Chapter 14 Section 3 Guided Reading and q. #2 pParticic. 455

1) Vertical Integration: a) Vertical integration is when a company would buy out all of its suppliers in order to control raw materials and transportation systems.
b)This helped tycoons and big companies because they would have control over the raw materials and transportation systems, and would thus not have to worry about high prices from their suppliers and make it harder for their competitors to get supplies.

2) Horizontal Integration: a) When companies would buy out competing companies and they merge.
b) The competition would be very much limited if you own most of the other companies.

3) Social Darwinism: a) The belief that the market should not be regulated, and that success was determined by natural law and not be interfered with. Riches were a sign of God's favor and therefore the por were inferior and deserved their lives.
b) This would be helpful to tycoons because new competition would be less likely to rise up and challenge them, as well as the fact that people would veiw their success as God's favor.

4) Monopoly: a) Complete control over it's industry's production, wages and prices.
b) If you control everything, then what more needs be said?

5) Holding Company: a) A corporation that did nothing but buy out the stock of other companies.
b) It would help to get a monopoly

6) Trust: a) Participants would turned their stock over to trustees, people who ran the companies as one large corporation.
b) Competition would be eliminated.

7) The perception of tycoons as "robber barons": critics disliked them and began to call them robber barons due to their harsh tactics.

8) Sherman Antitrust Act: An act that made it illegal to form a trust that interfered with free trade between states or other countries.