1. INDUSTRIALIZATION 1865 - 1901

2. ` Industrialization Railroads Vanderbuilt Steel Carnegie Oil Rockefeller Banking Morgan Technology Edison Unions Gompers Andrew Carnegie John D. Rockefeller Samuel Gompers Cornelius Vanderbilt Thomas Edison J. P. Morgan

3. Causes of Industrialization National Resources (Raw Materials) –Water, timber, coal, iron, copper –Needs helped settle the West - RR Oil –Kerosene –1859 - Edwin Drake 1 st oil well, Titusville, Pa. Population Increase – Large workforce –1860 – 1910, tripled due to immigration Free Enterprise –Laissez –faire –Entrepreneurs

4. New Inventions ► Alexander Graham Bell  1876, Telephone (AT&T) ► Thomas Alva Edison  1877, Phonograph  1879, Light Bulb  1889, Edison General Electric Company (GE) ► Textile Industry  Northrup Automatic Loom  Standard Sizing  Power-driven Sewing Machine  Mass production of Shoes

5. Railroads  Linking the Nation –1865, 35,000 miles –1900, 200,000 miles  Transcontinental Railroad –1862, Pres. Lincoln, Pacific Railway Act –Union Pacific – Irish immigrants –Central Pacific – Chinese immigrants

6. Railroads cont.  Spurring Growth –Increased markets & desire for raw materials –Consolidation of smaller lines (Vanderbilt)  American Railway Association - 1883 –Time Zones, safer more reliable –Air Brakes, pull longer, heavier trains –Standard Gauge, unite all lines  Land Grant System –Gave RR companies land in the unsettled West –Sold land for $$ to finance rail construction

7. Refrigerated Railroad Car made it possible to ship meat from slaughterhouses to cities Gustavas Swift - meatpacking

8. Scandals Robber Barons RR Entrepreneurs Built fortunes by swindling taxpayers, bribing govt. officials, & cheating on contracts Credit Mobilier Scandal – 1872 Construction company of Union Pacific stockholders Overcharged RR, investors kept extra $$ Used up federal $$, sold stock to congressmen in exchange for more federal $$

9. Big Business  Corporation Produces more goods cheaper Continue to operate in poor economic times Can negotiate rebates from RR – lowers operating costs Drives out smaller competitors Pools Companies agree to maintain prices of certain products

10. Business Practices Monopoly Monopoly –Single company achieves control of an entire market –Many states begin outlawing Trusts Trusts –Legal maneuver allowing trustee to control several companies & run them as one Holding Companies Holding Companies –Produce no product –Controls several companies, merging into one large enterprise

11. Trust Busting Standard Oil Of Ohio ChevronAmocoExxonMobil

12. Selling the Product Advertising  New ways to market  1900 - $90 million in ads Department Stores  Shopping becomes a past time (fun)  Everything under one roof (Macy’s) Chain Stores  Group of similar stores owned by same company  Lower prices instead of elaborate service (Woolworth’s) Mail Order  Catalogue buying (Sears)

13. Working in the U.S. Workers – Machines replacing skilled labor – Working conditions unhealthy & dangerous – $.22 per hour, 59 hours per week – Skilled craft workers – higher wages – Laborers – few skills, lower wages – To improve conditions – organize into Unions

14. Early Unions Trade Unions –Limited to workers with skills Industrial Unions –United craft workers & common laborers in a particular industry Anti-Union Methods –Contracts to not join a union –Blacklist – not hire suspected Union organizers –Lockout – locked workers out & refused to pay them –Strikebreakers – replace workers during strikes (Scab)

15. Union Problems No laws protecting the right to organize No laws protecting the right to organize Courts ruled strikes were “conspiracies that interfered with trade” Courts ruled strikes were “conspiracies that interfered with trade” Perception that unions threatened American Institutions Perception that unions threatened American Institutions Marxist, Anarchists, or Revolutionaries Marxist, Anarchists, or Revolutionaries Rarely successful Rarely successful

16. The Great Railroad Strike of 1877 Cut wages Cut wages Nation’s 1 st labor protest Nation’s 1 st labor protest 80,000 workers, 11 states 80,000 workers, 11 states President Hayes sends troops to regain order President Hayes sends troops to regain order 100 killed, millions in damages Failure led to organization of Knights of Labor Failure led to organization of Knights of Labor

17. Knights of Labor 1 st nationwide industrial union 1 st nationwide industrial union –8 hr. work day –Govt. bureau of labor stats –Equal pay for women –Abolition of child labor –Creation of worker owned factories –Use of arbitration – 3 rd party negotiators

18. Haymarket Riot of 1886 8 hr. day Clash between police & workers Anarchists set off bomb – police open fire –7 cops, 4 workers die –8 arrested, 4 executed (only 1 a Knight) Knights of Labor membership declines Carnegie Steel Works during the 'Battle of Homestead

19. Pullman Strike American Railway Union (ARU)  Eugene V. Debs Cut wages (depression) ARU stopped handling Pullman cars Paralyzed U.S. economy Attached mail cars  Detach Pullman cars = detach mail cars  Violation of federal law, interfering with U.S. mail George Pullman

20. American Federation of Labor (AFL) 1881, Samuel Gompers Politics –Reject socialist/communistic ideas –Fight for small gains –Strike only if negotiations fail Goals –Companies to recognize unions & collective bargaining –Closed shops – hire only union workers –8 hr. work day

21. Working Women Domestic servants, teachers, nurses, secretaries Paid less for same job Excluded from unions Women’s Trade Union League (WTUL ) –8 hr. work day –No evening work –No child labor –Collected funds to help striking women