Political Trusts and Cartels

1. Political Trusts and Cartels

2. Friday, August 31: Do-Now- Copy down today’s question and date on your do-now sheet • Question:

3. Answer • C. Controlled a political party’s activities in the city

4. Agenda Check • Take out Daily Agenda • Write Homework Assignment: • Interpreting Political Cartoons • Unit 2 Project

5. Lesson Activities • Do-Now & Agenda Check • Lecture Notes • Gilded Age • Government Support for Business • Trust and Monopolies • Andrew Carnegie • John D. Rockefeller • The Jungle • Video Clip • Sherman Anti-Trust Act

6. Today’s Focus • I. Today we are going to learn about • II. It’s important to understand the impact of political machines on the expansion of cities and the industrial revolution. • III. I use my understanding of political machines when I am thinking about how people get the government services they need today. IT’S DIFFERENT • IV. I like to think of political machines as very similar to the Luskin Academy uniforms we wear. Even though we really wish that they weren’t necessary (and sometimes we hate them because they are ugly), we understand why wearing uniforms is important and what wearing uniforms provides for our school and our school community: structure and order. • V. Today we are going to be taking notes about this topic and you will be practicing finding definitions of main ideas on your own • VI. Be careful of just simply copying everything from the power point word for word because that is not going to help you understand political machines. Use your own words • VII. You will have accomplished today’s task once you articulate a response to the daily short-term assessment and Ms. Hernandez has discussed this response with you.

7. Standard and Objective • Standard 11.2.5: Students will learn about the causes and effects of the rise of industrialization (big businesses, machines, and factories) in the United States between 1870-1930 • Objective: Write a one-paragraph essay examining corporate mergers that produced trusts and cartels and the economic and political policies of industrial leaders.

8. The Gilded Age Main Points: • Gilded Age • Influential Industrialists

9. The Gilded Age Andrew Carnegie and John D. Rockefeller (below), were among the most influential industrialists during the Gilded Age. • The Industrial Revolution was known as the Gilded Age. • The name refers to the process of gilding (making metal shiny) and is meant to make fun of those who brag or who feel superior because they became wealthy during this time.

10. Government Support for Business Main Points: • Laissez fare economics

11. Government Support for Business STOP, JOT, AND THINK!!! -Think about the following questions, write some notes to yourself on your paper, and be prepared to share your response with the class! QUESTION: Why should we limit the amount of profits businesses should receive? If businesses can keep making money why should the government stop them? • In the late 1800s, business operated without much regulation. • This was known as laissez faire economics (let it be), where businesses could maximize whatever profits it wanted. • Laissez faire economics fostered the growth of trusts and cartels.

12. Trusts and Monopolies Main Points: • Monopoly • Trust • Trust Agreements

13. Trusts and Monopolies • A trust, or monopoly dominated an entire industry. • A trust was a new type of industrial organization, in which the voting rights of a controlling number of shares of competing firms were entrusted to a small group of men, or trustees. • Americans thought these trusts were responsible for the steady price increases that had occurred each year since 1897.

14. Trusts and Monopolies • In trust agreements, companies turn over their stock to a group of trustees who run the companies as one large company. • In the late 19th century, the growth of corporate mergers (meshing or coming together) and trusts led to monopolies, in which one company controlled an entire industry. • Trusts were formed to gain complete control over the price of a good or service.

15. Andrew Carnegie Main Points: • Horizontal Integration • Vertical Integration

16. Andrew Carnegie Carnegie Steel

17. Andrew Carnegie • He found ways to make better products more cheaply • He gained control of the raw materials and distribution system for steel through vertical integration—buying out suppliers (coal fields, iron mines) and transportation systems (ore freighters, railroad lines) • Bought out competing steel manufacturers, a practice known as horizontal integration (or limiting competition within an industry). • Carnegie controlled the resources, manufacturing, and distribution of steel. • Carnegie also became very wealthy and donated much of his wealth to those less fortunate than him.

18. John D. Rockefeller Main Points: • How he became wealthy • Robber Baron

19. John D. Rockefeller Standard Oil Company

20. John D. Rockefeller • Standard Oil entered into trust agreements with competing oil companies in order to create one large corporation and decrease competition. • Rockefeller became wealthy by paying low wages to employees, driving out competition by selling oil for less than what it cost to produce it, and raising oil prices once the competition was gone. • By 1880s, Standard Oil controlled 90 percent of the oil refining business. • Rockefeller was labeled a robber baron for his tactics – which means someone who uses bad business practices to become powerful or wealthy.

21. The Jungle Main Points: • Meatpacking plants • Upton Sinclair • Beveridge Meat Inspection Act • Muckraking

22. The Jungle JurgisRudkus and his family come to America from Lithuania and find employment performing various tasks in the slaughterhouses. Quickly, the family realizes that their dreams of America and its wealth were painfully far from reality. Instead of being a land of promise, it is a land of interminable toil and poverty. The workers at the meatpacking plants are poorly paid, overworked and subject to unfair labor practices and dangerous working conditions.

23. The Jungle Diseased cattle and hogs are processed for consumption, as well as pregnant cows and their fetuses. The sausages are made of a random mixture of animal parts, as well as the dirt, rat carcasses and poison scooped up off the floor. The corruption within the plants runs thick, with bosses demanding "gifts" of money from their workers, and stealing off those in the hierarchy of management.

