Transcript Presidents, Presidents, Presidents

BIG BUSINESS AND
ORGANIZED LABOR & THE
EMERGENCE OF URBAN
AMERICA
CHAPTERS 20 AND 21
Vertical
Farming?
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CAUSES OF BUSINESS
GROWTH
-TECHNOLOGICAL INNOVATION
-LABOR SHORTAGE
-AGRICULTURAL PRODUCTION
-RAILROAD NETWORK
-INEXPENSIVE POWER
-SUPPORTIVE GOVERNMENT
FIRST INDUSTRIAL REVOLUTION
1. ORIGINATED IN BRITAIN
2. LATE 18TH CENTURY
3. 3 CATALYSTS
a. Coal-Powered Steam
Engine
b. Textile Machines
(spinning thread, weaving
cloth)
c. Blast Furnaces - Iron
SECOND INDUSTRIAL
REVOLUTION
1. CENTERED IN GERMANY,
UNITED STATES
2. 2ND HALF 19TH CENTURY
3. RESULTED FROM
INNOVATIONS AND
INVENTIONS IN
PRODUCTION OF:
a. Metals
b. Machinery
c. Chemicals
d. Food
THREE RELATED
DEVELOPMENTS
1. INTERCONNECTED TRANSPORTATION
AND COMMUNICATION NETWORK
--TELEGRAPHS, RAILRAOD, STEAMSHIPS, UNDERSEA
TELEGRAPH CABLE
2. ELECTRIC POWER USE
--ELECTRIC TROLLEYS, SUBWAYS, ELECTRICITY TO CITIES
& FARMS
3. SYSTEMATIC APPLICATION OF SCIENCE TO
INDUSTRY
--”TAYLORISM” OR “SCIENTIFIC MANAGEMENT”
BESSEMER PROCESS (1855)
1. SIR HENRY BESSEMER
2. INFUSED CARBON INTO
IRON
3. CHEAP STEEL
1. STRONG
2. LIGHTWEIGHT
3. DURABLE/PLIABLE
The Bessemer Process
SKYSCRAPERS AND STREETCARS
1. Elevators
2. Limited Space
2. Internal Steel Skeletons (instead of wood or stone)
RESULT: Good use of limited space
STREETCARS
1. When electricity began to be used the idea of electric
powered streetcars became popular.
RESULT: Urban sprawl, easy transit, rapid city growth
BIG
CITY
MASS
TRANSIT
Other important inventions/innovations:
• Urban planning: Frederick Law Olmstead
originated the idea for urban parks and created
Central Park as well as the park systems of DC,
Bos (Fenway)
• Photography for all! George Eastman invents
paper based film and the Kodak camera. For $25
(in 1888, $471.84 today) you could get a camera
and 100-picture roll. When done you sent it to
Eastman w/ $10 ($188.74) and he would send you
your pics and refill your camera.
• Thomas Edison – phonograph, telegraph, motion
picture camera, light bulb
UNITED STATES PATENT
OFFICE
• EST. ~1790
• 1ST 10 YEARS IN EXISTENCE
– 276 INVENTIONS
• 1890s – 235,000 INVENTIONS
• Farm equipment, barbed wire, typewriter,
vacuum cleaner, motion picture, telephone,
phonograph, light bulb
• Alternating Current Motor – Factories
Anywhere
“PULL
YOURSELF
UP BY YOUR
BOOTSTRAP
S BECAUSE
IT IS A DOGEAT-DOG
WORLD OUT
THERE!”
BUSINESS-RELATED CONCEPTS
• Social Darwinism: (Origin of Species) Belief that
unrestrained competition will produce the most fit
individuals in society.
• Laissez faire: (Fr: “allow to do” or “government hands
off”) purposefully keeping markets unregulated. Free
competition would ensure survival of the fittest.
• Horizontal Consolidation: the merging of competing
producers in order to eliminate competition.
• Vertical Consolidation: Owning all means of production
• Horatio Alger: Successful writer of the Gilded Age.
Wrote 135 novels about street urchins and orphans who
became wealthy through hard work (and luck.) “Pull
yourself up by your own bootstraps.”
BUSINESS-RELATED CONCEPTS
(CONT.)
• Monopoly: complete control over an
industry’s production, quality, wages
and prices charged.
