Chapter 14: Industrial Age 1870 - 1900 b b Introduction b b Edwin Drake b b Henry Bessemer b b...
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Transcript of Chapter 14: Industrial Age 1870 - 1900 b b Introduction b b Edwin Drake b b Henry Bessemer b b...
Chapter 14: Industrial AgeChapter 14: Industrial Age1870 - 19001870 - 1900
Introduction Edwin Drake Henry Bessemer
Thomas A. Edison George Westinghouse Chris Sholes: 1867 Telephone: 1876 Transcontinental Railroad:
1869 Immigrants Regulation George Pullman Credit Mobilier: 1864 Interstate Commerce Act:
1887• Intrastate Trade
Social Darwinism• Success
Horatio Alger Jr. Monopoly Trust Octopus Andrew Carnegie
• Gospel of Wealth
J.P. Morgan• Holding Company
Vanderbilt John D. Rockefeller
• Cut Throat Competition Robber Barons Sherman Anti-Trust Act 1890 Working Conditions Mother Jones Unions National Strike 1877
• Yellow Dog Contracts Knights of Labor (KoL)
• Arbitration Haymarket Square Riot 1886 American Federation of Labor
(AFL)• Collective Bargaining
Eugene Debs Government & Business Injunction Results of Injuctions
IntroductionIntroduction
During the late 1800s, the United States will During the late 1800s, the United States will experience a 2experience a 2ndnd Industrial Revolution Industrial Revolution that will change that will change American industryAmerican industry
Problems in the work place will be addressed by Problems in the work place will be addressed by the creation of labor unions & the federal governmentthe creation of labor unions & the federal government
Bessemer & DrakeBessemer & Drake Oil Drill: Invented by Edwin
Drake.
Effects: Drilling for oil becomes more practical• New use for the steam engine• Gasoline
Steel Production – “The Bessemer Process”: Invented by Henry Bessemer
Effects: Large scale building – cities
Many new inventions• Plow, windmill, skyscrapers,
barbed wire• Efficient & cheap
Steel more flexible & stronger, won’t rust if made properly
New Uses for SteelNew Uses for Steel
Railroad biggest consumer• Tracks & Spikes
Barbed wire, Mechanical reaper, John Deere’s Plow
Tin can Brooklyn Bridge built in
1883• Many were unsure of its
safety so Barnum (the circus guy) marched elephants across it to prove its strength
Jenney: 1st skyscraper• Home Insurance Bldg.,
Chicago
Incandescent Light BulbIncandescent Light Bulb Invented by Thomas A. Edison
• Safer than the arc light Effects: Safer form of
electricity 1,000s of inventions
• Phonograph• Microphone• Stock ticker• Projecting Kinetoscope• Galvanized batteries
Electrical Distribution System: Invented by George Westinghouse
Effects: Safer & cheaper way to distribute electricity long distance
TypewriterTypewriter18671867
Invented by Chris Sholes Created jobs for women Letter arrangement was changed because workers were typing too fast!
Telephone: Telephone: 18761876
Invented by Alexander Graham Bell & Thomas Watson
Considered toys at 1st until its usefulness was proved
Quicker & more efficient communication
More jobs for women• Telephone operators
– Why not men?
1910: Women made up 40% of the clerical workforce
Changes in SocietyChanges in Society
Consumer becoming important part of business• More products on the
marker & we’re buying more stuff
More recreational activities like the phonograph, bikes & cameras become popular
How to balance industrialization & environmental pollution?
Social DarwinismSocial Darwinism Survival of the fittest in
business• Big business naturally takes
over smaller businesses Darwin’s Origin of Species
• Process of Natural Selection
Sumner: Success & failure in business were governed by natural law that no one (gov’t) had right to interfere.
