Gilded Age Political Cartoons(Laborers are)

HOPELESS BOUND TO THE STAKE (by Monopoly)

Gilded Age Political Cartoons continued

The Robber Barons of Today (1889)This cartoon bitterly caricatures the alleged rapacity (greediness) of the

“Robber Barons.” Here an intimidated people pay servile tribute to the lordly tycoons (moguls/magnates)

Gilded Age Political Cartoons continued

Gilded Age Political Cartoons continued

Title: The Rent Question

Subjects: Labor and Capital

Source: Puck

Medium: Lithograph

What does this cartoon suggest about the relationship between labor and management during the Gilded Age?

Political Cartoon of Cornelius Vanderbilt

An 1870 cartoon shows Cornelius Vanderbilt straddling two railroads he consolidated and racing Jim Fisk of the Erie Railroad.

Political Cartoon of William H. Vanderbilt

The Modern Colossus at Railroads (1879)

William H. Vanderbilt, son of Cornelius, flanked by Cyrus Field (left) and Jay Gould (right), towers over the scene. With the Interstate Commerce Act in 1887, the government began to weaken the magnates’ grip on the nation’s transportation system.

Political Cartoon of William H. Vanderbilt continued

The new "Aristocracy of Wealth.”

A cartoon published in the New York Daily Graphic portrays railroad owner William H. Vanderbilt as a monarch.

Gilded Age Political Cartoons continued

THE EVIL SPIRITS OF THE MODERN DAILY PRESS

Is the newspaper good or evil?

Nasty little printing devils spew forth from the Hoe press () in this cartoon from Puck magazine, Nov. 21st, 1888

Political Cartoon of Labor vs. Capital

Title: The Tournament of Today - A Setto Between Labor and Monopoly

Gilded Age Political Cartoons continued[Same cartoon with political analysis]

19th Century American Industry = SteelSteel industry owed much to inventive genius of Henry Bessemer-

British (and William Kelly-American) for their process of injecting The Bessemer process was the first inexpensive industrial process

for the mass-production of steel from molten pig iron. The process is named after its inventor, Henry Bessemer, who took out a patent on the process in 1855; the process was independently discovered in 1851 by William Kelly. The process had also been used outside of Europe for hundreds of years, but not on an industrial scale.

The key principle of the Bessemer Process is removal of impurities from the iron by oxidation with air being blown through the molten iron; the oxidation also raises the temperature of the iron mass and keeps it molten.

Impact of Steel and Use of the Bessemer Process

The Bessemer process revolutionized steel manufacture:decreasing its cost, greatly increasing the scale and speed of production, anddecreasing the labor requirements.

Prior to the introduction of the Bessemer Process, steel was far too expensive to make bridges or the framework for buildings, and wrought iron had been used throughout the Industrial Revolution. After its introduction, steel and wrought iron became similarly priced, and most manufacturers turned to steel. The availability of cheap steel allowed large bridges to be built and enabled the construction of railroads, skyscrapers, and large ships. Other important steel products -- also made using the open hearth process -- were steel cable, steel rod and sheet steel which enabled large, high-pressure boilers and high-tensile strength steel for machinery which enabled much more powerful engines, gears and axles than were possible previously. With large amounts of steel it became possible to build much more powerful guns and carriages. Industrial steel made possible giant turbines to harness water and steam power.

The use of the Bessemer Process to make steel ceased in 1968; today, it has been replaced by other methods that allow better control of the chemical process to make better steel.

Hellish, Dangerous Work in Steel Mills 12-16 Hour Days 6 Days a Week

A Panoramic Photograph of a Steel Mill

We will learn more about working in steel mills when we read Zinn and watch a documentary about a steel strike in Homestead, 1892 – or maybe we’ve done both already.

Carnegie Steel Co. facility in Ohio c.1910.

“Black Gold” or “Texas Tea”

1864, Pennsylvania oil drilling early in the history of the American oil industry

Trusts, Pools, Combinations, & MonopoliesA Special Trust or Business Trust is a business entity formed with

intent to monopolize business, to restrain trade, or to fix prices. Trusts gained economic power in the U.S. in the late 19th and early 20th centuries. Some but not all were organized as trusts in the legal sense. They were often created when corporate leaders convinced (or coerced) the shareholders of all the companies in one industry to convey their shares to a board of trustees, in exchange for dividend-paying certificates. The board would then manage all the companies in 'trust' for the shareholders (and minimize competition in the process). Eventually the term was used to refer to monopolies in general. “trust-busting” will come later with TR, Taft, and Wilson.

