The Progressive EraThe Progressive Era(Part I)(Part I)

NOTESNOTES

Essential Question:Essential Question:

How have people made How have people made American society American society change?change?

I.I. The rise of big business The rise of big business created several economic created several economic problems, the most obvious problems, the most obvious being the lack of being the lack of competition. There were competition. There were some main types of some main types of businesses that were businesses that were particularly problematic:particularly problematic:

A.A. Monopolies were when one Monopolies were when one business controls an entire business controls an entire industry because there is not industry because there is not competition. Sometimes a small competition. Sometimes a small group of companies can function group of companies can function as a monopoly as well. Some as a monopoly as well. Some monopolies are allowed today, but monopolies are allowed today, but as a general rule, government does as a general rule, government does not allow this to happen.not allow this to happen.

B.B. Trusts were when a group of Trusts were when a group of companies in the same field are companies in the same field are run by a single board of run by a single board of trustees. So despite being trustees. So despite being separate companies on paper, separate companies on paper, the same people make the same people make decisions for all the companies. decisions for all the companies. Trusts create a form of Trusts create a form of monopoly.monopoly.

C.C. Conglomerates are large Conglomerates are large corporations that own corporations that own companies in unrelated companies in unrelated fields. These are still legal fields. These are still legal today, but in the days of big today, but in the days of big business, they also caused business, they also caused problems.problems.

D.D. Pools were when Pools were when companies in the same companies in the same industry make agreements industry make agreements with each other to limit with each other to limit competition and pad their competition and pad their profits. Railroad companies profits. Railroad companies did this, fixing prices.did this, fixing prices.

E.E. Holding Companies is when a Holding Companies is when a corporation bought a controlling corporation bought a controlling interest in another company in interest in another company in the same field. This gave them the same field. This gave them the ability to control what the the ability to control what the company did without buying it company did without buying it outright. This was a way in which outright. This was a way in which they tried to get around anti-trust they tried to get around anti-trust legislation.legislation.

II.II. Industrialists—entrepreneurs—Industrialists—entrepreneurs—robber baronsrobber barons

A.A. Andrew Carnegie, a Scottish Andrew Carnegie, a Scottish immigrant, invested factories immigrant, invested factories that produced steel at a time that produced steel at a time when steel was beginning to when steel was beginning to be the preferred building be the preferred building material.material.

B.B. John D. Rockefeller ran John D. Rockefeller ran the Standard Oil the Standard Oil Company. As oil became Company. As oil became an important resource, an important resource, Standard Oil became Standard Oil became wealthy and powerful. wealthy and powerful.

C.C. J. P. Morgan was a J. P. Morgan was a banking tycoon banking tycoon who helped fund who helped fund the rise of big the rise of big business.business.

D.D. Henry Ford began the Ford Henry Ford began the Ford Motor Company that mass Motor Company that mass produced the Model T, the first produced the Model T, the first affordable automobile. Ford’s affordable automobile. Ford’s company pioneered many new company pioneered many new manufacturing techniques, manufacturing techniques, such as the use of the modern such as the use of the modern assembly line.assembly line.

III.III. Attitudes toward business Attitudes toward business and societyand societyA.A. Laissez Faire was the Laissez Faire was the

belief, going back the belief, going back the founding of the United founding of the United States, that government States, that government should stay out of the should stay out of the economy.economy.

B.B. Social Darwinism was the Social Darwinism was the belief that, like the natural belief that, like the natural world, the strongest world, the strongest members of society members of society succeeded and that weak succeeded and that weak struggled. It was used to struggled. It was used to justify the gap between the justify the gap between the rich and the poor.rich and the poor.

C.C. Philanthropy is the act of doing Philanthropy is the act of doing good works—like donating good works—like donating money to building things for money to building things for the benefit of the community, the benefit of the community, like parks, libraries and like parks, libraries and hospitals. Late in life, many of hospitals. Late in life, many of the big industrialists gave away the big industrialists gave away their fortunes to do things like their fortunes to do things like this.this.

D.D. Government regulation Government regulation became necessary due to the became necessary due to the problems of industrialization. problems of industrialization. Since 1900, the government Since 1900, the government has gotten increasingly has gotten increasingly involved in the economy, involved in the economy, regulating business in many regulating business in many ways, from safety standards to ways, from safety standards to pollution standards.pollution standards.

IV.IV. Government policies Government policies toward business toward business began to change began to change during this era, during this era, known as the known as the Progressive Era.Progressive Era.

A.A. Legislation regulating Legislation regulating business started to business started to become more common become more common as government started to as government started to feel a responsibility to feel a responsibility to protect the people.protect the people.

