Lesson 4 Flashcards
Q: How did Carnegie develop a new business strategy to become dominant?
A: Carnegie utilized vertical integration to acquire suppliers and horizontal integration to reduce competition.
Q: What is a trust?
A: A trust is an arrangement where two or more companies come together under a Board of Trustees, managing the enterprises as a single corporation.
Q: How are profits from a trust dispersed?
A: Profits, usually in the form of stock earnings, are distributed among the businesses that are part of the trust.
Q: What is philanthropy?
A: Philanthropy is the act of giving back to the community or aiding workers, often through charitable donations or social programs.
Q: What is an example of philanthropy?
A: Andrew Carnegie donated 90% of his fortune to various causes, and John D. Rockefeller gave away $500 million. Carnegie also funded the construction of Carnegie Hall, which is still in use today.
Q: What is the Sherman Antitrust Act?
A: The Sherman Antitrust Act actually made it illegal for companies to form trusts or monopolies that restrained trade. It was initially a weak act but was strengthened over time.
Q: How did J.P. Morgan use holding companies?
A: J.P. Morgan used holding companies to purchase stocks in other firms, thereby gaining control over industries like steel, railroads, and farm equipment.
Q: What days did steel mills operate?
A: Steel mills operated 7 days a week.
Q: How many hours did steel mill workers work in a given day?
A: Steel mill workers often worked 12 hours or more per day.
Q: What type of benefits did steel workers have?
A: Steel workers generally had no benefits, such as vacation time, sick leave, unemployment compensation, or injury reimbursement.
Q: Between 1890 and 1910, what demographic doubled in the workforce?
A: The number of female workers doubled, and the number of child workers also increased.
Q: What is the salary example of a child during this time?
A: A child could earn 27 cents for a 14-hour workday, equivalent to about $3.78 in today’s rates.
Q: What is the salary example of a woman during this time?
A: A woman could earn $267 per year, equivalent to about $7,233 in today’s rates.
Q: What is the salary example for a man during this time?
A: A man could earn $498 per year.
Q: What is the Colored National Labor Union?
A: Isaac Myers founded the Colored National Labor Union to include African Americans who were excluded from the National Labor Union.