Unit 3 Part 1 Day 3 Changes in

Unit 3 Part 1 Day 3 Changes in Business during the Second Industrial Revolution Essential Question: How did the Second Industrial Revolution change the way businesses were organized?

THE CORPORATION DEVELOPS • Investors developed a form of group ownership known as a corporation in order to take advantage of expanding markets. • Corporations had the same rights as individuals – They could buy and sell property – They could sue in court

Corporations tried to gain a monopoly: • Either bought competitors or drove them out of business • Once the competition was eliminated, they set their own prices

• Some corporations worked with other businesses to form a cartel • John D. Rockefeller made deals with railroads to refuse service to his rivals in the oil industry, driving them out of business

Changes in Business: Horizontal Integration 1. Company buys out competitors and consolidates many firms into one business (monopoly) 2. To circumvent laws forbidding corporations owning stock in other corporations, Rockefeller devised a new business organization, the trust.

Changes in Business: Vertical Integration 1. Gained control of different businesses involved in all stages of manufacturing their products 2. Allowed companies to reduce production costs

Or is big business good for the nation? • Provides jobs • Encourages product innovations • Financially supports universities, libraries, and museums

THE GOVERNMENT IMPOSES REGULATIONS • Complaints of unfair business practices in RR industry led Congress to create the Interstate Commerce Commission (ICC) in 1887: o Could only monitor RR’s that crossed state lines o FIRST federal agency to monitor business practices • In 1890, the Senate passed the Sherman Antitrust Act: o Outlawed any trust that restrained trade or commerce o Largely ineffective, businesses claimed labor unions restrained trade

Unit 3 Part 1 Day 4 Changes in Society during the Second Industrial Revolution Essential Question: How did the Second Industrial Revolution affect the movement of people to and within the United States?

Social Changes: Migration 1. Great Migration was the movement of millions of Blacks from South to North 2. African Americans left the South because of segregation, violence, lynching, and a lack of economic opportunity 3. Many moved to growing urban areas like New York City and Chicago 4. Drawn by “pull factors” of urbanization

Immigrant Processing • Had to be healthy • Show they had • a skill, money, • or a sponsor to provide for them • Sponsors were often industrialists who needed workers

Ellis Island • Beginning in 1892, most European immigrants were processed in New York Harbor • 1 st and 2 nd class passengers were inspected on the ship and then released • 3 rd class or steerage passengers were sent to Ellis Island • Only 2% were denied entry

Angel Island • Asians, primarily Chinese, arrived in San Francisco Bay • After 1882, Chinese immigrants were turned away unless they could prove they were American citizens or had relatives living in America • Chinese immigrants often held for weeks or months in poor conditions waiting for permission to stay

Social Changes: Irish Immigrants 1. Irish immigrants began coming to the U. S. because of a deadly potato famine in the mid-1800 s 2. The Irish were not considered “White” when they arrived 3. Nativists (people with antiimmigrant beliefs) hated Irish immigrants and feared they would take jobs for less pay 4. Many Irish immigrants worked in factories in Northern cities like New York City and Boston

Social Changes: Chinese Immigrants 1. American companies began recruiting Chinese laborers to work on the Transcontinental Railroad 2. Chinese & Irish immigrants made up a large number of workers who built the Transcontinental Railroad 3. Railroad finished in 1869; Chinese Exclusion Act (1877) banned new immigrants from China