Big Business & Labor

Section 3: Big Business + Labor• Can you correctly match these names and

faces, and the industry for which he is

famous?

• Oil, steel, railroads, banking

J.P. MorganCornelius Vanderbilt John D. Rockefeller Andrew Carnegie

C. Vanderbilt

Railroads

Andrew Carnegie

Steel

J.P. Morgan

Banking

John D. Rockefeller

Oil

Corporations• Corporations: businesses that sell

portions of ownership

• Corporations reward owners and stockholders

(get a % of profits based on stock they own)

– Advantages- stockholders not responsible for

business debts

– Lose only money they invested

NEXT

Carnegie’s Innovations

Carnegie Makes a Fortune

• Andrew Carnegie one of first moguls to make

own fortune

-Son of Scottish immigrants

- Worked his way up in RR business

- Started steel competitors when prices were low

Big Business and Labor2

SECTION

New Business Strategies• Carnegie searches for ways to make better products more

cheaply

• Hires talented staff; offers company stock; promotes

competition

• Uses vertical integration—ownership of business involved in

each step of manufacturing process

• Buys out suppliers to control materials (iron ore mines,

coalfields, etc.)

• Example:

– A jewelry company not only sells finished products (rings),

but also owns the company that makes and cuts the

diamonds

– A soda company owns the raw ingredients, the factory, and

bottling

– Others??

Vertical Integration

• Controlling all phases of production

Lower the costs of making product and charge less

than competitors

Question: What problems might a business face when trying to

compete with a company with a vertical monopoly?

Car

neg

ie S

teel

Co

mp

any O

wn

s al

l p

has

es o

f pro

du

ctio

nRailroads- Purchased

by Carnegie

Steel mills- Purchased by Carnegie

Coal fields- Purchased by Carnegie

Horizontal Integration

• Companies bought out competitors (of similar

products) in their field

Standard Oil Company

Industrial Refinery

Industrial refinery

Industrial refinery

Purchased by

Rockefeller

Question: What problems might a business face when trying to

compete with a company with a horizontal monopoly?

Mini- Quiz: True or False?

1. Vertical Integration is when one company owns all businesses in a certain field.

2. John D. Rockefeller struck it rich in the oil business.

3. Andrew Carnegie started a corporation in the railroad business.

4. Stockholders own a portion, or percentage of profits, of a corporation.

Stop: Quick-write

• What were Carnegie’s management and

business strategies?

• Use notes and pp. 447- 48

Social Darwinism

Social Darwinism is a belief, popular in

the late Victorian era in America

The strongest or fittest should survive and

flourish in society

while the weak and unfit should be allowed

to die

NEXT

Social Darwinism and Business2

SECTION

A New Definition of Success

• Idea of survival, success of the most capable

appeals to wealthy

• See riches as sign of God’s favor; poor must

be lazy, inferior

Stop and Write!

Do you agree or disagree with the theory of

Social Darwinism? Why?

- Write 2-4 sentences and discuss with a partner.

What & Who is a Robber Baron?

Industrial leader of great wealth

Carnegie, Rockefeller, etc.

These men made huge personal fortunes,

typically by anti-competitive or unfair

business practices.

John D. Rockefeller founds Standard Oil Company,

forms trust

- Trust- many companies under one board of directors

- trustees run separate companies as if one

- Trusts try to eliminate competition

What is a monopoly?

• https://www.youtube.com/watch?v=2TdQ7YrI

3SI

• What three things are needed for a monopoly?

• What is a negative result of a monopoly?

• What can you not have with a monopoly?

• What can stop a monopoly?

John D. Rockefeller: Oil, Money and Power

“What a Funny Little Government”–

This cartoon was illustrated by Horace Taylor in

1899, which shows John D. Rockefeller holding the

White House and Treasury Department in his palm.

Rockefeller and the “Robber Barons”

• Rockefeller soon controlled 90% oil business

– Huge profits

– Low wages for workers

– Drove competitors out of business by selling his

product lower

– Controlled the market and increased prices

Question: Why was he called a “robber baron”?

