Questions and Answers
What is the control of the production of a product by a single person or company?
What term refers to setting prices as high as people could afford to pay?
What is the control of many corporations by one person or a few people called?
Trustees
What are firms or corporations that combine to reduce competition and control prices called?
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In which industries did trusts gain monopolies?
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What law made it illegal to form monopolies and trusts that restrained trade?
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The court decided monopoly was only illegal if it involved restraint of in-state trade.
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Who controlled almost all of the country's oil refining business?
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Rockefeller was ruthless in gaining/taking over competing companies and forced railroads to give him special rates.
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What is a business that grows and expands to control most of the market in the same industry by buying out its competitors called?
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Who was the Scottish immigrant who arrived in America at 13 and became a significant figure in the railroad industry?
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Who worked in a cotton mill for $1.20 a week and later bought out the PA railroad?
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Carnegie entered the steel industry after becoming rich from the railroad industry and controlled most steel production by the 1900s.
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Carnegie sold his steel company to ______ for ______.
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Who suffered the most due to the industrial practices during this time?
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What challenges did workers face during this period?
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Who was the banker that bought out Andrew Carnegie's business?
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How did Carnegie typically treat his workers?
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How did Rockefeller treat his workers?
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Who was Cornelius Vanderbilt?
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How did Vanderbilt treat his workers?
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How did JP Morgan treat his workers?
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How did Rockefeller spend his wealth?
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How did Vanderbilt spend his money?
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How did Morgan spend his money?
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How did Carnegie donate his money?
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How did Rockefeller donate his money?
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How did Vanderbilt donate his money?
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How did Morgan donate his money?
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Was Carnegie a Robber Baron or Captain of Industry?
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Was Rockefeller a Robber Baron or Captain of Industry?
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Was Vanderbilt a Robber Baron or Captain of Industry?
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Was Morgan a Robber Baron or Captain of Industry?
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What is the practice where a single entity controls the entire process of a product, from raw materials to distribution?
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Study Notes
Monopolies and Trusts
- Monopolies involve one company or individual controlling the production of a product.
- Price fixing refers to setting prices at the maximum consumers are willing to pay.
- Trustees are individuals or groups controlling multiple corporations.
- Trusts collude to reduce competition and manipulate prices, often leading to monopolies.
- Key industries for monopolies: oil, steel, sugar, and whiskey.
Legislation
- The Sherman Anti-Trust Act (1890) classified monopolies and trusts as conspiracies against trade, making contracts leading to trusts illegal.
- Monopoly laws applied to interstate trade, not just intrastate.
Key Figures
- John D. Rockefeller dominated U.S. oil refining, efficiently lowering costs and increasing prices, while using ruthless tactics to eliminate competition.
- Andrew Carnegie, a Scottish immigrant, transitioned from a telegraph operator to a major steel magnate, controlling global steel production by the early 1900s.
- J.P. Morgan, a banker, acquired Carnegie's steel company for $447 million and invested in the transcontinental railroad.
Labor Conditions
- The working class endured long hours (11-14 a week), low wages (averaging $500 per year), and poor working conditions without benefits.
- Child labor was prevalent, with children as young as six working in factories.
Treatment of Workers
- Carnegie cut wages and job security for workers to minimize costs.
- Rockefeller’s workers faced underpayment and hazardous conditions.
- Vanderbilt's workers received low wages for extended hours, with conflicts leading to strikes.
- Morgan, compared to others, provided better treatment, securing a 10% raise during the Anthracite coal strike.
Philanthropy and Spending
- Rockefeller donated to charities, churches, and created Rockefeller Center in New York.
- Carnegie's legacy includes music halls, educational grants, and around 3,000 libraries, totaling over $350 million in donations by his death.
- Vanderbilt invested in steel boats, real estate, and education, with notable donations including over $1 million to a university.
- J.P. Morgan shared his wealth through art donations to museums and books to libraries.
Industrialist Categorization
- Carnegie is viewed as a Robber Baron, having maintained ruthless business practices before turning to philanthropy.
- Rockefeller is similarly classified as a Robber Baron, having exploited workers and manipulated markets.
- Vanderbilt is categorized as a Robber Baron due to prioritizing profit over worker welfare.
- J.P. Morgan is considered a Captain of Industry for kinder treatment of workers and substantial charitable contributions.
Business Practices
- Horizontal Integration involves expanding a business by acquiring competitors in the same industry.
- Vertical Integration refers to controlling all stages of production, from raw materials to distribution.
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Description
Test your knowledge on key terms related to industry in American Studies. This quiz covers essential concepts such as monopolies, price fixing, and trustees. Perfect for students looking to reinforce their understanding of economic control in America.
