Railroad Corruption
description
Transcript of Railroad Corruption
![Page 1: Railroad Corruption](https://reader036.fdocuments.in/reader036/viewer/2022081503/56816182550346895dd1149b/html5/thumbnails/1.jpg)
Warm Up:
Identify a company that you think has unfair practices (to either its workers or customers).
Explain why they are able to be unfair and how this should be changed.
![Page 2: Railroad Corruption](https://reader036.fdocuments.in/reader036/viewer/2022081503/56816182550346895dd1149b/html5/thumbnails/2.jpg)
Railroad Corruption
• The worst case was the Crédit Mobilier• Jay Gould boomed and busted railroad stock,
making profit for himself all the way along. • “Stock Watering" where railroads would
artificially talk up the companystock would increase.
![Page 3: Railroad Corruption](https://reader036.fdocuments.in/reader036/viewer/2022081503/56816182550346895dd1149b/html5/thumbnails/3.jpg)
Railroad Corruption
• “Pools:" competitors agreed to cooperate as if they were one company.
• Rebates were given to large companies that shipped large quantities of goods.
![Page 4: Railroad Corruption](https://reader036.fdocuments.in/reader036/viewer/2022081503/56816182550346895dd1149b/html5/thumbnails/4.jpg)
Interstate Commerce Act/Commission (1887)
• Outlawed Rebates and Pools
![Page 5: Railroad Corruption](https://reader036.fdocuments.in/reader036/viewer/2022081503/56816182550346895dd1149b/html5/thumbnails/5.jpg)
![Page 6: Railroad Corruption](https://reader036.fdocuments.in/reader036/viewer/2022081503/56816182550346895dd1149b/html5/thumbnails/6.jpg)
Vertical Integration
• Ex. Sears, Roebuck and Company
![Page 7: Railroad Corruption](https://reader036.fdocuments.in/reader036/viewer/2022081503/56816182550346895dd1149b/html5/thumbnails/7.jpg)
Horizontal Integration
![Page 8: Railroad Corruption](https://reader036.fdocuments.in/reader036/viewer/2022081503/56816182550346895dd1149b/html5/thumbnails/8.jpg)
Andrew Carnegie• Son of Scottish
immigrantsclassic rags-to-riches story. – Carnegie entered the steel
industry. – Carnegie's U.S. Steel Corp.
• U.S. Steel produced 1/4 of the nation's Bessemer steel.
• Carnegie made $25 million, tax free.
• Gospel of Wealth: rich had a moral duty to spread the wealth
![Page 9: Railroad Corruption](https://reader036.fdocuments.in/reader036/viewer/2022081503/56816182550346895dd1149b/html5/thumbnails/9.jpg)
John Rockefeller • Standard Oil Company • Used vertical integration • Controlled 90-95% of the
oil in the U.S. • “Let us prey" (on the little
companies). • Interlocking directorates
own men would be placed on the board-of-directors for "competitors.".
![Page 10: Railroad Corruption](https://reader036.fdocuments.in/reader036/viewer/2022081503/56816182550346895dd1149b/html5/thumbnails/10.jpg)
J.P Morgan
• Banker/Financer • Insider Trading• Disregarded Workers• Gold Speculation• J.P. Morgan bought
Carnegie Steel and built U.S. Steel into the world's first billion dollar company ($1.4 billion).
![Page 11: Railroad Corruption](https://reader036.fdocuments.in/reader036/viewer/2022081503/56816182550346895dd1149b/html5/thumbnails/11.jpg)
Cornelius Vanderbilt
• Railroads and Shipping
• Built Grand Central Station
• Gave money for Vanderbilt University
![Page 12: Railroad Corruption](https://reader036.fdocuments.in/reader036/viewer/2022081503/56816182550346895dd1149b/html5/thumbnails/12.jpg)
Sherman Anti-Trust Act
• Enacted in attempt to outlaw trusts or monopolies.– Effected Labor Unions– Didn’t become as effective until 1914
![Page 13: Railroad Corruption](https://reader036.fdocuments.in/reader036/viewer/2022081503/56816182550346895dd1149b/html5/thumbnails/13.jpg)
Formation of Labor Unions
• Low Wages• Unsafe Conditions• Long Hours• Management lack of concern for workers– Unions formedoften got entangled in violent
strikes
![Page 14: Railroad Corruption](https://reader036.fdocuments.in/reader036/viewer/2022081503/56816182550346895dd1149b/html5/thumbnails/14.jpg)
Knights of Labor
• skilled and unskilled, women and blacksonly banned "non producers"
• The Knights sought workers' cooperatives, better working conditions, and the 8 hour workday.
• Got 8 hour day in several places• BUT the Haymarket Square Incident damaged
them.
![Page 15: Railroad Corruption](https://reader036.fdocuments.in/reader036/viewer/2022081503/56816182550346895dd1149b/html5/thumbnails/15.jpg)
American Federation of Labor
• The AF of L was made up of skilled craftsmen, made up of small, independent unions.