“Captains of Industry”

• Philanthropy (charity)

• Carnegie

– Gave away over 90% of his wealth

– Carnegie Mellon University in Pittsburgh

• Rockefeller gave away over $500 million

– Rockefeller Foundation

– Rockefeller Center in NYC

Vanderbilt mansion, The Breakers

Newport, RI

Rockefeller estate

Tarrytown, NY

Monopolies- Good or bad?

Exit ticket:

After reading the article, respond in one

paragraph, providing at least two examples to

support your response. (Separate piece of paper)

Do you think monopolies are good or

bad for the U.S.? Why?

Political CartoonsFor each cartoon, answer:

1. Name 3 symbols in each cartoon and what they represent.

2. What is the cartoon’s message?

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

_______________________________________________

For each cartoon, answer:

Name 3 symbols in each cartoon and what they represent.

What is the cartoon’s message?

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

“Traits of a Titan”: Disc 3 Men Who Built America

• List the traits/qualities you would expect a

successful business leader to have:

• During the film clip, check off any traits on

discussed in the clip that match with your list

The ‘Bosses’ of the

Senate

The Reorganization of Work

The Assembly Line

% of Billionaires in 1900

% of Billionaires in 1918

The Protectors of Our

Industries

The ‘Robber Barons’ of the

Past

Cornelius [“Commodore”]

Vanderbilt

Can’t I do what I want with my money?

William Vanderbilt

$ The public be damned!

$ What do I care about the law? H’aint I got the power?

The Gospel of Wealth:Religion in the Era of Industrialization

Russell H. Conwell

$ Wealth no longer looked upon as bad.

$ Viewed as a sign of God’s approval.

$ Christian duty to accumulate wealth.

$ Should not help the poor.

“On Wealth”

Andrew Carnegie

$ The Anglo-Saxon race is superior.

$ “Gospel of Wealth” (1901).

$ Inequality is inevitable and good.

$ Wealthy should act as “trustees” for their “poorer brethren.”

Regulating the Trusts

1877 Munn. v. IL

1886 Wabash, St. Louis & Pacific Railroad Company v. IL

1890 Sherman Antitrust Act in “restraint of trade”

“rule of reason” loophole

1895 US v. E. C. Knight Co.

Relative Share of World

Manufacturing

Modern ‘Robber

Barons’??

No person will make a great

business who wants to do it all

himself or get all the credit.

Andrew Carnegie

Sherman Anti-Trust Act

• Government thinks expanding corporations stifle free

competition

• Sherman Antitrust Act: illegal to create monopolies

or trusts

– trust illegal if interferes with free trade

•Prosecuting companies difficult; government stops

enforcing act

NEXT

continued Fewer Control More

Business Boom Bypasses the South

• South recovering from Civil War, hindered by lack of

capital

• North owns 90% of stock in RR, most profitable

Southern businesses

• Business problems: high transport cost, tariffs,

few skilled workers

2

SECTION

Start of Unions

A union is a workers' organization which

represents its members

aims to improve things

working conditions and pay

Labor Force Distribution1870-1900

The Changing American

Labor Force

Labor Unrest: 1870-1900

Ch. 14 Section 3: Industrial Workers

Look at the image on p. 625.

1. Make up at least 2 questions about the image.

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

2. Make 2 predictions about the picture.

_________________________________________________________________

_________________________________________________________________

________________________________________________________________

3. Find three objects in the image beginning with the letter “t”. Find three objects in the

image beginning with the letter

“c.”______________________________________________________________

_________________________________________________________________

_________________________________________________________________

_________________________________________________________________

Workers at the Stetson Hat Company in Philadelphia, PA, 1910

Workers at the Burpee Seed Company, Philadelphia, PA 1890

Decline in Working Conditions

• Machines, unskilled

workers

• Specialization (repetitive

tasks) to bring down

costs, increase production

• Caused boredom and

injuries

• Ford and moving

assembly line- workers

seen as “interchangeable”

parts

Child Labor

Child Labor

“Galley Labor”

The First Unions in America

AFL American Federation of Labor: organized by Samuel Gompers

American Railway Union: organized by Eugene V. Debs

IWW Industrial Workers of the World: radicals and socialists “The Wobblies”

United Mine Workers: organized by Mary Harris “Mother” Jones

Knights of Labor

Terence V. Powderly

An injury to one is the concern of all!

