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INDUSTRIALIZATION
U.S. HISTORY & GEOGRAPHYCHAPTER 3
U.S. INDUSTRIALIZESSecond Industrial Revolution: occurs after Civil WarGross National Product (GNP): total value of goods & services that a country produces in a yearFactors that spurred massive growth:
Natural Resources – timber, iron, coal, copper, & petroleum (kerosene first then gasoline) – SEE MAP PG. 93Government support for businessUrban populationMarkets for new products
BESSEMER PROCESS
air is injected into molten iron to remove the carbon & other impurities produces steel
Henry Bessemer, English Engineer and
Inventor, 19th century
BESSEMER PROCESS
NEW INVENTIONS
Electricity: Thomas Alva Edison. Communication: telegraph cable across Atlantic by Cyrus Field. Telephone by Alexander Graham bell 1876Typewriter: Christopher Sholes 1867Alternating Current (AC), air-brake system for railroads, hydroelectric power: George WestinghouseIce Machine: Thaddeus Lowe – refrigeration
Bell speaking into a prototype
model of the telephone
FREE ENTERPRISE
Laissez-faire: government should not interfere in the economy other than to protect rights & maintain peace. Supply & demand would regulate wages & prices, competition will promote efficiency & wealthFree Enterprise: little or no government regulationEntrepreneurs: risk capital to create, organize, & run businesses – SEE POLITICAL CARTOONS PG. 94
RAILROADS
SEE MAP ON PGS. 90-91 & 98Pacific Railway Act 1862: Union Pacific & Central Pacific were given permission & land to build 1st transcontinental railroadOffered Americans a NEW life
Promontory Summit, Utah - May 10, 1869
RAILROADS
TIME management Iron, coal, steel, lumber, & glass industries benefited from railroads’ demandsGeorge Pullman: created a town to build sleeper cars & other types of railroad cars
George Pullman & his Pullman Town
CREDIT MOBILIER SCANDAL
A construction company that would get contracts to lay track & charge 2x to 3x the actual cost, pocketing profits. Sold stock well below market value to members of Congress to get more grants/contracts – SEE POLITICAL CARTOON PG. 99
RISE OF BIG BUSINESS
Domination of the economy through huge factories & distribution facilities SEE CHART PG. 101CorporationsEconomies of scaleFixed costsOperating costs
ROBBER BARONSAndrew Carnegie: largest steel company in the world – Carnegie SteelVertical integration & Horizontal integration – SEE CHART PG. 102
ROBBER BARONSSocial Darwinism: how Carnegie explained his success: hard work, shrewd investments, & innovative business tactics. Considered “natural law” – best adapted individuals survive
"Forty-Millionaire Carnegie in his Great Double Role. As the tight-fisted employer he reduces wages that he may play philanthropist and give away libraries, etc."
ROBBER BARONSJohn D. Rockefeller: largest oil company – Standard OilUsed trusts to “join” all other oil companies together (horizontal integration)Rockefeller at one point will have a monopoly on the oil industry as he owned 90%
NEW BUSINESS ORGANIZATIONS
TrustsHolding CompaniesInvestment Banking
SELLING THE PRODUCT
Advertisement – N.W. Ayer & Son, 1st company, used large illustrative adsShopping centers – Cleveland 1890Public transportationDepartments stores & chain stores – Marshall Field, F.W. WoolworthCatalogs & free rural delivery – Montgomery Ward, Sears both which turned into stores as well
Marshall Field
F.W. Woolworth
UNIONS
Used to assist workers in bargaining for higher wages & better working conditionsTwo basic types of workers: craft workers (skilled) & common laborersNational Labor Union & Knights of Labor – earliest unions formedSEE CHART PG. 106
OPPOSITION TO UNIONS
Employers felt that they were conspiraciesMethods used to stop unions:
Yellow-dog contractsBlacklistLockoutsStrikebreakers
MARXISM & ANARCHISM
Marxism: Karl Marx. Basis for communism. Anarchism is the belief that government was not needed. Led to assassinations & revolts across Europe & eventually in U.S.
THE GREAT RAILROAD STRIKE
B & O Railroad workers walked off the job protesting their 3rd wage cut. Eventually 80k workers across the country would strike causing disruptions in over 2/3 of the nation’s railways & $10 million damage to railroad property. Governors sent out militias & President Rutherford B. Hayes sent federal troops. Took 12 days to restore order.
THE HAYMARKET AFFAIRMay 4, 1886Laborers wanted an 8-hour workday, nationwide strike called for May 1. May 3 – Chicago police intervened in a fight on a picket line at McCormick Harvester Plant by opening fire on the strikers killing 4.May 4 – 3k people gathered at Haymarket Square to protest the police brutality. As crowd dispersed due to weather a bomb was thrown into the police line. Police fired. 3 speakers & 5 others were arrested & convicted.
THE HOMESTEAD STRIKE
Carnegie Steel Plant – Homestead, PAHenry Frick (CEO) was cutting wages. Workers strike. Frick hires Pinkerton Detective agency to protect “scabs” (strikebreakers) to keep plant operating. Battle ensues as they arrived killing 3 detectives & 9 workers. PA National Guard restores orders. 4 months later strike collapsed.
During the Homestead Strike of 1892, the Pinkertons killed 11 people while enforcing strikebreaking measures. Illustration in Harper's Weekly.
THE HOMESTEAD STRIKE
THE PULLMAN COMPANY STRIKE
Pullman lays of 3k workers & cuts wages of remaining workers. Eugene Debs of the American Railway Union asked for arbitration when economy improved, Pullman said no.
THE PULLMAN COMPANY STRIKEBoycott of Pullman trains & cars followed. Pullman hires strikebreakers only to be met with violence as the strikers will now burn the Pullman cars. President Grover Cleveland sends in federal troops to keep mail running. Federal court issues an injunction to halt the boycott.
AMERICAN FEDERATION OF LABOR
Founded by Samuel Gompers. Encompasses laborers from specific craft unions together. Used collective bargaining to reach WRITTEN agreements.
AMERICAN FEDERATION OF LABOR
Three main goals: convince companies to recognize unions, push for closed shops, & promote an 8-hour workdayBecomes the biggest union with over 500k members. Still exists today but is combined with the Congress of Industrial Organizations (CIO) in 1955.
INDUSTRIAL WORKERS OF THE WORLD
“Wooblies”. Headed by William Haywood.Used the ideals of socialism to govern the union.Members never topped 100k but included miners, lumberers, cannery, & dock workers, & African Americans.1912: only successful strike for 25k textile workers in Lawrence, MA
WOMEN & ORGANIZED LABOR18% of workforce. Mostly in: domestic servants, teachers, nurses, sales clerks, clerical workers, garment industry, & food processing plants. Would organize their movements.International Ladies Garment Workers Union founded by Pauline Newman: 1909 won better wages & benefits for employees with a strike of 30k workersWomen’s Trade Union League founded by Mary Kenney O’Sullivan & Leonora O’Reilly
