Chapter 14: Industrial Age 1870 - 1900

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Chapter 14 Industrial Age1870 - 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

• 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

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Introduction

• During the late 1800s, the United States will
  experience a 2nd Industrial Revolution that will
  change American industry
• Problems in the work place will be addressed by
  the creation of labor unions the federal
  government

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Bessemer 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, wont rust if
  made properly

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New Uses for Steel

• Railroad biggest consumer
• Tracks Spikes
• Barbed wire, Mechanical reaper, John Deeres 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

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Incandescent 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

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Typewriter1867

• Invented by Chris Sholes
• Created jobs for women
• Letter arrangement was changed because workers
  were typing too fast!

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Telephone 1876

• 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

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Changes in Society

• Consumer becoming important part of business
• More products on the marker were buying more
  stuff
• More recreational activities like the
  phonograph, bikes cameras become popular
• How to balance industrialization environmental
  pollution?

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Social Darwinism

• Survival of the fittest in business
• Big business naturally takes over smaller
  businesses
• Darwins Origin of Species
• Process of Natural Selection
• Sumner Success failure in business were
  governed by natural law that no one (govt) had
  right to interfere.
• Favors a Laissez-Faire Govt where the govt.
  doesnt control industry
• New definition of success God gave to
  deserving the poor were lazy

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New Business PracticesHorizontal Merger

• Merging companies that make similar products

Shell Gas
Hess Gas
Exxon Gas
BP Gas
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New Business PracticeVertical Merger
Stations
Oil Trucks

• 1 company takes over the suppliers, distributors,
  transportation system to gain control of the
  entire industry

Oil Pipelines
Oil Refineries
Oil Drills
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New 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

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• Octopus represented trusts monopolies in
  political cartoons

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Big Business

• Powerful industries
• Oil
• Steel
• Railroad
• Very involved in Govt.

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Andrew Carnegie

• Made in steel industry
• Founded US Steel Co.
• 1901 Controlled 80 steel industry
• Nearly monopolized steel industry
• Gospel of Wealth Rich had a social obligation to
  help the poor the community

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John D. Rockefeller

• Standard Oil Company
• 90 oil refining industry
• Didnt 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

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J.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

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Cornelius Vanderbilt

• Made money from the railroads
• Charged very high prices in the West
• Poor farmers ?

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George Pullman

• Built luxury railroad cars (Pullman Sleeper Cars)
• Creature comforts
• Plush chairs, temperature control etc.
• Company Town Employees forced to live in
  Pullman townkeeps them in debt to the company

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Titles

• Captains of Industry
• Name given to industry leaders

• Robber Barons
• Monopolists who used unfair/cut throat tactics

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Credit Mobilier 1864

• Railroad scandal linked to Grants VP
• One of the many reasons Northerners stopped
  paying attention to the South

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Interstate Commerce Act 1887

• Not enforced at 1st until T. Roosevelt
• Federal Govt. can supervise railroads regulate
  interstate trade
• Trade between states
• Interstate Commerce Commission established to
  supervise, but difficult job
• Too much paper work (red tape)

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Horatio Alger Jr.Pulling yourself up form the
bootstraps

• Not everyone agreed w/Social Darwinism
• Wrote dime novels rags to riches stories
• No shame in humble beginnings
• People looked differently at poor
• Fault of individual, not economy

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Other Monopolies

• Charles Pillsbury
• Flour
• RJ Reynolds
• Tobacco
• J.B. Duke
• Tobacco
• All southern monopolies

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Robber Barons

• 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)

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Sherman Anti-Trust Act1890

• Fighting back against monopolies
• Drive prices up many farmers, workers poor
  cant 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 didnt support, monopolies
  continued
• Used to control Unions

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Working Conditions

• Unsafe working conditions
• Low pay (3-12 week)
• Long hours (16)
• No sick, vacation workmans comp.
• Injuries common
• 1882 675 died weekly
• 1890-1917 200,000 workers killed, 2 mil. injured

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Triangle Shirtwaist Co. 1911

• Fire spread throughout factory
• Workers tried to escape, but doors were locked
• No sprinkler system
• Fire escape collapsed
• 154 dead
• Owner acquitted
• Results
• Established Fire codes
• Abolished child labor
• Sunday off
• 54 hour work week

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Child Labor

• Cheap - .27 cents day
• Could fit in machines to fix
• 20 children working no school
• Chained to machines
• Hunger exhaustion lead to accidents
• Overheads

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Mother Jones

• Called for reforms in child labor
• Brought situation to public eye
• Widespread publicity

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Emergence of Unions

• Formed to protect rights of laborers
• Against immigrants because they could take
  American jobs (Work for less )

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National Strike1877

• 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

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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

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Haymarket Riot5/4/1886

• 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

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American Federation of Labor (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

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Eugene V. Debs

• Socialist Union leader
• Dignity solidarity
• Wanted separate unions for skilled unskilled
  laborers of different trades
• Miners union, Electricians union etc.
• Threatened wealthy, supported by poor

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Pullman Strike

• Laid off 3,000 workers
• Cut wages by 40
• Making 6 a week
• Rent high in company town
• Workers on strike
• Strikebreakers hired by Pullman (Pinkertons)
• Violence erupted
• Debs jailed
• Strikers fired Blacklisted

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Government Business

• Govt. supports business
• Injunction Court order (in this case) to
  prohibit strikes
• Results of Injunctions
• Unions began to decline early 1900s
• Lost support, strikes caused shortage of goods
• Losing members