INDUSTRIALIZATION 1865 1901 (PowerPoint)

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					INDUSTRIALIZATION
    1865 - 1901
                                           `
                                 Industrialization



  Railroads      Steel           Oil            Banking   Technology     Unions



 Vanderbuilt    Carnegie     Rockefeller        Morgan      Edison      Gompers




               Andrew       John D.             J. P.     Thomas        Samuel
Cornelius
               Carnegie    Rockefeller         Morgan     Edison       Gompers
Vanderbilt
      Causes of Industrialization
• National Resources (Raw Materials)
   – Water, timber, coal, iron, copper
   – Needs helped settle the West - RR
• Oil
   – Kerosene
   – 1859 - Edwin Drake 1st oil well, Titusville,
      Pa.
• Population Increase – Large workforce
   – 1860 – 1910, tripled due to immigration
• Free Enterprise
   – Laissez –faire
   – Entrepreneurs
        Government in Industry
   Civil War Struggles
           high tariffs to protect from foreign
     North,
      competition
        Federal   subsidies for roads, RR, & canals to the
         West
     South,    low tariffs to promote trade

   Morrill Tariff
     Tripled   taxes on imports, western land for RR

   Free Trade
New Inventions
►   Alexander Graham Bell
     1876, Telephone (AT&T)


►   Thomas Alva Edison
     1877, Phonograph
     1879, Lightbulb
     1889, Edison General Electric Company (GE)


►   Textile Industry
       Northrup Automatic Loom
       Standard Sizing
       Power-driven Sewing Machine
       Mass production of Shoes
                       Railroads
   Linking the Nation
    – 1865, 35,000 miles
    – 1900, 200,000 miles


   Transcontinental
    Railroad
    – 1962, Pres. Lincoln,
      Pacific Railway Act
    – Union Pacific – Irish
      immigrants
    – Central Pacific –
      Chinese immigrants
                Railroads cont.
   Spurring Growth
    – Increased markets & desire for raw materials
    – Consolidation of smaller lines (Vanderbuilt)

   American Railway Association - 1883
    – Time Zones, safer more reliable
    – Air Brakes, pull longer, heavier trains
    – Standard Gauge, unite all lines

   Land Grant System
    – Gave RR companies land in the unsettled West
    – Sold land for $$ to finance rail construction
                      Refrigerated Railroad Car
                         made it possible to ship meat
                      from slaughterhouses to cities




Gustavas
Swift - meatpacking
Scandals
   Robber Barons
       RR Entrepreneurs
       Built fortunes by swindling taxpayers,
        bribing govt. officials, & cheating on
        contracts

   Credit Mobilier Scandal – 1872
       Construction company of Union Pacific
        stockholders
       Overcharged RR, investors kept extra $$
       Used up federal $$, sold stock to
        congressmen in exchange for more
        federal $$
Big Business
 Corporation
    Produces more goods
     cheaper
    Continue to operate in poor
     economic times
    Can negotiate rebates from
     RR – lowers operating costs
    Drives out smaller
     competitors

   Pools
      Companies agree to maintain
       prices of certain products
VERTICAL INTEGRATION

  Carnegie Steel

                            Refinery

                           Rail Lines

                         Raw Materials

             Limestone
                         Iron Ore Fields   Coal Mines
              Quarries
HORIZONTAL INTEGRATION



                Standard Oil

     Refinery    Refinery      Refinery
             Business Practices
   Monopoly                      Trusts
    – Single company               – Legal maneuver
      achieves control of an         allowing trustee to
      entire market                  control several
    – Many states begin              companies & run
      outlawing                      them as one


                                  Holding Companies
                                   – Produce no product
                                   – Controls several
                                     companies, merging
                                     into one large
                                     enterprise
               Trust Busting

                         Standard Oil

Standard Oil
               Chevron      Amoco       Exxon   Mobil
  Of Ohio
Selling the Product
   Advertising
      New ways to market
      1900 - $90 million in ads
   Department Stores
      Shopping becomes a
       past time (fun)
      Everything under one roof (Macy’s)
   Chain Stores
      Group of similar stores owned by same
      company
      Lower prices instead of elaborate service
       (Woolworth’s)
   Mail Order
      Catalogue buying (Sears)
Working in the U.S.

   Workers
    –   Machines replacing skilled labor
    –   Working conditions unhealthy & dangerous
    –   $.22 per hour, 59 hours per week
    –   Skilled craft workers – higher wages
    –   Laborers – few skills, lower wages

    –   To improve conditions – organize into Unions
                       Early Unions
• Trade Unions

   – Limited to workers with skills
• Industrial Unions

   – United craft workers & common laborers in
     a particular industry

• Anti-Union Methods
   –   Contracts to not join a union
   –   Blacklist – not hire suspected Union organizers
   –   Lockout – locked workers out & refused to pay them
   –   Strikebreakers – replace workers during strikes (Scab)
                     Union Problems

   No laws protecting the right to organize
   Courts ruled strikes were “conspiracies
    that interfered with trade”
   Perception that unions threatened
    American Institutions
   Marxist, Anarchists, or Revolutionaries
   Rarely successful
    The Great Railroad Strike of 1877
   Cut wages
   Nation’s 1st labor
    protest
   80,000 workers, 11
    states
   President Hayes
    sends troops to
    regain order
       100 killed, millions in damages
   Failure led to organization of Knights of Labor
           Knights of Labor
 1st   nationwide industrial union
  – 8 hr. work day
  – Govt. bureau of labor stats
  – Equal pay for women
  – Abolition of child labor
  – Creation of worker owned factories
  – Use of arbitration – 3rd party negotiators
                               Haymarket Riot of
                                    1886
 Carnegie Steel Works during
 the 'Battle of Homestead

8 hr. day
  Clash between police & workers
  Anarchists set off bomb – police
  open fire
  – 7 cops, 4 workers die
  – 8 arrested, 4 executed (only 1 a
    Knight)
  Knights of Labor membership
  declines
    Pullman Strike                                                 George
                                                                   Pullman
   American Railway Union (ARU)
       Eugene V. Debs

   Cut wages (depression)

   ARU stopped handling                                       Pullman
    cars

   Paralyzed U.S. economy

   Attached mail cars
       Detach Pullman cars = detach mail cars
       Violation of federal law, interfering with U.S. mail
     American Federation of Labor
               (AFL)
• 1881, Samuel Gompers
• Politics
  – Reject socialist/communistic
    ideas
  – Fight for small gains
  – Strike only if negotiations fail
• Goals
  – Companies to recognize unions & collective
    bargaining
  – Closed shops – hire only union workers
  – 8 hr. work day
         Working
         Women
• Domestic servants,
  teachers, nurses,
  secretaries

• Paid less for same job

• Excluded from unions

• Women’s Trade Union League (WTUL)
  –   8 hr. work day
  –   No evening work
  –   No child labor
  –   Collected funds to help striking women

				
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