Chapter 16

• Vertical Integration


  When a company owns and controls every stage of production from mining raw material to transporting the finished product; the steel industry is an example
• Horizontal Integration


  When all competitors in a given industry are brought under the "umbrella" control of a single corporation; the oil industry is an example
• US vs E.C Knight


  The case which determined that the Sherman Anti-Trust Act could only be applied to commerce, not manufacturing
• Powderly


  Leader of the Knights of Labor
• Herbert Spencer


  Developed the idea of Social Darwinism.
• Alexander Graham Bell


  Inventor of the telephone
• Horatio Alger


  He developed the idea of the self made man, that anyone could become wealthy, in they worked hard and were honest, to justify the disparity between the rich and poor
• Laissez faire


  The economic expression which meant "hands off" and belived the government should stay out of economic affairs/regulation
• In re Debs


  Case which approved the use of court injunctions against strikes, which gave employers a very powerful weapon to break unions.
• Yellow dog contract


  Workers were told that they must sign an agreement no to join a union in ordeer to get a job
• Hay Market Bombing


  Incident which killed 7 police officers and led Americans to believe that the union movement was radical and violent, even though it was a group of anarchists that were convicted of the bombing.
• Rockefeller


  Tycoon associated with Oil
• Carnegie


  Tycoon associated with Steel
• J.P. Morgan


  Tycoon who acquired US Steel from Carnegie and later is associated with banking
• Vanderbuilt


  Tycoon associated with railroads
• Eugene v. Debs


  He helped mobilize the railroad union during the railroad strike in Chicago 1894 and was eventually jailed. He decided more radical means were needed to help the problem with labor and turned to Socialism.
• Knights of Labor


  This union started secretly, went public and admitted all workers (women and African Americans) and had lofty goals like abolition of child labor, trusts, and monopolies.
• American Federation of Labor


  This union concentrated on achieving practical "bread and butter" goals like an higher wages and improved working conditions.
• Capital


  Money usually in refernce to money used to start a buisness venture. Also, the main city in a state.
• Acres of Diamonds


  Written by Russel Conwell, it said that everyone had the duty to become rich.
• Jay Gould


  Ruthless tycoon who gained wealth in the railroad industry and made much of his money by watering stock and other "ruthless" tactics.
• Watering stock


  The (now illegal) practice of inflating the value of a corporations assets and profits before selling its stock.
• Pools


  A tactic used by the railroads where competing companies agreed secretly and informally to fix rates and share traffic.
• Panic of 1893


  A financial crisis that forced a quarter of railroads into bankruptcy. Yes, you need the year :)
• Second Industrial Revolution


  The growth of the nation that focused on heavy industry and the production of steel, petroleum, electrical power and industrial machinery.
• Bessemer Process


  Method used to create steel from iron, which created a high quality product, because you can't bend steel.
• Anti-Trust movement


  Middle class citizens feared the unchecked power of the elite and old money feared new riches. Led to the Sherman Anti-Trust Act.
• Sherman Antitrust act


  Was created as the first attempt to regulate trusts, but in the end was ineffective because of a Supreme Court ruling and was actually used agains labor unions.
• Adam Smith/Wealth of Nations


  Origination of the idea of laissez faire economics, based on the idea that if the government kept its "hands off" businesses would be motivated by their own self-interest. Often, it is was used as a justification for instead.
• Social Darwinism


  Following the ideas of natural selection as it applied to the economy, this idea concluded that the concentration of wealth in the hands of the fit was a benefit to the human race
• Gospel of Wealth


  Written by Carnegie, it describes the idea that because God has granted wealth to the rich, they had a responsibility to help the poor.
• Samuel Gompers


  Leader of the AFL, American Federation of Labor
• Homestead strike


  Carnegie's Steel cut wages by 20 percent. When workers went on strike Frick (the plant's manager) utilized the lockout, scabs and private guards to defeat the strike. Yes, this is a strike, now which one?
• Pullman strike


  When wages were cut on the manufacturing of sleeping cars, workers organized with the railroad union. Eventually the President got involved and issued an order/injunction to stop the strike. It eventually ended when leaders were jailed.
• Scab


  Someone that was unemployed and willing to work for cheap wages. Often were immigrants and were used by companies to replace people who were striking to break the strikes.
• Lockout


  The practice of closing a factory to break a labor movement before it could organize
• Blacklist


  Names of pro-union workers were circulated among employers (who wouldn't hire them)
• Henry George


  He wrote Progress and Poverty, and encouraged Americans to look more critically at the effects of laissez faire economics.