Today Ryan gave his powerpoint presentation called Railroads and the Problems it Caused:
The Farmers:
- The farmers were the most affected by railroads
- The companies would tax farmers who had a railroad on their land
- They wre also mad because of the misuses of land grants which the railroads would sell to higher men rathe than the settlers.
- They demanded more money for shorter hauls
- This kept farmers in debt
Granger Law
- An association made up of farmers called the grangers
- They would take political action against the railroad companies
- They filed for laws to protect their interests and get rid of discrimination
- Freight and passenger loading charges were brought down
- Railroads fought back by lost in a 7-2 vote in the Munn vs. Illinois case
Interstate Commerce Act
- Passed in 1887
- Established federal supervision to keep an eye on the railroad's activities
- There the Interstate Commerce Act (ICC) which was made up of 5 members
- They wanted to make sure railroads were being fair with their rates
- The Supreme Court ruled it unconstitutional and said the government could not regulate the railroads in the U.S. **(Ruled in favor of railroads)**
- Later on, they changed this in favor of the farmers
Panic and Consolidation
- The ICC made many problems for the railroads
- Corporate abuse and mismanagement caused the Panic of 1893 which was the biggest depression up to that time
- By the end of 1893, 600 banks and 15 million businesses failed
Then Jake Daeges gave his presentation called Big Business and Labor
Carnegie Innovations
- Andrew Carnegie started his own steel mill and manufacutured more steel than all the factories in Great Britain
- The success that formed this is due in part to management practices and that soon became widespread
- He attempted to control as much of the steel industry as he could.
- He did this by vertical and horizontal integration also known as a monopoly
- A monopoly is where a company tries to take control of the entire industry **(Companies that sell the same product)**
- Horizontal Integration: One company buying out another that produces the same product
- Vertical Integration: Controlling every aspect of your needs in your business
Comments