24. The Jungle As Sinclair said, “I aimed for the public’s heart, and hit it in the stomach instead.” Then in 1906, author Upton Sinclair wrote The Jungle, an exposé of the Chicago meatpacking industry. The Jungle led to sweeping reforms in the meatpacking industry, along with federal regulations regarding sanitary practices in the industry. The Senate furnished (created) radical legislation by passing the Beveridge Meat Inspection Bill in response to the book.

25. “Radical action must be taken to do away with the efforts of arrogant and selfish greed on the part of the capitalist.” The Jungle After President Theodore Roosevelt read The Jungle, he ordered an investigation of the meat-packing industry. With the passing of the Pure Food and Drugs Act (1906) and the Meat Inspection Act (1906), Sinclair was able to show that novelists could help change the law. This in itself inspired a tremendous growth in investigative journalism called muckraking or the exposure of scandal.

26. Video Notes: Please take notes while watching the film. Your notes should help you answer the following question: • QUESTION: How was one book able to contribute to reform of society? [write down specific things that the video shows you and tells you] • http://www.youtube.com/watch?v=M1aZbqjBF7A

27. Sherman Anti-Trust Act Main Points: • Sherman Anti-Trust Act

28. Sherman Anti-Trust Act • In response to competition among businesses, Congress passed the Sherman Antitrust Act in 1890. This act made it illegal for companies to create trusts that interfered with freedom of competition. • The act was difficult to enforce and was ineffective in breaking up big businesses.

29. How to determine political cartoons? 1. Let your eyes float over the cartoon. Artists know what will capture the reader’s attention first. Allow your mind and your eyes to naturally find the portion of the cartoon that stands out. Most often, this will be a caricature, which is an exaggeration or distortion of a person or object with the goal of providing a comic effect.

30. Step 2 • Follow the cartoon's natural flow by discovering the interaction with the primary focus (found in step 1). If it's a person, to whom are they talking? Where are they standing? If it’s an object, what is being done to the object? What is it doing there? Most often, you can look around the immediate vicinity of the primary focus to find what is being described. This is usually an allusion, or an indirect reference to a past or current even that isn’t explicitly made clear within the cartoon. Following our examples, the snake looks like it might be poised to attack. What would it be attacking? The body is disjointed and each of the 8 sections has an abbreviation. Can you recognize any of them?

31. Step 3 • Determine the audience. What section of the population is the publication geared towards, and in what country and locality? A political cartoon will be created with consideration to the experiences and assumptions of the intended audience. • "Join, or Die" was first published in Franklin’s Pennsylvania Gazette on May 9, 1754. The audience at the time would probably recognize the abbreviations as standing for a British American colony or region.

32. Step 4 • Understand the context of the cartoon. More often than not, the political cartoon will be published in context, meaning that it is associated with the main news story of the day. If you are viewing a political cartoon outside of its original publishing source, you will want to be well-read about current and historical events. "Join, or Die" was drawn by Benjamin Franklin and appeared in conjunction with an editorial by him that addressed the dissatisfaction of the colonies and encouraged colonial unity. The cartoon and editorial were published when the colonists were deciding whether to fight the French and their Indian allies for territory between the Appalachian Mountains and the Mississippi River. The phrase itself, "Join, or Die" implies that if the colonies don't join forces to "attack" or fight opposing forces, they will "die" or fail to work towards their own interest. At the time, there was also a superstition that a cut snake could come alive again if it was put back together before sunset

33. Step 5 • Uncle Sam or an eagle for the US. • John Bull, Britannia or a lion for the United Kingdom. • Beaver for Canada. • A bear for Russia. • A dragon for China. • A sun for Japan. • A kangaroo for Australia. Look for widely recognized symbols. Some metaphors are commonly used by political cartoonists.

34. Step 6 Look at minor details in the cartoon that will contribute to the humor or the point of the cartoon. Often, words or pictorial symbols will be used to convey minor themes or ideas, but they are found in the background or on the sides of the cartoon.

35. Interpreting Political Cartoons: Pair Activity • How do you interpret political cartoons? • 1. Let your eyes “float” over the cartoon • 2. Follow the cartoon’s natural flow by discovering the interaction with the primary focus • 3. Determine the audience • 4. Understand the context • 5. Look for widely recognized symbol • You will have political cartoons to interpret: • What do I see?  • Who is the audience? • What was the artist saying about the time period? • MAKE SURE YOU ANSWER THE QUESTIONS USING COMPLETE AND WELL-THOUGHT OUT SENTENCES.

36. Independent Activity: Reading Comprehension • The Jungle: Question Worksheet • For years, many Americans bought meat from butcher shops and grocery stores, never thinking about the type of conditions under which livestock had been butchered and the meat had been processed. Then in 1906, author Upton Sinclair wrote The Jungle, an exposé of the Chicago meatpacking industry. • Millions of people who read the book were shocked by the unsanitary practices Sinclair described. His work led to sweeping reforms in the meatpacking industry, along with federal regulations regarding sanitary practices in the industry. As Sinclair said, “I aimed for the public’s heart, and hit it in the stomach instead.” • Directions:Read each excerpt, then answer the following questions. Answer questions on this sheet of paper. If you use a separate sheet, please staple it and label it correctly.

37. Short-term Assessment: 1-paragraph essay • Please answer today’s Short-Term assessment in 1-paragraph essay format. Make sure you answer the question completely!! • 1. Describe the meatpacking monopoly, the oil monopoly, or the steel monopoly. Why were they so powerful and what did they do positively and/or negatively for American society?