Chapter Outline
Chapter 18 Notes
The Rise of Industrial America, 1865-1900
The Rise of Corporate America • In the early nineteenth century, the corporate form of business organization was used to raise large amounts of start-up capital for transportation enterprises such as turnpikes and canals. o By selling stocks and bonds to raise money o Corporation separated the company’s managers from the owners ▪ Company’s managers – guided the day-to-day operations ▪ Owners – those who had purchased the socks and bonds as investments • The rise of corporate America was risk-taking and innovation as well as rapacity and ruthlessness
The Character of Industrial Change • Six features dominated the world of large-scale manufacturing after the Civil War o The exploitation of immense coal deposits as a source of cheap energy o The rapid spread of technological innovation in transportation, communication, and factory systems o The need for enormous numbers of new workers who could be carefully controlled o The constant pressure on firms to compete tooth-and-nail by cutting costs and prices as well as impulse to eliminate rivals and create monopolies o The relentless drop in price levels o The failure of the money supply to keep pace with productivity, a development that drove up interest rates and restricted the availability of credit
• Jay Gould, Collis P. Huntington, James J. Hill • Interstate Commerce Act and Interstate Commerce Commission, 1887 • J. Pierpont Morgan • Andrew Carnegie • John D. Rockefeller and Standard Oil • Sherman Anti-Trust Act, 1890 • United States v. E. C. Knight Co., 1895 • Thomas A. Edison • Henry W. Grady and the "New South Creed" • William H. Sylvis and the National Labor Union • Terence V. Powderly and the Knights of Labor • Mother Jones • Chinese Exclusion Act, 1882 • Samuel Gompers and the American Federation of Labor
The Rise of Industrial America, 1865-1900
The Rise of Corporate America • In the early nineteenth century, the corporate form of business organization was used to raise large amounts of start-up capital for transportation enterprises such as turnpikes and canals. o By selling stocks and bonds to raise money o Corporation separated the company’s managers from the owners ▪ Company’s managers – guided the day-to-day operations ▪ Owners – those who had purchased the socks and bonds as investments • The rise of corporate America was risk-taking and innovation as well as rapacity and ruthlessness
The Character of Industrial Change • Six features dominated the world of large-scale manufacturing after the Civil War o The exploitation of immense coal deposits as a source of cheap energy o The rapid spread of technological innovation in transportation, communication, and factory systems o The need for enormous numbers of new workers who could be carefully controlled o The constant pressure on firms to compete tooth-and-nail by cutting costs and prices as well as impulse to eliminate rivals and create monopolies o The relentless drop in price levels o The failure of the money supply to keep pace with productivity, a development that drove up interest rates and restricted the availability of credit
• Jay Gould, Collis P. Huntington, James J. Hill • Interstate Commerce Act and Interstate Commerce Commission, 1887 • J. Pierpont Morgan • Andrew Carnegie • John D. Rockefeller and Standard Oil • Sherman Anti-Trust Act, 1890 • United States v. E. C. Knight Co., 1895 • Thomas A. Edison • Henry W. Grady and the "New South Creed" • William H. Sylvis and the National Labor Union • Terence V. Powderly and the Knights of Labor • Mother Jones • Chinese Exclusion Act, 1882 • Samuel Gompers and the American Federation of Labor