Political Corruption Political Corruption and Big Businessand Big Business

The Gilded AgeThe Gilded Age

The age of great wealth following The age of great wealth following Civil WarCivil War

4,000 millionaires following C.W.4,000 millionaires following C.W. Monopolies/consolidationMonopolies/consolidation

What was the Gilded Age?What was the Gilded Age?

GildedGilded::

Deceptively Deceptively attractiveattractive

Political Machines-Political Machines-

well-organized political parties that well-organized political parties that ran the city governments.ran the city governments.

Fire Fire

PolicePolice

SanitationSanitation

Political Political bossesbosses

Politicians who Politicians who controlled political controlled political machinesmachines..

• They provided They provided essential essential services to services to the poor the poor and working and working classclass

• They were heavily They were heavily supportedsupported by urban by urban immigrants immigrants who needed who needed themthem

Graft: illegal use of political position Graft: illegal use of political position for personal gain.for personal gain.

Fraud –stole from the cityFraud –stole from the city

Patronage: Giving money to a Patronage: Giving money to a candidate in exchange for favors.candidate in exchange for favors.

Spoil System: Putting friends in key Spoil System: Putting friends in key political positionspolitical positions

How did Political Machines and How did Political Machines and City bosses get rich?City bosses get rich?

The machines helped immigrantsThe machines helped immigrantsBecome citizensBecome citizens

Find jobsFind jobs

Find places to liveFind places to live

Most immigrants lived inMost immigrants lived in Tenement housesTenement houses

Poorly built apartmentsPoorly built apartments

Political ScandalsPolitical Scandals Election fraud was commonElection fraud was common Politicians often received kickbacksPoliticians often received kickbacks

(bribes and payoffs)(bribes and payoffs)

Scandals surrounded President GrantScandals surrounded President Grant

Railroad Railroad stockholders stockholders sold sold stocks to stocks to congressmencongressmen

Congressmen gave Congressmen gave government government

money to money to railroad railroad companiescompanies

Railroads made Railroads made moneymoney

So So congressmecongressmen made n made moneymoney

The government was pressured The government was pressured by big businesses by big businesses MonopoliesMonopolies

a.k.a. a.k.a. “Trusts” “Trusts”

(I.e. Standard Oil)(I.e. Standard Oil)

Political MachinesPolitical Machines

Organized group that controlled the Organized group that controlled the activities of a political party in a cityactivities of a political party in a city

Offered services to voters and Offered services to voters and businesses in exchange for political businesses in exchange for political or financial supportor financial support

Tammany HallTammany Hall New York City’s most New York City’s most

powerful political machinepowerful political machine Led by “Boss Tweed” Led by “Boss Tweed”

(William Tweed)(William Tweed)

In 1870 and 1871 In 1870 and 1871 ALONE, Tammany Hall ALONE, Tammany Hall stole anywhere from stole anywhere from $400 million to $2 $400 million to $2 billion!!!billion!!!

Tweed was arrested in 1871Tweed was arrested in 1871

He died in Jail in 1878He died in Jail in 1878

James PendergastJames Pendergast

Very popular Political Very popular Political Boss in Kansas City, Boss in Kansas City, MissouriMissouri

Gained power by helping Gained power by helping African, Irish, and Italian African, Irish, and Italian immigrantsimmigrants

Pendleton Civil Service Act 1883Pendleton Civil Service Act 1883 Government jobs based on merit Government jobs based on merit

system rather than patronagesystem rather than patronage Federal examsFederal exams

How did the Federal How did the Federal Government Respond?Government Respond?

How the corruption ended…How the corruption ended…

StalwartsStalwarts didn’t want things to didn’t want things to changechange

The StalwartsThe Stalwarts vs.vs. The Half-BreedsThe Half-Breeds

Half-BreedsHalf-Breeds wanted reform wanted reform

In 1880, James A. Garfield was In 1880, James A. Garfield was elected presidentelected president

Garfield was a member of the Garfield was a member of the Half-BreedsHalf-Breeds

After 4 months in office, After 4 months in office, Garfield was shot by a Stalwart Garfield was shot by a Stalwart supportersupporter

After the assassination, vice After the assassination, vice president Chester A. Arthur president Chester A. Arthur became presidentbecame president

He led reforms in honor He led reforms in honor of of President GarfieldPresident Garfield

**Interstate Commerce Act 1887 (ICC) Interstate Commerce Act 1887 (ICC)

*Regulate railroads (largely ineffective)*Regulate railroads (largely ineffective)• Sherman Antitrust Act 1890Sherman Antitrust Act 1890• Prevent the consolidation of big Prevent the consolidation of big

business in the hands of a few business in the hands of a few (largely ineffective)(largely ineffective)

How did the Federal How did the Federal Government try to regulate big Government try to regulate big

business and monopolies?business and monopolies?

American Federation of LaborAmerican Federation of Labor

(skilled workers of many trades)(skilled workers of many trades) Industrial Workers of the WorldIndustrial Workers of the World (all laborers- socialists)(all laborers- socialists) Collective BargainCollective Bargain StrikesStrikes

How did the workers try to How did the workers try to fight against big business and fight against big business and

corruption?corruption?