The rise of big businesses Pt. 2

free enterprise and capital

ability to make enormous profits

• motivated capitalists to expand their businesses within key industries

pacific railay act

government involvement

• government gave two companies the right to build railways

provided land grants

government involvement

• give companies land, either to build railroad on or to sell and use profits to start construction

Cornelius Vanderbilt

owned many small railroad lines- consolidated them, often ruthless in the face of conflict

titan

jay gould

manipulated stock market to benefit himself

bribed politicians to help his railroad company over others

robber baron

john d. rockefeller

leader of oil industry

started in Cleveland

Horizontal integreation

buying out competitors to create a monopoly and dominate the industry

andrew carnegie

• dominated steel industry through vertical integration

• becomes wealthy

  • writes gospel of wealth

vertical integration

owning and controlling the businesses involved in the production of the final product

electricity

1889 - Edison general electric company- light bulb, phonograph

1866 - Cyrus field laid telegraph cable across Atlantic ocean for communication

corporation

company or group of people treates as one person

stockholders

an entity that owns stock in a company, but don’t necessarily work there. corporation raise money by selling stocks to others. the asserts and earnings belong to the company, but stockholders are entitled to a portion of the profits equal to the amount of shares they own

monopoly

total control of an industry by one person/company/corporation

trust

a legal agreement that allows one person to manage another’s property