Big Business and Labor “Here’s the goose that lays the golden eggs.” What is Carnegie referring to?

Carnegie’s Innovations 1865: Carnegie leaves Penn. R. R. 1873: Steel Business/Bessemer Process 1899: Carnegie Steel Company more than all of G.B.

New Business Strategies Management Techniques Better products cheaper New machinery and techniques Attracted Talented People Offered stock Encouraged Competition Vertical Integration (chart pg. 448) Resources to Distribution Horizontal Integration Buy out competitors

Social Darwinism Charles Darwin: Theory of Evolution; Natural Selection- Survival of the Fittest Philosopher Herbert Spencer: Applied to Human Society (Justified “laissez faire”) Popular Literature: Horatio Alger’s rags to riches dime store novels.

A NEW DEFINITION OF SUCCESS 4,000 millionaires who had emerged since the Civil War. Supported the notion of individual responsibility and blame.

GROWTH AND CONSOLIDATION firm that bought out all its competitors could achieve a monopoly Standard Oil Company, established by John D. Rockefeller

ROCKEFELLER AND THE “ROBBER BARONS” controlled 90 percent of the refining business. Rockefeller paid his employees extremely low wages Drove out his competitors by selling his oil at a lower price

Sherman Anti Trust Act made it illegal to form a trust that interfered with free trade between states or with other countries. Supreme Court threw out seven of the eight cases

Business Bypass the South The South was still trying to recover from the Civil War. remained mostly agricultural

Labor Unions Emerge Long Hours: worked 12 or more hours a day, six days a week. average of 675 laborers were killed in work-related accidents each week Early Labor Organizing The first large-scale national organization of laborers, the National Labor Union was formed in 1866 Uriah Stephens-Knights of Labor

Unions Movements Diverge Craft Unions: Samuel Gompers American Federation of Labor Industrial Unions: Eugene Debs American Railway Union Tie to Socialism: Bill Haywood Industrial Workers of the World West: Japanese and Mexican Workers

Strikes Great Strike of 1877 July workers for Baltimore and Ohio Railroad (B&O) struck to protest 2nd wage cut. Pres Hayes intervened, sent federal troops to end strike.

Haymarket Affair May 4, 1886, 3,000 people gathered at Chicago’s Haymarket Square to protest police brutality—a striker had been killed. someone tossed a bomb into the police line. seven police officers and several workers died.

Homestead Strike Carnegie Steel Company’s Homestead plant in Pennsylvania. Pinkerton Detective Agency Company hired scabs or strikebreakers. Strike Failed

Pullman Stike laid off more than 3,000 of its 5,800 employees. cut the wages of the rest by 25 to 50 percent, but kept high rents. ARU began boycotting Pullman trains. President President Cleveland sent in federal troops, Strike failed.

Other Affects on Unions Role of Women: Mother Jones(Great Strike of 1877/United Mine Workers/1903 Mill children-80 march to TR) Pauline Newman( at 16 led the ILGWU and supported “Uprising of 20,000)

Triangle Shirtwaist Factory New York, March 25,1911 Fire-oil soaked machines and piles of clothes. Locked doors to avoid theft 146 women died Led to task force to study working conditions

Management Refused to recognize unions Forced new employees to sign “yellow- dog contracts”. Unions still grow: AFL-1,700,000 by 1914 Grew to 2 million