THE INDUSTRIAL SOCIETY

Nation of Nations Chapter 19

Late nineteenth-century

• Abundance of cheap natural resources• Large pools of labor• Integrated and modernized transportation

systems• Largest domestic market in the world• Capital: gold and silver• Government support without regulation• Rapid growth 1865-1914

U.S. offers ideal conditions for rapid industrial growth:

Life in the 1860s• No indoor electric lights• No refrigeration• No indoor plumbing• Kerosene or wood to heat• Wood stoves to cook with• Horse and buggy• In 1860, most mail from the

East Coast took ten days to reach the Midwest and three weeks to get to the West Coast.

• A letter from Europe to a person on the frontier could take several months to reach its destination.

Life in the 1900s• US Govt issued 500,000

patents—electricity• Refrigerated railroad cars• Sewer systems and

sanitation• Increased productivity

made live easier and comfortable.

• Power stations, electricity for lamps, fans, printing presses, appliances, typewriters, etc.

• New York to San Francisco to 10 days using railroad.

• 1.5 million telephones in use all over the country

• Western Union Telegraph was sending thousands of messages daily throughout the country.

• 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

•Immigrants provided the labor force for industrial expansion of

the US. •They also became the customers

who in return bought the items produced.

01,000,0002,000,0003,000,0004,000,0005,000,0006,000,0007,000,000

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

Old = England and GermanyNew = Southern Europe: Italy, Russia, Poland

• 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 Steel

Steel used in railroads, barbed wire, farm machines

Changes 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

Pullman Cars

• What helped the railroad industry prosper?• Bessemer Process

• Westinghouse Air Brakes• Steel Rails

• Standard Gauge

An Empire on Rails

• U.S. industrial economy based on expansion of the railroads

• Steamships made Atlantic crossings twice as fast

• The telegraph and telephone transformed communications

Building the Empire

• 1865-1916--U.S. lays over 200,000 miles of track costing billions of dollars

• Expenses met by government at all levels• Federal railroad grants prompt corruption• Railroads save government $1 billion in

freight costs 1850-1945

"Emblem of Motion and Power"

• Railroads transform American life– end rural isolation– allow regional economic specialization– make mass production, consumption possible– lead to organization of modern corporation – stimulate other industries

• Railroads capture the imagination of the American people

Railroad Construction, 1830-1920

Linking the Nation via Trunk Lines

• No integrated rail system before Civil War • After 1860 construction and consolidation of

trunk lines proceeds rapidly • East linked directly with Great Lakes, West• Southern railroad system integrated in 1880s • Rail transportation becomes safe, fast, reliable

Rails Across the Continent

• 1862--Congress authorizes the transcontinental railroad

• Union Pacific works westward from Nebraska using Irish laborers

• Central Pacific works eastward using Chinese immigrants

• May 10, 1869, tracks meet in Utah• By 1900, four more lines to Pacific

BETWEEN 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

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.

Thomas Alva Edison

“Wizard of Menlo Park”

Edison 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”

Alexander Graham Bell

Telephone (1876)

The Airplane

Wilbur Wright Orville Wright

Model T Automobile

Henry 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 advertiseMontgomery Wards, J.C.

Penney, Macy’s, Sears and Roebuck 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-faire economics.

Laissez-faire means ‘allow to be’ or the government stays out of a person’s

businessLaissez faire supports our economic

system of capitalism

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

Industrial Age.Þ Individuals should compete

freely in the marketplace.Þ Own their own business and use

their skills to better our culture and make profit for themselves.

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

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

Economic system characterized by private property ownership

Individuals and companies compete for their own economic gain (Profit)

Capitalists determine the prices of goods and services.

Production and distribution are privately or corporately owned.

Reinvestment of profitsSupports laissez faire and the “free

enterprise” system

1790s 276 patents issued. 1990s 1,119,220 patents issued.

Gave an inventor the right to make and sell an invention.

Economic system based on cooperation rather than competition

Many Americans opposed capitalism and believed a socialistic economy would better suit the US because

some capitalists were corrupt.Believes in government 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 faire and capitalism

MORRILL TARIFF ACT, 1862To protect and encourage American industry, Congress passed this tariff after the South

seceded from the Union.NATIONAL BANKING SYSTEM, 1863

To 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, 1862

To promote education, Congress provided grants of public lands to the states for support of

education. “Land-grant colleges” LAND GRANTS TO RAILROADS

US Govt. donated land to railroad companies to encourage growth of this mode of

transportation. US Govt. donated approx. 160 million acres of land…….

