CorporationCorporation – – stocks, shares sold to stocks, shares sold to raise capital for expansionraise capital for expansion– Purchase competitors, etc…

MonopolyMonopoly (eliminate competition) (eliminate competition)

CARTELCARTEL / / TRUSTTRUST - forms of monopoly - forms of monopoly

Carnegie explained his success by pointing to his hard Carnegie explained his success by pointing to his hard work, shrewd investments, and innovative business work, shrewd investments, and innovative business practices. Late 19th century scientists explained his practices. Late 19th century scientists explained his achievements thru a new scientific theory called achievements thru a new scientific theory called Social Social DarwinismDarwinism. . In his book, In his book, On Origins of the SpeciesOn Origins of the Species, Charles , Charles Darwin had speculated that some individuals flourish Darwin had speculated that some individuals flourish and pass their traits along to the next generation, while and pass their traits along to the next generation, while others do not. He explained that a process of others do not. He explained that a process of NATURAL SELECTIONNATURAL SELECTION weeded out less suited weeded out less suited individuals and enabled the best-adapted to succeed. ( individuals and enabled the best-adapted to succeed. ( successful traits creates successsuccessful traits creates success ) )Because the theory supported the idea of Because the theory supported the idea of individual individual responsibilityresponsibility and blame, it appealed to the and blame, it appealed to the Protestant work ethic of many Americans… Protestant work ethic of many Americans… Success comes from these individual traits… Success comes from these individual traits… ( (FrugalityFrugality, , Hard WorkHard Work, , PerseverancePerseverance, , HonestyHonesty ) )

Robber BaronsRobber Barons or or Captains of IndustryCaptains of Industry??Andrew CarnegieAndrew Carnegie -Steel Robber Baron -Steel Robber Baron – Scotland ImmigrantScotland Immigrant

Story of HARD WORK – PERSONAL RISKStory of HARD WORK – PERSONAL RISK

– Vertical Integration Vertical Integration – Horizontal Consolidation Horizontal Consolidation

– PhilanthropistPhilanthropist (3,000 libraries, other…) (3,000 libraries, other…)

$350 million given away – 90% of wealth$350 million given away – 90% of wealthJohn D. RockefellerJohn D. Rockefeller (Standard Oil) (Standard Oil) – TRUSTS ConsolidationTRUSTS Consolidation– Rockefeller Foundation Rockefeller Foundation

( $500 million)( $500 million)Vanderbilt’s and othersVanderbilt’s and others– Vanderbilt / Wake ForestVanderbilt / Wake Forest

Social DarwinismSocial Darwinism Natural SelectionNatural Selection– Survival of the FittestSurvival of the Fittest

What Personal Characteristic Traits Create Success?What Personal Characteristic Traits Create Success?

Strong Survive – Weak Die (traits/species)Strong Survive – Weak Die (traits/species)– the ‘most fit’ businesses will the ‘most fit’ businesses will succeedsucceed and the and the

weak will weak will failfail. (Individual Responsible). (Individual Responsible)

Protestant Work-Ethic (Protestant Work-Ethic (Laissez-FaireLaissez-Faire))

– YOU Create your lifeYOU Create your life not depending on not depending on others to take care others to take care of you! of you!

– INDIVIDUAL INITIATIVEINDIVIDUAL INITIATIVE

CorporationCorporation – – stocks, shares sold to stocks, shares sold to raise capital for expansionraise capital for expansion

MonopolyMonopoly (eliminate competition) (eliminate competition)

CARTELCARTEL / / TRUSTTRUST - form of monopoly - form of monopoly

Horatio AlgerHoratio Alger – American success stories“pulling yourself up by your own bootstraps”

Many industrialists pursued horizontal integration in Many industrialists pursued horizontal integration in the form of mergers. A firm that bought out all of it’s the form of mergers. A firm that bought out all of it’s competitors could form a competitors could form a MONOPOLYMONOPOLY. One way to . One way to set up a monopoly was to form a holding company. set up a monopoly was to form a holding company. J.P. Morgan will create a steel holding company, and J.P. Morgan will create a steel holding company, and when it will buy out Carnegie in 1901, it became the when it will buy out Carnegie in 1901, it became the world’s largest business. world’s largest business. JOHN D. ROCKEFELLERJOHN D. ROCKEFELLER and Standard Oil took a and Standard Oil took a different approach. They will join with competing different approach. They will join with competing companies in a companies in a TRUSTTRUST agreement. These were not agreement. These were not legal mergers, however Rockefeller will use a trust to legal mergers, however Rockefeller will use a trust to gain control of the oil industry in the United States. In gain control of the oil industry in the United States. In 1890 Standard Oil Company will control 1890 Standard Oil Company will control 9090 % of the oil % of the oil refining in the United States. Alarmed at the tactics of refining in the United States. Alarmed at the tactics of these industrialists, critics began to call them these industrialists, critics began to call them ROBBER BARONSROBBER BARONS. But industrialists were also . But industrialists were also philanthropists. philanthropists.

