THIS DAY IN ECONOMIC HISTORY

AT&T Monopoly Broken Up

AT&T, the monopoly of the telecommunications industry, became stripped of its Bell System companies, altering its workforce and assets.

Standard Oil Trust

John D. Rockefeller merged his company with oil affiliates to become the Standard Oil Trust, the nation's first authorized monopoly.

Labor Movement Setback

Supreme Court ruled to essentially weaken the labor movement's power and legitimacy by restricting a bargaining tactic.

Railroad Baron Dies

Cornelius Vanderbilt, a leader in the shipping industry, dies with an estimated worth of $100 million, making him at the time the richest man in the United States.

Ford Boosts Wages

Ford Company attempted to humanize the assembly line with a minimum wage boost and the reduction of the workday to eight hours.

Reagan's Gas Tax

Under republican President Reagan, a federal tax on gas was increased to create funding for roads and bridges, and in turn created many jobs.

First Bank Debuts

The nation's first private, commercial bank, called the Bank of North America, opened in Philadelphia.

Reagan Tweaks Offices

In a controversial move, President Reagan announced the secretary of the Treasury and the chief of staff will swap jobs.

Airlines Record Huge Losses

Air Transport Association reports that the U.S. airline industry recorded a combined loss of $2 billion, the worst industry performance since 1978.

Labor Leader Lost

AFL-CIO chief George Meany, a longtime union man who oversaw the merger of the AFL and CIO, and in 1957 expelled Jimmy Hoffa and the Teamsters from the organization, died this day in 1980.

First Treasury Secretary Born

Alexander Hamilton, patriot, author, and first Secretary of the Treasury was born this day in 1757.

U.S. Looks To A Golden Future

National Monetary Conference in Indianapolis, Indiana creates a congressional committee to devise a financial system based on the gold standard.

GTE Cuts Jobs

The telecommunications company in an effort to cut costs cuts 17,000 jobs, and takes a $1.8 billion pre tax charge.

Paper vs. Coin

House passes the Specie Resumption Act, which puts in motion a program for the Treasury Department begin to exchange legal tender for gold on January 1, 1879.

U.S. Gets A Financial Plan

Superintendent of Finance Robert goes before congress an gives his plan for establishing a national mint and a decimal coin system.

Weapons Companies Merge

Raytheon Corporation strikes a deal to buy Hughes Electronics for $9.5 billion.

War Pumps Life Into The Market

The beginning of the first Gulf War results in a 114.60 point jump in the DOW, one of the best one-day gains in market history to this point.

Workingman's Song Goes To Number One

Take This Job and Shove It, a song by Johnny Paycheck goes to number one on the Billboard charts this day in 1978.

Strike Averted, Dispute Settled

Government gives up month long control of U.S. railways after workers agree not to strike and come to terms on a new wage contract.

Woodhull: First Lady Of Brokerage

Woodhull, Claflin, & Co. run by Victoria Woodhull and Tennessee Claflin becomes the first brokerage firm run exclusively by women.

Anti-Trust Act Becomes Obsolete

Sherman Anti-trust Act is rendered useless after Supreme Court's ruling in favor of E.C. Knight in the case of United States v. E.C. Knight.

RFC Comes To Life

The Reconstruction Finance Corporation (RFC), brainchild of Pres. Hoover is created as an independent agency to fight the effects of the Depression on the U.S. economy.

Goodbye Poll Tax

With the passage of the 24th Amendment in South Dakota the poll tax now becomes illegal nation wide.

Income Tax Here To Stay

After several rulings against Federal Income Taxes the Supreme Court finally gives its blessing declaring the 16th Amendment constitutional.

Al Capone To Rest

Mob kingpin and killer Al Capone died today after leading a life of crime, including the tax evasion which ultimately landed him in Alcatraz prison.

Golden Egg Hatches A Pepper

Cadbury Schweppes P.L.C. buys Dr. Pepper/7-up Company for $1.7 billion, making them third in the U.S. soda market.

Coke Cracks The Curtain

Coca-Cola reveals plans to begin selling its soft-drinks in the U.S.S.R.

Carnegie Gives Back

A $10 million donation from Andrew Carnegie goes to set up the Carnegie Institution in Washington, D.C. The institution teaches biology, astronomy, and earth sciences.

Troops Settle Dispute

Federal troops are sent to the banks of the Potomac River to put down a riot by canal workers. This is the first labor dispute in U.S. history.

Steadying The Dollar

The Gold Reserve Act is passed giving the President the power to set the value of the dollar relative to the price of gold.

Social Security Begins

On this date in 1940 a Vermont woman receives the first ever Social Security check in the amount of $22.54.