Bell Ringer

1. Where did most Asian immigrants enter into the US?

2. Where did most European immigrants enter into the US?

3. What was the term used to describe people’s hatred of the new immigrants? Why did they feel this way?

4. What were the Sioux doing to cause the Army to want to attack? In your opinion was this a valid response?

US-U5-L3

• SSUSH11c. Identify John D. Rockefeller and the Standard Oil Company and the rise of trusts and monopolies

• SSUSH12d. Describe the 1894 Pullman strike as an example of industrial unrest.

Monopolies • A monopoly is the total control of a type

of industry by one person or one company.-American Vision

• the exclusive possession or control of something. -http://dictionary.reference.com/browse/monopoly

• Many people feared monopolies because they felt that a monopoly could change its product and there was no competition to stop it.

• People felt that monopolies could raise prices very high and again there was no competition to keep the prices low.

• On the opposing end people felt that monopolies would have to keep their prices low or competitors would arise.

Trusts

• A trust is a combination of firms or corporations formed by a legal agreement, especially to reduce competition-American Vision

• In general, a trust is a relationship in which one person holds title to property, subject to an obligation to keep or use the property for the benefit of another. -http://www.irs.gov/charities/article/0,,id=96116,00.html

Vertical Integration

• Vertical integration means that a entrepreneur purchases companies at all levels of production.

• For instance: he buys a farm with cows, a slaughterhouse, the refrigerated railroad cars for transport, the cooled warehouses, the meat packing plants, delivery wagons, and the marketplace to sell the meat.

Horizontal Integration

• Horizontal Integration is when many competing companies are bought up and turned into one large company

• Standard Oil was broken up by the government in 1911 for being a monopoly

• Rockefeller was also a philanthropist, supporting colleges such as Spelman

Big Business/ John D. Rockefeller

• John D. Rockefeller founded the Standard Oil Company in 1870.

• To remove competition, Standard Oil bought oil refineries, so that by 1880 they owned 90% of the refineries in the US, forming a monopoly

• To avoid violating state laws against horizontal integration, Standard Oil formed a trust, a way of merging and controlling other companies

Standard Oil Video

http://www.youtube.com/watch?v=BwEkpB4feN0

Big Business/Andrew Carnegie• Andrew Carnegie immigrated to

the US in 1848 from Scotland. He was a true rags to riches story.

• When he was an adult he began buying shares to iron mills and factories that made sleeping cars and locomotives. He also invested in a company that built bridges.

• He traveled to England where he met Sir Henry Bessemer. He then came back to the US and adapted his steel mills to the Bessemer process and that changed the face of steel making forever in the US because it was so cheap.

The Pullman Railcar Company• The Pullman Company required their employees to

live on the company’s land and shop only at the company’s stores.

• In the 1890s there was an economic depression that caused problems with this system because the company’s stores were too expensive, and people were receiving 25-50% pay cuts. Some people even lost their jobs.

1894 Pullman Strike• In 1894 the American Railway Union, led by Eugene Debs, led

a strike against the Pullman Company (IL) who manufactured railroad cars

• The Pullman Company tried to hire new workers, but they were attacked by the strikers.

• President Cleveland sent in U.S. troops and ordered the strike to end.

• The ARU collapsed as a Union as a result of government intervention. The government felt that unions were a menace to American capitalist economy.

http://www.5min.com/Video/Impact-of-the-Pullman-Strike-300994006

Closing/Ticket out the door

• Explain what a monopoly is in your own words.

• What are the differences between horizontal integration and vertical integration?

• What business did Rockefeller found?

• What was the result of the Pullman Strike?