Corporation: form of business consisting of a group of people authorized by law to act as a single person and with the ability to sell shares of stock to raise “capital” Shareholders or stockholders: 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 “dividend” or a share of the profit.Limited liability: Important aspect of a corporation is limited liability. Shareholders have the right to participate in the profits, through dividends and/or the appreciation of stock, but are not held liable for the company's debts. “Risk is spread over the shareholders so if the company goes bankrupt, the loss is not so devastating”

FORMATION Individual or person decides to operate a business

OWNERSHIP IndividualCONTROL AND MANAGEMENT

By owner or persons delegated by the proprietor

NET PROFITSLOSSES

Profits to ownerLosses absorbed by ownerUNLIMITED LIABILITY

FORMATION By agreement between associates (partners)

OWNERSHIP Jointly by two or more individuals; or by terms of partnership agreement

CONTROL AND MANAGEMENT

By partners or persons they delegate

NET PROFITSLOSSES

Shared according to partnership agreement

UNLIMITED LIABILITY

FORMATION Organized by associates and legalized through state charter

OWNERSHIP Stockholders, according to number of shares

CONTROL AND MANAGEMENT

Through Board of Directors, elected by the stockholders (usually one vote per share of stock

held)

NET PROFITSAND LOSSES

Dividends: to stockholders = profitsLose: only the amount invested by stockholders

according to number of sharesLIMITED LIABILITY

New Type of Business Entities

Trusts or Monopoly•Companies in related fields

combine under the direction of a single board of trustees.

•Shareholders had no say. •Outlawed today.

BIGGER IS BETTERA trust or monopoly

controls an entire industry

•make product cheaper• lower prices to customer

Coke fields

purchased by

Carnegie

Coke fields

Iron ore depositspurchased

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

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

product

Horizontal Integration Buy out your competition until you have control of a

single area of industry

Modern Day Example of Vertical Integration

• 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 Integration

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

• In control of labor cost, land/resources• Always in control of the cost• Schedule your production of autos because you

are in control of all factors• Can you give another example of this?

Other Vertical Integrations

• Boeing• Anheiser-Busch: all grown by own producers• McDonald’s: own cattle ranches• Oil companies• AOL Time Warner

Horizontal Integration

• Examples– Standard Oil– United Fruit Company: bananas– Dole Pineapple

Horizontal Integration Buy out your competition until you have control of a single area of industry

Modern Day Examples of Horizontal Integration

• Microsoft• Comcast• Starbucks• De Beers

Extortion: Forced against your will• Rebates: discount or refund on “freight charges”• 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• Buyouts: Larger corporations forced smaller

businesses to sell out • Congress was “bought out” by the monopolies

• Spies: Stealing your competitor's ideas

robber

Small businesses complained “monopolies” eliminated fair

competition

• Corporate Critics– Socialist Labor party– Sherman Antitrust Act– United States v. E.C. Knight Co.

• The Costs of Doing Business– The boom-and-bust cycle– Three severe depressions rocked the economy in

the last third of the nineteenth century

“Andrew Carnegie invoked the gospel of wealth to justify his millions, but a group of radical critics looked at his libraries and foundations as desperate attempts to buy peace of mind”(629).

19-11

Granger State Laws

State representatives voted into office by members of the Grange who in turn represented the interests of farmers and passed state laws regulating railroad prices in 18 states.

Munn v. Illinois(1876)

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

Wabash Case(1886)

Declared that it was unconstitutional for states to regulate interstate commerce. Showed need for Federal regulation of interstate commerce.

These are the first laws to regulate industry and big

business.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/monopolies

illegal or any business that prevented

fair competition.

Interstate Commerce

Act(1887)

ShermanAntitrust Act

(1890)

To regulate means the US Government would make laws to oversee, adjust,

fine tune and correct the unfair business tactics in industry and big business. Not take over or control it because that would violate laissez

faire.

A person who organizes,

operates, and assumes the

risk for a business venture

“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”

The business leaders served their nation in a positive way.

They increased the supply of goods by building factories.

They raised productivity and expanded markets.

They created jobs that enabled many Americans to buy new goods and raise their standard of living.

They also created museums, libraries, and universities, many of which still serve the public today.

Captain of IndustryMonopolized the steel industryRags to riches story---came from Scotland very poor.Used scientific ideas (Bessemer Process) to develop a better way to produce steel and sell a quality a product for an inexpensive price.

Carnegie and Steel

• Large-scale steel production requires– access to iron ore deposits in Minnesota – extensive transportation network

• Requirements lead to “vertical integration”– definition: a type of organization in which a

single company owns and controls the entire process from obtaining raw materials to manufacture and sale of the finished product

Carnegie and Steel (2)

• 1872--Andrew Carnegie enters steel business• By 1901 Carnegie employs 20,000, produces

more steel than Great Britain• Sells out to J. P. Morgan• Morgan heads incorporation of the United

States Steel Company

Captain of Industry• Came from a wealthy family

• Bought a substitute during the Civil War.

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

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

• Most known for using Horizontal Integration to gain a monopoly in the

oil business. Sometimes used Vertical Integration

Rockefeller and Oil

• Petroleum profitable as kerosene for lighting• 1859--first oil well drilled in Pennsylvania • 1863--John D. Rockefeller organizes Standard Oil

Company of Ohio• Rockefeller lowers costs, improves quality, establishes

efficient marketing operation• Standard Oil Trust centralizes Rockefeller control of

member companies outside Ohio

New Type of Business Entities2. Trust:

* Horizontal Integration John D. Rockefeller * Vertical Integration:

A. Gustavus Swift Meat-packingB. Andrew Carnegie U. S. Steel

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 millionPhilanthropist--donated $1 million to Vanderbilt University

Cornelius [“Commodore”]

Vanderbilt

Can’t I do what I want with my money?

