Other employers began paying per item produced rather

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Unformatted text preview: , anyone could start a company and raise money by selling stock to investors, who would face no personal risk other than the money they invested. Corporations gained more power due to SC rulings in the 1880s and 1890s that gave them the same 14th Amendment protections as individuals. Pools: Basically, pools were “Gentlemen’s Agreements” between companies that set limits on production and agreed to the sharing of profits. Since they depended on honesty, though, their usefulness had already died by the time they were outlawed among RRDs in 1887. Trusts: Originated by Rockefeller, trusts relied on the principle that one company could control another by forcing it to yield control of its stock to the bigger company’s board of trustees. This allowed for horizontal integration, which was pioneered by Rockefeller in 1882 w/Standard Oil [ex. take over all oil refineries]. Holding Companies: In 1888 New Jersey allowed corporations to own property in other states and own stock in other corporations. This led to the holding company, which owned interest in other companies and could help merge them. This led to vertical integration like Gustavus Swift achieved w/meat processing [ex. take over all meat related industries]. 142 - So mergers were answer to the search for order and profits in the business world. The biggest corporation of the time was the US Steel Corporation, created by Andrew Carnegie and later sold to J.P. Morgan in 1901. Speaking of J.P., the merger movement created those wonderful people we all know and love, the brokers, who specialized in engineering mergers. Everyone joined the investing frenzy; regulations were loosened, laissez-faire, etc. *The Effect of the Machine on Labor* - Mechanization obviously meant big changes for workers, who were forced to acclimate themselves to new factory conditions that minimized their independence. Some significant trends included: The replacement of the producer by the employee: most workers no longer were their own bosses. Instead, they were paid for time on the job. Specialization and the devaluation of skilled labor: workers in mass-production assembly lines found themselv...
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This note was uploaded on 04/02/2014 for the course APUSH AP United taught by Professor Orban during the Fall '10 term at Harrison High School, Harrison.

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