I. The Expansion of Industry a. Natural Resources Fuel Industrialization i. Black Gold s, Americans began to use kerosene to light lamps 2.

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1 I. The Expansion of Industry a. Natural Resources Fuel Industrialization i. Black Gold s, Americans began to use kerosene to light lamps 2. Refining found how to get not only kerosene, but also: gasoline, lubricating oil, waxes, etc. 3. Oil was referred to as black gold 4. Oil prospectors were called wildcatters 5. Edwin Drake a. Drake used steam engine to drill for oil near Titusville, Pennsylvania b. Neighbors questioned his sanity and called it Drake s Folly. c. Drake found oil and spurred a growth in oil seekers 6. Elijah McCoy a. McCoy was son of a runway slave, invented a lubricating cup that fed oil to parts of a moving machine b. McCoy s invention allowed old and newer machines to work more smoothly and quickly ii. Bessemer Steel Process 1. Henry Bessemer, a British manufacturer, came up with a way of removing carbon from the iron. 2. The process, injecting air into molten iron to remove the carbon, became known as the Bessemer Process. 3. Later open-hearth process makes steel from scrap or raw materials 4. Manufacturers could now produce in a day what used to take a week. a. The end result is: CHEAPER STEEL b. a ton of steel=$100 in 1873, $12 by late 1890s iii. New Uses for Steel 1. Joseph Glidden s Barbed Wire 2. McCormick s and John Deere s farm machines 3. Construction: bridges, skyscrapers, apartment buildings b. Inventions Promote Change i. The Power of Electricity 1. Thomas Edison a. Edison invented many things in his Menlo Park, New Jersey laboratory b. Edison perfected the incandescent light bulb c. Electricity changes business; by 1890, runs numerous machines d. Becomes available in homes; encourages invention of appliances e. Allows manufacturers to locate plants anyplace; industry grows f. Competing Types: i. DC Thomas Edison Direct Current: continuous current of electricity in one direction g. AC Nikola Tesla and George Westinghouse Alternating Current: an electrical current whose magnitude and direction vary cyclically ii. Inventions Change Lifestyles 1. Transportation a. Railroads: b. Horseless carriage (forerunner to the automobile): 1770; 1876 combustible engine version c. Airplane: 1903; Orville and Wilbur Wright of Dayton, Ohio 2. Communication a. Telegraph: 1837 b. Typewriter: 1867

2 II. i. Christopher Sholes invented the typewriter which allowed users to quickly produce easily legible documents ii. Sholes keyboard design is still in use today iii. Typing pools developed: departments were workers main task was to type c. Telephone: 1876 i. Alexander Graham Bell invented the telephone ii. Telephone changed the communication needs of the world iii. Also provided jobs for women to work as operators 3. Inventions impact factory work, lead to industrialization a. clothing factories hire many women 4. Industrialization makes jobs easier; improves standard of living a. by 1890, average workweek 10 hours shorter as consumers, workers regain power in market 5. Some laborers think mechanization reduces value of human worker The Age of the Railroads 1. Railroads Span Time and Space Cheap steel provided by Bessemer process allowed for such significant railroad expansion (a ton of steel=$100 in 1873, $12 by late 1890s) b. Dangers i. Speed Turns, valleys, hills, etc. made it difficult for trains to keep high rate of speed (had to slow down for these things) Too many conductors went to fast and caused trains to come off the track i. To slow down, brake operator had to turn hand wheel (on passenger train it was easy, however, on other trains you had to climb over the load in any conditions) George Westinghouse s compressed-air brake increased safety and speed by allowing all cars to stop at same time and do so from the engine car Casey Jones (John Luther Jones from Cayce, Kentucky) conductor (thanks to a song) that got in fatal accident going to fast trying to make up time i. Jones became famous after his friend, Jimmie Jones, wrote a song about him ii. Illinois Central Engineer William Leighton heard the song and told his brothers, Frank and Bert, who were vaudeville performers they sang it in theaters around the country. a popular song of the time Come all you rounders that want to hear The story of a brave engineer. Casey Jones was the rounder's name, On a six eight wheeler, boys, he won his fame. Casey Jones mounted to his cabin, Casey Jones with his orders in his hand Casey Jones mounted to his cabin, And he took his farewell trip to that promised land. The caller call Casey at half past four, He kissed his wife at the station door, He mounted to the cabin with the orders in his hand, And he took his farewell trip to that promised land. 2