Favors a Laissez-Faire Gov’t where the gov’t. doesn’t control industry
New definition of success: God gave $ to deserving & the poor were lazy
New Business Practices:New Business Practices:Horizontal MergerHorizontal Merger
Merging companies that Merging companies that make similar productsmake similar products
Shell Gas
Hess Gas
Exxon Gas
BP Gas
New Business Practice:New Business Practice:Vertical MergerVertical Merger
1 company takes over 1 company takes over the suppliers, the suppliers, distributors, & distributors, & transportation system to transportation system to gain control of the entire gain control of the entire industryindustry
Oil Drills
Oil Refineries
Oil Pipelines
Oil Trucks
Stations
New Business PracticesNew Business Practices
Oligopoly: Only a few sellers provide particular product• Usually result of merger
Monopoly: 1 company dominates the market = no competition• Buy out all competitors to control market (production,
quality, sales)• Prices go up!!
Trust: Same as monopoly
Octopus represented
trusts & monopolies in
political cartoons
Big BusinessBig Business
Powerful Powerful industriesindustries• OilOil• SteelSteel• RailroadRailroad
Very involved Very involved in Gov’t. in Gov’t.
Andrew CarnegieAndrew Carnegie
Made $ in steel Made $ in steel industry industry
Founded US Steel Founded US Steel Co.Co.
1901: Controlled 1901: Controlled 80% steel industry80% steel industry
Nearly monopolized Nearly monopolized steel industrysteel industry
Gospel of Wealth: Rich had a social Rich had a social obligation to help the obligation to help the poor & the poor & the communitycommunity
John D. RockefellerJohn D. Rockefeller
Standard Oil Company
90% oil refining industry
Didn’t share benefits w/employees, paid low
Used Cut Throat Competition: Drive competitors out of business by lowering prices…• Once the competition is
weak, her buys them & raises prices again!!
Control market, then raised prices• No alternative
J.P. MorganJ.P. Morgan
Made $ from banking & bought out many railroads
Holding Company: Buy stock of competing companies until it controls the majority
1900: control 50% of RxR in US
Cornelius VanderbiltCornelius Vanderbilt
Made money Made money from the from the railroadsrailroads
Charged very Charged very high prices in high prices in the Westthe West• Poor farmers Poor farmers
Built luxury railroad cars (Pullman Sleeper Cars)
Creature comforts• Plush chairs,
temperature control etc.
Company Town: Employees forced to live in Pullman town…keeps them in debt to the company
TitlesTitles
Captains of Captains of IndustryIndustry
Name given to Name given to industry industry leadersleaders
Robber Robber BaronsBarons
Monopolists Monopolists who used who used unfair/cut unfair/cut throat tacticsthroat tactics
Credit Mobilier: 1864Credit Mobilier: 1864
Railroad scandal linked to Grant’s VP One of the many reasons Northerners stopped
paying attention to the South
Interstate Commerce Act: Interstate Commerce Act: 18871887
Not enforced at 1st; until T. Roosevelt
Federal Gov’t. can supervise railroads & regulate interstate trade• Trade between states
Interstate Commerce Commission established to supervise, but difficult job• Too much paper work (red
tape)
Horatio Alger Jr.Horatio Alger Jr.““Pulling yourself up form the
bootstraps”
Not everyone agreed w/Social DarwinismWrote dime novels: rags to riches storiesNo shame in humble beginningsPeople looked differently at poor
•Fault of individual, not economy
Other MonopoliesOther Monopolies
Charles PillsburyCharles Pillsbury• FlourFlour
RJ ReynoldsRJ Reynolds• TobaccoTobacco
J.B. DukeJ.B. Duke• TobaccoTobacco
All southern monopoliesAll southern monopolies
Monopolists who used cut throat competition
Defending themselves by contributing to charity: most gave very little
Carnegie gave 90% of earning (he was the exception to the rule)
Sherman Anti-Trust ActSherman Anti-Trust Act18901890
Fighting back against monopolies• Drive prices up – many farmers, workers & poor can’t
afford products
Stated any attempt to interfere with free trade was illegal• Monopolies, but later included strikes & workers’ union
