1. Changes in the Gilded Age
During the Gilded Age ( ), the U.S. industrialized rapidly:
Boom in railroads, oil, steel, electricity
Trusts, corporate mergers, & monopolies
Immigration from Southern & Eastern Europe increased the size of cities
Problems during the Gilded Age led to demands for change

2. Weak presidents were seen as less powerful than monopolists
The Gilded Age was an era of political corruption in national, state, and urban governments
Weak presidents were seen as less powerful than monopolists

3. Grant’s administration was plagued by scandals
The Gilded Age was an era of political corruption in national, state, and urban governments
Grant’s administration was plagued by scandals
Crédit Mobilier- involved bribes by railroad companies to gain land grants
Major stockholders in the Union Pacific Railroad formed a company, the Crédit Mobilier of America, and gave it contracts to build the railroad. They sold or gave shares in this construction to influential congressmen.
Whiskey Ring- companies bribing govt officials to avoid paying taxes

4. Machines rallied citizens to vote for them by offering services
Many city governments were run by political machines
Political machines- parties led by a powerful boss who controlled a network of politicians
Machines rallied citizens to vote for them by offering services
a political group in which an authoritative boss or small group commands the support of a corps of supporters and businesses (usually campaign workers), who receive rewards for their efforts

5. Many city governments were run by political machines
Machine politicians controlled access to city jobs, business licenses, and building projects
Politicians used fraud to win elections, used their influence for personal gain, or took bribes
Most notorious urban politician was Boss Tweed of New York’s Tammany Hall political machine
“Tweed Courthouse”—NY County Courthouse was supposed to cost $250,000 but cost $13 million
Tweed defrauded NYC of millions until he was exposed by reporter Thomas Nast

6. Many govt positions, such as tax collectors or post office officials, were appointed as rewards for loyalty to a party (patronage)
Pendleton Act in 1883 created merit-based exams for most civil service jobs in the federal govt

7. Warm up: Review the following terms: Captain of Industry Robber Baron
Political Machine
Andrew Carnegie
John Rockefeller

8. The Changing American Labor Force

9. Worker Hardships Sweatshops
Dirty, overheated, bad ventilation, poor lighting
Accidents—faulty equipment & lack of proper training
Strict regulation to ensure productivity
Fines for breaking rules & working slowly
12-16 days, low wages, no insurance, no time off,

10. Company Towns
Many workers lived in communities owned by business & rented to employees
Canton (paper) Bunn (lumber)

11. In response, many workers joined labor unions to collectively bargain for improvements

12. Knights of Labor -open to all workers regardless of race, gender, or skill
Most successful union-American Federation of Labor (AFL) led by Samuel Gompers
Knights- 1st
By the end of the Gilded Age, only 4% of all American workers were unionized
AFL only included skilled workers, but used collective bargaining to gain better pay, shorter hours, and better working conditions

13. State and federal government sent in troops to restore order
Outcome- Public awareness of railroad worker grievances, growth of labor movement
Great Strike of B&O Railroad cut wages; Protest sparked violence and massive destruction in several cities

14. Crowd left when police arrived
- Bomb exploded – police fired on the crowd
- 7 policemen and several workers died
- No one ever arrested for the bombings
- Protesters arrested for exciting a riot
* public began to turn against UNIONS
Chicago Haymarket Strike (1886), unionists demanded an 8-hr day; Violence broke out, public opinion turned against unions, viewing them as violent & “un-American”

15. Strike with violence possible
- Frick hired Pinkerton Detective Agency to protect company plants and hired scabs
- National Guard came in to maintain order
- Union was blamed for work stoppage and the violence that occurred
- Membership and power of the union dropped
Homestead Strike (1892) Carnegie’s steel plant; Federal troops called to re-open the factory with replacement workers

16. Pullman laid off 3,000 of its 5,800 workers
- Cut wages of the rest %
- Did not cut the cost of rents, food and other necessities in their company towns
- Pullman later hired 2,000 of the workers back
- Eugene Debs encouraged workers to strike
- Pullman refused to negotiate
Railroad workers led a national strike when the Pullman Company cut wages by 50%
President Cleveland sent the army to end the strike; Strikers in 27 states resisted & dozens died