HY400 Elmore Notes
HY400 Elmore Notes HY400-001
Popular in Coca-Cola Capitalism: The History of America Business, 1880-Today
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This 9 page Bundle was uploaded by Anderson Moss on Monday February 9, 2015. The Bundle belongs to HY400-001 at University of Alabama - Tuscaloosa taught by Dr. Bartow Elmore in Fall. Since its upload, it has received 269 views. For similar materials see Coca-Cola Capitalism: The History of America Business, 1880-Today in History at University of Alabama - Tuscaloosa.
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Date Created: 02/09/15
HY400 Coke Notes Wednesday January 21 Discussion 3 Railroads and the American Economy 184051900 Key Terms Union Paci c Railroads Telegraph Jay Cooke The Associates 1st National Park Were railroad companies successful American Businesses 0 Chandler believes that they were a success Chandlers two points about railroads o Railroads were the rst managerial ster of business The rst corporation of Modern Corporation 0 Opened up the economy Gave access to the volume of sale and trade Transcontinental Railroad Omaha to Nebraska Promotory Point Utah where they met May 10 1869 Needed huge amounts of Capital Railroads Have been around since 18305 but start booming after 18605 0 Structure of managering was new to the economy Divisions in one rm are new under the railroad 0 You cant run a train without coordination from others This led to telegraph ln 18505 arge railroad ine smight cost 45 million Largest textile mils capitalized at 250000 Telegraph Invented in 18405 but not introduced at large scale use in 18605 0 Transatlantic telegraph in 1866 was successful Going from North America to Europe 0 Alexander Graham Bell invents telephone in 1876 Jay Cooke amp Company 0 One of the rst big bankers in nancing the railroads o Started in Philadelphia and made his money selling bonds for the war effort to fund the Union in the Civil War Railroad during Civil War Railroads were kept alive during the Civil War The government made contracts with railroads to pay them for transportation and paid for debts the railroad had Railroad Act of 1862 0 First federally chartered corporation Union Paci c The Associates 0 Stanford Crocker Hopkins Huntington Just businessmen in California that invest in the Central Paci c Railroad Without their investment railroad would not have happened Credit Mobilier Constructing company of the railroads Government is contracting with themselves Union Paci c Yellowstone National Park 0 First National Park set up in 1872 0 Nathaniel Langford and Ferdinand Hayden were part of the US Geological Survey in early 18705 They go out there just to see what is out there 0 Notice that the area is really cool so they were concerned if more people came out there so they wanted to preserve this as a national image 0 The United States doesn t have castles or anything old and historic so the US wanted to protect our national prestige by protecting them 0 This Is half the story Railroads think this is a great idea because people will want to travel to the National Parks and use the railroad to get there 0 Jay Cooke and Northern Paci c Railroad is excited about this 0 In 1880s the railroad begin to market the rails with advertisement 0 This is the rst national park in the entire world Panic of 1873 0 National Park is not fully pro ting because it just started 0 Much more 1262015 Discussion 4 Railroads and the American Environment Railroaded Reading 0 Should we have built the railroads in the way that we did 0 Should they have been subsidized 0 Should they have gone where they went 0 Should they have gone as fast as they did to nish the railroad 0 Key Terms 0 Joseph Schumpter 0 Creative Destruction Wrote about this in his book Capitalism Socialism and Democracy 0 Harvard Economist o 0 Great Plains 0 Not much rainfall 0 Author does not think it was prudent for us to focus on the Great Plains because rainfall was poor and not a great investment 0 Publicity of moving out west is put out by the railroads o The land survived year after year but was untouched before expansion 0 Before 1870 only 2 million whites lived west of the Missouri River By 1900 there were 104 million Bison o 4 to 6 million bison on the southern plains alone immediately prior to the Civil War Virtually none by 1879 o Hides were being shipped to Europe due to demand Carcasses were left to rot 0 Price of hide was very valuable but was cut in half because there were so many due to ooding of the market by a fast process of stripping the hide off the bison From 18705 to 1879 price of the hide dropped to a 13 of their value 115 0 Indians helped to demise because of the introduction to horses with the Indians in hunting 0 For