Rockefeller will give away over Rockefeller will give away over $500 million$500 million and establishing the and establishing the Rockefeller FoundationRockefeller Foundation providing funds to found the University of providing funds to found the University of Chicago, and creating a medical institute that Chicago, and creating a medical institute that helped find a cure for yellow fever. Andrew helped find a cure for yellow fever. Andrew Carnegie donated about Carnegie donated about 9090 % % of his wealth of his wealth during his lifetime. His fortune still supports the during his lifetime. His fortune still supports the arts and learning today. arts and learning today.

Post Civil War Millionaires (4,000)Post Civil War Millionaires (4,000)

Millions of NEW JOBS are createdMillions of NEW JOBS are created– LAND of OPPORTUNITYLAND of OPPORTUNITY

(1890) Sherman Antitrust Act(1890) Sherman Antitrust Act - - outlawed combination of companies outlawed combination of companies that limit interstate trade or that limit interstate trade or commerce (Monopoly)commerce (Monopoly)

Despite the defense of millionaires, the Despite the defense of millionaires, the government was concerned with expanding government was concerned with expanding corporations stifling free competition. In 1890, corporations stifling free competition. In 1890, the the SHERMAN ANTITRUST ACTSHERMAN ANTITRUST ACT made it made it illegal to form a trust that interfered with free illegal to form a trust that interfered with free trade. trade. It was difficult to prosecute companies, and It was difficult to prosecute companies, and eventually the government stopped trying. eventually the government stopped trying. Industrial growth concentrated in the North. Industrial growth concentrated in the North. The south remained mostly agricultural, with The south remained mostly agricultural, with farmers at the mercy of railroad rates.farmers at the mercy of railroad rates.Northern businesses already owned 90% of all Northern businesses already owned 90% of all stock in most profitable southern businesses – stock in most profitable southern businesses – railroads. railroads.

What were conditions like in these What were conditions like in these factories? Pay / Safety / Hours factories? Pay / Safety / Hours What were living conditions like for What were living conditions like for most working families? High most working families? High costs / with Low Pay (children)costs / with Low Pay (children)What type of Urban problems What type of Urban problems existed in these rapidly growing existed in these rapidly growing cities in the North East?cities in the North East?– Water & Sanitation / Overcrowding / Water & Sanitation / Overcrowding /

Transportation / Competition for Transportation / Competition for Resources / Crime / ServicesResources / Crime / Services

As business leaders merged and consolidated As business leaders merged and consolidated their forces, it seemed necessary for workers to their forces, it seemed necessary for workers to do the same. Steel mills demanded a do the same. Steel mills demanded a 77 day day work week. Seamstresses, like factory workers work week. Seamstresses, like factory workers in most industries, worked in most industries, worked 1212 or more hours a or more hours a day, six days a week. Employees were not day, six days a week. Employees were not entitled to vacation, sick leave, unemployment, entitled to vacation, sick leave, unemployment, or reimbursement for injuries on the job. Twenty or reimbursement for injuries on the job. Twenty percent of the boys and 10 percent of the girls percent of the boys and 10 percent of the girls under age 15 – some as young as five years under age 15 – some as young as five years old – also held full-time jobs. old – also held full-time jobs. In In SWEATSHOPSSWEATSHOPS,, or workshops in tenements or workshops in tenements rather than in factories, workers had little choice rather than in factories, workers had little choice but to put up with conditions.but to put up with conditions.

Workers OrganizeWorkers Organize

Workers Have Cause for ComplaintsWorkers Have Cause for Complaints

-Loss of Freedom-Loss of Freedom

-Loss of Identity-Loss of Identity

-Long Hours,Low Wages-Long Hours,Low Wages

-Dangerous Working Conditions-Dangerous Working Conditions

-Child Labor-Child Labor

-Sweatshop System-Sweatshop System

The first large scale national organization of The first large scale national organization of laborers the laborers the NATIONAL LABOR UNIONNATIONAL LABOR UNION (NLU) (NLU) was formed in 1866 by William H. Sylvis. Their was formed in 1866 by William H. Sylvis. Their refusal by some to admit African Americans led refusal by some to admit African Americans led to the creation of the Colored National Labor to the creation of the Colored National Labor Union. Union. In 1868, the NLU persuaded Congress to In 1868, the NLU persuaded Congress to legalize an legalize an EIGHTEIGHT hour day for government hour day for government workers. workers. In 1869 Uriah Stephens focused attention on In 1869 Uriah Stephens focused attention on individual workers and organized the individual workers and organized the Noble Noble Order of the Knights of LaborOrder of the Knights of Labor. Membership . Membership was officially open to all workers, regardless of was officially open to all workers, regardless of race, gender, or degree of skill. In 1886 they race, gender, or degree of skill. In 1886 they had about 700,000 members.had about 700,000 members.

