INDUSTRIALIZATION1865 - 1901

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Andrew Carnegie

John D. Rockefeller

Samuel GompersCornelius

Vanderbilt Thomas Edison

J. P. Morgan

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

New Inventions► Alexander Graham Bell

1876, Telephone (AT&T)

► Thomas Alva Edison 1877, Phonograph 1879, Light Bulb 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– 1862, 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 (Vanderbilt)

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

GustavasSwift - 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

Business Practices Monopoly

– Single company achieves control of an entire market

– Many states begin outlawing

Trusts– Legal maneuver

allowing trustee to control several companies & run them as one

Holding Companies– Produce no

product– Controls several

companies, merging into one large enterprise

Trust Busting

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 Labor1st 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

8 hr. dayClash between police & workersAnarchists set off bomb – police open fire– 7 cops, 4 workers die– 8 arrested, 4 executed (only 1 a

Knight)Knights of Labor membership declines

Carnegie Steel Works during the 'Battle of Homestead

Pullman Strike 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

George Pullman

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