United States History 11R

Transcription

1 United States History 11R

2 After Civil War United States - Agricultural Nation Would become leading Industrial Power in 60 years Why? Wealth of Natural Resources Government support for business Growing urban population provides both cheap labor and markets for products.

3 Primary Characteristics of American Industrialization Production by Machine not hand Increasing Proportion of Work Force in Manufacturing Production Concentrated in Factories Technological Innovation Expanded Markets Growth of Nationwide Networks Capital for Investment Growth of Large Enterprises Growth of Cities

4 Natural Resources Oil Native Americans used for centuries Europeans Used kerosene for lamps Edwin L. Drake First used steam engine to drill for oil Near Titusville, Pennsylvania Oil boom Kentucky, Ohio, Illinois, Indiana, Texas followed. Gasoline Byproduct of oil production Important for internal combustion engine

5 Natural Resources Coal and Iron Large deposits throughout the United States. Iron soft and tends to break and rust Bessemer Process makes steel Developed by British manufacturer Henry Bessemer and American William Kelly Henry Bessemer

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7 Uses for Steel Railroads huge need for tracks Thousands of miles needed. Brooklyn Bridge was possible thanks to steel completed in 1883 Skyscrapers possible - built around a steel frame.

8 Inventions 1867 Christopher Sholes - Typewriter

9 Thomas Alva Edison 1876 Thomas Edison Electricity and Electric Light Bulb Wizard of Menlo Park

10 The Light Bulb

11 The Phonograph (1877)

12 The Ediphone or Dictaphone

13 The Motion Picture Camera

14 Alexander Graham Bell Telephone (1876)

15 Alternate Current George Westinghouse

16 Alternate Current Westinghouse Lamp ad

17 The Airplane Wilbur Wright Orville Wright Kitty Hawk, NC December 7, 1903

18 Model T Automobile Henry Ford I want to pay my workers so that they can afford my product!

19 Model T Prices & Sales

20 Industrialization Big impact on factory work More woman in factories New Inventions adopted Back breaking work reduced Products made cheaper for consumers Many problems in factories overlooked Some workers felt it reduced worth of human beings in workplace

21 Office Work Changed People could work longer and more efficiently More jobs opened up for women

22 Women in Workforce 1870 less than 5% of office workers were women Almost 40% of clerical work force women Need for women in garment industry due to mass production of clothing.

23 The Age of Railroads American History 11R

24 Transcontinental Railroad Central Pacific Railroad & Union Pacific Railroad Promontory, Utah - May 10 th, 1869.

25 Reality Central Pacific employed thousands of Chinese immigrants Paid half of what whites received Union Pacific employed Irish immigrants and out of work Civil War veterans First time statistics gathered 2000 killed and 20,000 injured.

26 George M. Pullman Built sleeper railroad cars and others in Illinois. Company town Clean, well-constructed housing. Doctors offices, shops.

27 The Modern Colossus of (Rail) Roads William Vanderbilt, Jay Gould, and Cyrus W. Fields Created railroad trust from Union Pacific, New York Central, and Lake Shore & Dependence lines.

28 Credit Mobilier Stockholders in Union Pacific formed a construction company to build railroad. Contract to lay track at 2 to 3 times the cost. Stockholders pocketed the profit. Donated stock shares to 20 representatives in Congress Officers of Union Pacific earn $23 million in stocks, bonds, and cash.

29 Grangers Farmers organization founded in Farmers angry at railroads Stealing land Fixing prices for shipping goods Different rates for different customers Elected state legislators Wanted laws to protect interests.

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31 Granger Laws 1871 Illinois authorized a commission to establish maximum freight and passenger rates and prohibit discrimination. Railroads challenged constitutionality of these states laws

32 Munn v. Illinois 1877 Supreme Court upheld Granger Laws. States won the right to regulate the railroads for the benefit of farmers and consumers. Established principle Right of federal government to regulate private industry to serve the public interest. Short lived victory

33 1886 Wabash v. Illinois Supreme Court ruled that states could not regulate railroad rates within their own states if train was headed to another state or from another state. Only the federal government had the right to regulate interstate trade.

34 Interstate Commerce Act of 1887 Response to Wabash v. Illinois Congress passed legislation to regulate railroads Required railroad rates to be reasonable and just. Established 5 member Interstate Commerce Commission (ICC) Could only prevent railroads from charging more for short hauls than long hauls Could not set maximum rates Enforcement meant suing the railroad company took years to settle.

35 Panic of 1893 Due to Corporate abuses Mismanagement Overbuilding Competition Forced railroads to edge of bankruptcy. By 1894, quarter of nation s railroads taken over by financial companies. As 20 th century began 7 companies controlled over 2/3s of the nation s railroad tracks.