3 When he pulled up that Reno hill, He whistled for the crossing with an awful shrill; The switchman knew by the engine's moan That the man at the throttle was Casey Jones. He looked at his water and his water was low; He looked at his watch and his watch was slow; He turned to his fireman and this is what he said, "Boy, we're going to reach Frisco, but we'll all be dead." "So turn on your water and shovel in your coal, Stick you head out the window, watch those drivers roll; I'll drive her till she leaves the rail, For I'm eight hours late by that Western Mail. When he was within six miles of the place, There number four stared him straight in the face. He turned to his fireman, said "Jim you'd better jump, For there're two locomotives that are going to bump. Casey said just before he died, "There're two more roads I would like to ride." The fireman said, "Which ones can they be?" "Oh the Northern Pacific and the Santa Fe." Mrs. Jones sat at her bed a-sighing Just to hear the news that her Casey was dying. "Hush up children, and quit your crying', For you've got another poppa on the Salt Lake Line." ii. Cow Catchers Animals and other things would derail trains so they invented the Cow Catcher (pilot) device attached to front of the train to deflect obstacles from the track iii. Telescoping getting hit from behind or hitting someone ahead caused the trains to crush (only wood cars) into each other like a telescope being put away iv. Fire Coal Heaters in cars: bumps could cause coals to come out; flame debris going out and up could catch other part of train on fire, derailment or other accidents ended in fire from heaters v. Time Time was a large cause of many accidents (need to have accurate time to avoid trains behind and in front going same direction as well as trains going opposite direction) passing lines and main lines c. A National Network i. First transcontinental railroad was formed when the Central Pacific and Union Pacific Railroads met at Promontory, Utah, on May 10, ii. Other transcontinental lines developed including regional lines (trunk lines major railroad lines) Change in track design: 1. Double Sets: track laid side-by-side to allow for a company to run in two different directions 2. Standard Gauge: set standard width between rails to allow trains to transfer to different tracks d. Romance and Reality i. Railroads were only available due to hard work of employees 3

4 ii. Chinese and Irish immigrants, along with out-of-work Civil War veterans, were hired to build the track across the dangerous terrain Chinese Immigrants treated unfairly (white workers for ten hour day received $40 to $60 dollars plus free meals; Chinese Immigrant worked dust-till-dawn for $35 and no meals) iii. Thousands were killed and even more injured during the building of the railroad system e. Railroad Time i. During this period, time in the US was based on high noon (set their clock to it when sun was directly overhead) a problem when uniformed timing was needed across entire country for train schedules Time was a large cause of many accidents (need to have accurate time to avoid trains behind and in front going same direction as well as trains going opposite direction) passing lines and main lines ii. Professor C.F. Dowd s system divided world into 24 times zones iii. US was divided into four zones: Eastern, Central, Mountain, and Pacific iv. World accepted in 1884 and US officially accepted in Opportunities and Opportunists a. New Towns and Markets i. Previously isolated cities, towns, and settlements were now linked by the railroad thus promoting trade and interdependence ii. Cities also started to specialize examples: Chicago-stockyards, Minneapolis-grain industry iii. New towns also popped up along the railroad lines Flagstaff, Arizona Denver, Colorado Seattle, Washington b. Pullman i. Successful railroad giant whose company built sleeping cars, dining cars, and luxurious cars for wealthy train passengers ii. Pullman built a town for his employees that offered everything well-built homes (with a window in each room), shops, a church, a library, a theater, medical and legal offices, and an athletic field iii. However, the residents remained clearly under company control no loitering on front steps or drinking alcohol, etc. Pullman cut wages for his factory but refused to lower rents or prices at the stores in town in 1894 the workers went on Strike an d the American Railway Union (ARU) supported it. c. Credit Mobilier i. Credit Mobilier was a construction company formed by Union Pacific Railroad executives ii. This company was given many of the contracts to lay track for Union Pacific but the contract cost three times what the actual cost was the executives pocketed the profits iii. They also donated about shares of stock in the construction company to about 20 members of Congress to gain influence and favorable legislation iv. Among those implicated was Vice-President Schuyler Colfax, Congressman James Garfield, and the reputation of the Republican Party was tarnished. 3. The Grange and the Railroads a. Railroad Abuses i. Railroads sold land (given by government land grants) to businesses rather than settlers ii. Railroads had formal agreement to fix prices (all charge the same rather than compete) iii. Charged different customers different rates too often charging more for short distances (overall benefiting bonanza farming) 4

