•Natural Resources•Capital (gold, silver and banking)•US Government support•Desire: Creative inventors and industrialists•Transportation System•Labor force (immigrants)

•Oil

•Mining

•Sugar

•Steel

•Meatpacking

•Beef/Cattle

•Construction

•Telegraph

•Telephone

•Railroad

•Marketing

•Sewing Machine

•Vacuums

•Typewriters

•Automobile

•Salt

•Coal

•Agricultural

Immigrants from Europe

Old New New New

•2. Immigrants were workers and customers!

Immigrants from Europe

The American dream is awesome!

I should have stayed in Europe….

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

1871-1880

1881-1890

1891-1900

1901-1910

1911-1920

Old New

1,593,000181,18802,753,00926,0001,110,0001,847,0001,069,0005,780,000540,0002,928,000

Chart: Rise of Immigrants

OldOld = England and Germany

NewNew = Southern Europe: Italy, Russia, Poland

Railroad ConstructionRailroad ConstructionRailroad ConstructionRailroad ConstructionPromontory, Utah

•May 10, 1869 at Promontory, Utah •“The Wedding of the Rails”

•Central Pacific and Union Pacific

•May 10, 1869 at Promontory, Utah •“The Wedding of the Rails”

•Central Pacific and Union Pacific

In 1856 Henry Bessemer devised a way of converting iron into steel on a

large scale. His invention involved blowing air through molten iron in a converter, or furnace, in order to burn off the

excess carbon. His invention revolutionized the

Industrial Age.

New Uses for SteelSteel used in railroads, barbed

wire, farm machinesChanges construction: Brooklyn Bridge; steel-framed skyscrapers

In 1856 Henry Bessemer devised a way of converting iron into steel on a

large scale. His invention involved blowing air through molten iron in a converter, or furnace, in order to burn off the

excess carbon. His invention revolutionized the

Industrial Age.

New Uses for SteelSteel used in railroads, barbed

wire, farm machinesChanges construction: Brooklyn Bridge; steel-framed skyscrapers

Expansion of Railroads•1869, 30,000 miles of track•1900, 200,000 miles of track•Distribution System to the marketplace•Symbol of growth

With the Bessemer

Process and Carnegie steel,

Skyscrapers revolutionized the building industry…..Major city

skylines would be dotted with this

new type of building as the 1900’s begin.

Pullman Cars

•What helped the railroad industry prosper?•Bessemer Process•Westinghouse Air Brakes•Steel Rails•Standard Gauge

•What helped the railroad industry prosper?•Bessemer Process•Westinghouse Air Brakes•Steel Rails•Standard Gauge

BETWEEN 1860 TO 1900BETWEEN 1860 TO 1900•Elevator---1852

•Bessemer Process---1852•Sewing Machine---1853

•Dynamite---1867•Typewriter---1868

•Levi Blue Jeans/Basketball---1873•Telephone---1876

•Phonograph---1878•Light bulb and cash register---1879

•Zipper---1883•Gasoline automobile and skyscraper---1885

•New York City---first city to have electricity--1890•Radio---1895

•Subway---1897•X-ray---1900

Between 1800 to 1900, US Govt. issued 500,000

patents

5. Thomas Alva Edison

5. Thomas Alva Edison

“Wizard of Menlo Park” “Wizard of Menlo Park”

Edison Inventions helped to shape modern societyEdison Inventions helped to shape modern society •More than 1,000 inventions patented•Light bulb •Phonograph •Incandescent electric lamp •Starter for automobiles that eliminated hand crank•Batteries•Perfected stock ticker •New York City first city to powered by electricity•The motion picture camera and projector•First used “hello” as phone greeting •Helped Alexander G. Bell with the telephone

Edison Inventions helped to shape modern societyEdison Inventions helped to shape modern society •More than 1,000 inventions patented•Light bulb •Phonograph •Incandescent electric lamp •Starter for automobiles that eliminated hand crank•Batteries•Perfected stock ticker •New York City first city to powered by electricity•The motion picture camera and projector•First used “hello” as phone greeting •Helped Alexander G. Bell with the telephone

“Wizard of Menlo Park”

“Wizard of Menlo Park”

The Light BulbThe Light Bulb

The Phonograph (1877)

