The Politics of Big Business

The years between the end of the Civil War and the turn-of-the-century saw huge changes in

economic and social conditions, which required political attention. Although there were some

notable political figures in this era, a large majority of the national leadership could be

considered little more than political mediocrities: the movers and shakers were all in business,

though some made good use of their financial power to buy their way into high offices such as

state governorships and the United States Senate. Wealthy businessman such as Rockefeller,

Vanderbilt, Carnegie, Morgan, and others who needed to use the political process for their own

ends tended to “purchase” political support rather than getting directly involved.

This was an era in which political corruption seemed to be the norm; practices that today would

be viewed as scandalous were accepted as a matter of routine. Businessmen wantonly bribed

public officials at the local, state and national level, and political machines turned elections into

exercises in fraud and manipulation. The narrow division between Republican and Democratic

voters made both parties hesitant to take strong stands on any issue for fear of alienating blocs of

voters. The result was that little got done.

Distribution of Wealth

The Big Business MenEntrepreneur Net worthJP Morgan $41.5 billionJohn D. Rockefeller $340 billionAndrew Carnegie $480 millionCornelius Vanderbilt $ 185 billion

*net worth- (sometimes called net wealth) is the total assets minues the total outside liabilities of an individual or company. In other words, net worth is any asset owned minus any debt owed.

The Laborers

Average Daily Wages in Five Skilled Occupations, Occurring in Various Manufacturing Establishments, Weeks and Alrdich Reports, 1860-1890 (dollars)1860 1870 1880

Blacksmiths 1.64 2.68 2.31Carpenters 1.65 2.64 2.15Engineers 1.61 2.67 2.45Machinists 1.61 2.67 2.45Painters 1.62 2.67 2.21

*Skilled workers, such as those in the chart, were generally paid more than unskilled workers.

Down with the Robber Barons!By “Edith Bell”

There is no easier place to start a corporation than in the U.S. Consequently they now dominate our economy. Those who run these giant corporations are the wealthiest and most powerful people in the world. Unfortunately, none of this is good for America.

Since numerous shareholders own corporations there is no way of knowing who is responsible for their policies. And they are using their size to bankrupt small businesses and create monopolies. Everyone agrees that monopolies hurt consumers. When there is no competition, monopolies charge outrageously high prices for their products.

One way corporations create monopolies is by controlling prices. For example, a corporation will bankrupt a rival business by actually charging less than what it costs to produce something. The corporation is big enough to survive the temporary loss of money better than the small business. Then, once its rival is gone and it has a monopoly, it raises prices to whatever it wants.

Another common tactic is for the owners of big corporations to work out agreements with each other. For example, big railroads will offer a discount to transport the products of big shippers (such as oil, cattle or coal companies). How can small businesses compete when they have to pay more to ship their products?

A big corporation does more than just raise prices once it has a monopoly. It also controls working conditions. It pays its workers next to nothing and works them long hours. Workers die every day in coalmines because of unsafe conditions. But it is cheaper for the corporation to lose a man than to invest in better safety equipment or build extra escape tunnels. Workers can do nothing about it, because they have nowhere else to go.

Industrialization has also led to a wider gap between the rich and the poor. John D. Rockefeller is worth $1 billion. Andrew Carnegie made $300 million when he sold his steel company. These men have worked hard. Maybe they even worked harder than those who toil in their hot, dangerous factories for 12 hours per day. But, they are not worth more than a million times as much as the men who work for them.

Government must regulate corporations. It should set a minimum limit on what workers can be paid and a limit on how many hours they can be required to work, and it should make monopolies illegal. It is also time government taxed incomes. An income tax is more effective at making sure the rich pay their fair share than tariffs.

Child Laborers The Factories/Mills

Furman Owens, 12 years old. Can't read. Doesn't know his A,B,C's. Said, "Yes I want to learn but can't when I work all the time." Been in the mills 4 years, 3 years in the Olympia Mill. Columbia, South Carolina. Mid - Adolescent girls from Bibb Mfg. Co. in Macon, Georgia. Right - Doffer boys. Macon, Georgia.

The Mill: A moment's glimpse of the outer world. Said she was 11 years old. Been working over a year. Rhodes Mfg. Co. Lincolnton, North Carolina.

The Mill: One of the spinners in Whitnel Cotton Mill. She was 51 inches high. Has been in the mill one year. Sometimes works at night. Runs 4 sides - 48 cents a day. When asked how old she was, she hesitated, then said, "I don't remember," then added confidentially, "I'm not old enough to work, but do just the same." Out of 50 employees, there were ten children about her size. Whitnel, North Carolina.

Newsies

Newsies: Tony Casale, age 11, been selling 4 years. Sells sometimes until 10 p.m. His paper told me the boy had shown him the marks on his arm where his father had bitten him for not selling more papers. He (the boy) said, "Drunken men say bad words to us." Hartford, Connecticut.

Miners

Miners: Harley Bruce, a young coupling-boy at Indian Mine. He appears to be 12 or 14 years old and says he has been working there about a year. It is hard work and dangerous. Near Jellico, Tennessee.

Fishing Industry

Seafood Workers: Manuel the young shrimp picker, age 5, and a mountain of child labor oyster shells behind him. He worked last year. Understands not a word of English. Biloxi, Mississippi.

Vices and Pastimes

Pastimes and Vices: 11:00 a.m. Newsies at Skeeter's Branch. They were all smoking. St. Louis, Missouri.

Pastimes and Vices: A group of newsies playing craps in the jail alley at 10 p.m. Albany, New York.

Newsies: Fighting is not unusual here. In the alley, 4 p.m. Rochester, New York.