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TT # 18
RISE OF BIG BUSINESS 1870-1900
| Question | Answer |
|---|---|
| THOMAS A. EDISON | Probably the most versatile inventor in American History. Edison recieved thousands of patents for his inventions. Some of his most famous inventions are the PHONOGRAPH and the INCANDESCENT LIGHT. |
| ALEXANDER G. BELL | Teacher of the deaf, invented the TELEPHONE. |
| BIG FOUR | Four multimillionaires who monopolized the railroads in California. They were: LELAND STANFORD COLIS HUNTINGTION CHARLES CROCKER MARK HOPKINS railroad tycoons |
| UNION AND CENTRAL PACIFIC | Two of the many railroads owned by the Big Four of California. They were operated by Grenville Dodge and were later sold to the Big Four. |
| JAMES G. HILL, GREAT NOTHERN RAILROAD | Only railroad builder who built a railroad without government subsidies. His railroad ran from Duluth, Minnesota, on Lake superior to the port of Seattle, Washington and was called the Great Northern Railroad. |
| CORNELIUS VANDERBILT, NEW YORK CENTRAL | Most prominent multimillionaire in the East. He controlled most of the Eastern Railroads and the name of his railroad was the NEW YORK CENTRAL |
| JOHN D. ROCKEFELLER, STANDARD OIL | Started out with an oil refinery in Pittsburgh & turned it into an oil company with a monopoly on 90% of American oil. He practiced horizontal consolidation by controlling the refineries only; if someone wanted oil refined they had to come to Rockefeller. |
| ANDREW CARNEGIE | A multimillionaire who controlled a quarter of the steel industry with his company, Carnegie Steel. |
| J.P. MORGAN | As the most influential and powerful banker in America J.P. Morgan was the symbol of power and arrogance of financial capitalism. He was on many boards of directors because he could provide loans that the companies needed. |
| MORGAN BOND TRANSACTION | J.P. Morgan & August Belmont agreed to lend the government $62 million in exchange for a special discount on U.S bonds. With this money the U.s government restored its gold supply while Morgan & Belmont made a handsome profit selling bonds to the public. |
| GUSTAVUS SWIFT, PHILIP ARMOUR | These two controlled the monopoly of meat packing. With improvements of the railroads the inventions of the tin can and the refrigerated box car. Swift and Armour became top names in meat packing. |
| JAMES DUKE, AMERICAN TOBACCO | Named after President James Buchanan. James B. Duke controlled 93% of the tobacco business. This percentage was the most comprehensive monopoly in America. |
| JAY COOKE | An extremely rich financial genius of the civil war. He owned a New York banking firm called Jay Cooke and Company. Its failure in 1873 helped begin a depression. |
| ELBERT GARY, U.S. STEEL *1901* | When Carnegie Steel sold out its interest to a group of financiers headed by Elbert Gary and J.P. Morgan, they formed U.S Steel. Gary later bought the compant from Morgan. |
| WINDOM COMMITTEE *1874* | A senate comittee who recommended that the U.S Government build railroads to compete with private lines and thus force private lines to keep their rates down. |
| CULLOW COMMITTEE *1886* | |
| INTERSTARE COMMERCE ACT *1887* | It stated that trusts or monopolies were illegal. It created the Interstate Commerce Commission (ICC) to enforce the measure and required railroads to post their rates publicly. It also prohibited rate discrimination. |
| LAISSEZ-FAIRE | This was a philosophy created in 1776 by ADAM SMITH that advocated minimal government regulation of business. |
| GEORGE WESTINGHOUSE | Inventor of the AUTOMATIC AIR BRAKE in 1872. It was a brake that would activate all the brakes in the train at once. |
| ADAM SMITH | Father of Modern Economics. He was against mercantilism and in his book THE WEALTH OF NATIONS Smith advocated a Laissez-Faire policy of leearning business alone. |
| HENRY C. FRICK | 1ST to make a million dollars by selling coke. (Coal Residue.) |
| ROBBER BARONS | Nickname for enterpreneurs who monopolized industries & overcharged the consumer. They included J.P MORGAN, ANDREW CARNEGIE, & J.D. ROCKEFELLER, big business tycoons. |
| MESABI RANGE | Located in Lake Superior-Minnesota region, the Mesabi Range produced much of the iron ore in America. |
| HORIZONTAL AND VERTICAL CONSOLIDATIONS | HC: Way to controll some business by monopolizing one necessary part of a business. (Rockefeller Refineries.) VC: Process of monopolizing the whole business by contolling all of the parts from the raw materials to the finished product. (Carnegie Steel.) |
| BESSEMER PROCESS | Process of strengthening iron by forming steel. Rid the iron ore of all impurities (slag) and carbonized the iron into steel. |
| STOCK WATERING | Refers to practice of inflating claims about the assets and profitability of a company to increase the prices of its stocks/bonds. |
| LONG AND SHORT HAUL, REBATES | Corruption of the railroads was so bad that companies aften charged a higher rate for a shorter haul than for a longer haul. They also gave rebates or favore to big companies such as Carnegie Steel. |
| POOLS | Competitors of a certain product agree to raise priaces collectively so they can recieve huge profits. |
| INTERLOCKING DIRECTORATES | A company places people into positions of power, & influences the competing company through these people. One of the most prominent interlocking directorates was J.P. Morgan's. |
| HOLDING COMPANIES | Formed in response to the Sherman Antitrust Act consisted of one Company owning the majority of stock of a large number of companies. |
| TRUSTS | Board of directors in 1company controls the competing company by being on the other companys board of directors eliminating competition. Todothis a large company owns enough stock inallofits competitors to pick the members ofthe board&then influence them. |
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