The Phonograph (1877)

The Ediphone or Dictaphone

The Ediphone or Dictaphone

The Motion Picture Camera

The Motion Picture Camera

Alexander Graham BellAlexander Graham Bell

Telephone (1876)Telephone (1876)

The AirplaneThe Airplane

Wilbur Wright Orville Wright Wilbur Wright Orville Wright

Model T AutomobileModel T Automobile

Henry FordHenry Ford

BETWEEN 1860 TO 1900•Specialty stores----sold single line of goods

•Department stores---combined specialty stores

•Chain stores---stores with branches in cities

•Mail catalog stores

•New ways to advertise

Montgomery Wards, J.C. Montgomery Wards, J.C. Penney, Macy’s, Sears and Penney, Macy’s, Sears and Roebuck and WoolworthsRoebuck and Woolworths

An economic belief supported by the U.S. that opposes the

government regulating business.

In the late 1800’s businesses operated without much government regulation.

This is known as laissez-fairelaissez-faire economics. Laissez-faire means ‘allow to beallow to be’ or the

government stays out of a person’s government stays out of a person’s businessbusiness in French.

Laissez faire supports our economic system of capitalismcapitalism

New Business CultureNew Business Culture1. Laissez Faire --> the ideology of the

Industrial Age.1. Laissez Faire --> the ideology of the

Industrial Age.

Individuals should compete freely in the marketplace.

Own their own business and use their skills to better our culture and make profit for themselves.

The market was not man-made or invented and no room for government in the market.

Government should allow for natural competition for the betterment of our society.

Individuals should compete freely in the marketplace.

Own their own business and use their skills to better our culture and make profit for themselves.

The market was not man-made or invented and no room for government in the market.

Government should allow for natural competition for the betterment of our society.

Economic system characterized by private

property ownershipIndividuals/companies compete for ProfitProfit

Capitalists determine prices.

Supports laissez faire and the “free free enterpriseenterprise” system

Economic system based on cooperation not competition Belief in government ownershipgovernment ownership of business

and capital (money, natural resources)Government controls production, sets wages, prices and distributes the goods. No profit or

competition.Opposite of laissez fairelaissez faire and capitalismcapitalism

Capitalism is too Corrupt! Capitalism is too Corrupt!

•A business consisting authorized by law to act as a single person and with the ability to sell shares of stock to raise “capital”

9. Corporation:9. Corporation:

•Investors who invest their money into a corporation who each receive a share of ownership in proportion to the amount they invested

•if the corporation makes a profit---than investor gets a ““dividenddividend”” or a share of the profit.

10. Shareholders or stockholders10. Shareholders or stockholders::

•Shareholders have the right to profits, through dividends but are not held liable for the company's debts. •““Risk is spread over the Risk is spread over the shareholdersshareholders so so if the company goes bankrupt, the lose is if the company goes bankrupt, the lose is not so devastating”not so devastating”

13. Limited liability:13. Limited liability:

•Companies in related fields combine under the direction of a single board of trustees.

•Shareholders had no say.

•Outlawed today.

14. Trusts or MonopolyMonopoly

BIGGER IS BETTER

A trust or monopolytrust or monopoly controls an entire industry•make product cheaper

•lower prices to customer

Coke fields

purchased by

Carnegie

Coke fields

Iron ore deposits

purchased by

Carnegie

purchased by

Carnegie

Coke fields

Iron ore deposits

Steel mills

purchased by

Carnegie

purchased by

Carnegie

purchased by

Carnegie

Coke fields

Iron ore deposits

Steel mills

Ships

purchased by

Carnegie

purchased by

Carnegie

purchased by

Carnegie

purchased by

Carnegie

Coke fields

Iron ore deposits

Steel mills

Ships

Railroads

purchased by

Carnegie

purchased by

Carnegie

purchased by

Carnegie

purchased by

Carnegie

purchased by

Carnegie

15. Vertical Integration15. Vertical Integration You control all phases of

production from the raw material to the finished product

16. Horizontal Integration16. Horizontal Integration Buy out your competition until

you have control of a single area of industry

Modern Day Example of Modern Day Example of Vertical IntegrationVertical IntegrationModern Day Example of Modern Day Example of Vertical IntegrationVertical Integration

Ford Motor company– What goes in an automobile? – Why is it an advantage for a company to

own/control all production?

