MONDAY-
Opportunities- The railroads were making industries and businesses grow. Iron, coal, steel, lumber, and glass industries benefited from the railroads being built. Towns grew because of the railroad line. New markets were established. Gave opportunities to visionaries and profiteers. Not everyone was in favor of the railroads. Many people opposed the smoke-belching iron horse. Plus the opposed the thought of change it set in motion.
New Towns and Markets- Railroads promoted trade and connected cities, towns, and settlements. Chicago became known for their stockyards. Minneapolis became known for their grain industry. Flagstaff, Arizona, Denver, Colorado, and Seattle, Washington owe their existence and prosperity to the railroad.
Pullman Car- George M. Pullman- built a factory that made sleeper and luxury cars for trains. The factory was located on a prairie in Illinois. Pullman built a town for his employees; it was named Pullman. Basic needs were provided in Pullman, doctor's office, shops, and an athletic field. Clean, well-constructed brick houses and apartment buildings. Downfalls of living in Pullman= the company was controlling what the people could or could not do. No sitting on the front steps of your house. No drinking alcohol. Strikes broke out when Pullman lowered worker's pay but would not lower the rent.
Credit Mobilier- Union Pacific stockholders formed a construction company called Credit Mobilier. They paid this company 2 to 3 times the amount that it actual cost to lay railroad tracks. Union Pacific put the extra money back into their pockets. They also gave some of the profits to 20 members of Congress. An investigation of Credit Mobilier took place after reports in a newspaper. Union Pacific officers took up to $23 million in stocks, bonds, and cash. Not much came out of the investigation but the reputation of the Republican Party was hurt.
The Grange & The Railroads- The Grange- farmer's organization. The Grangers demanded governmental control fo the railroad industry. Farmers were mad at the railroads because: The railroads misused the land grants that the government gave them. The railroads sold the land grants to other businesses instead of the settlers. Railroads charger the farmers a lot of money to transport their grain, leaving the farmers in debt. Railroads used price fixing= when companies agree to charge the same price rather than compete against each other.
What did the Grangers/farmers do in response to the railroad abuses? They took political action. They sponsored state and local political candidates. Elected legislators. Pressed for laws to protect themselves from the railroads. Illinois passed a law for railroads to establish maximum rates and not discriminate against the Grangers/farmers. Through the rest of the country Grangers/farmers convinced their state legislators to pass similar laws= Granger Laws
The railroads fight back- Munn vs. Illinois was a court case between the Grangers/Farmers. Grangers/farmers won and gave the state the right to regulate (control) the railroads. This was a big deal because it meant that the federal government could control private industry to help the general public. Railroads pushed back and the Supreme Court ruled that the state could not set rates on railroad traffic coming/going from another state. As a result, the public was outrages and Congress passed the Interstate Commerce Act in 1887. Federal Governments now had the right to supervise railroad activites. The Interstate Commerce Commissin (ICC) had five members to make sure this happened. But the railroads still resisted and caused a long legal battle. 1897 Supreme Court ruled that the ICC could not set maximum railroad rates.
Railroads in trouble- Corporate abuse, mismanagement, overbuilding, competition, all these things pushed many railroads into debt playing a major role in the nationwide economic failure. Banks & businesses failed, millions of people out of work. many railroads were taken over by financial companies.
TUESDAY-
Andrew Carnegie- expanded the American steel industry; a rags-to-riches story
Horizontal Integration- the merging of companies that make similar products
Vertical Integration- when a company takes over the suppliers, distributors, and transportation systems to gain total control over the quality and cost of its product
Social Darwinism- an economic and social philosophy saying that a system of unrestrained competition will ensure the survival of the fittest
John D. Rockefeller- founder of the Standard Oil Company, considered wealthiest American of all time; used trusts to gain total control of the oil industry in America.
Sherman Antitrust Act- a law that was intended to prevent the creation of monopolies by making it illegal to establish trust that interfered with free trade
Samuel Gompers- a labor union leader and became president of the American Federation of Labor
American Federation of Labor (AFL)- an alliance of trade and craft unions
Eugene Debs- wanted labor unions to include both skilled and unskilled workers
Industrial Workers of the World (IWW)- a labor organization for unskilled workers
Mary Harris Jones- co-founder of the IWW, organized labor representatives, helped coordinate major strikes
Carnegie's Innovations- Andrew Carnegie was born to poor parents in Scotland. At the age of 18, he was working for the Pennsylvania Railroad as a private secretary. Later he would enter the steel business. By 1899, the Carnegie Steel Company was manufacturing more steel than all the factories in Great Britain.
Carnegie's business management practices soon spread to other businesses- He was constantly looking for ways to make better products cheaper. He wanted talented people working for him so he offered them stock in the company. He also encouraged his people to compete against each other.
Carnegie wanted and attempted to control much of the steel industry. He did this by: Vertical Integration- controlling of the raw materials (iron, coal, mine) and transportation systems (railroads). Horizontal Integration- buying our competing steel producers. By the time he sold his business in 1901, Carnegie's companies were producing the largest portion of the nation's steel
WEDNESDAY-
Social Darwinism & Business- Andrew Carnegie's business way were described as Social Darwinism. Social Darwinism- a "natural selection" to weed out the less-able to make room for the better-abled to survive; as known as the "survival of the fittest." This theory came from the philosopher Charles Darwin and his idea on biological evolution.