5 b. Granger Laws i. Granger laws were laws that protected the rights of farmers especially against railroads ii. Illinois authorized a commission to establish maximum freight and passenger rates and prohibit discrimination iii. Railroads challenged it in Supreme Court case of Munn v. Illinois; however, the Granger laws won iv. Set the president for federal government s right to get involved in private sector if it was in the best interest of the public c. Interstate Commerce Act i. Interstate Commerce refers to traveling, trading, or transporting goods that either came from or was going to another sate ii. Supreme Court said that state laws could not govern interstate commerce, so Congress passed the Interstate Commerce Act in 1887 iii. This act established a five-member Interstate Commerce Commission (ICC) to regulate railroads traveling through states iv. ICC was handcuff, however, because they were not allowed to set a maximum rate d. Panic and Consolidation i. Panic of 1893 put pressure on smaller railroads which resulted in a consolidation ii. Large financial companies, such as J.P. Morgan & Company, had begun buying up small troubled railroads iii. By the 1900s, seven powerful companies held over two-thirds of the nation s railroad tracks III. Big Business and Labor a. Carnegie s Innovations i. Andrew Carnegie 1. Born in Scotland to penniless parents 2. He immigrated to the US in 1848, at the age of By 17, he was working for a railroad company and saving/investing his money 4. By 24, he had purchased his own iron and steel business 5. Carnegie s success was in reducing production costs ii. New Business Strategies: Reducing Cost Increasing Productivity 1. Buying supplies in bulk 2. Producing goods in large quantities 3. Producing quality goods 4. Hiring the most talented employees 5. Vertical integration a. Acquiring companies that provide the materials needed for a product from beginning to end iii. End of Carnegie s Career 1. Carnegie organized all of his companies into Carnegie Steel Company and sold it in 1901 to J.P. Morgan for nearly $500 million ($11 Billion today) 2. In retirement, Carnegie believed it was his responsibility to be a philanthropist 3. Gospel of Wealth : the rich are morally obligated to manager their wealth to benefit other citizens a. Carnegie donated more than $350 million to charity b. Social Darwinism and Business i. Principles of Social Darwinism 1. English philosopher Herbert Spencer used Charles Darwin s ideas of evolution to explain that society progressed through natural competition 5

6 2. Economists used this to justify laissez-faire capitalism by arguing that success and failure in business were governed by natural law and no one (not even government) had the right to intervene 3. Theory also appealed to the Protestant work ethic riches were a sign of God s favor and thus the poor must be lazy or inferior who deserved what they got c. A New Definition of Success i. Horatio Alger Jr. published stories based on rags-to-riches these stories inspired many business leaders ii. The new theme became self-reliant individualism iii. Entrepreneurs set out to gain economic wealth by building industries iv. Laissez-Faire Capitalism 1. Many business leaders champion the laissez-faire capitalism no government intervention in the economy 2. Free enterprise: businesses left free from government regulation and allowed to compete in a free market v. Communism 1. Many argued rapid industrialization of factory life without government regulation was harmful to the working class 2. Karl Marx, a German philosopher, proposed a political system with no social classes 3. Property and the means of production were owned by everyone in the community d. Fewer Control More i. By 1890, just 10 percent of the population controlled close to 75 percent of nation s wealth e. Rockefeller and the Robber Barons i. John D. Rockefeller 1. Born in New York and grew up in Strongsville, Ohio 2. By 20, he started his own company 3. At age 30, he founded Standard Oil Company in 1870 with several partners including his brother 4. His business career was controversial; he was accused of monopolistic practices and was bitterly attacked by muckraking journalists 5. Rockefeller s success was in eliminating competition, especially using horizontal integration as well as vertical integration 6. Over a forty-year period, Rockefeller built Standard Oil into the largest and most profitable company in the world 7. He was also the richest man in the world for a time 8. He spent his last forty years focused on philanthropic pursuits, primarily related to education and public health (donated approx. $550 million to philanthropic causes) ii. Rockefeller s Plan to Reducing Cost Increasing Productivity 1. Rockefeller profits by paying low wages, underselling others and then raising prices when he controls the market 2. Vertical Integration a. Acquiring companies that provide the materials need for a product from beginning to end 3. Horizontal Integration a. Acquiring companies producing the same product 4. Price Reduction a. Those competitors he couldn t buy, he drove out of business by offering his oil cheaper 5. Back Door Deals a. Because of the large quantity Standard Oil shipped, he made deals with suppliers and transporters to receive cheaper supplies and freight rates 6