Ford Motor company– What goes in an automobile? – Why is it an advantage for a company to

own/control all production?

Vertical IntegrationYou control all phases of production from the raw material to the finished

product

Advantages Vertical IntegrationAdvantages Vertical IntegrationAdvantages Vertical IntegrationAdvantages Vertical Integration

You are always in control of supply of the You are always in control of supply of the products you needproducts you need

In control of labor cost, land/resourcesIn control of labor cost, land/resourcesAlways in control of the costAlways in control of the costSchedule your production of autos Schedule your production of autos

because you are in control of all factorsbecause you are in control of all factorsCan you give another example of this?Can you give another example of this?

You are always in control of supply of the You are always in control of supply of the products you needproducts you need

In control of labor cost, land/resourcesIn control of labor cost, land/resourcesAlways in control of the costAlways in control of the costSchedule your production of autos Schedule your production of autos

because you are in control of all factorsbecause you are in control of all factorsCan you give another example of this?Can you give another example of this?

Other Vertical IntegrationsOther Vertical IntegrationsOther Vertical IntegrationsOther Vertical IntegrationsBoeingBoeingAnheiser-Busch: all grown by own Anheiser-Busch: all grown by own

producersproducersMcDonald’s: own cattle ranchesMcDonald’s: own cattle ranchesOil companiesOil companiesAOL Time WarnerAOL Time Warner

BoeingBoeingAnheiser-Busch: all grown by own Anheiser-Busch: all grown by own

producersproducersMcDonald’s: own cattle ranchesMcDonald’s: own cattle ranchesOil companiesOil companiesAOL Time WarnerAOL Time Warner

Horizontal IntegrationHorizontal IntegrationHorizontal IntegrationHorizontal IntegrationExamples

– Standard Oil– Carnegie Steel– Swift & Company: meat producers– United Fruit Company: bananas– Dole Pineapple

Examples– Standard Oil– Carnegie Steel– Swift & Company: meat producers– United Fruit Company: bananas– Dole Pineapple

Horizontal Integration Buy out your

competition until you have control of a single

area of industry

Horizontal Integration Buy out your

competition until you have control of a single

area of industry

Modern Day Examples of Modern Day Examples of Horizontal IntegrationHorizontal IntegrationModern Day Examples of Modern Day Examples of Horizontal IntegrationHorizontal Integration

MicrosoftMicrosoftStarbucksStarbucksDe BeersDe Beers

MicrosoftMicrosoftStarbucksStarbucksDe BeersDe Beers

A person who organizes,

operates, and assumes the

risk for a business venture

““Robber Barons”Robber Barons” Business leaders built their fortunes by stealing from the

public. They drained the country of its natural resources. They persuaded public officials to interpret laws in their

favor. They ruthlessly drove their competitors to ruin. They paid their workers meager wages and forced them

to toil under dangerous and unhealthful conditions.

““Captains of Industry”Captains of Industry” Served their nation in a positive way. Increased the supply of goods by building factories. Raised productivity and expanded markets. Created jobs! Charity! Created museums, libraries, and universities, many of

which still serve the public today.

Extortion:Extortion: Forced against your will•RebatesRebates: discount or refund on “freight

charges”

•Drawbacks / Kickbacks:Drawbacks / Kickbacks: Standard Oil gave certain railroads all its shipping business if

it agreed to charge Standard Oil 25% to 50% less than its competitors

robber

Small businessesSmall businesses complained “monopolies”

eliminated fair competition

Extortion:Extortion: Forced against your will•Buyouts:Buyouts: Larger corporations forced

smaller businesses to sell out

•CongressCongress was “bought out” by the monopolies

•Spies:Spies: Stealing your competitor's ideas

robber

Small businessesSmall businesses complained “monopolies”

eliminated fair competition

Captain of Captain of IndustryIndustry

•Monopolized the steel industry

•Rags to riches story---came from Scotland very poor.

•Used scientific ideas (Bessemer ProcessBessemer Process) to

develop a better way to produce steel and sell a quality a product for an

inexpensive price.

•Used Horizontal integration.

