Chapter 20: An Industrial Society Section3: The Rise of Big Business Section 4: Workers Organize

Two new huge industries that began at the end of the 1800 ’ s – and each controlled their market in different ways Oil Oil John D. Rockefeller John D. Rockefeller Started a trust - and bought out several oil companies. Started a trust - and bought out several oil companies. Actually controlled 95% of the oil industry for a while – and had a monopoly on oil. Actually controlled 95% of the oil industry for a while – and had a monopoly on oil. A legal way to own stock in a lot of companies at once. A legal way to own stock in a lot of companies at once. (Completely controlling a business)

With the steel industry: With the steel industry: Andrew Carnegie Andrew Carnegie Spent his money on controlling the things that had to do with making steel. Spent his money on controlling the things that had to do with making steel. Bought iron ore mines, coal mines, ships, railroads, and anything that contributed to his industry. Bought iron ore mines, coal mines, ships, railroads, and anything that contributed to his industry.

Carnegie eventually sold much of his steel business to JP Morgan (the nations most successful banker)

With all the money these men made, they were also both philanthropists (people who supported/gave money to needy causes) Carnegie spent over $56 million to build 2,509 libraries throughout the English-speaking world. Rockefeller had a major effect on medicine, education, and scientific research. His foundations pioneered the development of medical research, and were instrumental in the eradication of hookworm and yellow fever.

This time period in American History is called: The Gilded Age One way to “ gild ” something is to cover it in gold. One way to “ gild ” something is to cover it in gold. It looks awesome on the outside, but underneath can be cheap material, without much value. It looks awesome on the outside, but underneath can be cheap material, without much value.

This was still a time when workers were facing hardships Business owners wanted to make as much as possible. Business owners wanted to make as much as possible. They took advantage of workers. They took advantage of workers. Some people worked in horrible places called sweatshops Some people worked in horrible places called sweatshops (Places to work long hours, in bad conditions, for low pay) (Places to work long hours, in bad conditions, for low pay)

So many labor unions were formed There were always struggles between how much the workers would back the labor unions and how poorly bosses would be able to treat employees. There were always struggles between how much the workers would back the labor unions and how poorly bosses would be able to treat employees. Sometimes there would even be violence Sometimes there would even be violence

One of the more famous examples of violence involving a labor union was in Chicago. At a union meeting (where police were ready “ just in case ” – a bomb exploded and killed 7 police (and wounded 60). At a union meeting (where police were ready “ just in case ” – a bomb exploded and killed 7 police (and wounded 60). The police fired back – killing several people and wounding 100. The police fired back – killing several people and wounding 100. This became known as the Haymarket Affair This became known as the Haymarket Affair

The police charging the murderous rioters in old Haymarket Square on the night of May 4th" showing police charging rioters on May 4th in Haymarket Square, Chicago, and bust portraits of seven policemen.

There were many other strikes, protests, labor disputes, and violence. Another was the Pullman Strike – where railroad workers went on strike. Another was the Pullman Strike – where railroad workers went on strike. The President (Grover Cleveland) even called out troops and stopped the strikes. The President (Grover Cleveland) even called out troops and stopped the strikes.

It was decided to start one wide union - that included a lot of different unions combined into one – led by Samuel Gompers This was called: This was called: The American Federation of Labor (The AFL) The American Federation of Labor (The AFL) In 1955 the AFL merged with the Congress of Industrial Organizations (CIO) and now they ’ re the AFL-CIO - and are still a POWERFUL labor organization. In 1955 the AFL merged with the Congress of Industrial Organizations (CIO) and now they ’ re the AFL-CIO - and are still a POWERFUL labor organization. In 2005 several large unions split away from AFL-CIO In 2005 several large unions split away from AFL-CIO

Some other business words to be aware of: A Scab: a strikebreaker – someone who crosses a picket-line to go to work. A Scab: a strikebreaker – someone who crosses a picket-line to go to work. A Cartel: an agreement among competing firms. They work to increase their profits by decreasing competition. A Cartel: an agreement among competing firms. They work to increase their profits by decreasing competition.

Because a few of these men were getting really, really wealthy… The are sometimes called “ Captains of Industry ” The are sometimes called “ Captains of Industry ” Starting with (from left to right) John D. Rockefeller, Andrew Carnegie, Cornelius Vanderbilt, and J.P. Morgan

Because they were doing it at the expense of the workers… They are also sometimes called “ Robber Barons ” They are also sometimes called “ Robber Barons ”