• Trust: a group of people who run
separate companies as one large
corporation
• Robber barons: negative term used
for industrialists making big $ at any
cost
CAPTAINS OF INDUSTRY
19TH CENTURY
(L TO R) John D. Rockefeller, Andrew Carnegie, Cornelius Vanderbilt, J.P. Morgan
ANDREW CARNEGIE
(1835-1919)
“cold, hard cash from steel”
• WROTE FAMOUS GOSPEL
OF WEALTH
• MULTI-MILLIONAIRE IN
STEEL INDUSTRY
• IMMIGRANT FROM
SCOTLAND
• RAGS-TO-RICHES STORY
• MAJOR PHILANTHROPIST
2, 811 free libraries across U.S., Canada, Britain, Ireland
One in Caldwell, Idaho….
JOHN D.
ROCKEFELLER
(1839-1937)
“liquid assets”
• In 1870, Standard Oil processed 23% of U.S. crude oil. By 1880, it
controlled 90% of the refining
businesses.
• Rags-to-Riches story refining,
supplying, transporting oil
• Oil – Kerosene – later Gasoline
• Philanthropist giving $500 million
Christmas at
Rockefeller
Center in
downtown
NYC
J.P. MORGAN (1837-1913)
“backstage baron”
• INVESTMENT BANKING MILLIONAIRE
• BOUGHT OUT CARNEGIE STEEL
• U.S. Steel Corporation – 1st billion $ Corp.
CORNELIUS VANDERBILT
(1794-1877)
“railroading”
• Started in steamboats, ended in railroads
• 1st to successfully utilize “bleacher economics”
– Cheap seats, $5.00 hot dogs
• Lowered fares so much, competition paid him to go away
• RRs during Civil War
• 1865- 35,000 m. track
• 1897 – 200,000 m. track
• Little Philanthropy except University in his name
NATIONAL
MARKET
EMERGED
MAIL-ORDER SEARS
AND ROEBUCK
CATALOG
(originated in the
1890s)
Richard Sears
Alvah Roebuck
BUSINESSES ORGANIZE
• VERTICAL ORGANIZATION
– OWN ALL MEANS OF PRODUCTION
• HORIZONTAL ORGAINZATION
– ELIMINATE COMPETITION
• Merge production/distribution
• Industrial combination/concentration
• High tariffs = buy U.S.A.
Problems faced by workers
• Long Hours (Average workday was 12 hours x 6)
• Dangerous – fatigue caused accidents (1882- 675
workers were killed per week, 1 in 300 railroad
workers were killed on the job)
• Low wages, no regulations meant that employers
could pay what they wanted (JDR, rents)
• Child Labor: lack of money forced the whole
family to work (27 cents for 14 hr day)
LABOR UNIONS - formed to correct problems;
Businesses were constantly consolidating, labor
felt that it should too
2 types of unions emerged w/ 2 dynamic leaders
1. Craft Unions: skilled workers from a variety of
industries banded together. The large numbers
allowed them to use striking much more
effectively. The AFL is the first major craft
union. It was led by a British immigrant named
Samuel Gompers.
2. Industrial unions: both skilled and unskilled
workers from a specific industry. Allowing
unskilled workers boosted numbers of the unions.
The ARU (Am. Railway Union) was the 1st
industrial union. It was led by Eugene V. Debs.
• Many people from both types would soon support
socialism (gov’t controlled econ = dist. of wealth)
and form the IWW, Industrial Workers of the
World or “Wobblies” a radical union that
combined both (violent.) They were led by
William “Big Bill” Haywood.
"Our movement is of the working people,
for the working people, by the working
people. . . . There is not a right too long
denied to which we do not aspire in order
to achieve; there is not a wrong too long
endured that we are not determined to
abolish." -- Samuel Gompers
“While there is a lower class, I am in it;
while there is a criminal element, I am of
it; and while there is a soul in prison, I
am not free.”
-- Eugene V. Debs
Leader of Socialist Movement in U.S.
LABOR UNIONS
HOMESTEAD STRIKE
& PULLMAN STRIKE
2 VIOLENT INCIDENTS BETWEEN INDUSTRY AND
UNION IN THE 1890s
-Homestead Strike (1892) in Pittsburgh, Pennsylvania; Union workers
vs. Pinkertons (replacement workers); actual battle on Monongahela
River with dynamite, fire, guns; six workers, three Pinkertons killed; six
days later militia showed up to restore order
-Pullman Stike (1894) – Walkout by Union workers of the American
Railway Union (Eugene V. Debs); railroads at a standstill in Pullman,
Illinois and all around Midwest; mail was being “held up”; replacement
workers brought in, strike put out by President Grover Cleveland and
federal troops
Mary Harris Jones
-Lost husband and 4 children
to yellow fever (Memphis)
-Home lost to Chicago Fire
(1871)
-Ardent supporter for child
labor reform; led march to T.