The Rise of Labor UnionsThe Rise of Labor Unions

Knights of LaborKnights of Labor - - Philadelphia 1869 Philadelphia 1869 Uriah Stephens – ALL types of workersUriah Stephens – ALL types of workers

American Federation of LaborAmerican Federation of Labor (AFL) - (AFL) -Samuel GompersSamuel Gompers (craft unionism) (craft unionism) only only skilledskilled workersworkers Collective BargainingCollective Bargaining: : workers negotiate as workers negotiate as a group with employers – a group with employers – STRIKESTRIKE

SCABSSCABS – cross picket line as workers – cross picket line as workersEmployers React to WorkersEmployers React to Workers - -InjunctionInjunction Eugene DebsEugene Debs (Industrial Unionism) (Industrial Unionism) American Railway UnionAmerican Railway Union ( (SocialistSocialist))

As labor activism grew, it diversified. Two major As labor activism grew, it diversified. Two major types of unions emerged. One approach was types of unions emerged. One approach was CRAFT UNIONISMCRAFT UNIONISM which included skilled which included skilled workers from one or more trades (Skilled ONLY workers from one or more trades (Skilled ONLY NO unskilled). NO unskilled). The The AMERICAN FEDERATION of LABORAMERICAN FEDERATION of LABOR with with SAMUEL GOMPERSSAMUEL GOMPERS as its president as its president focused on Collective Bargaining or negotiation focused on Collective Bargaining or negotiation between representatives of labor and between representatives of labor and management, to reach agreements. Unlike the management, to reach agreements. Unlike the Knights of Labor, they used Strikes as a major Knights of Labor, they used Strikes as a major tactic. Between 1890 and 1915 the average tactic. Between 1890 and 1915 the average weekly wages in unionized industries rose from weekly wages in unionized industries rose from $$17.5017.50 to to $24$24, and the average workweek fell , and the average workweek fell from from 54.554.5 hours to hours to 49 49 hours. hours.

Some leaders believed that unions should include all Some leaders believed that unions should include all workers – skilled and unskilled—in a specific industry. workers – skilled and unskilled—in a specific industry. This concept of This concept of Industrial UnionismIndustrial Unionism caught the caught the imagination of imagination of EUGENE V. DEBSEUGENE V. DEBS who made the first who made the first attempt with the attempt with the American Railway UnionAmerican Railway Union (ARU) (ARU) To some the problems faced by workers, Eugene To some the problems faced by workers, Eugene Debs and others union activists turned to Debs and others union activists turned to SOCIALISMSOCIALISM, an economic and political system based , an economic and political system based on government control of business and property and on government control of business and property and equal distribution of wealth (share the wealth) – equal distribution of wealth (share the wealth) – carried to its extreme form – Communism would result carried to its extreme form – Communism would result in the overthrow of the Capitalist system. in the overthrow of the Capitalist system. In 1905, a group of radical unionists and socialists in In 1905, a group of radical unionists and socialists in Chicago organized the Chicago organized the Industrial Workers of the Industrial Workers of the WorldWorld ( IWW) or the Wobblies. In 1903, about 1,000 ( IWW) or the Wobblies. In 1903, about 1,000 Japanese and Mexican workers organized a Japanese and Mexican workers organized a successful strike in the sugar-beet fields of California.successful strike in the sugar-beet fields of California.

CAPITALISMCAPITALISM - individuals own & control the - individuals own & control the means of production (means of production (Free EnterpriseFree Enterprise))SOCIALISMSOCIALISM - Government owns & controls the - Government owns & controls the LARGELARGE industries (examples) industries (examples)COMMUNISMCOMMUNISM - Government owns & controls - Government owns & controls ALLALL means of production / business means of production / business (individual ownership is (individual ownership is NOT ALLOWEDNOT ALLOWED))ANARCHISMANARCHISM – – NO government, NO structure, NO government, NO structure, NO laws, NO laws, Law of JungleLaw of Jungle (Class Warfare) (Class Warfare)– Used by Extreme Groups (Socialist/Communist) Used by Extreme Groups (Socialist/Communist)

to create chaos to push for reforms to create chaos to push for reforms

Today: Islamic Extremism excusing killing Today: Islamic Extremism excusing killing innocent women / children in the name of their innocent women / children in the name of their cause cause

