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Chapter 9 The Triumph of Industry 1865-1914
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Effects of the Civil War in industry Had to make products faster such as guns, ammunition and uniforms Food industry had to process food so it could be shipped long distance RR expanded and ways to get power got better Gov encouraged immigration
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We got energy from coal, lumber and in 1859, Edwin Drake drilled the 1 st oil well in Titusville, PA. Now the oil industry grew.
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Immigrants flooded into America from Europe and Asia…in 1881 about ¾ mil came on the way up to 1 mil by 1900 They worked for low wages. In 1868, Horatio Alger published “Ragged Dick/Street life in NY” which told about a boy who got rich by working hard. This book inspired many to be entrepreneurs The gov also encouraged business through protective tariffs, Laissez Faire (minimal gov interference) policies, and giving train co land so they could build coast to coast tracks.
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And then there was light JP Morgan – was a wealthy business man who financed a lab in NJ for Thomas Edison who invented the light bulb along w/ 1k mo patents. George Westinghouse dev the tech to send electricity over long distances and light up a city block.
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"Ahoy, Hoy?" 1844 – Morse invented the telegraph 1876 – Alexander Graham Bell invented the Telephone and by 1900 there were more than 1 mil telephones. In 1896, Marconi invented the wireless telegraph which would become the radio.
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Steel In 1850’s England, Henry Bessemer came up with the Bessemer Process which purified steel and made it strong and light. The US started mass producing steel and building skyscrapers, elevators and suspension bridges - (first one was the ?).
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Railroads Westinghouse made airbrakes for trains in 1869 Granville woods made a telegraph system for them and Gustavus Swift made a refrigerated train cars. A problem was time difference between towns so in 1884, 27 countries got together and set up 24 time zones which the RR used. Towns popped up and cities used trains for subways so people could live in the suburbs Industry boomed b/c they could transport by train cheaply and fast. This also cause our exports to increase…we exported grain, steel and textiles
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Farms b/c mechanized so no longer a big need for workers. Some of those people moved to the city and worked in factories Industrial waster rose and Congress set aside land for National Parks…1872 – Yellowstone.
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The corporation started to take effect after 1870 b/c it was less risky than owning ones own business and with RR you could expand your cust base. Same rights as an individual. They lowered the costs by paying workers very little and advertising Some corp got monopolies or cartels (business’s making the same product limit their production to keep the prices high)
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John D Rockefeller and Standard Oil Company Started using Horizontal Integration – buying up business’s that are your competitors…he used a trust –co assign stock to board who combine it into a new org Vertical Integration – buying all the business’s that make up the phases of producing the product…ie. In the case of oil buying the gas station, the oil pump and the refineries.
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Other big businessmen Cornelius Vanderbilt – started in steamboats and then RR…got his competitors pay him to relocate b/c his fares were to low. Andrew Carnegie – In the steel business and also used vertical integration and wrote the Gospel of Wealth in which he preached that the rich should give away some $ to the poor
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Robber Barons v. Captains of Industry Big time capitalists who were hiking up prices and putting business’s out of business were called RB’s Some believed these entrepenuers served the nation well and they called them COI’s b/c they provided jobs, universities, libraries.
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Social Darwinism This was a belief put forth by a Yale professor that stated that wealth was a measure of ones value and the one’s who had it were more fit. It was a natural selection and those who were poor should not be helped This theory was used to justify a lot as well as racism
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Responses to unfair business Interstate Commerce Commission 1887 – The act of the same name created this under Grover Cleveland to oversee RR’s. It could only look @ RR that X st lines and it could not make laws or control the transactions but it could make the Co. send their records to Congress 1890 – Sherman Antitrust Act – outlawed any trust that restrained interstate trade or commerce.
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Working Conditions Sweatshops – these were where factory workers worked 12 hr dys, 6 dys/wk and they were small, hot, dark and dirty. It was dangerous and workers were fined for breaking rules or working to slow. Children were working
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Wage Slavery Some workers were forced to live near their work and the co. provided a store for them to shop at The co. would jack up their prices though so the worker was in debt to the employer and it was illegal to leave a job if you still owed $
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Unions In the early 1800’s workers used collective bargaining to get better hours our wages…They would strike as one of the strategies The 1 st union was National Trade Union 1834 open to all but it disappeared soon. Around that time, socialism was coming out which is the idea that the public should control property and income and that wealth should be distributed = Karl Marx and Communist Manifesto
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Knights of Labor 1869-1890’s Founded by Uriah Smith and in 1881 took over by Terence Powderly Actively recruited AA and by 1885 had 700k of all races Encouraged boycotts and negotiation to get out of dependence on wages but after several failed strikes (MO Pacific) and Haymarket it went bye bye
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Samuel Gompers and the American Federation of Labor Founded in 1886 it was a craft union a loose org of 100 unions devoted to a specific trade. He set high dues to create a strike and pension fund. Worked for better wages, working hrs and conditions Excluded women and AA
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Haymarket Riot – May 1 st, 1886 workers across the nation wanted a 8hr workwk and on May 4 th violence broke out in Chicago…dozens of protesters and police were killed, 8 were tried for murder and 4 executed Homestead Strike – Summer 1892 Carnegie plant cut wages and they went on strike. Carnegie’s partner, Henry Frick sent in the private police and an annachist tried to kill him…public opinion turned and they called off the strike.
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Eugene Debs and the Pullman Strike 1894 Pullman car company laid off workers and reduced wages so workers tried to negotiate but he fired them. They turned to the American RR union (a industrial union) led by Debs who led the strike. 300k left their jobs and it disrupted RR trafic and mail Pres Cleveland sent troops to end it and Debs refused so he was arrested for conspiring against interstate commerce. SC upheld decision in In re Debs
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