Starting the 1870s up until the 1900s provided a time period in which the Post-Civil War United States faced the Gilded Age, which was a time where large businesses were growing drastically and America’s ‘success’ clouded their real issues. Such an expansion with these large corporations boosted the amount of goods manufactured, calling for many more underpaid workers, and led to the spurring wealth America got to face. All of this ‘success’ was the so called thin layer of gold that laid over the real issues of the United States, and that was that there began to be a full blown corruption tied to businesses and politics. Once people got to see what really laid underneath what the news reports were not sharing with them, thanks to muckrakers, they responded by trying to form political and economical organizations that aimed to suppress the influence of the big businesses. With the immense …show more content…
They decided to clear out any kind of competition by taking over smaller companies. As mentioned in document H, George Rice describes how Rockefeller's Standard Oil was one of the many businesses that that took over smaller ones. While these powerful businesses had the ability to control other companies, they also were the cause of political corruption as well. What the big business did, was establish a connection with those in politics, but on the low. What is mentioned in document C, is that David Wells gets to share with his audience that large industries are not only controlling the business side of the nation but also getting involved with politics. An example would be the Sherman Antitrust Act which aimed to destroy labor unions by the interference of the federal government. This entire act was being led by industrialists and even more evidence is the cartoon shown in document D, which shows just how much money controlled
Rockefeller was America’s first billionaire, and he was the true epitome of capitalism. Rockefeller was your typical rags-to-riches businessman, and at the turn of the twentieth century, while everyone else in the working class was earning ten dollars max every week, Rockefeller was earning millions. There has been much discussion as to whether Rockefeller’s success was due to being a “robber baron”, or as a “captain of industry”. By definition, a robber baron was an industrialist who exploited others in order to achieve personal wealth, however, Rockefeller’s effect on the economy and the lives of American citizens has been one of much impact, and deserves recognition. He introduced un-seen techniques that greatly modified the oil industry. During the mid-nineteenth century, there was a high demand for kerosene. In the refining process from transforming crude oil to kerosene, many wastes were produced. While others deemed the waste useless, Rockefeller turned it into income by selling them. He turned those wastes into objects that would be useful elsewhere, and in return, he amassed a large amount of wealth. He sold so much “waste” that railroad companies were desperate to be a part of his company. However, Rockefeller demanded rebates, or discounted rates, from the railroad companies, when they asked to be involved with his business. By doing so, Rockefeller was able to lower the price of oil to his customers, and pay low wages to his workers. Using these methods,
During the late 1800's and early 1900's, change in American society was very evident in the economy. An extraordinary expansion of the industrial economy was taking place, presenting new forms of business organization and bringing trusts and holding companies into the national picture. The turn of the century is known as the "Great Merger Movement:" over two thousand corporations were "swallowed up" by one hundred and fifty giant holding companies.1 This powerful change in industry brought about controversy and was a source of social anxiety. How were people to deal with this great movement and understand the reasons behind the new advancements? Through the use of propaganda, the public was enlightened and the trusts were attacked. Muckraking, a term categorizing this type of journalism, began in 1903 and lasted until 1912. It uncovered the dirt of trusts and accurately voiced the public's alarm of this new form of industrial control. Ida Tarbell, a known muckraker, spearheaded this popular investigative movement.2 As a journalist, she produced one of the most detailed examinations of a monopolistic trust, The Standard Oil Company.3 Taking on a difficult responsibility and using her unique journalistic skills, Ida Tarbell was able to get to the bottom of a scheme that allowed the oil industry to be manipulated by a single man, John D. Rockefeller.
The Gilded Age refers to a period in which things were fraudulent and deceitful; the surface was clinquant while underneath that lustrous coat laid corruption. During the Gilded Age companies recruited to corrupt methods to further increase profits, leading to an increase in power, rapid economic prosperity, and domination of industries, leading to monopolistic corporations. As a result, antitrust laws to regulate business began to emerge in the late 19th and early 20th century known as the Progressive Era. Among these companies was Standard Oil, which was founded in 1870 by John D. Rockefeller; in 1880, Standard Oil was responsible for refining 90 percent of America’s oil and between 1880-1910, dominating the oil industry (Marshall). The lack of intervention from the government and regulations impeding monopolistic practices allowed Standard Oil to
During this era, businesses supplied large amounts of employment for citizens which created power for these businesses. They had the power to provide bad working conditions, lower wages, and fire their employees without any justification (Doc 1). George E. McNeill, a labor leader, states how “whim is law” and one can not object to it. The government took a laissez-faire approach and refused to regulate economic factors. This allowed robber barons and business tycoons to gain more authority of each industry through the means of horizontal and vertical integration. It wasn’t until later in the time period that the government passed a few acts to regulate these companies, such as the ICC and the Sherman Antitrust Act. One of the main successful industries was
Amazingly, it is not until President Nixon and his involvement in the Watergate scandal that the Teapot Dome scandal finally takes a backseat as notoriously known for being the biggest political scandal in U.S. history. This paper will illustrate how and why one man in the oil industry could so easily manipulate the 1920 presidential election in order to set up important cabinet appointments that will enable him, and a few others, to reap millions. In addition, there will be important points on a select few people and their contribution, not only to the Teapot Dome scandal, but also to the 1920 presidential nominee, Warren G. Harding. Not only did this scandal involve President Harding, but it also included Albert B. Fall, former Senator of New Mexico, Harry Daugherty, Jake Hamon of Oklahoma, along with Secretary of the Navy Edwin Denby, the founder of Sinclair Oil – Harry Sinclair, and finally, oil tycoon Edward Doheny. This paper will also illustrate how President Harding was a “sitting duck” due to the greed and premeditated planning of just two men.
