Transcript THE RISE OF AMERICAN BUSINESS, INDUSTRY, AND LABOR: …

The US develops a prosperous new economy
based on the mass production of goods.
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Transcontinental Railroad: effort to link the railroads
across the US to increase trade and ease of movement.
Sharecropper: Former slaves who worked the
plantation land & turned over crop and profit.
Monopoly: When one business has complete control of
a field of business.
Trust: Group of corporations agreeing to act under one
board of directors. Illegal.
Andrew Carnegie: Steel Industry, Pittsburgh.
John D. Rockefeller: Standard Oil
JP Morgan: Banking, loans. US Steel.
Henry Ford: moving assembly line production of
automobiles.
9. Laissez Faire: “Hands Off”. Supported by Adam
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Smith. Government stays away from involvement
with business.
Robber Baron: gain wealth by ruthless means
Munn v. Illinois:
Wabash, St. Louis & Pacific v. Illinois:
Sherman Anti-Trust Act: 1890, prohibits monopolies
US v E.C. Knight Company:
Unions: Workers acting together to gain advances in
hours, wages, benefits.
Knights of Labor: Terrence Powderly, unskilled
workers.
17. AFL: American Federation of Labor, unions of
skilled workers.
18. International Ladies’ Garment Workers union:
Response to the Triangle Shirtwaist Tragedy, fight
for working conditions in garment industry.
19. Haymarket Riot: 1886 bombing blamed on Knights
of Labor, killed 7 police officers in Chicago.
20. Homestead Strike: Carnegie Steel Workers protest
wage cuts, violence leads to 16 deaths.
 Munn v. Illinois (1877): grain elevator rates.
State can regulate property that affects “public
interest”.
 Wabash, St. Louis & Pacific Railway v. Illinois
(1886): States cannot regulate interstate
railroads.
 United States v. E.C. Knight Company (1895):
Gov. has the right to restrict monopolies.
 In re Debs (1895): People, property, mail.
Congress can stop Monopolies.
 Industrialization
booms after Civil
War.
 Improvements in
Railroads, steel,
mines.
 Transcontinental
Railroad
completed 1869.
 War ruins Southern
economy.
 Ends slavery, kills
plantation system.
 New South:
Railroads, textiles,
mills.
 Sharecropping.
 Mass migration of
blacks to the
North.
 Rise of CORPORATIONS due to increased
capital, stocks, dividends, investment.
Involved risk, but possibility of tremendous
gains. CAPITALISM
RAILROAD, STEEL, COAL, OIL, ELECTRICITY
Andrew Carnegie: Steel Industry, Pittsburgh.
Carnegie Steel
John D. Rockefeller: Oil Refining Business.
Standard Oil (1882) owns 90% American refining
$815,647,796.89 at death…40 million / year salary.
JP Morgan: Financier & US Steel (1901) World’s
largest Steel Company.
Henry Ford: Assembly Line, mass production
Captains of Industry, or Robber Barons?
Andrew Carnegie
JD Rockefeller
J.P. Morgan
Cornelius Vanderbilt
 Monopoly: Complete control over a particular
field of business. (EC Knight Sugar Company)
 Vertical
Control all of the aspects of
producing a product.
-Meat
industry controls
cattle, slaughterhouses,
packing plants, delivery
wagons.
-Purchase companies at
all levels of production…
Oil Company #1
+
Oil Company #2
+
Oil Company #3
=
GIANT OIL COMPANY WHICH CONTROLS
THE MARKET.
-Prices, Jobs, supply
Pools, Trusts, Holding Companies. All ways of
keeping owners in control and fixing
prices/competition.
 Laissez-Faire: “Hands
off” Government has no
right to interfere in
Business.
 FREE ENTERPRISE
SYSTEM. (Adam Smith,
invisible hand theory)
 SOCIAL DARWINISM
 Fair? Unfair?
 Prohibits Monopolies.
 Breaks up Standard Oil
 Breaks up any combination
which “is in restraint of trade
or commerce”
 Trusts and “holding
companies” become the
loophole. (EC Knight)
 Due to power of Factory Owners, Unions are
formed to protect workers.
 Knights of Labor: Terrence Powderly. (Unskilled
Workers, NATIONAL UNION) Haymarket Riot
causes reputation to fall.
 1886: Samuel Gompers,
skilled workers. By 1900,
most powerful Union in the
USA. NATIONAL UNION.
1900: ILGWU to protect
sweatshop workers
 Strikes, violence.
 Haymarket Riot 1886.
 Homestead Strike 1892:
Carnegie Steel, 16
people killed.
 Pullman Strike 1894:
President Cleveland
sends in Federal
Troops to end strike.
(In re Debs)
 150 women die in 1911 fire.
 Leads to safety reforms in the private industry.
 Triangle Fire
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Tenements: multifamily housing, poorly maintained.
Political Machines: gain support of immigrants,
leads to political corrpution in cities.
Urbanization: Development of modern cities. Many
positives and negatives.
Immigration: People entering your country from
another.
Old Immigration: colonies-1850. (N/W Europe,
Ireland, Germany)
New Immigration: S/E Europe. Italy, Poland, Russia.
1870-1924.
Nativism: native born Americans were superior to
immigrants.
Melting Pot Theory: People from various cultures
meet in US to form a New Culture. Old cultures are
surrendered to form a “new” culture.
9. Assimilation: Immigrants give up native language,
traditions. “Americanize”
10. Cultural Pluralism: (Salad Bowl) Groups do not
lose their distinctive cultures.
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 OLD:(until 1875)
Northern and
Western Europe
(Britain, Ireland,
Germany)
 NEW:(1875-1924)
South/East Europe
(Poland, Italy,
Russia)
Old
Immigration
North/West
Europe
New
Immigration
South, East
Europe
“Know Nothing” Party: exclude immigrants,
silent, anonymous. “American Party”
Chinese Exclusion Act: 1882
“Gentleman’s Agreement”: Ends Japanese
immigration in 1907.
National Origins Act 1924: favors N/W
immigrants.
 Cities become segregated into
Ethnic Groups
 Ward Bosses, political parties
dominate life
 Political Machines: “Tamany Hall”
(NYC) best example.
Gangs of NY
GW Plunkitt