36 American History 11R

37 Rise of Big Business Business practices of Gilded Age Corrupt or Beneficial? Industrialization Enormous economic opportunities for those with money to invest Between 1860 and % of population controlled 1/3 of nation s wealth

38 By 1900 Rise of Big Business Only Great Britain's industrial production exceeded total industrial production of United States. Two major factors : New Businessmen New Ways of Doing Business

39 Oil & John D. Rockefeller Rockefeller organized Standard Oil Co. bought out smaller refiners Organized Trusts Combine companies Reduce competition Increase profits

40 Robber Barons In 1870 Standard Oil processed just 3% of U.S. crude oil By 1880 over 90% of crude oil processed by Rockefeller s Drove many competitors out of business and paid employees low wages. Called Robber Barons Harsh business tactics Tried to improve image by donating millions of dollars to charity Became Philanthropists

41 Capitalism Economic system based on the private ownership of the means of production (individual or corporation) Free markets to sell products Right to use means of production to earn a profit.

42 Economic Philosophy Herbert Spencer British economist. Advocate of laissez-faire. Adapted Darwin s ideas from the Origin of Species to humans. Notion of Survival of the Fittest.

43 Laissez Faire French term meaning allow to do Doctrine opposing government interference in economic affairs beyond the minimum necessary for the maintenance of peace and property rights. Marketplace should not be regulated

44 Social Darwinism An economic and social philosophy Biologist Charles Darwin s On the Origin of Species book Theory of evolution by natural selection System of unrestrained competition will ensure the survival of the fittest business. Success and failure in business were governed by natural law and that no one had a right to intervene.

45 Social Darwinism in America Individuals must have absolute freedom to struggle, succeed or fail. William Graham Sumner Folkways (1906) Therefore, state intervention to reward society and the economy is futile!

46 "A drunkard in the gutter is just where he ought to be...the law of survival of the fittest was not made by man, and it cannot be abrogated by man. We can only, by interfering with it, produce the survival of the unfittest." --- William Graham Sumner, What Social Classes Owe to Each Other (1883) Agree or Disagree?

47 "The law of competition may be sometimes hard for the individual, [but] it is best for the race, because it insures the survival of the fittest in every department." ---Andrew Carnegie, "The Gospel of Wealth, (1889)

48 Andrew Carnegie Born in Scotland Started working as clerk for railroad money manager. Entered steel business in 1873

49 Iron and Steel Andrew Carnegie - integrated all stages of refinement process (from ore to finished rails) Vertical Integration Buy out suppliers Horizontal Integration Merging with companies that make similar products. Trust: Horizontal Integration John D. Rockefeller Vertical Integration: o o Gustavus Swift Meat-packing Andrew Carnegie U. S. Steel

50 New Type of Business Entities

51 Iron & Steel Production

52 Trusts Business Organizations Form of business merger major stockholders in several corporations turn over their stock to a group of trustees Trustees run the separate corporations as one large company, or trust.

53 Business Organizations Monopoly One seller controls the production, supply, or pricing of a product no close substitutes If no competition do not have to respond to the wants of the consumer to improve a product

54 Business Organizations Holding Company Does not make product it sells stock in itself and uses that money to buy companies that do make the product. Example - United States Steel Corporation

55 Business Organizations Pools Railroads Different railroads conspired to fix rates on freight and passenger traffic. Pools - anti-competitive against the public interest. Interstate Commerce Act prohibited pools, or conspiracies by railroads to fix rates.

56 Standard Oil Co. What is the meaning of this cartoon?

57 U. S. Corporate Mergers

58 New Financial Businessman Broker: J. Pierpont Morgan Banker and Financier on Wall Street. Well, I don t know as I want a lawyer to tell me what I cannot do. I hire him to tell me how to do what I want to do

59 Wall Street 1867 & 1900

60 The Reorganization of Work Frederick W. Taylor The Principles of Scientific Management (1911)

61 The Reorganization of Work The Assembly Line

62 New Business Culture: The American Dream? Protestant (Puritan) Work Ethic Horatio Alger [100+ novels] Is the idea of the self-made man a MYTH??

63 The Protectors of Our Industries

64 The Bosses of the Senate

65 The Robber Barons of the Past

66 Cornelius [ Commodore ] Vanderbilt Can t I do what I want with my money?

67 Shipping magnate Railroad tycoon The public be damned! What do I care about the law? H aint I got the power? William Vanderbilt

68 The Gospel of Wealth: Religion in the Era of Industrialization Wealth no longer looked upon as bad. Viewed as a sign of God s approval. Christian duty to accumulate wealth. Should not help the poor. Russell H. Conwell

69 Regulating the Trusts 1877 Munn. v. IL 1886 Wabash, St. Louis & Pacific Railroad Company v. IL 1890 Sherman Antitrust Act in restraint of trade rule of reason loophole

70 Modern Robber Barons

71 American History 11R

72 Reactions Big Business Negative Image & Federal Government Reaction Gospel of Wealth and Philanthropy Carnegie Donated 90% of wealth Rockefeller donated $500 million cured yellow fever. Sherman Anti Trust Act 1890 Illegal to form trust that interferes with free trade between states or other countries Very weak

