Ch.6 section 3

1873- entered the steel business; by 1899 the Carnegie Steel Company manufactured more steel than all the steel companies in Great Britain combined. Business Strategies New machinery and techniques Attracted new talent by offering them stock Vertical integration Bought out suppliers; coal fields, iron mines, ore freighters, and railroad lines Horizontal integration Bought competing steel producers

Principles of Social Darwinism 19th-century doctrine that the social order is a product of natural selection of those persons best suited to existing living conditions Supported the notion of individual responsibility and blame Used to justify laissez-faire economics New Definition of Success Riches were a sign of God’s favor Poverty was a result of laziness or inferiority

Growth and Consolidation Pursuit of horizontal integration through mergers Holding Companies-set up for the purpose of buying up the stock of other companies (J.P. Morgan) Standard Oil (John D. Rockefeller) join competitors in trust agreements; gained total control of oil industry Rockefeller and the “Robber Barons” Huge profits by paying low wages and driving competitors out of business Then raised rate once he controlled 90% of the industry Gave $500 million to create the Rockefeller Foundation, funds to start the University of Chicago, created a medical institute

Sherman Antitrust Act (1890) Illegal to form a trust that interfered with free trade between states or with other countries “trust” wasn’t clearly defined and the act was unenforceable Business Boom bypasses the South Southern industries were mostly owned by northerners South, lacking investment capital, remained agricultural South suffered high transportation costs, high tariffs, and lacked skilled workers

Long Hours and Danger 7-day work weeks, 12 hour days, no sick leave or vacation, no unemployment or compensation for injuries injuries were common due to faulty machinery and the dirty, poorly ventilated factories Early labor organizing National Labor Union (1866)- William Sylvis Concentrated on linking existing unions Knights of Labor (1869)- Uriah Stephens Open to all workers regardless of race, gender, or skill level

Craft Unionism American Federation of Labor (1886)- Samuel Gompers Focused on collective bargaining Used strikes as a major tactic Industrial Unionism American Railway Union (1894)- Eugene Debs Socialism and the IWW Socialism-economic and political system based on gov. control of business and property and equal distribution of wealth Industrial Workers of the World (Wobblies, 1905)- William Haywood Included miners, lumberers, and cannery and dock workers

The Great Strike of 1877 Baltimore and Ohio Railroad (B&O) struck in response to their second wage cut in two months President Hayes intervened and federal troops ended the strike The Haymarket Affair May 4, Chicagoans gather to protest police brutality Police arrived as the crowd was dispersing; someone threw a bomb at the police; police fired on the workers The Homestead Strike Steelworkers strike after announced wage cut Pinkerton Detective Agency was hired to protect the plant so scabs (strikebreakers) could work

Pennsylvania national guard was called in to end the strike after two weeks and 12 deaths The Pullman Company Strike Eugene Debs jailed; Pullman workers fired Women organize Mary Harris “Mother” Jones- endured death threats and jail Triangle Shirtwaist Factory Fire killed 146 women Management and Government pressure Unions Management refused to recognize unions as representatives of workers Sherman Antitrust Act was used against unions Still, union membership continued to climb