Carneige PictureCarneige Picture

Captain of IndustryCaptain of Industry•Came from a wealthy familyCame from a wealthy family

•Bought a substitute during the Civil Bought a substitute during the Civil War.War.

•Formed the first modern corporations in the oil industry Standard OilStandard Oil

•Was the first billionairefirst billionaire in the U.S. by 1900.

•Used Vertical Integration and Vertical Integration and Horizontal IntegrationHorizontal Integration to gain a monopoly in the oil business.

Cartoon RockefellerCartoon Rockefeller

•Formed a steamship company in 1829

•Dominated shipping along the Atlantic

•1849 established steamship that carried people from New York to San

Francisco in Gold Rush days

•Leading U.S. steamship owner, nicknamed “The Commodore”

•Gained control of the Hudson River Railroad

•After Civil War Vanderbilt bought most railroad lines from

New York to Chicago

•1877, controlled 4,500 miles of railroads

•Worth over $100 million

•Philanthropist--donated $1 million to Vanderbilt University

•After Civil War Vanderbilt bought most railroad lines from

New York to Chicago

•1877, controlled 4,500 miles of railroads

•Worth over $100 million

•Philanthropist--donated $1 million to Vanderbilt University

The effort of an individual or

organization to increase the well-

being of humankind, as by charitable aid

or donations.

PhilanthropistPhilanthropist•Gave millions to Gave millions to

colleges and libraries.colleges and libraries.

•It was the sacred duty of the wealthy to give

back to society who has given to him.

•Stressed education as a means to better one’s

self.

•Carnegie HallCartoon CarnegieCartoon Carnegie

Gospel of WealthGospel of Wealth

““On Wealth”On Wealth”““On Wealth”On Wealth”

Andrew Carnegie

Andrew Carnegie

The Anglo-Saxon race is superior.

“Gospel of Wealth” (1889).

Inequality is inevitable and good.

Wealthy should act as “trustees” for their “poorer brethren.”

The Anglo-Saxon race is superior.

“Gospel of Wealth” (1889).

Inequality is inevitable and good.

Wealthy should act as “trustees” for their “poorer brethren.”

PhilanthropistPhilanthropist•Gave millions of his Gave millions of his money to hospitals money to hospitals and colleges.and colleges.

•University of University of ChicagoChicago•Spellman CollegeSpellman College•National ParksNational Parks•United NationsUnited Nations•WilliamsburgWilliamsburg•Cancer ResearchCancer Research

Rockefeller Rockefeller

•Worth over $100 million

•Philanthropistdonated $1 million to Vanderbilt University

•Worth over $100 million

•Philanthropistdonated $1 million to Vanderbilt University

•Controlled the railroad by forcing them to pay him

rebatesrebates because of the volume of

business he gave them.

•Was called “Rock a “Rock a Fellow”Fellow” by many

•Ruthless business man: “Pay no man a Pay no man a

profitprofit”

Cartoon RockefellerCartoon Rockefeller

Rockefeller/Control GovtRockefeller/Control Govt

Rockefeller was so wealthy, he dictated to the U.S. Government to protect big business---- laissez fairelaissez faire

Rockefeller would be hated by many because he had too much control over the oil industry and the government as viewed by the common

man-----Some believed he was corrupt because he took away the right to compete---free enterprisefree enterprise

Trusts control govtTrusts control govt

Big business, monopolies controlled Congress through bribery. This is corruption

“History repeats itself-----The Robber Barons of the Middle Ages and the Robber Barons of Today…..”

1. Granger State Laws

State laws regulating railroad prices in 18 states to help farmers.

2. Munn v. Illinois(1876)

Supreme Court decision stating that states had the ability to regulate private property if it affected public interest.

3. Wabash Case(1886)

States could regulate commerce within their states, still unconstitutional for states to regulate interstate commerce.

Showed need for Federal regulation of interstate commerce.

Congress passed Interstate Commerce Commission (ICC). 

U.S. government regulated interstate trade within the

country. End railroad corruption of

charging high prices to ship goods and Rockefeller’s illegal deals.Rebates/kickbacks/drawbacks

were illegal.

In 1890, Congress passed a law which made trusts/monopoliestrusts/monopolies

illegal or any business that prevented fair

competition.

4. Interstate Commerce

Act(1887)

In 1890, Congress passed a law which

made trusts/monopoliestrusts/monopolies

illegal or any business that

prevented fair competition.

