Big Business, Railroads, and Labor in the Late 1800 s. American History 11R

Transcription

1 Big Business, Railroads, and Labor in the Late 1800 s American History 11R

2 Causes of Rapid Industrialization Unskilled & semi-skilled labor in abundance. Abundant capital. New, talented group of businessmen [entrepreneurs] and advisors. Market growing as US population increased. Government willing to help at all levels to stimulate economic growth. Abundant natural resources.

3 New Business Culture Laissez Faire the ideology of the Industrial Age. Individual as a moral and economic ideal. Individuals should compete freely in the marketplace. The market was not man-made or invented. No room for government in the market!

4 Social Darwinism 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.

5 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!

6 New Business Culture: The American Dream? 3. Protestant (Puritan) Work Ethic Horatio Alger [100+ novels] Is the idea of the self-made man a MYTH??

7 Trusts New Types of 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 - one large company, or trust. Monopoly One seller controls the production, supply, or pricing of a product No competition, won t respond to consumer to improve a product. Holding Company Pools Makes no product but, sells stock in itself Uses money to buy companies that make the product. (U.S. Steel) Different railroads conspired to fix rates Pools were anti-competitive and against the public interest. Interstate Commerce Act prohibited pools, or conspiracies by railroads to fix rates.

8 New Type of Business Entities Pool 1887 Interstate Commerce Act Interstate Commerce Commission created. Trust: Horizontal Integration John D. Rockefeller Vertical Integration: o o Gustavus Swift Meat-packing Andrew Carnegie U. S. Steel

9 New Type of Business Entities

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

11 The Reorganization of Work The Assembly Line

12 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

13 On Wealth Andrew Carnegie $ The Anglo-Saxon race is superior. $ Gospel of Wealth (1901). $ Inequality is inevitable and good. $ Wealthy should act as trustees for their poorer brethren.

14 Grangers Farmers organization Farmers angry at RR Stealing land Fix prices for shipping Different rates for different customers Elected state legislators to pass laws to protect interests. Granger Laws 1871 establish maximum freight and passenger rates and prohibit discrimination. RR challenged

15 Regulating the Trusts 1877 Munn. v. IL 1886 Wabash, St. Louis & Pacific Railroad Company v. IL 1890 Sherman Antitrust Act attempt to curb concentrations of economic power that significantly reduced competition between businesses in restraint of trade rule of reason loophole

16 Munn v. Illinois 1877 SC ruled states can regulate the RR for the benefit of farmers and consumers. Established right of federal government to regulate private industry Serve the public interest. Wabash v. Illinois 1886 SC ruled states can t regulate RR rates if train headed to other state / from other state. Only federal government regulate interstate trade.

17 Interstate Commerce Act of 1887 Response to Wabash v. Illinois, Congress passed legislation to regulate RR Required RR rates to be reasonable and just. 5 member Interstate Commerce Commission (ICC) Prevent RR from charging more for short hauls than long hauls or could not set maximum rates Enforcement - suing the RR company - took years to settle.

18 The Changing American Labor Force Wages Men - $498 Women - $267

19 cents for child s 14 hr day Child Labor

20 Child Labor

21 Galley Labor Long Workdays (12 or more hours), low wages No vacation, medical coverage, sick leave Injuries common no compensation for on job accidents

22 Organization of American Labor 1700 s - Small local unions for skilled labor 1800 s Journeymen unions specific industries Early strikes declared illegal by courts Commonwealth v. Hunt Massachusetts SC legalized labor unions st large union National Labor Union

23 Knights of Labor Terence V. Powderly An injury to one is the concern of all!

24 Knights of Labor Knights of Labor trade card

25 Goals of the Knights of ù ù ù Eight-hour workday. Workers cooperatives. Worker-owned factories. Labor ù ù ù ù ù ù Abolition of child and prison labor. Increased circulation of greenbacks. Equal pay for men and women. Safety codes in the workplace. Prohibition of contract foreign labor. Abolition of the National Bank.

26 Management vs. Labor Tools of Management Tools of Labor scabs P. R. campaign Pinkertons lockout blacklisting yellow-dog contracts court injunctions open shop boycotts sympathy demonstrations informational picketing closed shops organized strikes wildcat strikes

27 The Great Railroad Strike of 1877

28 Labor Unrest:

29 The Molly Maguires (1875) James McParland

30 The Corporate Bully-Boys : Pinkerton Agents

31 A Striker Confronts a SCAB!

32 The Great Railroad Strike 1877 July, 1877 B & O RR strike - protest wage cuts. 1 week until Governors asked Fed Govt. to intervene Strike interfering with interstate trade President Hayes sends in Federal troops to stop strike

33 The Tournament of Today: A Set-to Between Labor and Monopoly

34 Anarchists Meet on the Lake Front in 1886

35 Haymarket Riot (1886) Bomb explodes Policemen and protestors die 8 arrested All convicted 4 hanged Society turns against unions due to violence McCormick Harvesting Machine Co.

36 Haymarket Martyrs

37 The American Federation of Labor: 1886 Samuel Gompers

38 How the AF of L Would Help the Workers ù ù ù ù ù ù ù Catered to the skilled worker. Represented workers in matters of national legislation. Maintained a national strike fund. Evangelized the cause of unionism. Prevented disputes among the many craft unions. Mediated disputes between management and labor. Pushed for closed shops.

39 Carnegie Steel Company June, 1892 Henry Clay Frick Wage cuts. Strike called. Big Corporate Profits!

40 Homestead Steel Strike Pinkerton Detective Agency Hired scabs Steelworkers and detectives fight July 12 th - 3 det. / 9 strikers killed. Workers take over plant The Amalgamated Association of Iron & Steel Workers (1892) Homestead Steel Works

41 Attempted Assassination! Strikers give up November Pennsylvania National Guard. Strike ended No concessions Henry Clay Frick Alexander Berkman

42 A Company Town : Pullman, IL

43 Pullman Cars A Pullman porter

44 Panic of 1893, Laid off 3,000 of 5,800 workers. Wages cut 50% Rents same Strike spring 1894 Company refused restore wages Economy better. The Pullman Strike of 1894

45 President Grover Cleveland President Cleveland sent in federal troops to get trains moving. If it takes the entire army and navy to deliver a postal card in Chicago, that card will be delivered!

46 Most strikers fired. Others blacklisted from RR industry The Pullman Strike of 1894 Government by injunction!

47 Eugene V. Debs The Socialists

48 International Workers of the World ( Wobblies )

49 Big Bill Haywood of the IWW Violence was justified to overthrow capitalism.

50 I W W & the Internationale

51 The Hand That Will Rule the World One Big Union

52 The Formula unions + violence + strikes + socialists + immigrants = anarchists

53 Mother Jones: The Miner s Angel Mary Harris. Organizer for the United Mine Workers. Founded the Social Democratic Party in One of the founding members of the I. W. W. in 1905.

54 Women Organize Many women barred from early unions. 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

55 Triangle Shirtwaist Fire After strike Changed labor movement forever. Couldn t ignore working conditions anymore. 146 women died Throwing themselves off the roof to escape Public outrage Task force to investigate fire Recommend changes.

56 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.

57 Labor Union Membership

58 Workers Benefits Today

59 The Rise & Decline of Organized Labor

60 Right-to-Work States Today

61 Unionism & Globalization?