Prominent Trusts: Standard Oil, US Steel, the American Tobacco Company, and the International Mercantile Marine Company.

This kind of trust led to the term "anti-trust laws" in the US for what the rest of the world calls “competition laws." The pioneering US anti-trust laws, especially the Sherman Anti-Trust Act and the Clayton Anti-Trust Act, were aimed at breaking up these trusts.

Trusts, Pools, Combinations, & Monopolies continued

Pools are when businesses decide to work together to form a monopoly of sorts (with separate companies functioning like a monopoly) to fix prices.

Combinations are mergers and integrations (vertical and horizontal) to maximize profits and efficiency.

Monopoly – If you don’t know what this is, play the game!

{I play it with my kids – 8, 6, & 4 – and it’s hilarious! }{We still have all this stuff today in one form or another, and even

sometimes to the same excesses seen in the Gilded Age. I believe that the facts verify, along with the conclusions of many prominent historians, sociologists, and economists, that the USA is going through, and has been going through for a couple of decades now, another “Gilded Age” perhaps just as bad as the original.}

Zinn on Trusts, Pools, Combinations, & MonopoliesWhat role did the federal and state governments play in the creation of

monopolies?Business and government worked together to ensure success – laws,

minimal regulations, etc. to help increase profits – easy to incorporate (create a corporation) b/t 1790-1860. Gov’t officials received $$$, free RR passes, free or low cost stocks, free public land (1850-1857 25 million acres free), bonds, subsidies, etc…. Graft & corruption was typical. Profit & $$$ were more important to the N, S, E, & W than slavery – who controlled the gov’t & to what effect were more important. What was the effect of who controlled the gov’t? Ex. Daniel Webster was Northern businessmen’s hero for a high protective tariff, a corporate lawyer who preached Union – willing to surrender fugitive slaves as result of Compromise of 1850 (upset many abolitionists who felt Webster had “sold out”) – protection of property & US status abroad were the key – what was really of paramount importance – for Webster & those like him. [Ch 10 pp.219-220]

Gilded Age Political Cartoons of Trusts

Gilded Age Political Cartoons of Trusts continued

One sees his finish unless good government retakes the ship.

Gilded Age Political Cartoons of Trusts continued

The same cartoon with some political analysis and labels.

Gilded Age Political Cartoons of Trusts continued

Gilded Age Political Cartoons of Trusts continued

Two more color images of the political cartoon from the previous slide depicting how various trusts controlled the Senate.

Gilded Age Political Cartoons of Trusts continued

Trusts – The Main Issue (1899)

What is the main issue?Who or what is blamed

for the main issue?What is the deal with

“Democracy” in the cartoon?

Standard Oil TrustThe 1st major product of oil industry was kerosene (for oil

lamps for lighting) [threw away by-product for which they had no use – gasoline]

Oil industry was a huge business, and with the invention of the internal combustion engine (for cars – need oil and gas), the oil industry was saved from having their kerosene for lamps replaced by electric lights.

To dominate oil industry and create the holding company known as Standard Oil, John D. Rockefeller used tactics such as:employing spies, extorting rebates from RRs, pursued policy of rule or ruin, andused high-pressure sales methods;What about Federal agents to break his competition?

Zinn on John D. Rockefeller and Standard Oil

Rockefeller (oil)[Trust] John D Rockefeller – started as bookkeeper in Cleveland, became

merchant, invested money in oil refineries to control the industry – bought first refinery in 1862, 1870 set up Standard Oil of Ohio (a holding company – an Oil Trust – a monopoly), he made secret agreements w/RR for rebates (discounts) to drive competitors out of business & then buy them out or crush them out of business – used extortion & violent acts even – Ex. arranged explosion in a competitor’s refinery – by 1889 Standard Oil Company controlled stock of many other companies – capital worth $110 million, profit was $45 million/year – Rockefeller’s fortune was $200 million {tax free} – Later, Rockefeller moved into iron, copper, coal, shipping, & banking (Chase Manhattan Bank) - eventually, profits were $81 million/year & his personal fortune was a total of $2 billion [Ch 11 pp.256-257]

{JD Rockefeller was on the board of 37 corporations.}

“What a funny little government.”

