Fighting for Profits
&
Government Imposes Regulations
By: Melissa, Sabrina, Dashaun, and Hayley
The Corporation Rises
•
In order to expand markets, investors
developed a group called corporations.
• Corporations were the perfect solutions
to expand businesses such as railroads
and mining.
• Corporations had the same rights as
individuals: it could buy & sell products
and sue in courts.
• If chose to leave the group, others could
buy out his interests.
• Access to capital or invest
money, to fund technology,
enter industries, & run large
plants across the country.
• *Important fact*
After the 1870’s, corporations
increased, causing industrial
capitalism, or the economic
free-market system centered
around industries.
Monopolies in Business
• Monopoly
was
complete
control of
a product
or service.
Cartels
• A cartel is when more
than 1 business is making
the same product and
they limit production and
prices to stay high.
• This is what corporations
did to stop competition
with other business.
• John D. Rockefeller (oil
tycoon) made deals with
railroads to make higher
profit.
Horizontal vs. Vertical
Integration
• Horizontal Integration is
bringing firms together in a
business as a whole or 1.
• Rockefeller was the first to
do this.
• Vertical Integration is
when companies reduced
their cost and charged
higher prices to
competitors.
• Andrew Carnegie,
Rockefeller, and other
businessmen did this by
taking control of businesses
that were part of the making
of the development of a
product.
Trusts
• Companies give their stock to a
trustee who puts them together in
a new business.
• The trustee is paying themselves
dividends on profits.
Government Imposes Regulation
• In 1887, the United States
Senate created the Interstate
Commerce Commission to
oversee railroad operations.
• In 1890, the senate passed the
Sherman Anti-Trust Act,
which outlawed any trust that
operated “in restraint of trade
or commerce among the
several states.”
Government Imposes Regulation
(cont.)
• The “Gospel Of Wealth” is an article written by Andrew Carnegie in
1889. It describes the responsibility of philantrohpy by the new upper
class of self-made rich.
• Philantrophy means “the caring of man” in the sense of caring for,
improving and enhancing the quality of human life.
• Interstate Commerce Act is a United States Federal Law that was
designed to regulate the railroad industry, particularly its monopolistic
practices.
People To Remember
•
John D.
Rockefeller
•
•
•
July 8, 1839 –
May 23, 1937
“Oil Tycoon”
Built his first oil
refinery near
Cleveland and
in 1870,
incorporated the
Standard Oil
Company.
• Andrew Carnegie
• November 25,
1835 – August
11, 1919
• A ScottishAmerican
industrialist who
led the
expansion of the
American Steel
Industry.
• A true “Rags to
Riches” story
People To Remember
• J. P Morgan
• April 17, 1837 – March
31, 1913
• An American financier,
banker, and
philanthropist who led
corporate finance and
industrial consolidation.
• Merged with Carnegie
Steel Company in 1901.
Cited Page
•
http://en.wikipedia.org/wiki/Andrew_Carnegie.
•
http://en.wikipedia.org/wiki/John_D._Rockefeller.
•
http://en.wikipedia.org/wiki/J._P._Morgan.
•
www.google.com.