fighting for profits & government imposes regulations
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Fighting for Profits & Government Imposes Regulations. By: Melissa, Sabrina, Dashaun, and Hayley. The Corporation Rises. In order to expand markets, investors developed a group called corporations. Corporations were the perfect solutions to expand businesses such as railroads and mining. - PowerPoint PPT PresentationTRANSCRIPT
Fighting for Profits&Government Imposes Regulations
By: Melissa, Sabrina, Dashaun, and Hayley
The Corporation Rises• In order to expand markets,
investors developed a group called corporations.
• Corporations were the perfect solutions to expand businesses such as railroads and mining.
• Corporations had the same rights as individuals: it could buy & sell products and sue in courts.
• If chose to leave the group, others could buy out his interests.
• Access to capital or invest money, to fund technology, enter industries, & run large plants across the country.
• *Important fact*After the 1870’s, corporations increased, causing industrial capitalism, or the economic free-market system centered around industries.
Monopolies in Business
• Monopoly was complete control of a product or service.
• In order to do this, they either bought out competitions or drove them out of business.
• Consumers
had no other
choice but to
set its own
prices.
Cartels• A cartel is when
more than 1 business is making the same product and they limit production and prices to stay high.
• This is what corporations did to stop competition with other business.
• John D. Rockefeller (oil tycoon) made deals with railroads to make higher profit.
Horizontal vs. Vertical Integration
• Horizontal Integration is bringing firms together in a business as a whole or 1.
• Rockefeller was the first to do this.
• Vertical Integration is when companies reduced their cost and charged higher prices to competitors.
• Andrew Carnegie, Rockefeller, and other businessmen did this by taking control of businesses that were part of the making of the development of a product.
Trusts• Companies give their
stock to a trustee who puts them together in a new business.
• The trustee is paying themselves dividends on profits.
Government Imposes Regulation• In 1887, the United
States Senate created the Interstate Commerce Commission to oversee railroad operations.
• In 1890, the senate passed the Sherman Anti-Trust Act, which outlawed any trust that operated “in restraint of trade or commerce among the several states.”
Government Imposes Regulation (cont.)
• The “Gospel Of Wealth” is an article written by Andrew Carnegie in 1889. It describes the responsibility of philantrohpy by the new upper class of self-made rich.
• Philantrophy means “the caring of man” in the sense of caring for, improving and enhancing the quality of human life.
• Interstate Commerce Act is a United States Federal Law that was designed to regulate the railroad industry, particularly its monopolistic practices.
People To Remember• John D.
Rockefeller• July 8, 1839 –
May 23, 1937• “Oil Tycoon”• Built his first
oil refinery near Cleveland and in 1870, incorporated the Standard Oil Company.
• Andrew Carnegie• November
25, 1835 – August 11, 1919
• A Scottish-American industrialist who led the expansion of the American Steel Industry.
• A true “Rags to Riches” story
People To Remember• J. P Morgan• April 17, 1837 –
March 31, 1913• An American
financier, banker, and philanthropist who led corporate finance and industrial consolidation.
• Merged with Carnegie Steel Company in 1901.
Cited Page• http://
en.wikipedia.org/wiki/Andrew_Carnegie.• http://en.wikipedia.org/wiki/John_D._
Rockefeller.• http://en.wikipedia.org/wiki/J._P._Morgan.• www.google.com.