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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,
*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
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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.
- Fall '10