1.1. Interstate Commerce Interstate Commerce Commission (1887) gave the Commission (1887) gave the federal government the ability federal government the ability to regulate trade between to regulate trade between states. Despite this law being states. Despite this law being passed in 1887, it was a passed in 1887, it was a challenge for the government to challenge for the government to enforce.enforce.

2.2. Sherman Anti-trust Act Sherman Anti-trust Act (1890) was passed to (1890) was passed to preserve competition by preserve competition by stopping forms of stopping forms of monopolies, like trusts. monopolies, like trusts. This legislation was also not This legislation was also not enforced much until Teddy enforced much until Teddy Roosevelt took office.Roosevelt took office.

3.3. Pure Food and Drug/ Meat Pure Food and Drug/ Meat Inspection Acts (1906) were Inspection Acts (1906) were passed at the urging of President passed at the urging of President Roosevelt after reading Upton Roosevelt after reading Upton Sinclair’s Sinclair’s The JungleThe Jungle. It gave the . It gave the federal government the authority federal government the authority to inspect food and food-to inspect food and food-producing factories to make sure producing factories to make sure the food purchased by consumers the food purchased by consumers was safe.was safe.

4.4. Employers’ Liability Act of Employers’ Liability Act of 1906 made employers 1906 made employers compensate employees compensate employees who were injured on the who were injured on the job. Before this, the job. Before this, the employees who were employees who were injured on the job were injured on the job were left on their own.left on their own.

5.5. Clayton Anti-trust Act Clayton Anti-trust Act of 1914 expanded of 1914 expanded federal power to federal power to prevent anti-prevent anti-competition practices competition practices in business.in business.

6.6. Federal Trade Commission Federal Trade Commission (FTC) Act of 1914 gave the (FTC) Act of 1914 gave the federal government expanded federal government expanded powers to protect consumers powers to protect consumers in the United States, created in the United States, created the FTC to investigate into the FTC to investigate into unfair business practices and unfair business practices and prosecute any wrongdoings. prosecute any wrongdoings.

7.7. Government also began Government also began setting laws on working setting laws on working conditions, although this was conditions, although this was usually done at the state usually done at the state level. State governments sets level. State governments sets laws on minimum wage, the laws on minimum wage, the length of the work day length of the work day and/or, safety standards and and/or, safety standards and child labor.child labor.

B.B. Supreme Court DecisionsSupreme Court Decisions1.1. Munn v. Illinois (1877) was over Munn v. Illinois (1877) was over

grain elevators in the state of grain elevators in the state of Illinois. The Grangers felt that the Illinois. The Grangers felt that the operators of the railroads and the operators of the railroads and the associated elevators were taking associated elevators were taking advantage and denying them due advantage and denying them due process under law. The Supreme process under law. The Supreme Court ruled that states could set Court ruled that states could set prices on business that were prices on business that were operated in the public good.operated in the public good.

2.2. Wabash, St. Louis & Pacific Wabash, St. Louis & Pacific Railway Co. v. Illinois (1886) Railway Co. v. Illinois (1886) established the power of established the power of federal government to regulate federal government to regulate trade between states, not trade between states, not individual states. It created the individual states. It created the Interstate Commerce Interstate Commerce Commission to oversee trade Commission to oversee trade over multiple states. over multiple states.

3.3. United States v. E. C. Knight Company United States v. E. C. Knight Company (1895) came about when the (1895) came about when the American Sugar Refining Company American Sugar Refining Company bough out all of its competitors to bough out all of its competitors to form a monopoly. The United States form a monopoly. The United States sued, citing a violation of the Sherman sued, citing a violation of the Sherman Anti-Trust Act. In this case, the Court Anti-Trust Act. In this case, the Court ruled against the government, limiting ruled against the government, limiting it’s ability to regulate monopolies.it’s ability to regulate monopolies.

4.4. In re Debs (1895) was a case about In re Debs (1895) was a case about labor leader Eugene V. Debs’ refusal labor leader Eugene V. Debs’ refusal to follow a court order to stop the to follow a court order to stop the Pullman Strike (1894) . The strike had Pullman Strike (1894) . The strike had turned violent, prompting the turned violent, prompting the government’s injunction to stop the government’s injunction to stop the strike and force the workers back on strike and force the workers back on the job. Debs refused and was the job. Debs refused and was charged with contempt of court. charged with contempt of court.

The issue behind the case was whether or not The issue behind the case was whether or not the federal government had the right to issue the federal government had the right to issue the injunction because it was unclear if it was the injunction because it was unclear if it was a inter- or intra-state case. The Court ruled a inter- or intra-state case. The Court ruled that the federal government could issue the that the federal government could issue the injunction because the federal government injunction because the federal government could regulate interstate trade. It also set that could regulate interstate trade. It also set that government had a responsibility to do thing to government had a responsibility to do thing to “ensure the general welfare of the public.”“ensure the general welfare of the public.”