73 Industrialization in South Industry concentrated in North Northern businesses controlled railroads South primarily agricultural Economic stagnation in South Farming only industry Mercy of railroads. Growth - forestry, tobacco, textiles, mining

74 Working Conditions for Labor Long Workdays (12 or more hours), low wages No vacation, medical coverage, sick leave Injuries common no compensation for on job accidents laborers killed in work-related accidents each week. Women and children (5) - worked in sweatshops Wages for Year 1899 Men - $498 Women - $267 Child hour day

75 Organization of American Labor Since late 1700 s Small local unions for skilled labor Early 1800 s Journeymen formed unions - specific industries. Early strikes declared illegal by courts Commonwealth v. Hunt Massachusetts Supreme Court legalized labor unions

76 Early Labor Unions 1st large scale union National Labor Union (1866) Refused to admit African Americans Formed own union, Colored National Labor Union. Got Congress to give government workers 8 hr workdays Noble Order of the Knights of Labor (1869) Advocated 8 hours workdays Equal pay for equal work by men and women Strikes last resort, Arbitration instead Knights of Labor (1869) Create one big union of all workers - skilled and unskilled. Opposed to strikes Terrence Powderly (1879) Grand Master Workman, Knights of Labor Dramatically increased labor power under his leadership Achieved 700,000 members.

77 Other Labor Organizations Craft Unionism Skilled Workers Cigar Makers International Union Samuel Gompers president American Federation of Labor (1886) Organized by Samuel Gompers Higher wages, shorter hrs, and safer working conditions Wages up from $17.50 to $24 Work week Down from 54.5 hrs to under 49 hrs Willing to use strikes as major tactic Demanded Collective Bargaining Negotiation between organized workers and their employer or employers to determine wages, hours, rules, and working conditions

78 Labor Organizations Industrial Unionism Skilled and Unskilled in specific industry Eugene Debs formed American Railway Union (1892). Socialist approach that viewed government and owners as enemies of workers 1894 won strike for higher wages Membership climbed to 150,000

79 Socialism and Labor Organizations Industrial Workers of the World (IWW) (1905) nickname the Wobblies included miners, lumberjacks, cannery and dock workers. Also included radical unionists, socialists, and African Americans. Reached membership of 100,000. Conflicts grow between management and unions.

80 Labor and Strikes American History 11R

81 Great Railway Strike of 1877 July, 1877 Workers on Baltimore and Ohio Railroad strike to protest wage cuts. Strike lasted a week until Governors asked Federal Govt. to intervene Reason Strike interfering with interstate trade President Rutherford B. Hayes sends in Federal troops to stop strike

82 Haymarket Riot May 4 th, people gathered in Chicago s Haymarket Square to protest against police brutality (striker killed at McCormick Harvester plant)

83 Haymarket Riot As crowd leaving rally, a bomb tossed at police line. Police fired at crowd. In end, killed 7 police officers and some workers Wounded 70 3 speakers and 5 other radicals charged with inciting riot. All 8 convicted, 4 hanged. Public turned against labor movement due to violence

84 Carnegie Steel Company s Homestead plant Homestead Strike June 29 th, 1892 Henry Clay Frick announced wage cuts. Strike called. Pinkerton Detective Agency hired to keep plant running with scabs or strikebreakers Steelworkers and detectives fight July 12 th 3 detectives and 9 strikers killed. Workers take over plant

85 Strikers forced to give up in November by Pennsylvania National Guard. Homestead Strike Strike ended with no concessions to workers. 45 years before steelworkers mobilize and organize again

86 During Panic of 1893, Pullman company laid off 3,000 of 5,800 workers. Cut wages up to 50% Rents stayed the same Strike called in spring of 1894 after company refused to restore wages as economy got better. Pullman Strike

87 Pullman Strike Debs wanted arbitration but Pullman refused. ARU boycotted Pullman trains. Pullman hired strikebreakers violence. President Grover Cleveland sent in federal troops to get trains rolling. Debs jailed Most strikers fired Others blacklisted from railroad industry

88 Women Organize Many women barred from early unions. Mary Harris Jones - Mother Jones Early female labor organizer, exposed cruelties of child labor. Pauline Newman 1909 organized International Ladies Garment Workers Union (ILGWU). Helped organize seamstresses strike referred to as the Uprising of the 20,000 Won some improved conditions for a few strikers

89 Triangle Shirtwaist Fire After strike This changed labor movement forever. No longer could ignore working conditions following this incident. 146 women died, many after throwing themselves off the roof to escape the fire Public outrage led to task force to investigate fire and recommend changes.

90 Management and Government Pressures Management refused to recognize unions. Forbid union meetings, fired union members Made workers sign yellow dog contracts agreement not to join a union. Used Sherman Anti-Trust Act against labor claimed strikes or picket lines hurt interstate trade Despite pressures, unions grew AFL had 1.7 million members by 1904 By World War I, 2 million members.