Chapter 14 Flashcards
Edwin L. Drake
-successfully used a steam engine to drill for oil near Titusville, Pennsylvania, that removing oil from beneath the earth’s surface became practical.
- oil boom spread to Kentucky, Ohio, Illinois, Indiana, Texas.
-Petroleum-refining industries arose in Cleveland and Pittsburgh as entrepreneurs
rushed to transform the oil into kerosene
Bessemer process
– A method for making steel by blasting air through molten iron to remove impurities; revolutionized steel production.
Thomas Edison
-invented the lightbulb and electric power
-homes and workspaces brighter and longer
Christopher Sholes
-invented the typewriter
-open jobs for women
Alexander Graham Bell
-invented the telephone
-nation communication
Transcontinental railroad
Completed in 1869, it connected the East and West coasts, spurring trade and settlement.
George M. Pullman
-Built a factory town for his workers who made luxury railcars
-after criticized for harsh control.
Crédit Mobilier
-Crédit Mobilier of America was a construction company created in 1864 by executives of the Union Pacific Railroad.
-shell company—created to make money off building the railroad
-secretly owned by the same people who ran Union Pacific.
Interstate Commerce (Act) Commission
First federal law to regulate private industry (railroads); created the ICC to oversee it.
-Ensure railroad rates were “reasonable and just.”
-Stop rate discrimination (charging different customers different prices for the same service).
-Prohibit secret rebates and pooling agreements (colluding to fix prices).
Andrew Carnegie
ex. of vertical integration user
Vertical integration
a process in which a businessman buys out his suppliers in order to control the raw materials and transportation systems
-purpose: can reduce prices b/c companies dont’ need to pay other companies for supply
Horizontal integration
process to buy out competing producers
-purpose: able to raise prices b/c no other competitors are dominating
Social darwinism
-belief that only the strongest businessmen survive
-individuals of a species flourish and pass their traits along to the next generation while other do not
Monopoly
complete control over its industry through production, wages, and prices
John D. Rockefeller
ex. of horizontal integration
Standard Oil Company
ex. of company that was in use of trust’s
-Rockefeller’s oil company
JP Morgan
-finance and banking industry
-ex. of interlocking directorates where he could sit on the boards of other companies
Trust
a legal arrangement where the stock (ownership) of several companies is transferred to a trustee who manages the companies as a single entity
Sherman Antitrust Act
-Made it illegal to form trusts or monopolies that restrained trade or reduced competition.
-The law said that any “contract, combination, or conspiracy” in restraint of trade was against the law.
-Gave the federal government power to break up big businesses that were too powerful or unfair
-This hurt small businesses, raised prices for consumers, and reduced fair competition.
Americans and politicians were demanding government action against powerful monopolies.
National Labor Union
One of the first labor unions; aimed to improve working conditions and wages.
American Federation of Labor
group that focused on collective bargaining or negotiation between representatives of labor and management to reach written agreements on wages, hours, and working conditions
Industrial Workers of the World
-a group of radical unionists and socialists in Chicago
-gave dignity and a sense of solidarity to unskilled workers
Haymarket Square Riot
A labor protest in Chicago that turned violent; hurt the labor movement’s image.
Homestead Strike
A steelworker strike at Carnegie’s plant; ended in violence and defeat for the union.
