Industrialization Chapter 9

The Rise of Industry The US Industrializes Natural Resources Large Workforce Immigrants China & Eastern Europe Large Families Free Enterprise Government’s Role in Industry Taxing & Spending Low Govt. land given/sold undervalue to railroads Tariffs-Morrill New Inventions

The Railroads Linking the Nation Railroads Spur Growth Land Grants Lincoln Pacific Railway Act Union Pacific Central Pacific Joined near Ogden, UT Railroads Spur Growth Linking other lines Benefits of a national system Time zones United the people Land Grants Robber Barons Jay Gould The Crédit Mobilier Scandal-Union Pacific The Great Northern James J. Hill-NOT A BARON Well planned and operated Only railroad not later bankrupted Map pg 317

Big Business The Rise of Big Business Corporations Economies of Scale Small business High operating costs Low fixed costs Big business Low operating costs High fixed costs Corporation group activity

Big Business The consolidation of industry Pools-agreements to maintain prices Corporate leaders did not like competition Not long lasting Andrew Carnegie & steel Adopted the Bessemer process Steel company in Pittsburg in 1875 Vertical & Horizontal Integration-Carnegie (pg 320) Trusts-to get around laws Holding Companies

Big Business Selling the Product Advertising Department Stores Chain Stores Woolworth’s Mail order Montogomery Ward Sears, Roebuck

Unions Better working conditions & higher wages Early Unions (teacher’s edition pg 329 “You don’t say”) Early Unions Trade Unions Craft workers Industrial unions Industry opposes it Signed oaths Undercover detectives Blacklist Lockouts

Unions Political & Social Opposition No laws giving the right to unionize Seen as threat to American society Marxism Anarchism Nativism-scared of immigrants

The Struggle to Organize Quote on pp 328-329 The Great Railroad Strike of 1877 Panic of 1873 Wages were cut 1877 Threat to cut wages again 1st nationwide labor protest Blocked lines Damaged equipment Bloodshed

The Struggle to Organize Knights of Labor 1st nationwide industrial union Called for: 8 hour work day A government bureau of labor statistics Equal pay for women Abolition of child labor Creation of worker-owned factories Initially-boycotts, later-strikes Arbitration 1885-1886 grew from 100,000 members to 700,000

The Struggle to Organize Haymarket Riot May 1, 1886, nationwide strike to support the idea of an 8 hour workday Chicago Bomb, shooting 8 arrested 7 were German immigrants and anarchists 1 of these was a member of the Knights of Labor Badly hurt the Knights’ reputation

The Struggle to Organize The Pullman Strike Pullman Co. based in Illinois Employees had to live in town and buy goods from the company store 1893 Depression Pullman Co. cut wages Hard for workers to pay their rent Hard to pay high prices at the company store Pullman Co. fired 3 workers who complained The American Railway Union stopped handling Pullman cars Railroad managers tied mail cars to Pullman cars President Grover Cleveland sent in troops Federal court issued an injunction to order the union to halt the boycott The strike and the ARU collapsed

The American Federation of Labor Trade Unions continued to prosper AFL Samuel Gompers American system Preferred to negotiate, but would use strike Three goals Cos. Recognize unions and agree to collective bargaining Closed shops 8 hour workday By 1900, biggest union, but still only represented 15% of all non-farm workers

Working Women 1/3 women worked as domestic servants 1/3 teachers, nurses, sales clerks, & secretaries 1/3 light industry Garment Food production Paid less than men Women’s Trade Union League (WTUL) 8 hour day Minimum wage An end to evening work for women Abolition of child labor

Learning Activities Chapter 9 Terms and definitions Tarvol2.glencoe.com Pair up Go through the terms and definitions once, reading them together Next time through, each one writes the answer on a sheet of paper without the other seeing When you have gone through all the definitions, check your answers The one with the most right answers wins Play the business owner/worker game