Industrial Age and Unions

Unit 6.3

40 years – 1880 to 1920 – many changes What changed from

1880 to 1920? Cities grew out and

up. Transportation Lighting Entertainment

Late 1800s / Early 1900s #1 Industry Railroads

Basis for trade Connecting sections of country together -

interdependency Sub industries of steel, coal, etc. related Financial crisis related to Railroad bubble – Panic

of 1873 #1 later in 1900s, Automobile Industry. What

would it be now?

What changed America? Steel

Bessemer Process – injects air to remove impurities Makes steel stronger and lighter Brought over from Britain (and perfected by American

William Kelly) Andrew Carnegie – invested in process

Why did Pittsburg become the Steel City? 3 Major Items needed

Iron ore – from Mesabi Range (Minn) Coal – from Ohio River Valley Limestone – from upstate NY What you do think they needed the most?

Changes

Cities grow up and out. Skyscrapers Elevators (Elisha Otis

invented safety elevator in 1850s)

Subways, rail lines expand out

U.S. Steel Corporation Using vertical

integration, Carnegie had over 20,000 workers and a bigger operation than Britain’s complete industry.

Sold to J.P. Morgan and others in 1900 as the world’s first billion dollar corporation.

Oil In the early 1800s, one of the most important

industries in America was whaling for it’s oil. By the 1840s, Kerosene was being used in lamps. 1859 – Edwin Drake drills 1st well in PA. Begins

boom. John D. Rockefeller used horizontal

consolidation to control over 90% of U.S. refineries with Standard Oil.

One by-product not used – gasoline.

Electricity Thomas Edison

Over 1000 patents – phonograph, motion picture camera, and??

Menlo Park (NJ) lab Ft. Myers (FL) winter home

Who were his neighbors in Ft. Myers? George Westinghouse

Transformer for high-voltage current (much safer!)

Other Inventions of the late 1800s Typewriter – 1867 – Christopher Sholes (Why the qwerty

board?) Telephone – 1876 – Alexander G. Bell Kodak Camera – 1888 – George Eastman Safety Razor – 1895 – King Gillette Hundreds of Thousands of patents issued R&D – Research and Development divisions in

corporations

Robber Barons By 1900, 4000+ millionaires Many claimed to be “self-

made men” like Carnegie, but truth was most born into wealth.

Rockefeller, Carnegie, Morgan

Cornelius Vanderbilt - RRs Gustavus Swift – Meat

packing Isaac Singer – Sewing

machines

Gospel of Wealth By Andrew Carnegie “use wealth for good of

community” Gave back over $325

million

Corporations Multiple people will own business, but

business is legally and “individual.” 14th Amendment was used to defend actions

of corporations as you can not make laws to discriminate against individuals.

Idea of limited liability helped in laissez-faire economics and the caveat emptor attitude.

American Dream? Horatio Alger books

Dime Novels “Puck and Pluck”

series Inspirational rags to

riches stories

Social Darwinism with businesses Strong survive, but

what if they Robber Barons used bribes, unsafe practices?

Laissez-Faire (“hands-off”) economics

Monopolies As Robber Barons became richer, gov’ts

starting cracking down on Monopolies. Business tried to get around laws by calling

them different things: pool arrangements, trusts, Holding Companies.

Sherman Anti-trust Act (1890) Supposed to stop monopolies, but had little effect

at that time. It did not have enforcement provisions Actually used against labor unions

Boom and Bust After the Civil War, the economy of the U.S.

fluctuated wildly. This caused some major economic downturns.

Panic of 1873 – over expansion of RR, Banks failed Panic of 1893 – Banks crisis, extreme unemployment

Great divide between rich and poor. 1899 average salary in factories – men $498, women

$269 Carnegie made $23 that year (and incomes/stocks/bonds

not taxed) Taxing policies still based on Tariffs and Excise taxes. How would fit into the Populist ideas?

Union Growth in late 1800s Early labor unions with women in Lowell

system National Labor Union (William Sylvus) died out

in 1873 Against women workers (drove down wages)

Molly Maguires – not a true union, but used violence against coal mine superiors

Knights of Labor Led by Terrance Powderly Welcomed skilled and unskilled labor Downfall came in 1886 Haymaker Square

Riots Bomb by anarchists killed 7 and injured over 60 Union died out in 1890

AFL – American Federation of Labor(when in doubt on AP exam and labor question, choose AFL)

Led by Samuel Gompers in late 1800s Focused on “bread and butter” philosophy Excluded unskilled workers and had only

skilled workers Why did help it to be more successful?

Union Info to know Collective Bargaining –

power of workers in union to negotiate together.

Strikes – main weapon Scabs – replacements

when on strike

Unions were usually associated with socialists, communists, and anarchists.

Also many immigrants involved.

Other Union Info IWW – International

Workers of the World Led by “Big Bill”

Heywood Early Marxists Gained strength at

turn of century, but loses it quickly with Red Scare after WWI.

Why did Unions grow in the late 1800s/early 1900s? Hours Safety / Working

Conditions Triangle Shirtwaist Factory

Fire Company towns Child labor

Mother Jones

Strikes to Know In most strikes, the gov’t usually always sided with

factory owners. Homestead Steel Mill Strike – owned by Carnegie,

hired Pinkerton Agents to guard scabs. Broke union with national guard. 1892

Pullman (Sleepers) Strike (1894) – workers lived in company town. Wages cut, but rent and prices in store not. Led by Eugene Debs who would later run for

President as Socialist.

Reflection Questions How did the advancements of steel, oil, and

electricity change America? How were the Sherman Anti-trust Act and 14th

amendment actually used against the people? Why did the AFL succeed as a union when the

Knights had failed? How was the expansion of industry good for

the American poor even if they did not profit nearly as much as the very rich?

Links http://

www.gilderlehrman.org/history-by-era/rise-industrial-america-1877-1900 - Industrial Timeline

http://www.youtube.com/watch?v=P17JrdZJcFY&feature=results_main&playnext=1&list=PLB40AC55D5CB1BC06 – union beginnings (why have them in 1800s) good info.

http://edsitement.neh.gov/lesson-plan/industrial-age-america-robber-barons-and-captains-industry - robber barons lesson

http://mises.org/daily/2317 - robber barons article

http://www.youtube.com/watch?v=f6MggpmJk1E&feature=relmfu – trusts review video