5. ShermanAntitrust Act

(1890)

Protect the consumers!

MORRILL TARIFF ACT, 1862MORRILL TARIFF ACT, 1862To protect and encourage American industry,

Congress passed this tariff after the South seceded from the Union.

NATIONAL BANKING SYSTEM, 1863NATIONAL BANKING SYSTEM, 1863To stimulate the economy and set up a banking system, Congress passed this act which was a

significant step towards a unified, national banking system until replaced by the Federal Reserve in

1913.

MORRILL ACT, 1862MORRILL ACT, 1862To promote education, Congress provided grants of public lands to the states for support of education.

“Land-grant colleges”

LAND GRANTS TO RAILROADSLAND GRANTS TO RAILROADS US Govt. donated land to railroad companies to

encourage growth of this mode of transportation. US Govt. donated approx. 170 million acres of

land…….

Govt. assists

6. Social Darwinism6. Social Darwinism6. Social Darwinism6. Social Darwinism British economist,

Herbert Spencer. Advocate of

laissez-faire. Adapted Darwin’s

ideas from the “Origin of Species” to humans.

Belief that there was a natural upper class and lower class.

“Survival of the fittest”

British economist, Herbert Spencer.

Advocate of laissez-faire.

Adapted Darwin’s ideas from the “Origin of Species” to humans.

Belief that there was a natural upper class and lower class.

“Survival of the fittest”

Social DarwinismSocial DarwinismSocial DarwinismSocial DarwinismBelief that in the

economic world the strongest companies

will survive

“The growth of a large business is merely a

survival of the fittest.”

J. Rockefeller

Belief that in the economic world the strongest companies

will survive

“The growth of a large business is merely a

survival of the fittest.”

J. Rockefeller

Social DarwinismSocial DarwinismSocial DarwinismSocial Darwinism•Social Darwinists believed that companies struggled for survival in the economic world and the government should not tamper

with this natural process.

•The fittest business leaders would survive and would improve

society.

•Belief that hard work and wealth showed God’s approval and those that were poor were

lazy and naturally a lower class.

•Social Darwinists believed that companies struggled for survival in the economic world and the government should not tamper

with this natural process.

•The fittest business leaders would survive and would improve

society.

•Belief that hard work and wealth showed God’s approval and those that were poor were

lazy and naturally a lower class.

1. All living things have always

competed for survival. Survival Survival

of the fittest.of the fittest.

2. All living things have evolved over

millions of years as a result of genetic

changes.

3. Some plants and animals developed traits that helped

them survive.

1. All living things have always

competed for survival. Survival Survival

of the fittest.of the fittest.

2. All living things have evolved over

millions of years as a result of genetic

changes.

3. Some plants and animals developed traits that helped

them survive.

1. Every human activity

individuals individuals competecompete for

success.2. The unfit or

incompetent lose and the strong or competent win.

3. These winners make up a

natural upper natural upper classclass.

4. Hard worked paid off, and lazy

were inferior.

1. Every human activity

individuals individuals competecompete for

success.2. The unfit or

incompetent lose and the strong or competent win.

3. These winners make up a

natural upper natural upper classclass.

4. Hard worked paid off, and lazy

were inferior.Social Darwinism 2Social Darwinism 2

http://www.youtube.com/watch?v=aDaOgu2CQtI&ob=av2e

““All persons born in the U.S. are citizens of this country and the state

they reside in. No state shall make or No state shall make or enforce any law which deprives any enforce any law which deprives any person of life, liberty, or property, person of life, liberty, or property,

without due process of law,without due process of law, nor deny to any person with its jurisdiction to the

equal protection of the laws.”

Industrialists would use the Industrialists would use the 14th 14th AmendmentAmendment as a way to defend a as a way to defend a

corporation from the corporation from the Sherman Anti-Sherman Anti-Trust ActTrust Act..

1414thth amend amend

Picture: Workers vs OwnerPicture: Workers vs Owner

Picture: Workers vs OwnerPicture: Workers vs Owner

“The old familiar relations between employer and employee were passing. A few generations before, the boss had known every

man in his shop. He called his men by their first names, asked about the family and swapped jokes and stories with them.