The effort of an individual or

organization to increase the well-

being of humankind, as by charitable aid

or donations.

The Gospel of Wealth:

Religion in the Era of Industrialization

Russell H. Conwell

$ Wealth no longer looked upon as bad.

$ Viewed as a sign of God’s approval.

$ Christian duty to accumulate wealth.

$ Acres of Diamonds speech

Philanthropist• Gave millions to

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 Hall

Gospel of Wealth

“On Wealth”

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.”

PhilanthropistGave millions of his money to hospitals and colleges.

University of ChicagoSpellman CollegeNational ParksUnited NationsWilliamsburgCancer Research

Worth over $100 millionPhilanthropistdonated $1 million to Vanderbilt University

•Controlled the railroad by forcing them to pay him

rebates because of the volume of

business he gave them.

•Was called “Rock a Fellow” by many

•Ruthless business man: “Pay no man

a profit”

Rockefeller/Control Govt

Regulating the Trusts

1877 Munn. v. IL regulation if industry substantially affect public

1886 Wabash, St. Louis & Pacific Railroad Company v. IL states cannot regulation interstate trade created ICC

1890 Sherman Antitrust Act * in “restraint of trade” * “rule of reason” loophole

1895 US v. E. C. Knight Co. Manufacturing monopoly ok, interstate distribution not ok.

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”

Social 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

Social 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.

1. All living things have always

competed for survival. Survival

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 compete for

success.2. The unfit or

incompetent lose and the strong or competent win.

3. These winners make up a

natural upper class.

4. Hard worked paid off, and lazy

were inferior.Social Darwinism 2

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

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

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

equal protection of the laws.”Industrialists would use the 14th Amendment as a way to defend a

corporation from the Sherman Anti-Trust Act.

14th amend

Picture: Workers vs Owner

Picture: 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”

Picture: Workers vs Owner

¨Poor working conditions¨Unfriendliness/impersonalization

¨ Immigrants taking jobs¨Decrease work day

¨Machines replacing workers¨Child 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.

Working Men, Working Women, Working Children (4)

• Discriminatory wage structure– adults earn more than children– men earn nearly twice as much as women– whites earn more than blacks or Asians– Protestants earn more than Catholics or Jews– black workers earn less at every level and skill

• Chinese suffer periodic discrimination– 1879—California constitution forbids corporations to

hire Chinese– 1882—Federal Chinese Exclusion Act prohibits Chinese

immigration for 10 years

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 Owner

Industrial millionaires were condemned in the

Populist platform of 1892The 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 lifestyles. Many common people resented their

snobbish attitudes and wealth. In some respects, there was a caste 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.

Labor Unions

Early labor unions like fraternal orders1886--Samuel Gompers founds American Federation of LaborA.F.L. seeks practical improvements for wages, working conditions

focus on skilled workersignores women, African Americans

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

demands. Boycott

Labor StrikeThe unions' method for having their demands met. Workers stop working until the conditions are met. It is a

very effective form of attack.

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.

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.

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.Collective Bargaining

Closed Shop

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

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 Union

• William Sylvis, 1866• Skilled, unskilled,

farmers but excluded Chinese…

• Cooperatives, 8 hr. work day, against

labor strikes• Founded a political

party in 1872• Involved in the Chinese Exclusion

Act.• Lost election, faded

away• Replaced by Knights

of Labor.

Knights 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 AFL

• Samuel Gompers, 1881

• Skilled workers in separate unions.

• Work within political system for change.• Closed shop and collective bargaining

• Over 1 million workers joined and won several strikes

• Small part of work force eligible to join.

Picture: Workers vs Owner

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

strikes were often violent.

HaymarketRiot

Founder of the Socialist Party in the

U.S.Overthrow the

existing laissez faire and capitalistic

Believes in government ownership 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.

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 Organize

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.

• May 3, 1886, joining a nation wide strike for

an 8 work day Chicago workers protested

against the McCormick Reaper plant.

• A riot broke out and Chicago police officers

killed several protesters

• To protest the killing, protesters planned a

rally for May 4• 3,000 gather at Chicago’s Haymarket Square

• During the protest, a bomb exploded • 7 police officers were killed and civilians killed and injured

• Chicago police hunt down murderers• 8 anarchists 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 Labor

Gov. 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.

• 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 until the 1920’s.

•Carnegie would be remembered for events at Homestead.

•His public image suffered

Strikes Rock the Nation

Pullman, 1894– Eugene Debs instructed strikers not

to interfere with the nation’s mail.– 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.

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

Some took steps to stop unions, such as:forbidding union meetingsfiring union organizersOwner of industry would “lock out” workers who were trying to form a union and replace them with “scabs”.Scab 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