Industry and government responded forcefully to union Industry and government responded forcefully to union activity, which they saw as a threat to the entire activity, which they saw as a threat to the entire capitalist system. capitalist system. In In July of 1877July of 1877, workers for the Baltimore and Ohio , workers for the Baltimore and Ohio Railroad struck to protest wage cuts, and the strike Railroad struck to protest wage cuts, and the strike spread to other lines. President Hayes will intervene spread to other lines. President Hayes will intervene with federal troops because the strike was impeding with federal troops because the strike was impeding interstate commerce. interstate commerce. Encouraged by the 1877 strike, 3,000 people gathered Encouraged by the 1877 strike, 3,000 people gathered in Chicago’s in Chicago’s HAYMARKET SQUAREHAYMARKET SQUARE on May 4, on May 4, 1886. When a bomb was tossed into the police line, 1886. When a bomb was tossed into the police line, they fired into the crowd. The 3 Speakers at the event they fired into the crowd. The 3 Speakers at the event and 5 Radical leaders were arrested for inciting a riot. and 5 Radical leaders were arrested for inciting a riot. All 8 were convicted – 4 were hanged – 1 committed All 8 were convicted – 4 were hanged – 1 committed suicide in prison. After this event, the public began to suicide in prison. After this event, the public began to turn against the labor movement..turn against the labor movement..

Steel workers called a strike on June 29, 1892 Steel workers called a strike on June 29, 1892 and the Carnegie Steel Company plant in and the Carnegie Steel Company plant in HOMESTEADHOMESTEAD Pennsylvania. The president, Pennsylvania. The president, Henry Frick, hired armed guards from the Henry Frick, hired armed guards from the PINKERTON PINKERTON detective agency to protect the detective agency to protect the plant. Strikes continued in other industries. plant. Strikes continued in other industries. During the Panic of 1893 and the economic During the Panic of 1893 and the economic depression that followed, the depression that followed, the PullmanPullman companycompany laid off more than 3,000 of its laid off more than 3,000 of its employees and cut wages for others and a employees and cut wages for others and a ARU strikeARU strike and boycott ensued. After Pullman and boycott ensued. After Pullman hired strikebreakers, the strike turned violent hired strikebreakers, the strike turned violent and President and President Grover ClevelandGrover Cleveland sent in sent in federal troops to end the strike. Eugene Debs federal troops to end the strike. Eugene Debs was was JAILEDJAILED and Pullman fired most of the and Pullman fired most of the strikers.strikers.

Women in the Labor MovementWomen in the Labor Movement

Mother JonesMother Jones (Miners, Mill Women) (Miners, Mill Women)

Pauline NewmanPauline Newman (Garment Industry) (Garment Industry)

– 1911 1911 NYC FireNYC Fire

PRESSURE on UNIONSPRESSURE on UNIONS

Yellow Dog ContractsYellow Dog Contracts

Public FEAR/ANGERPublic FEAR/ANGER– 1910 8.3 only industrial workers1910 8.3 only industrial workers

Although women were barred from many unions, they united Although women were barred from many unions, they united behind powerful leaders to demand better conditions, pay and behind powerful leaders to demand better conditions, pay and an end to child labor. Perhaps the most prominent organizer in an end to child labor. Perhaps the most prominent organizer in the women’s labor movement was the women’s labor movement was MARY HARRIS JONESMARY HARRIS JONES. . She supported the Great Strike of 1877 and later organized the She supported the Great Strike of 1877 and later organized the United Mine Workers of America (UMW). United Mine Workers of America (UMW). She endured death threats and jail with coal miners, who gave She endured death threats and jail with coal miners, who gave her the nickname her the nickname MOTHER JONESMOTHER JONES She led 80 mill children on She led 80 mill children on march to the home of President Teddy Roosevelt to expose the march to the home of President Teddy Roosevelt to expose the cruelties of child labor. cruelties of child labor. In 1909, In 1909, PAULINE NEWMANPAULINE NEWMAN, just 16 years old became the , just 16 years old became the first female organizer of the International Ladies Garment first female organizer of the International Ladies Garment Workers Union. After a fire broke out in the Workers Union. After a fire broke out in the TRIANGLE TRIANGLE SHIRTWAIST FACTORYSHIRTWAIST FACTORY in New York City on March 25, 1911 in New York City on March 25, 1911 – the public could no longer ignore conditions in garment – the public could no longer ignore conditions in garment factories. In all, 146 women died; some were found huddled factories. In all, 146 women died; some were found huddled with their faces raised to a small window.with their faces raised to a small window.The more powerful unions became, the more employers feared The more powerful unions became, the more employers feared them. Many employers forbade union meetings, fired union them. Many employers forbade union meetings, fired union members, and forced new employees to sign members, and forced new employees to sign YELLOW DOGYELLOW DOG contracts, swearing they would not join a union.contracts, swearing they would not join a union.