Political Cartoon of Standard Oil

1904 cartoon entitled "Next!" depicting Standard Oil as a ruthless octopus.

Was the Supreme Court neutral or on the side of business rather than labor?

Generally, the Supreme Court in late 19th century interpreted the Constitution to favor corporations (not labor).

Zinn on the Courts’ & BusinessHow did judges interpret the law in favor of those

businessmen who wished to expand at the expense of others?

US government uses “eminent domain,” judges decide cases for businesses instead of juries, “Let the buyer beware.” Contract law – workers quit before contract to receive zero pay – but courts said businesses that broke contracts were to be paid for work done so far – not workers who do the same thing though – not very fair – Hypocrisy! Ex. An injured worker deserved no compensation by risk implied in the contract they signed – so risk for workers but no risk for employers/corporation – Bovine Excrement! – Not Fair![Ch 10 p.239]

Zinn on the Supreme Court and Trusts

Supreme Court cannot act neutral because the President appoints and Senate ratifies/approves judges, plus judges are (always or at least typically) rich/upper class lawyers.

[Ch 11 p.260]{An argument against Zinn would be that not all are or that

perhaps even though they are rich, they may not support the rich, plus they are appointed for life, so they do not fear removal or reelection even re-approval to the Court since there is no such thing – once on the Court, they can interpret the law any way they want to}

Zinn on the Supreme Court and Trusts continued

Early in 19th century, Supreme Court laid legal basis for a nationally regulated economy by establishing federal control over interstate commerce (to favor the wealthy), and the legal basis for corporate capitalism by making the contract sacred.

In 1895, the Supreme Court made Sherman Antitrust Act harmless when it interpreted a monopoly of sugar refining as only a monopoly in manufacturing not commerce, thus out of the jurisdiction of Congress under the act (US v. EC Knight & Co.) – the Court also said Sherman Antitrust Act could be used against interstate strikes (Ex. RR strike of 1894) because of restraint of trade. The Supreme Court also declared unconstitutional a small attempt by Congress to tax high incomes at a higher rate (Pollock v. Farmers’ Loan & Trust Company).

In later years, the Supreme Court would refuse to break up Standard Oil and American Tobacco monopolies saying the Sherman Act only barred “unreasonable” combinations in restraint of trade {so unions were obviously “unreasonable” by the logic of that argument}. [Ch 11 pp.260-261]

Zinn on the Supreme Court and the 14th Amendment

New York banker toasting the Supreme Court in 1895: “I give you, gentlemen, the Supreme Court of the United States – guardian of the dollar, defender of private property, enemy of spoliation, sheet anchor of the Republic.”

The 14th Amendment was not predominantly interpreted by Supreme Court to aid the “Freedmen”/“Freedpeople” {as was originally intended}; instead, it was used to protect the property and rights of corporations often at the expense of the public good. [Ch11 pp.260-261]

Work in Packing and Slaughter Houses

We will read later about the meat packing industry in Davidson and Lytle Ch 10 USDA Government Inspected.

1900 panoramic image of the Chicago slaughter houses.

Elites Embrace “Social Darwinism” Crediting Themselves, Blaming Others, and Show Some

Charity through Philanthropy “Gospel of wealth” – Carnegie said this – associated “Godliness”

with riches – believed wealth should display moral responsibility for their “God-given” money. Idea – Social Darwinism – “survival of the fittest” = the rich and powerful deserve their superior positions to the middle and lower classes because they are more “fit,” it is natural selection as applies to people, and/or it is ordained by God – Social Darwinism has been used to support ideologies that embrace eugenics (race and specific genetic breeding), racial inferiority and racial superiority, segregation (“Jim Crow,” de facto, and Apartheid), class divisions (upper, middle, and lower classes), and genocide.

{Remember, there was no income tax back then; so all that money made was pure, untaxed, take-home profit.}

Chart Based on Erroneous “Social Darwinism”

“Social Darwinism” (or the same beliefs by other names) has been responsible to the cognitive dissonance (rationalizing) of killing and plundering since the beginning of time because it is easier to murder, torture, rape, pillage, plunder, destroy, commit genocide and terror, and steal when one dehumanizes and creates “subhuman” of the enemy, which is why all war is accompanied by various forms of propaganda to create popular support for violence.

