22 SG

Interstate Commerce Act (1887)
A federal law designed to regulate the railroad industry, particularly its monopolistic practices. It required railroad rates to be “reasonable and just,” prohibited rate discrimination, and established the Interstate Commerce Commission (ICC) to oversee and enforce regulations.

Vertical Integration
A business strategy where a company controls every step of production, from raw materials to distribution. For example, Andrew Carnegie used this to control the entire steel-making process—from iron mines to railroads.

Horizontal Integration
A business method where a company buys out or merges with competitors to create a monopoly or dominant industry player. John D. Rockefeller used this strategy with Standard Oil to control nearly all U.S. oil refining.

Trust
A group of corporations in the same industry that unite under one board of directors to control production, reduce competition, and fix prices. Trusts were a way for monopolies to form while avoiding legal restrictions.

Standard Oil Company
Founded by John D. Rockefeller in 1870, it became the largest oil refiner in the world. Through ruthless competition, secret deals, and horizontal integration, Standard Oil controlled over 90% of the U.S. oil market by the 1880s.

Interlocking Directorates
A practice where the same people serve on the boards of multiple competing companies. This allowed powerful financiers, like J.P. Morgan, to control entire industries and reduce competition.

Bessemer Process
An industrial method for making steel quickly and cheaply by blasting air through molten iron to remove impurities. Invented by Henry Bessemer in the 1850s, it revolutionized steel production and made large-scale building and railroads possible.

Social Darwinism
An idea that applied Charles Darwin’s theory of natural selection to society. It argued that the “fittest” individuals or businesses would succeed, while the weak would fail—often used to justify wealth inequality and oppose social reforms.

Credit Mobilier Scandal (1872)
A major political scandal during Ulysses S. Grant’s presidency, where Union Pacific Railroad executives created a fake construction company (Credit Mobilier) to overcharge the government for building the railroad and bribed Congressmen to keep it secret.

Sherman Anti-Trust Act (1890)
The first federal law to ban monopolies and trusts that restrained trade or competition. It was poorly enforced at first but later became a key tool for breaking up large corporations.

Labor and Unions

National Labor Union (NLU)
Founded in 1866, it was the first large-scale labor organization in the U.S. It pushed for an eight-hour workday and better working conditions but excluded Chinese workers and had limited success.

Knights of Labor
Formed in 1869 by Terrence Powderly, this union welcomed all workers—skilled and unskilled, men and women, Black and white. It fought for equal pay, shorter work hours, and an end to child labor but declined after the Haymarket Riot.

Haymarket Square (1886)
A labor protest in Chicago demanding an eight-hour workday that turned violent when a bomb exploded, killing several police and civilians. The event led to public backlash against labor unions, especially the Knights of Labor.

Homestead Strike (1892)
A violent labor strike at Carnegie Steel’s Homestead plant in Pennsylvania. Workers protested wage cuts, and Henry Clay Frick (Carnegie’s manager) hired the Pinkerton Agency to break the strike. It ended in bloodshed and a major defeat for labor unions.

Pinkerton Agency
A private security company often hired by businesses to break up strikes and protect company property. They were infamous for using violence against striking workers during the late 1800s. There to do the corporate bidding and to break up strike members.

Pullman Strike (1894)
A nationwide railroad strike led by George Pullman’s workers after he cut wages but refused to lower rents in company housing. The strike disrupted rail traffic and mail delivery, leading President Cleveland to send federal troops to end it. Lead by Eugene Debs.

American Railway Union (ARU)
Founded by Eugene V. Debs, this union included all railroad workers. It led the Pullman Strike and was later crushed by the government, showing how difficult it was for unions to win against big business and the federal government.

American Federation of Labor (AFL)
Founded by Samuel Gompers in 1886, it focused on skilled workers and fought for higher wages, shorter hours, and better working conditions through collective bargaining. It became one of the most successful unions in U.S. history.

Closed Shop
A workplace agreement where only union members can be hired. It was used by unions to maintain strength and ensure worker solidarity.

Open Shop
A workplace where employees are not required to join a union. Favored by business owners, it weakened labor union power.

Key Industrial Leaders

Cornelius Vanderbilt
A powerful railroad and shipping tycoon who helped develop the transportation industry in the U.S. He built a massive fortune and donated to education, including founding Vanderbilt University.

Alexander Graham Bell
Inventor of the telephone (1876). His invention revolutionized communication and led to the creation of the Bell Telephone Company (later AT&T).

Thomas Edison
An inventor and businessman with over 1,000 patents. He invented the phonograph, the electric light bulb, and developed the first industrial research lab, helping bring electricity to homes and businesses.

Andrew Carnegie
A Scottish immigrant who became the leader of the U.S. steel industry. He used vertical integration to dominate production and later gave away much of his wealth to education and libraries (“The Gospel of Wealth”).

John D. Rockefeller
Founder of Standard Oil, he used horizontal integration and ruthless business tactics to create a monopoly in the oil industry. He became one of the richest men in history and later a major philanthropist.

George Pullman
Founder of the Pullman Palace Car Company, which made luxury train cars. He created a company town for his workers but faced backlash when wage cuts led to the Pullman Strike.

Samuel Gompers
Leader and founder of the American Federation of Labor (AFL). He focused on practical goals like better wages, hours, and working conditions rather than broad social reform.

Terrence Powderly
Leader of the Knights of Labor. He promoted cooperative enterprises and equal rights for all workers but struggled to maintain union unity after the Haymarket Riot.

Henry Clay Frick
Industrialist and partner of Andrew Carnegie. He managed the Homestead Steel Plant and played a major role in the violent suppression of the Homestead Strike, making him a symbol of anti-union business tactics.

Mary Harris “Mother” Jones

Mary Harris “Mother” Jones (1837–1930) was a famous labor organizer and activist who fought for workers’ rights, especially for coal miners and child laborers. Born in Ireland, she became known as the “most dangerous woman in America” because of her fiery speeches and ability to inspire workers to strike and organize. She helped found the Industrial Workers of the World (IWW) and led marches protesting poor working conditions. “Mother” Jones believed in unity among workers and is remembered as one of the most powerful voices in the American labor movement.

“Pittsburgh Plus” System

The “Pittsburgh Plus” system was a pricing method used by the steel industry in the late 19th and early 20th centuries. It charged customers the base price of steel as if it were shipped from Pittsburgh—even if the steel was produced elsewhere, such as in the South. This meant southern steel companies had to add a “freight charge” to their prices, making their steel more expensive and less competitive. The system protected northern steel producers like those in Pittsburgh (especially Carnegie Steel) and hurt regional competition.