Today, you have large factories, the personal touch is gone!”

Theodore Roosevelt

““IMPERSONALIZATION”IMPERSONALIZATION”

Picture: Workers vs OwnerPicture: Workers vs Owner

Poor working conditionsUnfriendliness/impersonalization

Immigrants taking jobsDecrease work day

Machines replacing workersChild labor

Job security

In the 1880s, children made up more than 5 percent of the

industrial labor force.Children often left school at the age of 12 or 13 to work.

Girls sometimes took factory jobs so that their brothers

could stay in school.If an adult became too ill to

work, children as young as 6 or 7 had to work.

Rarely did the government provide

public assistance, and unemployment

insurance didn’t exist.The theory of Social Darwinism held that

poverty resulted from personal weakness. Many thought that

offering relief to the unemployed would

encourage idleness.

Division of Labor Some owners viewed

workers as parts of the machinery.

Unlike smaller and older businesses, most owners never interacted with workers.

impersonalization

Work Environment Factory workers worked

by the clock. Workers could be fired

for being late, talking, or refusing to do a task.

Workplaces were not safe.

Children performed unsafe work and worked in dangerously unhealthy conditions.

In the 1890s and early 1900s states began legislating child labor.

Picture: Workers vs OwnerPicture: Workers vs Owner

Industrial millionaires were Industrial millionaires were condemned in the Populist condemned in the Populist

platform of 1892platform of 1892

The fruits of the toil of millions are boldly stolen to build up

colossal fortunes for a few…and the possessors of these, in turn

despise the Republic and endanger liberty. From the same

prolific womb of government injustice we breed the two great

classes---tramps and millionaires.

The wealthy would manifest itself in an elite class of Americans who lived extravagant lifestylesextravagant lifestyles. Many common

people resented their snobbish attitudes and wealth. In some respects, there was a caste systemcaste system in the U.S.

1861---------3 millionaires----------1900--------3,800

By 1900, 90% of the wealth in the U.S. was controlled by 10% of population.

People refuse to buy a company's product until the company meets

demands.

10. Boycott

9. Labor Strike

The unions' method for having their demands met. Workers stop working until

the conditions are met. It is a very effective form of attack.

8. Labor Union

Workers who organize against their employers to seek better wages and working conditions for wage earners.

New immigrants who would replace strikers and work for less pay. Often violence would erupt between strikers

and scabs who were trying to cross picket lines to work.

11. Scab Worker

A working establishment where only people belonging to the union are hired. It was done by the unions to protect their workers from

cheap labor.

13. Black List or Black

Balled

List of people disliked by business owners because they were leaders in the Union. Often would loose their

jobs, beaten up or even killed.

Type of negotiation between an employer and labor union where they sit down face to face and

discuss better wages, etc.

14. Collective Bargaining

12. Closed Shop

15. Yellow Dog

Contracts

A written contract between employers and employees in which the employees

sign an agreement that they will not join a union while working for the

company

16. Lock OutOwner of industry would “lock

out” workers who were trying to form a union and replace them

with “scabs”.

CooperativesIndustry or business organization

owned by and operated for the benefit of those using its services

—non-profit

National Labor UnionNational Labor Union

•William Sylvis, 1866

•Skilled, unskilled, farmers but excluded Chinese…

•CooperativesCooperatives, 8 hr. work day, against labor strikes

•Founded a political party in 1872

•Involved in the Chinese Exclusion ActChinese Exclusion Act.

•Lost election, faded away

•Replaced by Knights of Labor.

Knights of LaborKnights of Labor

•Terrence Powderly

•All workers except Chinese

•8 hr. day, cooperatives, prohibition, end child labor

•Several strikes won some wage gains 1885 to 1886

•Unrealistic and vague goals

•Loss of important strikes and failure of cooperatives

•Haymarket Riot—1886

American Federation of Labor or AFLAmerican Federation of Labor or AFL

•Samuel Gompers, 1881

•Skilled workers in separate unions.

•Work within political system for change.

•Closed shopClosed shop and collective bargainingcollective bargaining

•Over 1 million workers joined and won several strikes

•Small part of work force eligible to join.

Reaction of EmployersReaction of EmployersEmployers hated & feared unions. Why?European influences of socialismLabor strikes always tended to be violent.

