this was a philosophy created in 1776 by Adam Smith that advocated minimal government regulation of business.
He was the Father of Modern Economics. He was against mercantilism and, in his book, The Wealth of Nations, he advocated a laissez-faire policy of leaving business alone.
This was a nickname for entrepreneurs who monopolized industries and overcharged the consumer. They included J. Pierpont Morgan, Andrew Carnegie, and John D. Rockefeller, big business tycoons.
Horizontal and Vertical Consolidation
One method is a way to control some business by monopolizing one necessary part of the business (Rockefeller's refineries). The other method is the process of monopolizing the whole business by controlling all of the parts from the raw materials to the finished product (Carnegie's steel).
It refers to the practice of inflating claims about the assets and profitability of a company to increase the prices of its stocks and bonds.
In this, competitors of a certain product agree to raise prices collectively so they can receive huge profits.
They were formed in response to the Sherman Antitrust Act. They consisted of one company owning the majority of stock of a large number of companies.
In this, the board of directors in one company controls the competing company by being on the other company's board of directors, thus eliminating competition. To do this, a large company owes enough stock in all of its competitors to pick the members of the board and then influences them.
A company places people into positions of power, and influences the competing company through these people. One of the most prominent of these was J.P. Morgan's.
Long and short haul, rebates
Corruption of the railroads was so bad that companies often charged a higher rate for a shorter haul than for a longer haul. They also gave rebates or favors to big companies such as Carnegie Steel.
This was the process of strengthening iron by forming steel. It rid the iron ore of all impurities (slag) and carbonized the iron into steel.
Located in the Lake Superior-Minnesota region, this area produced much of the iron ore in America.
Henry C. Frick
He was the first to make a million dollars by selling coke (a coal residue).
He was the inventor of the automatic air brake in 1872. It was a brake that would activate all the brakes in the train at once.
Probably the most versatile inventor of the automatic air brake in 1872. It was a brake that would activate all the brakes in the train at once.
Alexander G. Bell
He was a teacher of the deaf and invented the telephone.
They were four multimillionaires who monopolized the railroads in California. They were Leland Stanford, Colis Huntington, Charles Crocker, and Mark Hopkins, railroad tycoons.
Union and Central Pacific
These were two of the many railroads owned by the Big Four of California. They were operated by Grenville Dodge and were later sold the the Big Four.
James G. Hill, Great Northern Railroad
He was the 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
He was the 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
He started out with an oil refinery in Pittsburgh and 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 this man.
he was a multimillionaire who controlled a quarter of the steel industry with his company, _______ Steel.
J. Pierpont Morgan
As the most influential and powerful banker in America, he was the symbol of power and arrogance for financial capitalism. He was on many boards of directors because he could provide loans that the companies needed.
Morgan Bond Transaction
J. Pierpont Morgan and 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 and Belmont made a handsome profit selling the bonds to the public.
Gustavus Swift, Philip Armour
These two controlled the monopoly of meat packing. With the improvements of railroads, the inventions of the tin can, and the refrigerated box car, these two men became top names in meat packing.
James Duke, American Tobacco
Named after President James Buchanan, this man controlled 93% of the tobacco business. this percentage was the most comprehensive monopoly in America.
He was an extremely rich financial genius of the Civil War. He owned a New York banking firm called ______ ______ and Company. Its failure in 1873 helped begin a depression.
Elbert Gary, U.S. Steel 1901
When Carnegie Steel sold out its interests to a group of financiers headed by this man and J.P. Morgan, they formed this company. He later bought the company from Morgan.
Windom Committee 1874
A Senate committee, this committee 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
A Senate committee, this committee disclosed that railroads were guilty of pooling tactics and recommended immediate federal government regulation of the railroads.
Interstate Commerce Act 1887
It stated that trusts or monopolies were illegal. It created the Interstate Congress Commission
(ICC) to enforce the measure and required railroads to post their rates publicly. It also prohibited rate discrimination.