the Northern Paci c in 18811882 bison hide accounted for onethird of one percent of total traffic Cattle Industry 18805 0 Longhorns 749 heads of cattle per 1000 Americans in 1860 5091000 by 1870 o Cattle are killed in the South during the Civil War 0 Longhorns come from Texas 0 Cattle demand in Europe due to cattle dying from Anthrax o Longhorns start to move North Spread Texas Fever through ticks and kill other cattle The reason to go north is to have the cold kill the ticks 0 They keep going North and into the Dakotas and Montana Weather was not suitable for these Longhorns Severe winters in the North and Southern plains in 18841885 0 Railroad took them to places they didn t belong 0 Grass fed cattle takes 4 years to market but corn fed takes 2 yea rs to market 0 Prices plummet from 935 per hundredweight in 1882 to 460 in 1887 o 0 Wheat 0 Railroad wanted farmers that produced wheat 0 Wheat is being massively produced and drives down the price of wheat Price of wheat was declining faster than railroad rates 0 John Wesley Powell 0 Head of the US Geological Survey beginning in 1881 o Ran the Colorado River by himself through the Grand Canyon Only has one arm 0 Report of the Lands of the Arid Region of the United States In 1879 he says the west is too arid to have the type of settlement that is suggested If you want to push people out here look to send them to hydrolocal societies that are on sides of rivers If you don t then there will be devasting consequences 0 Rain will follow the plow 0 Samuel Aughey U of Nebraska professor said that if you turn up the ground rain will come 0 Doesn t happen 0 Around 1889 there are dust farms in the Great Plains This drought produced the types of storms we would see in the Dust Bowl This happens because in the 1880s there were an abnormally large amount of rain so they think he is right and plow and this leads to that devastation in drought 12815 So where do we stand Were transcontinental railroads a success 1 Transaction Costs 2 Andrew Carnegie 3 John D Rockefeller 4 US Sugar Trust 5 Mass Marketing 6 State Incorporation Laws 7 Santa Clara County Southern Paci c Railroad 8 Unions Discussion5 Birth of the Managerial Revolution 1880518905 0 Use of energy resource fossil fuel to expand over a large amount of geographical space with mass production Throughput the ow of goods through a corporate system 0 Because so much is going through you need a new managerial system to help the growth of production and goods 0 Vertical Integration gave businesses control of certain rare resources so they don t have to worry about a volatile raise in pdces 0 There is also a synchronization of supply and demand 0 Cut out the middle man Transaction Costs 0 1 Search costscosts associated with acquiring information o Vertically integrate so you don t have to constantly develop where certain resources are Produce research in house 0 2 Bargaining costs 0 Vertical Integration gave you the opportunity to cut out the maker of a product for something you need for your product 0 3 EnforcementLegal costs 0 If a competitor does not help you or undercut you in the previous points you don t have to worry about trouble with legal costs Wholesalers such as SearsRoebuck came about and controlled wholesale distribution of goods through Andrew Carnegie Vertical Integration 0 Starts as a Telegrapher and then becomes a bonds salesmen Becomes interested and creates Carnegie Steel Company 0 Owns everything leading around this company John D Rockefeller 0 Born in Richford New York in 1839 o Moved to Cleveland Titusville Pennsylvania rst oil strike in 1859 Rockefeller begins investing in oil in 1853 Creates Standard Oil in 1870 0 Originally started as a trust 0 Owned almost all of the oil re ning and marketing in the United States Agricultural products are beginning to be spread US Sugar Trust Henry Havemeyer s US Sugar Trust formed in 1887 New Jersey in 1890 began relaxing their antitrust laws so they move there Uses throughput and has control of the most amount of sugar but doesn t drive up the price instead he lowers it because competitors could not compete o This helps mass market consumption begin Coca Cola decided to put it in everything because it was cheap Mass Marketing State This made a variety of businesses interested in one thing that these various companies need Helped spread companies throughout the market due to a common interest Incorporation Laws New Jersey and Delaware were the two rst states that opened up business and lax their revenue By 18805 and 18905 wanted to attract business so the lax incorporation laws This allowed anyone to form a corporation by simply raising money and ling articles of incorporation with the state government s secretary of state If you are incorporated