Chapter 24 Identities - Interstate Commerce Act The...

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Interstate Commerce Act The Interstate Commerce Act passed by Congress in 1887 was designed to combat the monopolistic tendencies of the railroad industry by founding the Interstate Commerce Commission. The passage of the Interstate Commerce Act marked the first time that government directly regulated industry, but the ICC lacked the power and funding to accomplish its job. Wabash v. Illinois Wabash, St. Louis & Pacific Railway Co. v. Illinois was an 1886 US Supreme Court case under Chief Justice Morrison Waite. The result of the ruling of the Supreme Court severely limited states’ rights to regulate interstate commerce, and spawned the Interstate Commerce Commission as a federal means of regulation instead. Andrew Carnegie Andrew Carnegie was an industrialist who was the owner of Carnegie Steel Company and had other various investments. Carnegie became of the richest men in American history, surpassing John D. Rockefeller, and was famous for his philanthropy in the last two decades of his life, where he donated his great fortune to the betterment of society, allowing for the creation of Carnegie Hall in New York, Carnegie Mellon University, Carnegie Institution for Science, etc. Vertical integration Vertical integration is an arrangement where the supply chain of a company is owned by said company. A steel refinement company owning an iron mine would be an example of vertical integration. Vertical integration was innovated by Andrew Carnegie as a means of making his steel manufacturing process more efficient. John D. Rockefeller John D. Rockefeller was one of the richest men in American history, earning his fortune off of the oil industry, becoming the first billionaire. Rockefeller focused upon oil refinement, rather than drilling, expanding his business via horizontal integration, and his Standard Oil Company became the first great business trust in America. Rockefeller’s Standard Oil Company was finally broken up into 34 different entities by the US Supreme Court for violating federal antitrust laws in 1911, forming companies such as ExxonMobil and the Chevron Corporation. Horizontal integration Horizontal integration is the process where a company will expand its product line to items related to their initial product via means of mergers with other companies, internal expansion, or acquisition. If taken to the extreme, horizontal integration can lead to the creation of a monopoly.
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