Roosevelt’s home with
mutilated, neglected children
“Pray for the dead and fight
like hell for the living.”
--Mother Jones
URBANIZATION
-MOVEMENT FROM COUNTRY TO CITY
-1860-1910: URBAN POPULATION GREW
FROM 6 MILLION TO 44 MILLION
-1920 – MORE THAN HALF POPULATION
LIVED IN URBAN AREAS
-TODAY- MORE PEOPLE LIVE IN URBAN
AREAS THAN NOT!
GROWTH OF CITIES
ROW HOUSES
DUMBBELL TENEMENTS
APARTMENTS
“AIRSHAFT” OF DUMBBELL
TENEMENT
Political machine:
organized group that
controlled political party activity in a city. (Bal,
NYC, Phi, Bos, SF)
• They were organized like pyramids: base =
precinct captains ward boss city boss
• In exchange for votes, the poor would get jobs
(police, fire, sanitation) and help (licenses,
inspections, courts) when needed.
• Once being poor, they helped them. They gave $
to schools, parks, hospitals and orphanages. They
got more influence and votes for their work.
The downside to POLITICAL MACHINES…
• As their power and influence grew, greed and
corruption ran rampant.
• Voter fraud: dogs, kids, and dead people became
eligible voters.
• Graft: Unscrupulous use of one's position to
derive profit or advantages .
• Kickbacks: illegal payments (a form of graft)
• Bribes: illegal gambling, cash for favors to
businessmen.
The New Immigrants
The Statue of Liberty-Gift to celebrate centennial of
Dec. of Independence
Facts:
Height:
From:
152 feet
France
Where is it?: New York Harbor
Sculptor:
Auguste Bartholdi
Date:
10/28/1886
Medium:
Copper
"Give me your tired, your poor, your huddled masses
yearning to breathe free, the wretched refuse of your
teeming shore. Send these, the homeless, tempest-tost
to me, I lift my lamp beside the golden door."
--Emma Lazarus
OLD ITALIAN SAYING
“I CAME TO AMERICA BECAUSE I
HEARD THE STREETS WERE PAVED
WITH GOLD. WHEN I GOT HERE, I
FOUND OUT THREE THINGS: FIRST,
THE STREETS WEREN’T PAVED WITH
GOLD; SECOND, THEY WEREN’T
PAVED AT ALL; AND THIRD, I WAS
EXPECTED TO PAVE THEM.”
Between 1870 and 1920 over 21 million immigrants came
to the U.S.
• REASONS
– Poverty
– Famine
– Land Shortages
– Religious/political persecution
– To make money (“birds of passage”: temporary immigrants to
America. They were usually single young men who came to
America in order to earn enough money to buy land back
home. They worked hard, but they had no reason to develop
an attachment to American ways. )
– Pogroms: Organized, anti-Semitic campaigns that led to the
massacre of Jews in Russia and Poland.
Ellis Island
• After the long trip, immigrants were
processed at Ellis Island NY/NJ.
• Immigrants had to pass inspection before
being allowed into the U.S. (only 2% sent
home)(5hrs)
• First was a medical examination, serious
health problems or contagious diseases
were sent home.
• Second, a gov’t inpector. I’s had to prove
they could read in their native language
(work) and show that they had $25.
• Angel Island: SF Bay, Chinese, harsh
treatment.
• Culture shock: confusion and anxiety from being
placed in a culture that you don’t understand.
• Communities cooperated together for survival,
setting up churches/synagogues, aid societies,
orphanages, newspapers and cemeteries.
• Restrictions – anti-immigrant positions emerged
b/c of the high immigration rate.
1. Nativism: many groups believed that some
groups were okay and some were not.
2. Chinese Exclusion Act: banned all Chinese
immigrants. Not repealed until 1943.
3. West coast segregation of Asian immigrants
(Gentleman’s Agreement 07-08 – U.S. wouldn’t
segregate but Japan could only send educated
immigrants.)
Future of
American
Industry and
Business….