"laissez faire" means allow to do. Companies and businesses were not being regulated or ruled by the government, so they were said to be "laissez faire" and only the strong survive. The way businesses were being ran during this time: Success and failure in business were governed by natural law and that no one had the right to intervene.
THURSDAY-
Mergers- "if you can't beat 'em, join 'em". One cooperation would buy out the stock of another. This is how monopolies formed. Taking complete control of the industries production, wages, and prices. This is what J.P Morgan did when he bought Carnegie Steel in 1901
John D. Rockefeller was the founder of the Standard Oil Company. Instead of mergers, he used trust agreements. Trust agreements turned their stock over to a group of trustees. These trustees ran the companies as one large corporation. Each company then could take the money earned by this trust. They were NOT legal, but it is how Rockefeller took control of the oil industry. Rockefeller and Carnegie were called "robber barons". They controlled 90% of their industry (oil & steel) but paid their workers extremely low wages. Drove their competitors out of business. They would see their product for less than it could be produced and then hiked the prices once they controlled the market. Others called Rockefeller and Carnegie philanthropists. A philanthropists is a person who seeks to promote the welfare of other, generous donations of money. Rockefeller gave away $500 million, established a foundation, and created a medical institute that helped find a cure for yellow fever, Carnegie donated 90% of his money and still supports the arts and learning today.
The Sherman Antitrust Act was the government's way to protect competition between states or with other countries, but it was still hard for government to control these companies. The companies would reorganize into a single corporation. Eventually, the government stopped trying to fight the businesses.
Labor Unions- Northern wages were higher than in the South. Working conditions were unsafe and the workers were treated poorly. This made all kinds of workers to join together to improve their conditions.
-Worked 7 days a week, 12 or more hours a day, no vacations, sick leave, unemployment compensation, payment for injuries on the job. Injuries were common, dirty, poorly ventilated factories. Repetitive work with dangerous or faulty equipment. 675 workers died a week. Whole family worked, men, women, and children. Children were paid .27 per 14 hour day
People began to organize labor unions. The National Labor Union was formed in 1866 but refused to allow African Americans join. Colored National Labor Union then formed. Both groups wanted an 8 hour work day and "equal pay for equal work" for men and women. They tried to get what they wanted by telling a judge what they wanted
FRIDAY-
Union Movements- As unions spread throughout the country, two major types formed
1. Craft Unions- include skill workers- Samuel Gompers led cigar makers to join the craft union forming the American Federation of Labor. He would negotiate with the companies for better wages, hours, and working conditions. They would strike to get what they wanted.
2. Industrial Unions- both skilled & unskilled- Eugene V. Debs formed an industrial union known as the American Railway Union. It included unskilled workers to engineers and firemen. Membership was 150,000 workers. When on strike for higher wages and won
Socialism & Unions- Socialism- an economic system in which the government owns most of the means of production and distribution. Socialism is used to reduce inequality and meet people's needs. The Industrial Workers of the World (IWW) used socialism. The IWW included miners, lumber, cannery, and dock workers, and African Americans. Gave workers a sense of support.
Other groups also fought for better working conditions , Japanese and Mexican workers organized a successful strike in the sugar beet fields in California. In Wyoming, Chinese and Japanese miners were supported by the State Federation of Labor. Even though these unions were small, they strengthened the labor movement.
Strikes Turn Violent- The Great Strike of 1877- Baltimore & Ohio Railroad went on strike to protest their second wage cut in two months. Other railroad workers followed their lead, Railroad traffic was stopped for a week. Federal troops had to put an end to the strike.
The Haymarket Affair- 1886 3,000 people gathered in Chicago to protest the death of a striker by a police officer. Someone through a bomb and the police fired on the people. Seven officers and several workers died. Eight people were convicted for inciting a riot. After this, some people turned against the labor movement.
The Homestead Strike- 1892 at the Carnegie Steel Company in Homestead, Pennsylvania. Company said they were going to cut wages. Carnegie Steel hired armed guards to protect the "scabs" so the company could keep running, 3 guards and 9 workers died. The strike lasted 5 months.
The Pullman Company Strike- 1893 Company laid off over 3,000 employees and cut the remaining employees wages. But they did not lower rent on their housing, so after paying the rent the workers only had $6 left for the week. Pullman refused any negotiations and hired strikebreakers. The strike turned violent and many workers could never be hired by the railroads again.
Women Organize- women were banned from most unions, But they rallied behind strong leaders fighting for equal pay for equal work and to end child labor. Mary Harris Jones- nickname was Mother Jones- organized strikes. She led 80 children with horrible injuries on a march to the President's house; this helped get child labor laws passed. Pauline Newman- 16, organized the International Ladies' Garment Workers' Union. She was a garment workers since the age of 8. She supported the "Uprising of the 20,000" in support of seamstresses; this improved working conditions.
Triangle Shirtwaist Factory in New York City. A fire broke out and spread very quickly with all the oil-soaked machines and piles of cloth. As workers were trying to escape, they discovered all the doors were locked. 146 women died. In response, the state of New York investigated factory working conditions.
Business & Government respond to Unions- As unions became powerful, businesses began to fear them. Many companies would not allow union meetings. Fired union members. Made new workers sing an agreement that they would not join a union. Federal government got involved when the companies would tell them that strikes were hurting interstate trade, Legal limitations made it difficult for unions to be effective. But by 1904, the AFL had almost 2 million members
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