Used to break up monopolies
Weak at 1st• Supreme Court didn’t support, monopolies continued
Used to control Unions
Working ConditionsWorking Conditions
UnsafeUnsafe working working conditionsconditions• Low pay ($3-$12 Low pay ($3-$12
week)week)• Long hours (16)Long hours (16)• No sick, vacation No sick, vacation
workman’s comp.workman’s comp.– Injuries commonInjuries common
– 1882: 675 died 1882: 675 died weeklyweekly
1890-1917: 1890-1917: 200,000+ workers 200,000+ workers killed, 2 mil. injuredkilled, 2 mil. injured
Triangle Shirtwaist Co. Triangle Shirtwaist Co. 19111911
Fire spread throughout Fire spread throughout factoryfactory
Workers tried to escape, Workers tried to escape, but doors were lockedbut doors were locked
No sprinkler systemNo sprinkler system Fire escape collapsedFire escape collapsed 154 dead154 dead Owner acquittedOwner acquitted ResultsResults
• Established Fire codesEstablished Fire codes• Abolished child laborAbolished child labor• Sunday offSunday off• 54 hour work week54 hour work week
Child LaborChild Labor
Cheap - .27 cents Cheap - .27 cents dayday
Could fit in machines Could fit in machines to fixto fix
20% children working 20% children working – no school– no school
Chained to machinesChained to machines Hunger & exhaustion Hunger & exhaustion
lead to accidentslead to accidents OverheadsOverheads
Mother JonesMother Jones
Called for reforms Called for reforms in child laborin child labor
Brought situation Brought situation to public eyeto public eye
Widespread Widespread publicitypublicity
Emergence of UnionsEmergence of Unions
Formed to protect rights of laborersFormed to protect rights of laborers
Against immigrants because they could take Against immigrants because they could take American jobs (Work for less $)American jobs (Work for less $)
National StrikeNational Strike18771877
Strike against the railroads
1st national strike
Federal troops sent to stop strikers• Interfering with free trade,
stopped 50,000 miles of track
Protesting long hours, bad pay
Supported by miners (experiencing same things)
To keep their jobs, strikers were forced to sign Yellow Dog Contracts• Would not join a union or
strike
Knights of Labor (K.o.L.)Knights of Labor (K.o.L.)
Focused on individuals “Injury to one, hurts us all” Union opened to skilled & unskilled laborers; minorities Used arbitration: to settle disputes
• unbiased 3rd party settles disagreement Used strikes
Haymarket RiotHaymarket Riot5/4/18865/4/1886
Chicago Protesting the death of
striker by cops Cops show up Bomb thrown into
crowd Leads to decline of K. o.
L.• Anarchists linked to
Knights of Labor• Public turns against them
because of violence• Creation of AFL
American Federation of Labor American Federation of Labor (AFL)(AFL)
Founded by Samuel Gompers
Union open to only skilled workers
No minorities
Used collective bargaining to settle disputes• Group negotiations • Done before striking
Raised wages, shortened work week
Different tactics used by K.O.L & AFL
Socialist Union leaderSocialist Union leader
Dignity & solidarityDignity & solidarity
Wanted separate Wanted separate unions for skilled & unions for skilled & unskilled laborers of unskilled laborers of different tradesdifferent trades• Miners union, Miners union,
Electricians union etc.Electricians union etc.
Threatened wealthy, Threatened wealthy, supported by poorsupported by poor
Pullman StrikePullman Strike
Laid off 3,000 workersLaid off 3,000 workers Cut wages by 40% Cut wages by 40%
• Making $6 a weekMaking $6 a week Rent high in company Rent high in company
towntown Workers on strikeWorkers on strike Strikebreakers hired by Strikebreakers hired by
Pullman (Pinkertons)Pullman (Pinkertons) Violence eruptedViolence erupted
• Debs jailedDebs jailed• Strikers fired & Strikers fired &
BlacklistedBlacklisted
Government & BusinessGovernment & Business
Gov’t. supports businessInjunction: Court order (in this case) to prohibit strikes
Results of InjunctionsUnions began to decline early 1900sLost support, strikes caused shortage of goodsLosing members