Chapter 18New Industrial Order

New Industrial System

rail transportation network

interlocking industrial systems Improving communication

harnessing natural resources

systematizing invention

organizing large corporations

raising capital and recruiting labor

Railroads

managerial strategies to control their growing operations.

"Central offices" served as corporate nerve centers, "middle managers" supervised separate functional divisions.

Huge fixed costs, overexpansion, fierce competition, leading to rate wars and many bankruptcies.

Consolidation -overcapacity and ruinous competition.

Big Business

Businesses grew in part to protect against competition. Horizontal consolidation

Vertical integration

Andrew Carnegie fully integrated steel empire.

Oil-magnate John D. Rockefeller Trust- in which stockholders surrendered control of their shares "in trust" to

a central board of directors. In

1901 J. P. Morgan bought out the Carnegie steel interests to form the United States Steel Corporation, a giant holding company, or corporation of corporations,

Why? Social Darwinism

Critics attacked corporate capitalism as a greedy promoter of poverty and class exploitation. Socialists tried to incite a radical response among working-class Americans. On balance, big business brought both positive gains and wrenching disruptions, especially the roller-coaster cycles of economic boom and bust.

Workers World

The harsh discipline of productivity

routine specialized tasks,

the unrelenting clock

The 10-hour day and 6-day week were common.

The Taylor system of scientific management boosted output but added to a growing sense that workers were “mere cogs in the massive engine of industrialism.”

Women and children joined the work force blacks found few opportunities except as strike breakers.

Systems of Labor

A minority tried to create unions.

Some sought radical societal changes; others accepted the wage system and tried to improve conditions within it, especially for the most skilled workers.

1900-less than one worker in ten belonged to a union; individualism still reigned.

Yet discontent boiled over in the 1880s and 1890s as a wave of strikes crippled industry. Violence provoked sharp reactions. Managers fought back with no-strike contracts and strikebreakers. Government joined in suppressing worker resistance.

Chapter 19

New Urban Age

Cities acted as magnets -hub of regional networks.

ringed residential patterns around central business districts -- slum cores, zones of emergence, and suburban fringes.

New forms of urban transportation helped these segmented cities hold together even as they probed outward into growing suburbs.

Bridges also helped to join the city.

skyscrapers

Tenements- overcrowded, disease-ridden dwellings.

Running and Reforming the city

services from cities

Boss-dominated political machines developed in response to needs for services. they centralized control and imposed order.

needed goods and services,

such as coal, jobs, and building projects.

graft and corruption, inflated taxes, and election fraud.

Protestant ministers continued to see poverty as the result of individual failure;

nativist organizations, called for the restriction of immigration

urban religious revivals to bridge the gap between the poor and the middle class.

"Social Gospel," which advocated the betterment of society as a way to save individual souls.

Settlement houses served as community centers to help the working class and immigrant poor.

City life

The immigrant underclass clustered together in ethnic neighborhoods.

tension between natives and newcomers.

Urban middle-class life blossomed.

Victorian morality governed personal conduct and stressed sobriety, industriousness, self-control, and modesty, all designed to protect against the turbulent life of the industrial city.

= social reform

City culture

centers of culture, education, and leisure

public schools doubled between 1870 and 1890.

Education became a powerful tool for social control and assimilation.

Colleges and universities furnished a corps of educated leaders and managers.

Women's enrollment increased both in coeducational schools and in new all-women's schools.

Ready-made clothing, mass-produced furniture, department and chain stores, and a growing mail-order business made consumption a national endeavor.