Railroads Lead The Way

Inventions

An Age of Big Business

Industrial Workers

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The Age of Big Business

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Name 9.27.17 Period

EQ: What was the business growth driven by?

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Pg. 35

Black sticky substance – petroleum – seeped from the ground

1850 – could burn petroleum to make heat, also to lubricate machinery

Oil becomes valuable

Edwin Drake – thought he could find oil by digging a well

1st well – Titusville, PA struck oil

Created multi-million dollar industry

New technology transportation and business methods – tap into rich supply of natural resources

Change from agricultural economy to an industrial one was possible because the US had what it needed; land, labor and capital

Land – not just land itself but all natural resources

Labor – Large number of workers to turn raw materials into goods Needed due to population growth (pop. Doubled between 1860

and 1900)

Capital – (money for investments) Manufactured goods used to make other goods and services Machines, buildings and tools are examples of capital goods.

One source to make capital is the sale of stock

With an economy growing, businesses were looking to expand

To do so, they needed capital to buy materials One way was to become a corporation (a company

that sells shares or stock of its business to the public)

People who invest in the corporation are stockholders Good times – receive dividends Bad times – lose investments

Late 1800’s many bought and sold stocks in special markets – stock exchange

Growth of corporations fueled expansions Banks made money by lending money

As oil grew prospectors and investors came – “oil rush” towns

John D. Rockefeller – famous figure in oil industry

Four partners agree to run business together

Built oil refinery (to process oil) in Cleveland, OH

1870’s formed Standard Oil company

Set out to dominate oil industry (horizontal integration – combining competing companies into one

Standard oil grew powerful and wealthy

Rockefeller lower prices to drive out competitions

Pressed customers not to deal with Rivals

Railroad to give him special rates

Did this by buying stock in different companies

Shareholders traded stock for standard oil stock – paid higher dividends

Equals – Standard oil is part owner of other companies

Created a monopoly – total control of an industry by a single producer.

1800’s became huge

Idea material for railroad tracks and bridges

Henry Bessemer – open hearth process

New process produce at good prices and large amounts

1870 built steel mill plants near source of iron ore (Western PA)

Pittsburgh becomes steel capital

Located near Cleveland, Detroit and Chicago

Leading figure in American Steel

1865 invested in growing iron industry

After learning Bessemer’s process, started mill near Pittsburgh

1890 dominated steel industry

Became powerful by vertical integration (getting companies that provide equipment and services needed i.e. mines, warehouses, ships and railroads)

1900’s produced half of nations steel

Philanthropy – the use of money to benefit the

community

Carnegie and Rockefeller

Used money to fund colleges and libraries

Carnegie Hall and Rockefeller Center

General trend in business was monopolies

Buy stock instead of buying company outright

Mergers – combining of companies

Some admired, others argued that lack of competition hurts consumers

1890 the Sherman Anti-trust act – did not allow trusts or monopolies

Answer the Question

How did Rockefeller create a monopoly with Standard Oil Company?

Railroads Lead The Way

Inventions

An Age of Big Business

Industrial Workers

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Industrial Workers

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EQ: Why would workers organize?

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Pg. 37

Industrial growth means jobs

Mass production increased, people decreased

10 to 12 hour days, 6 days a week could be fired at any time

Lost jobs to immigrants for lower pay

Conditions were bad and unsafe Steel workers – burns

Coal miners – cave ins, gases, coal dust

Garment workers – crowded and dangerous factories in urban areas called sweat shops

1900’s one million women in workforce

No laws for pay, women paid half of men

Hundreds of kids worked

There were child labor laws but no one obeyed

. . . .

What would you do?

To solve the problems of child labor laws not being followed & equality in pay in the workforce.

Unhappy workers organize union

Unions promise better pay and conditions

Skilled workers formed for specialized jobs

1800’s conditions worsened labor leaders looked to expand unions

1869 garment cutters in Philadelphia founded Noble and Holy Order of the Knights of Labor If employees found out about union would be fired Group created secret handshakes

Knights of Labor grew, allowed Women, African Americans, Immigrants and Unskilled Laborers 1886 members grew to 700,000 Strikes turned public opinion against unions and they lost power

1881 a national trade union for formed American Federation of Labor (AFL)

AFL led by Samuel Gompers (tough minded president from cigar makers union)

Fought for higher pay, shorter hours, better conditions and right to collective bargaining

Collective bargaining – when unions represent workers and talk with management

Even with strikes – AFL grew to 1.6 million by 1908

Many didn’t admit women, so they founded their own

Mary Harris Jones (Mother Jones) fought 50 years for worker’s rights

1911 Triangle Shirtwaist company – sweatshop in New York Fire broke out, workers couldn’t get

out (mostly immigrant women)

160 died

This pushed the ILGWU (International Ladies Garment Workers Union) to push for safer working environment

1870 – 1890 Economic depressions forced wages to drop and fire employees

This triggered strikes and sometimes violence

When depression hit – to cut cost companies forced pay cuts

People went on strike and violence and damage occurred

Companies hired “strikebreakers” and Federal troops to maintain order

. . . .

From The

1886 - Chicago

McCormick Harvester Company gathered to protest the four dead who were killed the previous day

When police came to break up crowd, someone threw a bomb and killed a police officer

As a result, public associated the labor movement with terrorism and disorder

To weaken steelworkers union, company lowered wages

Union called strike, managers hired nonunion workers and brought in 300 armed guards

Battle left 10 dead

Governor sent in state militia to restore order

After this, steelworker union member numbers dwindled

Union went on strike due to lowering of wages Pullman closed plants Railroad union supported strikers, refused to handle Pullman

cars This stopped all rail traffic Pullman fought back with US Attorney General Richard Olney Obtained an “injunction”, a court order, to stop union from

obstructing the railways Union Leader Eugene V. Debs refused to end strike and went

to jail President Cleveland sent Federal troops to end strike This dealt another blow to unions Still unions organize for better pay and working conditions

Question: If the working conditions of workers in the late 1800’s and early 1900’s were a song title, what would the title be?

I Don’t GET IT!! MEH/ KINDA…

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