Fifth Edition Vol 2, New York: Longman, 1999. Hidey, Ralph W. and Muriel E. "History of Standard Oil Company (New Jersey), Vol. 1" Pioneering in Big Business" " Taking Sides Clashing Views on Controversial Issues in American History" eds.
The period of time running from the 1890’s through the early 1930’s is often referred to as the “Progressive Era.” It was a time where names such as J.P. Morgan, Andrew Carnegie, Jay Gould and John D. Rockefeller stood for the progress of America and their great contributions to American industry and innovation. This chapter however, has a much darker side. Deplorable working conditions, rampant political corruption and power hungry monopolies and trusts threatened the working class of America and the steady influx of European immigrants hoping to make a better life for themselves and their families. What started as a grass-roots movement pushing for political reform at the local and municipal levels soon began to encompass
During the nineteenth and twentieth century monopolizing corporations reigned over territories, natural resources, and material goods. They dominated banks, railroads, factories, mills, steel, and politics. With companies and industrial giants like Andrew Carnegies’ Steel Company, John D. Rockefeller’s Standard Oil Company and J.P. Morgan in which he reigned over banks and financing. Carnegie and Rockefeller both used vertical integration meaning they owned everything from the natural resources (mines/oil rigs), transportation of those goods (railroads), making of those goods (factories/mills), and the selling of those goods (stores). This ultimately led to monopolizing of corporations. Although provided vast amount of jobs and goods, also provided ba...
Many people consider Rockefeller a robber of industry because of his forcible ways of gaining his monopolies. Rockefeller was fond of buying out small and large competitors. If the competitors refused to sell they often found Rockefeller cutting the prices of his Standard Oil or in the worst cases, their factories mysteriously blowing up. Rockefeller was obsessed with controlling the oil market and used many of undesirable tactics to flush his competitors out of the market. Rockefeller was also a master of the rebate game. He was one of the most dominant controllers of the railroads. He was so good at the rebate that at some times he skillfully commanded the rail road to pay rebates to his standard oil company on the traffic of other competitors. He was able to do this because his oil traffic was so high that he could make or break a section of a railroad a railroad company by simply not running...
Let us first look at Mr. Andrew Carnegie. Carnegie was a mogul in the steel industry. Carnegie developed a system known as the vertical integration. This method basically cut out the ‘middle man’. Carnegie bought his own iron and coal mines (which were necessities in producing steel) because purchasing these materials from independent companies cost too much and was insufficient for Carnegie’s empire. This hurt his competitors because they still had to pay for raw materials at much higher prices. Unlike Carnegie, John D. Rockefeller integrated his oil business from top to bottom. Rockefeller’s system was considered a ‘horizontal’ integration. This meant that he followed one product through all phases of the production process, i.e. Rockefeller had control over the oil from the moment it was drilled to the moment it was sold to the consu...
After he was elected as the president of the United States, the corruption with financial business got his full attention that he had to warn the nation that “Special Privilege,” which is the Second Bank of the United States, has corrupted it.[2] In this
Following the years of Congressional Reconstruction during the Johnson administration, former Union General Ulysses S. Grant was elected president, despite his lack of political experience. Although Grant was an excellent soldier, he proved to be an insufficient politician, failing to respond effectively to rampant corruption throughout his two terms in office. Both government and businesses were plagued by corrupt schemes, as Republican leaders used the spoils system to gain political favors and “robber barons,” such as Jay Gould and James Fisk, stole large sums of money at the public’s expense. New York Mayor William “Boss” Tweed, leader of the “Tammany Hall” political machine, took advantage of the influx of immigrants to the United States by manipulating newly arrived immigrants, promising employment, housing, and other favors in return for their electoral support. This blatant corruption severely damaged the opinions of many Americans regarding their government, and prompted the election of numerous reform-minded politicians. Rutherford B. Hayes and James Garfield both attempted to restore honest government following the tainted Grant administration, yet political divisions between the “Halfbreed” and “Stalwart” factions of the Republican Party prev...
One of the biggest corrupt cabinet officer was president Harding’s attorney general Harry Daugherty. “… Sold alcohol permits to bootleggers during prohibition and pardons and paroles to criminals ” ( Giroux 235). Even people close to the president took part in corrupt affairs, the wealth was so immense that it had no limits as to who could be
Near the end of the nineteenth century, business began to centralize, leading to the rise of monopolies and trusts. Falling prices, along with the need for better efficiency in industry, led to the rise of companies, the Carnegie Steel and Standard Oil company being a significant one. The rise of these monopolies and trusts concerned many farmers, for they felt that the disappearance of competition would lead to abnormaly unreasonable price raises that would hurt consumers and ultimately themselves. James B. Weaver, the Populist party's presidential candidate in the 1892 election, summed up the feelings of the many American Farmers of the period in his work, A Call to Action: An Interpretation of the Great Uprising [Document F]. His interpretations of the feelings of farmers during that time were head on, but the truth is that the facts refute many of Weaver's charges against the monopolies. While it is true that many used questionable methods to achieve their monopoly, there were also other businessmen out there that were not aiming to crush out the competition. In fact, John D. Rockefeller, head of Standard Oil and a very influential and powerful man of that time, competed ardently to not crush out his competitors but to persuade then to join Standard Oil and share the business so all could profit.
In the 1920s there were a lot of political scandals, which was very unfortunate. For example, the Teapot Dome was the biggest political scandal. The Teapot Dome was an oil field the U.S. Navy owned. Many people wanted to use this valuable oil source. The two companies gave permission to use it and did not put a considerable offer to use the fields; therefore the Senate began to investigate. Surprisingly, they founded out that Albert B. Fall, Harding’s Secretary of Interior, took bribes from both companies in trade for the justifications to develop the oil. Finally, during the investigation they also founded bootlegged liquor in the offices of Harding’s associates.