5.5. Northern Securities v. the United States Northern Securities v. the United States (1904) was the case President Teddy (1904) was the case President Teddy Roosevelt brought against J. P. Morgan’s Roosevelt brought against J. P. Morgan’s monopoly on the western railroads. monopoly on the western railroads. Enforcing the Sherman Anti-Trust Act, the Enforcing the Sherman Anti-Trust Act, the court ruled that the monopoly was illegal court ruled that the monopoly was illegal and ordered the Northern Securities and ordered the Northern Securities Company disbanded. The Court’s attitude Company disbanded. The Court’s attitude toward regulating monopolies from the E. toward regulating monopolies from the E. C. Knight case was that the federal C. Knight case was that the federal government could not do it. This case government could not do it. This case reversed the Court’s stance.reversed the Court’s stance.

6.6. Swift & Co. v. United States (1905) Swift & Co. v. United States (1905) was a case concerning a meat trust was a case concerning a meat trust that developed in Chicago. The that developed in Chicago. The companies engaged in price fixing—companies engaged in price fixing—where companies make agreements where companies make agreements to all sell things for a certain price so to all sell things for a certain price so they can make higher profits. Local they can make higher profits. Local authorities served the company with authorities served the company with an injunction to stop conducting an injunction to stop conducting business. business.

The company sued, claiming the The company sued, claiming the federal government did not have federal government did not have the power to issue the order. The the power to issue the order. The Court upheld the federal Court upheld the federal government’s ability to regulate government’s ability to regulate trade, again showing the reversal trade, again showing the reversal from the decision in the Knight from the decision in the Knight case. case.

7.7. Lochner v. New York (1905) was a step Lochner v. New York (1905) was a step backward in the Progressive Era. A New backward in the Progressive Era. A New York State law limiting the work day for York State law limiting the work day for bakers was struck down by the Supreme bakers was struck down by the Supreme Court for being a violation of the Court for being a violation of the Fourteenth Amendment. The Court Fourteenth Amendment. The Court reasoned that government had no right to reasoned that government had no right to interfere with employment contracts. interfere with employment contracts. The Court did assert that in cases where The Court did assert that in cases where work was dangerous—like mining—that work was dangerous—like mining—that the government could interfere, but only the government could interfere, but only in extreme cases.in extreme cases.

8.8. Muller v. Oregon (1908) reversed the Muller v. Oregon (1908) reversed the Lochner decision. A laundry business in Lochner decision. A laundry business in Oregon was fined for being in violation of Oregon was fined for being in violation of a state law limiting the work day for a state law limiting the work day for women to under ten hours. Muller, the women to under ten hours. Muller, the owner of the business, appealed, hoping owner of the business, appealed, hoping the Court would rule as it did in Lochner. the Court would rule as it did in Lochner. The Court did not, however. It instead The Court did not, however. It instead ruled that the labor law was ruled that the labor law was constitutional, meaning that states could constitutional, meaning that states could set labor laws that effected employment set labor laws that effected employment contracts.contracts.

V.V. The Labor MovementThe Labor Movement

A.A. Collective bargaining is when Collective bargaining is when a group of employees send a group of employees send representatives to negotiate representatives to negotiate with their employer for with their employer for them as a group to get them as a group to get better treatment. better treatment.

B.B. When employee’s demands are not When employee’s demands are not being taken seriously, they can call a being taken seriously, they can call a strike—when no one shows up to strike—when no one shows up to work to force the employer to listen work to force the employer to listen to the employee’s demands. The to the employee’s demands. The government didn’t allow strikes government didn’t allow strikes either, often sending police or troops either, often sending police or troops to break up the strike. Companies to break up the strike. Companies often hired their own “strike often hired their own “strike breakers” to attack workers on picket breakers” to attack workers on picket lines.lines.

C.C. The Knights of Labor (U of The Knights of Labor (U of M), American Federation of M), American Federation of Labor (AFL) and the Labor (AFL) and the Industrial Workers of the Industrial Workers of the World (IWW) are three of World (IWW) are three of the most influential unions the most influential unions from this time.from this time.