7 f. Sherman Antitrust Act i. Government thinks expanding corporations stifle free competition 1. people feared monopolies would have no incentive to maintain the quality of their goods or keep prices low ii. Sherman Antitrust Act: trust illegal if interferes with free trade 1. Prosecuting companies difficult; law did not specifically define what constituted a monopoly or trust g. Business Boom Bypasses the South i. South recovering from Civil War, hindered by lack of capital ii. North owns 90% of stock in RR, most profitable Southern businesses iii. Business problems: high transport cost, tariffs, few skilled workers iv. Northern wages generally higher than Southern h. Labor Unions Emerge i. To survive, families need all member to work, including children ii. Sweatshops, tenement workshops often only jobs for women, children 1. require few skills; pay lowest wages iii. Working Conditions/Long Hours/Danger 1. most people worked between hour shifts 2. most people made less than $10 a week 3. perform repetitive, mind-dulling tasks 4. no vacation, sick leave, injury compensation 5. there were many work related accidents & deaths and most employers took no responsibility. 6. some companies controlled all aspects of workers lives by building towns where company owned houses and businesses i. Early Labor Organizing i. Labor unions fight for better working conditions and for the closed shop: workplace where all the employees belong to a union ii. National Labor Union first large-scale national organization , NLU gets Congress to give 8-hour day to civil servants 2. Local chapters reject blacks; Colored National Labor Union forms 3. NLU focus on linking existing local unions iii. Knights of Labor was one of the earliest national unions, formed to seek workers rights for white native born skilled workers 1. Knights support 8-hour day, equal pay, arbitration 2. Terence Powderly took over and sought to expand membership a. Knights soon accepted skilled and unskilled workers, women, and even eventually African Americans b. However, knights never accepted Chinese workers j. Union Movements Diverge i. Craft Unionism 1. Craft unions include skilled workers from one or more trades 2. Samuel Gompers helps found American Federation of Labor (AFL) 3. AFL uses collective bargaining for better wages, hours, conditions 4. AFL strikes successfully, wins higher pay, shorter workweek ii. Industrial Unionism 1. Industrial unions include skilled, unskilled workers in an industry 2. Eugene V. Debs forms American Railway Union; uses strikes k. Socialism and the IWW i. Some labor activists turn to socialism: 1. government control of business, property 7

8 2. equal distribution of wealth ii. Industrial Workers of the World (IWW), or Wobblies, forms Organized by radical unionists, socialists; include African Americans 2. Industrial unions give unskilled workers dignity, solidarity l. Other Labor Activism in the West i. Japanese, Mexicans form Sugar Beet and Farm Laborers Union in CA ii. Wyoming Federation of Labor supports Chinese, Japanese miners m. Strikes Turn Violent i. Great Upheaval: what 1886 is often referred to as for its intense strikes and violence 1. By the end of year some 1,500 strikes involving more than 400,000 workers had swept the nation ii. The Great Strike of Baltimore & Ohio Railroad strike spreads to other lines 2. Governors say impeding interstate commerce; federal troops intervene iii. The Haymarket Affair 1. Chicago workers joined a strike against the McCormick Harvesting Machine Company demanding an eight-hour day 2. On May 3 a confrontation between the police and the strikers left two strikers dead in protest strikers called a meeting for the next day 3. The meeting, in Chicago s Haymarket Square, was fine until 200 police arrived and a bomb was tossed into the police line causing police to open fire 4. Violence ensues; 8 charged with inciting riot, convicted 5. Public opinion turns against labor movement iv. The Homestead Strike 1. In June 1892, workers upset over wage cuts struck against Andrew Carnegie s Homestead Steel Works in Homestead, Pennsylvania 2. Managers locked out workers and hired 300 Pinkerton guards to protect plant 3. Violent clash between two resulted in 16 deaths and caused plant to stay closed until National Guard opened it 4. Union lost much of its support 5. Steelworkers would not remobilize for 45 years v. The Pullman Company Strike 1. In June 1894, workers at the Pullman sleeping-car factory in Pullman, Illinois struck because he had cut wages but refused to lower rents or prices at the stores in this company town. 2. American Railway Union (ARU), led by their leader (Eugene V. Debs), supported the strike urging members to refuse to work or ride on all trains that included Pullman cars 3. Railroad workers brought rail traffic to a halt throughout Midwest thus damaging the US s economy 4. The president stepped in and ordered a mail car linked to all these trains and when train was stopped the government ordered strike to come to end arguing that it was a federal offense to prevent the delivery of US mail 5. ARU officials ignored order and were jailed because of it 6. This destroyed the ARU! n. Women Organize i. Women barred from many unions; unite behind powerful leaders ii. Triangle Shirtwaist Factory in New York City had a fire on March 25, The company had locked all but one door to prevent theft the unlocked door was blocked by fire women died 3. Caused great outrage among the public 8

9 4. Led to New York legislature enacting the nation s strictest fire-safety code iii. Florence Kelly was a reformer who helped form the National Child Labor Committee (NCLC) iv. Pauline Newman organizer for International Ladies Garment Workers 1. Established in 1900 in New York City, it sought to unionize workers employed in sewing shops a. Mainly Jewish and Italian immigrant women v. Mary Harris Jones most prominent organizer in women s labor 1. works for United Mine Workers 2. leads children s march 3. organizer for the Knights of labor 4. some opponents of union called her the most dangerous woman in American o. Management and Government Pressure Unions i. After the numerous uprisings, employers and the government struck back at unions 1. Employers drew up blacklists, lists of union supporters, that they shared and blocked out those on list 2. Employers made job applicants sign agreements, called yellow-dog contracts, promising not to join unions 3. Employers instituted lockouts, barring striking workers form plant and replacing them with strikebreakers (Scabs) 4. Industrial leaders turned the Sherman Antitrust Act against labor ii. Despite these pressures, workers especially those in skilled jobs continued to view unions as a powerful tool 9