Gilded Age

Controlled most most of the railroad industry. Secret rebates, given to “best“ customers. Refused service to those traveling on competing lines. Lowered prices to gain customers. Drove competition out of business and bought them. Also tried to control stock stock in Erie Railroad Company. This led to a dispute between railroad millionaires, but he encouraged battles because he usually won/benefited from them. Built Grand Central Station due to control over industry.

Worked his way up in railroad business. Gained control of every step in the steel making process. Company owned iron mines, steel mills, railroads, shipping lines. Combined all businesses - Carnegie Steel Company.

Built oil refinery. Used profit to buy other refineries. Slashed prices to drive out rival oil companies. Forced railroad companies to give him secret rebates and lower his shipping costs.

Gained control of key industries – railroads, through consolidation. He eliminated competition and increased profits.

Legal entity were groups of incorporations or assets, are placed under control of a small group of individuals/holding corporations. Industrial giants formed monopolies – driving out competition. Price fixing, pools, cartels were now common.

State government created commissions to regulate utility, utilities and laws regarding work conditions. Bloomed with technology. Laissez-faire. Businesses went unchecked by the government.

Outlawed trusts/other monopolies that fix prices and restrain trade. Ineffective at regulating corporations, and used to attack labor unions.

Railroad strikes over wage cut quelled by federal troops

Battle with Pinkerton guards. Ultimately federal troops crushed strike. Carnegie in increased hours and decreased wages.

Eugene Debs led 125,000 workers to strike – disrupts railroad industry. Strike ended by federal injunction. Used Sherman Antitrust Act as rationale to end strike.

First attempt to organize workers to demand for a higher wages an eight hour workday across all the states.

Under leadership of Samuel Gompers. Focused on skilled workers – focus on “bread and butter” issues, wages, working conditions; largest existing union by 1900.

Led Tammany Hall in political machine NYC in favor of Democratic Party (which to stop federalists and Clinton from rising to power in New York). Made over $200 million by securing bribes, manipulating government through embezzlement, fake leases, padded, bills, etc. Schemes uncovered by cartoonist Thomas Nast of New York Times.