D.D. Labor conflictLabor conflict

1.1. Great Railway Strike (1877) took place in Great Railway Strike (1877) took place in West Virginia when the B&O Railroad cut West Virginia when the B&O Railroad cut wages for the second time in one year. The wages for the second time in one year. The workers refused to work until wages were workers refused to work until wages were restored. The government acted by restored. The government acted by sending in the state militia—who refused sending in the state militia—who refused to use force against the strikers—and, to use force against the strikers—and, later, federal troops. The strike spread to later, federal troops. The strike spread to other cities and turned violent as mobs of other cities and turned violent as mobs of unhappy workers rioted. It took the unhappy workers rioted. It took the government 45 days to force and end to government 45 days to force and end to the strike.the strike.

2.2. Haymarket Riot (1886) occurred Haymarket Riot (1886) occurred during a large, nation-wide during a large, nation-wide strike over limiting the work strike over limiting the work day from 12 hours to 8 hours. day from 12 hours to 8 hours. In Chicago, tensions between In Chicago, tensions between the police and the workers the police and the workers were intense as police fired on were intense as police fired on a crowd showing support for a crowd showing support for the workers a few days earlier. the workers a few days earlier.

Another rally was held at Haymarket Another rally was held at Haymarket Square. When police came to Square. When police came to disperse the crowd, a bomb exploded disperse the crowd, a bomb exploded and the square erupted into chaos. and the square erupted into chaos. Eight policemen and four workers Eight policemen and four workers were killer; many more were were killer; many more were wounded. The riot gave unions and wounded. The riot gave unions and strikes a bad name for a while and strikes a bad name for a while and was a set back to getting a shorter was a set back to getting a shorter work day.work day.

3.3. Homestead Strike (1892) took Homestead Strike (1892) took place when Carnegie Steel place when Carnegie Steel demanded a wage cut from its demanded a wage cut from its workers. When they refused, workers. When they refused, management staged a lock-out—management staged a lock-out—when the employees aren’t when the employees aren’t allowed to go into to work until allowed to go into to work until they accept management’s they accept management’s demand (the opposite of a strike). demand (the opposite of a strike).

The workers tried to stop the plant from The workers tried to stop the plant from operating with new workers who cross operating with new workers who cross the picket line—called scabs. The the picket line—called scabs. The company sent in strikebreaker—from the company sent in strikebreaker—from the Pinkerton Security firm—to try to open Pinkerton Security firm—to try to open the plant. The workers and strikebreakers the plant. The workers and strikebreakers battled and the state militia had to be battled and the state militia had to be called in to put down the strike. The called in to put down the strike. The strike destroyed the union.strike destroyed the union.

4.4. Pullman Strike (1894) involved the Pullman Strike (1894) involved the railroads. The Pullman Palace Car railroads. The Pullman Palace Car Company cut workers’ wages. Company cut workers’ wages. When other railroad union When other railroad union member refused to run trains with member refused to run trains with Pullman cars on them, Pullman cars on them, management decided to have a management decided to have a lock out. The strike got violent as lock out. The strike got violent as crowds rioted. Rail traffic was crowds rioted. Rail traffic was halted. halted.

President Grover Cleveland sent President Grover Cleveland sent federal troops in to put down the federal troops in to put down the striker because it was interfering striker because it was interfering with the delivery of mail and with the delivery of mail and threatened the general good of the threatened the general good of the country. Union leader Eugene country. Union leader Eugene Debs was later convicted for failing Debs was later convicted for failing to stop the strike.to stop the strike.

5.5. Anthracite Coal Strike (1902) Anthracite Coal Strike (1902) threatened to create a coal threatened to create a coal shortage just a winter was shortage just a winter was looming for the northeast. looming for the northeast. Workers wanted several demands Workers wanted several demands met and management was met and management was unwilling to listen. When the unwilling to listen. When the miners struck, President Teddy miners struck, President Teddy Roosevelt got involved. Roosevelt got involved.

TR threatened to nationalize the TR threatened to nationalize the mines, forcing labor to the mines, forcing labor to the negotiation table. Roosevelt negotiation table. Roosevelt negotiated an agreement between negotiated an agreement between the two side, winning the miners the two side, winning the miners most of the demands.most of the demands.

6.6. Lawrence Textile Strike (1912) Lawrence Textile Strike (1912) took place in Massachusetts. took place in Massachusetts. Management decided to cut Management decided to cut wages when they were forced to wages when they were forced to comply with a new law limiting comply with a new law limiting the work week for women and the work week for women and children. The workers struck and children. The workers struck and things got nasty. things got nasty.

Management turned fire hoses on Management turned fire hoses on the workers; workers threw ice at the workers; workers threw ice at the windows. The militia was the windows. The militia was called out to stop the strike. The called out to stop the strike. The strike brought the issues of the strike brought the issues of the mills to national attention. The mills to national attention. The workers won some improvements workers won some improvements in wages and working conditions.in wages and working conditions.