Period 6 1865-1900 1/29/2025 Flashcards
Why were Chinese immigrants brought in to the U.S.?
Build railroads
True or false: railroads became very successful in the U.S.
False
they became a failure because so many companies were in the market so no single company had a lot of money
What issue was prevalent among railroads during the competition and consolidation period?
Railroads were overbuilt and some were unprofitable
This led to financial instability in the industry.
What were common problems faced by railroads during this time?
Mismanagement and fraud
These issues contributed to the decline in trust and profitability.
Who was a notable speculator involved in the railroad industry?
Jay Gould
He made quick profits by selling off assets and manipulating stock values.
What tactic did speculators like Jay Gould use to inflate profits?
Watering stock
This involved inflating the value of assets and profits before selling to the public.
What railroad companies engage in to favor certain shippers?
Offered rebates and kickbacks
Such as discounts for using their company
How did the practices of railroads affect farmers? Why?
Farmers often had to pay higher prices
This was because farmers were dependent on railroads to transport their farm goods to different places. Also trains could hold more cargo.
What were ‘pools’ in the context of the railroad industry?
Competing companies agreed secretly to fix prices and share business
This practice undermined fair competition in the market.
What major event in 1893 forced ¼ of railroads into bankruptcy?
Panic of 1893
This financial crisis led to significant changes in the railroad industry.
Who took control of the railroads after the Panic of 1893?
J. Pierpont Morgan and other bankers
They consolidated the railroads to stabilize the industry.
What was the effect of eliminating competition among railroads after the Panic of 1893?
Stabilized rates and reduced debts
This consolidation helped to create a more manageable railroad system.
By 1900, what fraction of railroads was controlled by 7 giant systems?
2/3 of the railroads
This indicated a significant concentration of power in the railroad industry
What are interlocking directorates?
Same directors ran competing companies
This practice created regional railroad monopolies.
What were the Granger Laws intended to do?
Regulate rising fares on farmers
These laws aimed to protect farmers from unfair pricing by railroads.
True or False: The Granger Laws were upheld by the courts.
False
Courts overturned the Granger Laws, impacting farmers’ protections.
What does this excerpt mean?
When you reach a goal you should make a new goal and reach for it
What significant shift occurred in industrial production in the late 19th century?
The shift from textile, clothing, and leather products to heavy industry such as steel, petroleum, electric power, and industrial machinery.
This shift marks the beginning of the Second Industrial Revolution.
What industries were prominent in early factories before the late 19th century?
Textiles, clothing, and leather products.
These industries represented the primary focus of industrial production before the transition to heavy industry.
What is the term used to describe the industrial changes that occurred after the Civil War?
Second Industrial Revolution.
This period is characterized by advancements in heavy industry.
Fill in the blank: The ‘Second Industrial Revolution’ resulted in heavy industry such as _______.
steel, petroleum, electric power, and industrial machinery.
These industries are crucial components of the Second Industrial Revolution.
Who discovered the Bessemer Process?
Henry Bessemer in England and William Kelly in the U.S.
The Bessemer Process revolutionized steel production.
What region became the leading steel producer?
Great Lakes Region
This area became a hub for steel manufacturing due to its resources and transportation.
Who was Andrew Carnegie?
A poor Scottish immigrant who became the superintendent of a Pennsylvania Railroad and later a steel manufacturer in Pittsburgh.
Carnegie is known for his significant contributions to the steel industry.
What business strategy did Andrew Carnegie employ?
Vertical integration
This strategy involves a company controlling every stage of the industrial process.
What did Andrew Carnegie do with his company?
He sold it to J.P. Morgan for $400 million.
This sale marked a significant moment in American industrial history.
What was the significance of the U.S. Steel Company?
It became the largest empire in the world, controlling 3/5 of the nation’s steel.
This consolidation had a major impact on the steel industry and the American economy.
What’s vertical integration?
To control all parts of your product needed to make the product. This makes you not dependent on anyone else for your products success
What does this excerpt mean?
Don’t spoil you children because then they won’t learn and won’t do anything useful and in fact makes their children worse
Who drilled the first U.S. oil well and when?
Edwin Drake in 1859
The well was located in Pennsylvania.
By what year did John D. Rockefeller control most of the nation’s oil refineries?
1863
What strategy did John D. Rockefeller use to eliminate competition?
Applied latest technologies and more efficient practices
What percentage of the oil refinery business did Rockefeller control by 1881?
90%
What was the name of Rockefeller’s company?
Standard Oil
What type of business structure did Standard Oil form to consolidate its competitors?
Trust
What is the term for the business strategy where a company buys out its competitors?
Horizontal integration
What did dominant companies in other industries do following Rockefeller’s example?
Organized trusts
What and who earned the title of ‘Robber Barons’?
Greed, ruthlessness, unethical business practices, unscrupulous tactics, lack of concern for workers, customers, or competitors.
This title was given to Rockefeller Carnegie and Morgan
What is a key characteristic of ‘Captains of Industry’?
They were entrepreneurs motivated by more than just money.
In addition to being entrepreneurs, what did ‘Captains of Industry’ contribute to society?
They were philanthropists who made significant contributions.
True or False: ‘Robber Barons’ were known for their ethical business practices.
False
Fill in the blank: The term ‘Robber Barons’ is often associated with _______ and unscrupulous tactics.
[greed]
What contrasting view exists regarding the men labeled as ‘Robber Barons’?
Some viewed them as deserving respect for being ‘Captains of Industry’.
What’s horizontal integration?
Taking control of all the competition of your product