in Delaware of New Jersey but operate in different places Santa Clara County v Southern Paci c Railroad Company 1886 Court case that established that corporations are people If you look at the court case it never actually establishes that precedent Yet it is cited in the 20th century profusely that companies are entitled to all the rights and liberties as people Supreme Court sided with the railroads They felt this was a violation under fair treatment f the tax code and the state was trying to raise money from the railroads in ways that were discriminatory quotThe court did not want to hear argument on equal protection of the state in the 14th amendment Judge did not say this but the court reporter wrote this into the court report 0 This implied that businesses were now armed with constitutional privileges Court Cases would cite this court case by saying corporations has certain protection but corporations do not have liberty rights By the 19705 begins court cases that muddle this decision Courts were trying to secure a sense of security in the market Citizens United v Federal Election Commission 2010 0 They produced a movie about Hilary Clinton they put her in a bad light in an election year 0 In this case the separation between property rights and natural rights in transformed 0 Citizens United says they have free speech and cannot be treated differently in that regard Unions Cheap labor is still a possibility but unions set to protect skilled and unskilled workers Knights of Labor 1869 American Federation of Labor 1886 0 Much more conservative labor union that only accepts craftsmen and skilled workers 0 Does not include blacks or women But in the 18805 we see a massive oppression of the Unions 0 Haymarket Uprising Chicago 1886 Against McCormick Wheat processing 0 Homestead PA Strike 1892 Andrew Carnegie s steel plant ghting for better wages and work force 0 Pullman Strike Nationwide 1894 Railroads We see this surgence of workers ghting for labor equality but there is a violent response their states and local enforcement to push workers to go back to work gtUUl 39 Monday 222015 Discussion 6 CocaCola Capitalism Water Water and Caffeine CocaCola Patent Medicine Vin Mariani CC Bottling 5 Progressive Era 6 Public Water Systems 7 Caffeine Why was Coke so successful as a business coming out of the 18805 and 18905 CocaCola Time Magazine has Coke on the cover in 1950 to show that they are feeding the world CocaCola comes out in 1886 by Doc Pemberton Coke does not have any spinoff companies until late 19505 Sprite etc 0 Dr Pepper came out the year before CocaCola 1885 0 Robert Woodruff became president of CocaCola in 1923 until 1954 o In 1979 Woodruff gave 107 million to Emory University Largest donation to a University at that time o 18 billion servings a day of CocaCola throughout the world 0 How did CocaCola get so large throughout the world 0 John Pemberton 0 From Columbus GA 0 Went to Atlanta in the 18705 for business ventures and they fail due to res Vin Mariani Bordeaux wine from France that is mixed with cocaine 0 Mixed coca leaves with the alcohol Ulysses S Grant drank Vin Mariani and wrote advertisements for it 0 Pope Leo Xll even mentioned it o It was priced at 1 so it makes this product price prohibited 0 How is coke going to replace the sweetness from wine Sell jugs of concentrated syrup 0 For every 602 serving all you need is 502 of water 0 This gives a large opportunity for mass production CocaCola Bottling Start5 bottling in 1886 to sell at local soda fountains o In 1899 bottling gives chances for local bottlers to have their own venture to sell individually Public Water Systems 0 Where did CocaCola get their water from 0 Water from the city used to be disgusting due to poor sanitation in urban areas Water was privately sourced o This was a big incentive to clean up cities during the Progressive Era Brought water to the city from a long distance due to aqueducts Caffeine Grounded up Kola nut to make caffeine 0 This comes from Africa Kola Nut This would cost too much because it is from Africa CocaCola switched to broken damaged teaeaves Monsanto steps in an processes the teaeaves to produced caffeine for cheap because they we scraps United States v Forty Barrels and Twenty Kegs of CocaCola 1911 1916 0 Still during the Progressive Act 0 Harvey Wiley seized 40 barrels and 20 kegs of CocaCola because they were intentionally adding caffeine Believed that this was addictive and not right 0 Based this judgment off the passage of the Pure Food and Drug Act 0 Government tries to argue that CocaCola is misbranded and is misleading CocaCola settled and wanted to avoid further litigation They also reduced the amount of caffeine
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