Political Cartoon about the “Gospel of Wealth”

A DOUBLE BURDENSays Plutocracy: There’s no

use growling. Your burden is no heavier than mine. Look (at) all the taxes I’m carrying.

Obnoxious Opulence of the Gilded Age

Sweet Mansions!

San Simeon, CaliforniaHearst Castle is a palatial estate on the central California coast

and a National Historic Landmark. It was designed by architect Julia Morgan for newspaper magnate William Randolph Hearst from 1919 until 1947. In 1957 the Hearst Corporation donated the property to the state of California. Since that time it has been maintained as state historic park where the estate and its considerable collection of art and antiques are open for public tours. Despite its location far from any urban center, the site attracts roughly one million visitors per year.

Hearst formally named the estate "La Cuesta Encantada" ("The Enchanted Hill"), but usually called it "the ranch". The castle and grounds are also sometimes referred to as "San Simeon" without distinguishing between the Hearst property and the unincorporated town of the same name nearby.

William Randolph Hearst

We will learn more about this newspaperman (The New York Journal – Yellow Press)

Citizen Kane (1941) is a movie starring Orson Wells as a rich man who has many similarities to Hearst, including a “castle” on a hill. (“Rosebud” )

(William Randolph) Hearst Castle

Hearst Castle continued

Awesome!

Trust Busting Legislation in 1890

The Sherman Antitrust Act [1890] was primarily used to curb power of labor unions (which were considered trusts by the courts); whereas trusts were not generally prosecuted.

[Think of Zinn]Senator John Sherman (OH) Sherman Antitrust Act

(1890)

Trust Busting or Union Busting?The 1890 law named after Senator John Sherman, brother of General William

T. Sherman, basically makes it illegal for companies to restrain trade. At the time the law was passed, companies would buy out competitors or firms in related business and built up market power. The resulting entity was called a trust. When the trusts exercised their market power in ways that restrained trade, the Sherman Act empowered the Federal Courts to break up the offending trust.

The legislation was rarely used to break up trusts in comparison with how often it was used to break up unions, which were considered trusts until the Clayton Antitrust Act of 1914.

In 1914, the Sherman Act was clarified and extended by Congressman Henry De Lamar Clayton. The Clayton Act prohibits companies with monopoly power from engaging in a number of anticompetitive practices, such as cutting prices (or giving away goods or services) to destroy competition, or using other types of discriminatory pricing to maintain or extend their monopolies. It set limits on interlocking corporate directorates. It also limited the government's power to engage in strikebreaking.

Historical Marker for the Sherman Antitrust Act (1890)

Side A : "John Sherman, 1823-1900"Born in Lancaster, Fairfield County, John Sherman moved to Mansfield

to practice law and was elected to Congress in 1854 as one of the first Republicans. In 1861, Sherman was elected to the U.S. Senate. An authority on finance, Sherman was instrumental in shaping federal financial policy in the years following the Civil War, and President Rutherford Hayes appointed him Secretary of the Treasury in 1877. During the "Greenback" debate, he re-implemented the gold standard, stabilizing the currency during an inflationary period. Sherman returned to the Senate in 1881 and served until early 1897 when President McKinley appointed him Secretary of State; in declining health, he resigned in 1898. He died in Washington, D.C. and is interred in the Mansfield Cemetery.

Side B : "The Sherman Anti-Trust Act"In the decades following the Civil War, the U.S. economy grew rapidly

with the emergence of large railroad and industrial interests. Unfair and fierce competition prompted the formation of large trusts, like Standard Oil, to control price competition. The resulting monopolies restricted free enterprise and became a focus of public and political debate; in the 1888 elections, both parties' platforms called for the regulation of trusts. Ohio Senator John Sherman sponsored a bill to end business practices that restrained interstate or foreign trade. With intense public pressure, the bill passed and was signed into law on July 2, 1890. A popular law and a landmark in the economic history of the United States, the Sherman Anti-Trust Act remains relevant in American business practice.