18. Reaction of Employers18. Reaction of Employers

Some took steps to stop unions, such as:forbidding union meetingsfiring union organizersOwner of industry would “lock outlock out” workers who were trying to form a union and replace them with “scabs”.Scab workersScab workers: Employers would hire immigrants to replace strikers and work for less pay. Often violence would erupt between strikers and scabs who were trying to cross picket lines to work.refusing to recognize unions as their workers’ legitimate representatives

Anti-Labor UnionsAnti-Labor Unions

Founder of the Socialist Party in the U.S.

Overthrow the existing laissez faire and

capitalisticBelieves in government government ownershipownership of business and

capital (money, natural resources)

Government controls production, sets wages,

prices and distributes the goods. No profit or

competition. Runs for the presidency

several times.

20. Railroad Workers Organize20. Railroad Workers OrganizeThe Great Railroad

Strike of 1877– Railway workers protested

unfair wage cuts and unsafe working conditions.

– The strike was violent and unorganized.

– President Hayes sent federal troops to put down the strikes.

−From then on, employers relied on federal and state troops to repress labor unrest.

Debs and the American Railway

Union–At the time of the 1877 strike,

railroad workers mainly organized into various

“brotherhoods,” which were basically craft unions.

–Eugene V. Debs proposed a new industrial union for all railway workers called the American Railway Union

(A.R.U.).–The A.R.U. would replace all of the brotherhoods and unite all railroad workers, skilled

and unskilled.

Railroad Workers OrganizeRailroad Workers Organize

•May 3, 1886, joining a nation May 3, 1886, joining a nation wide strike for an 8 work day wide strike for an 8 work day Chicago workers protested Chicago workers protested

against the McCormick against the McCormick Reaper plant.Reaper plant.

•A riot broke out and Chicago A riot broke out and Chicago police officers killed several police officers killed several

protestersprotesters•To protest the killing, To protest the killing,

protesters planned a rally for protesters planned a rally for May 4May 4

•3,000 gather at Chicago’s Haymarket Square3,000 gather at Chicago’s Haymarket Square•During the protest, a bomb exploded During the protest, a bomb exploded

•7 police officers were killed and civilians killed and injured7 police officers were killed and civilians killed and injured •Chicago police hunt down murderersChicago police hunt down murderers

•8 8 anarchists were convicted of conspiracy to murderanarchists were convicted of conspiracy to murder

4 were hung and 1 committed suicide

This caused the public to look down on labor unions

especially the Knights of LaborGov. Altgeld of Illinois later

issued pardons for the remaining accused anarchists.

                                    

                                                                              

•The five men are clockwise

from 1:00 o'clock:

•A. R. Parsons•Adolph Fischer•George Engel•August Spies

•Louis Lingg (middle)

•The first four were hanged on Friday,

November 11, 1887.

•Lingg committed suicide on November 10, 1887 by

lighting a stick of dynamite in his mouth.

Picture: Workers vs OwnerPicture: Workers vs Owner

•Americans were suspicious of labor unions because they Americans were suspicious of labor unions because they tended to go against laissez faire and capitalism. Labor tended to go against laissez faire and capitalism. Labor

strikes were often violent. strikes were often violent.

HaymarketHaymarketRiotRiot

•1892, Carnegie Steel workers strike over pay cuts

•Management locks out workers and hires scab

workers.•Violence erupted between strikers and scab workers.

•Pinkerton Security called in to settle violence

•Strikers ambush them and forced Pinkerton’s to walk the gauntlet between striking families.

•Some killed and many injured•National Guard was called in by the governor of Pennsylvania

to stop violence and reopen plant

•Carnegie successfully broke up the attempt to organize a union.

•No labor unions in steel industry No labor unions in steel industry until the 1920’s.until the 1920’s.

•Carnegie would be remembered for events at Homestead.

•His public image sufferedHis public image suffered

24.Strikes Rock the Nation24.Strikes Rock the Nation

Pullman, 1894– Eugene Debs instructed all RR workers to not

operate Pullman co. cars– Railway owners turned to the government for

help. The judge cited the Sherman Antitrust Act and won a court order forbidding all union activity that halted railroad traffic.

– Court orders against unions continued, limiting union gains for the next 30 years.