Knights of Labor

Knights of Labor trade card

Goals of the Knights of

Laborù Eight-hour workday.

ù Workers’ cooperatives.

ù Worker-owned factories.

ù Abolition of child and prison labor.

ù Increased circulation of greenbacks.

ù Equal pay for men and women.

ù Safety codes in the workplace.

ù Prohibition of contract foreign labor.

ù Abolition of the National Bank.

AFL IWW

Only skilled workers All workers welcome to join

Legal-

took business owners to court

Radical Practices

The American Federation

of Labor: 1886

Samuel Gompers

How the AF of L

Would Help the Workersù Catered to the skilled worker.

ù Represented workers in matters of national legislation.

ù Maintained a national strike fund.

ù Evangelized the cause of unionism.

ù Prevented disputes among the many craft unions.

ù Mediated disputes between management and labor.

ù Pushed for closed shops.

The Socialists

Eugene V. Debs

International Workers of

the World (“Wobblies”)

“Big Bill” Haywood of

the

IWW

Violence was justified to overthrow capitalism.

I W W & the

Internationale

Vertical

Integration

Horizontal

Integration

Social

Darwinism

Draw a Visual

representing this

term.

Draw a Visual

representing this

term.

Draw a Visual

representing this

term.

Reflection Question

Why was it necessary for Unions to form?

How were unions going against the notion

of Social Darwinism?

Gallery Walk: Answer the following, pp. 453- 454 (your assigned # with your group)

1. Describe the Great Strike of 1877

2. Haymarket Affair-

3. Homestead Strike-

4. Pullman Strike-

5. Mary Harris Jones-

The Great Railroad Strike

of 1877

The Great Railroad Strike

of 1877

The Tournament of Today:

A Set-to Between Labor and

Monopoly

Anarchists Meet on the

Lake Front in 1886

Haymarket Riot (1886)

McCormick Harvesting Machine Co.

Haymarket Martyrs

Governor John Peter

Altgeld

Homestead Steel Strike

(1892)

The Amalgamated Association of

Iron & Steel Workers

Homestead Steel Works

Big Corporate Profits!

Attempted Assassination!

Henry Clay Frick

Alexander Berkman

A

“Compan

y

Town”:

Pullman,

IL

Pullman Cars

A Pullman porter

The Pullman Strike of 1894

President Grover Cleveland

If it takes the entire army and navy to deliver a postal card in Chicago, that card

will be delivered!

The Pullman Strike of 1894

Government by injunction!

The Hand That Will Rule

the World One Big Union

Mother Jones:

“The Miner’s Angel”

Mary Harris.

Organizer for theUnited MineWorkers.

Founded the SocialDemocratic Party in 1898.

One of the founding members of the I. W. W. in 1905.

Labor Union Membership

“Solidarity Forever!”by Ralph Chapin (1915)

When the union's inspiration through the workers‘ blood shall run,

There can be no power greater anywhere beneath the sun;

Yet what force on earth is weaker than the feeble strength of one,

But the union makes us strong!

CHORUS:Solidarity forever,Solidarity forever,Solidarity forever,For the union

makes us strong!

Come On and

Sing Along!!

“Solidarity Forever!”Is there aught we hold in common

with the greedy parasite,Who would lash us into serfdom

and would crush us with his might?Is there anything left to us

but to organize and fight?For the union makes us strong!

CHORUS:Solidarity forever,Solidarity forever,Solidarity forever,For the union

makes us strong!

“Solidarity Forever!”* * * *

Through our sisters and our brotherswe can make our union strong,

For respect and equal value, we have done without too long.

We no longer have to tolerate injustices and wrongs,

Yes, the union makes us strong!

CHORUS:Solidarity forever,Solidarity forever,Solidarity forever,For the union

makes us strong!

Workers Benefits Today

The Rise & Decline of

Organized Labor

Right-to-Work States Today

Unionism &

Globalization?