Key Terms:
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Wabash, St. Louis & Pacific Railroad Company v. Illinois
- Prohibited states from regulating railroads because the power to regulate interstate commerce is given to Congress in the Constitution which led to the passing of the Interstate Commerce Act.
Interstate Commerce Act
- Cleveland wasn't a fan of effective regulation but Congress passed it anyways. Prohibited rebates and pools and required that the railroads post their rates openly. Stopped unfair discrimination against shippers, and outlaws the charging for more for a short haul than a long one. It formed the Interstate Commerce Commission to enforce it.
vertical integration
- Perfected by Andrew Carnegie by controlling every step of the industrial production process; wanted to increase efficiency and stop competition.
horizontal integration
- Perfected by John D. Rockefeller by dominating a particular part of the industrial production process to monopolize a market by creating trusts and alliances with competitors.
trust
- Where one companies grants control over its operations, through stock, to other companies. Standard Oil Company was most famous for this because they eliminated all competition by controlling smaller oil companies.
interlocking directorates
- Introduced by J.P. Morgan to get rid of banking competition by having executives or directors from another company serve on the Board of Directors of a different company.
Standard Oil Company
- John D. Rockefeller's company that controlled 95% of oil refineries in the U.S. Became a target for trust-busting reformers and it was later ordered to break up into several smaller companies.
Social Darwinists
- People who believed that people became wealthy through "survival of the fittest." The wealth had won a natural competition so they didn't owe anything to the poor. Sometimes applied to whole nations and races. It was good for rich people like Carnegie.
Sherman Anti-Trust Act
- Outlawed trusts or combinations in business mainly to stop trade unions but then was revised to be used against monopolistic corporations.
National Labor Union
- First national labor organization and had 600,000 members but limited Chinese, blacks, and women's participation. Fought for 8 hour work days. Once it dissolved the Knights of Labor took over.
Knights of Labor
- Took over after the National Labor Union died out. The second national labor organization first organized as a secret society but then later opened to the public. Made efforts to organize all workers. Membership declined as the Knights' participated in violent strikes.
Haymarket Square
- Rally that turned violent when a bomb was thrown into the middl eof the meeting, killing dozens of people. 8 anarchists were arrested even though there was little evidence linking them to it. Happened in Chicago, home of many Knights.
American Federation of Labor
- Federation of trade unions that only included skilled workers. Led by Samuel Gompers for 4 decades. They tried to negotiate with employers for better wages, hours, and conditions.
closed shop
- The practice of allowing only unionized employees to work for a certain company. The American Federation of Labor became known for closed-shop negotiations with employers.