1 / 15

Addressing Unfair Practices in the Railroad Industry

The railroad industry has historically exemplified unfair practices that exploit both workers and customers. Key players like Jay Gould manipulated stock prices for personal gain, while practices like "pools" and rebates disadvantaged small competitors and favored large corporations. Despite the Interstate Commerce Act of 1887 aimed at curtailing these practices, corruption persists. This calls for stricter regulations, enhanced oversight, and the empowerment of labor unions to combat injustices. Ensuring fair treatment in this sector can restore equity and improve working conditions for all.

yon
Télécharger la présentation

Addressing Unfair Practices in the Railroad Industry

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Warm Up:Identify a company that you think has unfair practices (to either its workers or customers). Explain why they are able to be unfair and how this should be changed.

  2. Railroad Corruption • The worst case was the CréditMobilier • Jay Gould boomed and busted railroad stock, making profit for himself all the way along. • “Stock Watering" where railroads would artificially talk up the companystockwould increase.

  3. Railroad Corruption • “Pools:" competitors agreed to cooperate as if they were one company. • Rebates were given to large companies that shipped large quantities of goods.

  4. Interstate Commerce Act/Commission (1887) • Outlawed Rebates and Pools

  5. Vertical Integration • Ex. Sears, Roebuck and Company

  6. Horizontal Integration

  7. Andrew Carnegie • Son of Scottish immigrantsclassicrags-to-riches story. • Carnegie entered the steel industry. • Carnegie's U.S. Steel Corp. • U.S. Steel produced 1/4 of the nation's Bessemer steel. • Carnegie made $25 million, tax free. • Gospel of Wealth: rich had a moral duty to spread the wealth

  8. John Rockefeller • Standard Oil Company • Used vertical integration • Controlled 90-95% of the oil in the U.S. • “Let us prey" (on the little companies). • Interlocking directorates own men would be placed on the board-of-directors for "competitors.".

  9. J.P Morgan • Banker/Financer • Insider Trading • Disregarded Workers • Gold Speculation • J.P. Morgan bought Carnegie Steel and built U.S. Steel into the world's first billion dollar company ($1.4 billion).

  10. Cornelius Vanderbilt • Railroads and Shipping • Built Grand Central Station • Gave money for Vanderbilt University

  11. Sherman Anti-Trust Act • Enacted in attempt to outlaw trusts or monopolies. • Effected Labor Unions • Didn’t become as effective until 1914

  12. Formation of Labor Unions • Low Wages • Unsafe Conditions • Long Hours • Management lack of concern for workers • Unions formedoften got entangled in violent strikes

  13. Knights of Labor • skilled and unskilled, women and blacksonly banned "non producers" • The Knights sought workers' cooperatives, better working conditions, and the 8 hour workday. • Got 8 hour day in several places • BUT the Haymarket Square Incident damaged them.

  14. American Federation of Labor • The AF of L was made up of skilledcraftsmen, made up of small, independent unions.

More Related