Chapter 9: Industrialization

III. Big Business By 1900 big business dominated the economy of the United States. By the early 1900s, the United States had become the world’s leading industrial nation. Corporation – an organization owned by many people, but treated by the law as a single person. Stockholders - the people who own the corporation, own shares of ownership called stock.

D. Andrew Carnegie and Steel 1. Andrew Carnegie took advantage of a new technology called the Bessemer Process, to make steel for less money than his competition.

2. Carnegie also perfected the business strategies known as Vertical Integration and Horizontal Integration.

E. A monopoly occurred when one company gained control of an entire market. In the late 1800s, Americans became suspicious of large corporations and feared monopolies. F. In 1882 Standard Oil formed the first trust, which merged businesses without violating laws against owning other companies. A trust allows a person to manage another person’s property.

IV. Unions A. Workers in industrial America faced monotonous work, dangerous working conditions, and an uneven division of income between the wealthy and the working class. B. Avg pay was $3 to $12 weekly with 10-14 hour days. Employers higher the least expensive workers. Workers felt the only way to improve their working environment was to organize unions.

C. Child Labor was used by Textile mills and coal mines to perform special tasks. D. Workers could be fired at anytime for any reason Workers sought a national voice and the Knights of Labor and American Federation of Labor were founded. . By 1873 there were 32 trade unions in the United States.

G. Joining a union in search of better wages was done so a great cost G. Joining a union in search of better wages was done so a great cost. Workers who organized a union or strike were fired and put on a blacklist - a list of troublemakers. Once blacklisted, a worker could get a job only by changing trade, residence, or his or her name.

H. If a union was formed, companies used a lockout to break it H. If a union was formed, companies used a lockout to break it. Workers went without pay and were locked out of the property. If the union did strike, employers would hire replacement workers called strikebreakers. (also called scabs) I. Some labor activists turned to socialism ,an economic and political system based on government control of business and property and equal distribution of wealth.

J. The Great Railroad strike of 1877 was the first massive strike in the U.S. Over 80,000 railroad workers in 11 states stopped working. Violence erupted. President Hayes ordered the army to stop the strike. In the end, 100 people died and millions of dollars in property were lost.

K. By the late 1870s, the first nationwide industrial union called the Knights of Labor was formed. a. eight-hour workday b. government bureau of labor statistics c. equal pay for women d. an end to child labor e. worker-owned factories f. they accepted anyone L. Violence erupted at a “KoL “rally in Haymarket Square, Chicago, both unionists and policed died. The people of the United States blamed the “KoL” and membership in the Union plumeted.

1. kept the union out of politics M. Union membership declined until the creation of the American Federation of Labor (AFL). The AFL’s first leader was Samuel Gompers. 1. kept the union out of politics 2. fought for small gains such as higher wages and better working conditions. 3. only accepted skilled workers