Zinn on the Sherman Anti-trust Act

pp.259-260 Republican Benjamin Harrison who came after Democrat Grover Cleveland (Cleveland, Harrison, Cleveland) – had been a lawyer & a soldier during the RR strike of 1877 – as president, he also had reform – 1890 Sherman Antitrust Act – “An act to protect trade and commerce against unlawful restraints” – made it illegal to form “combination or conspiracy” to restrain trade in interstate or foreign commerce. {Harrison thus also really worked to help business too b/c Sherman Antitrust Act was used more often to break up unions than to break up business combinations/trusts – thus businesses could in effect self-regulate}

Zinn on the Sherman Anti-trust Actcontinued

How does Zinn argue that the Supreme Court cannot possibly act in a neutral fashion? What is the argument against Zinn?

p.260 Supreme Court cannot act neutral b/c President appoints & Senate ratifies/approves judges, plus judges are (always or at least typically) rich/upper class lawyers. {Argument against Zinn would be that not all are or that perhaps even though they are rich, they may not support the rich, plus they are appointed for life, so they do not fear removal or reelection even re-approval to the Court since there is no such thing – once on the Court, they can interpret the law any way they want to}

p.260 Early in 19th century, Supreme Court laid legal basis for a nationally regulated economy by

establishing federal control over interstate commerce (to favor the wealthy), and the legal basis for

corporate capitalism by making the contract sacred.

1895 – Court made Sherman Antitrust Act harmless when it interpreted a monopoly of sugar refining as only a monopoly in manufacturing not commerce, thus out of the jurisdiction of Congress under the act (US v. EC Knight & Co.) – the Court also said Sherman Antitrust Act could be used against interstate strikes (Ex. RR strike of 1894) b/c of restraint of trade – Court also declared unconstitutional a small attempt by Congress to tax high incomes at a higher rate (Pollock v. Farmers’ Loan & Trust Company) – in later years, Court would refuse to break up Standard Oil & American Tobacco monopolies saying the Sherman Act only barred “unreasonable” combinations in restraint of trade {so unions were obviously “unreasonable” by the logic of that argument}.

New York banker toasting the Supreme Court in 1895: “I give you, gentlemen, the Supreme Court of the United States – guardian of the dollar, defender of private property, enemy of spoliation, sheet anchor of the Republic.”

pp.260-261 14th Amendment not used by Supreme Court to aid blacks {as was intended} – instead used

it to protect corporations.

Zinn on the Sherman Anti-trust Actcontinued

p.261 1877 Munn v. Illinois – Court approved state laws regulating grain elevator prices – grain elevator operator companies argued they were being deprived of property violating the 14th Amendment – Court disagreed saying grain operators operated their “private property” & were invested with a “public interest” & therefore could be regulated. In 1878, the American Bar Association worked to overturn the decision stating, “If trusts are a defensive weapon of property interests against communistic trend, they are desirable.” And, “Monopoly is often a necessity and an advantage.” {For whom?}1886 Wabash v. Illinois overturned Munn v. Illinois – state legislatures under pressure of farmers passed laws to regulate RR rates charged to farmers – Supreme Court said states could not do that b/c it was an intrusion on federal power – Court in 1886 did away w/230 such state laws to regulate corporations – Supreme Court accepted argument that corporations were “persons” & their $$$ was protected by 14th Amendment – an Amendment meant to help blacks – now used to help corporations – 1890-1910, 19 cases brought to the Supreme Court based on the 14th Amendment while 288 brought before the Court involved corporations & 14th Amendment

p.261 14th Amendment was not used to help African-Americans – an Amendment meant to help blacks – now used to help corporations – 1890-1910, 19 cases heard by the Supreme Court based on the 14th Amendment while only 288 cases heard by the Court involved corporations & 14th Amendment based on their property rightsJustices of Supreme Court were (& today are) not just interpreters of Constitution – they were men (& today women too) w/certain backgrounds, of certain interests.

The South Is Slow to IndustrializeDuring age of industrialization, the South remained

overwhelmingly rural and agricultural.The South’s major attraction for potential investors was cheap

labor (and no unions).During the late 19th century, tax benefits and cheap, non-union

labor especially attracted textiles to the “new” South.Many southerners saw employment in textile mills as the only

steady jobs and wages available to them (whole families could stay together and work together in mills for example).

Southern Textile Mills

Children worked in textile mills.

How old do these boys look?

Images of (Southern) Industrialization

Changes brought by industrialization

One of the greatest changes that industrialization brought for workers’ lives was the need to adjust lives to time clock.