tariff
Tax on imports
Interstate Commerce Act
Regulate trade threat crosses state lines
