American History Terms :: American History

American History Terms1. Government role in RR building- Congress was impressed by arguments supporting soldiers and postal needs and began to advance liberal money loans to two favored cross- continent companies in 1862 and added enormous donations of land and tracks. Within the routes the RRs were allowed to choose switch mile- square sections in checkerboard fashion2. Significance of Transcontinental RR- A magnificent engineering feat- most impressive peacetime undertakings. Welded West Coast firmly to the Union. Facilitated comfortable trade with Asia. Stimulated growth with the West. Architectural feat- increased nationalism. Huge fortunes, jobs.3. Stock watering - favorite device of the moguls of manipulation. Originally meant the practice of making cattle athirst(p) by feeding them salt and then having them bloat themselves with water before they weighed in for sale. Using a variation of this, RR stock promoters grossly inflated their claims closely a given lines assets an d profitability and sold stocks and bonds far in excess of the RRs actual value.4. Secret Rebates kickbacks given to powerful shippers in return for steady and assured traffic- not given to everyone. Often slashed prices on competing lines, but more(prenominal) often mad up the difference on noncompeting ones5. Wabash Case - 1886 Supreme Court ruled that said individual states had NO power to regulate interstate commerce. This would be done by the federal govt 6. Interstate Commerce Act - Prohibited rebates and pools and required the railroads to publish their rates openly. Forbade discrimination against shippers and outlawed charging more for a short haul than for a foresighted one over the same line. Created Interstate Commerce Commission (ICC) to enforce and administer the new legislation. It did not really beat corporate wealth, but it did allow a forum where businesses could resolve their conflicts peaceably.7. Vertical and Horizontal integration - vertical integration was combining into one organization all phases of manufacturing from obtaining raw materials to marketing. It made supplies more reliable, controlled the quality of product at all states of production, and cut out middlemens fees and was perfected by Carnegie. Horizontal integration was consolidating with competitors to monopolize a given market, utilise a lot by Rockefeller.8. Trusts benefits Gave consumers a superior product at a relatively cheap price. The efficient use of expensive machinery called large-scale production and consolidation proved more profitable than ruinous price wars.9. Sherman Anti-Trust Act 1890 forbade combinations in restraint of trade, without any distinction between serious and bad trusts.