Gilded Age 1870 1900 Presidents of the Gilded

Gilded Age 1870 -1900

Presidents of the Gilded Age U. S. Grant 18691877 Rutherford B. Hayes 1877 -1881 Grover Cleveland 1885 -1889 and 1893 -1897 Benjamin Harrison 1889 -1893 James Garfield 1881 William Mc. Kinley 1897 -1901 Chester A. Arthur 18811885

Gilded Age-origin Gilded Age -Period when corruption existed in society but was overshadowed by the wealth of the period (“gilded” is when something is golden/beautiful on the surface but is really cheap/worthless underneath Abuses in business and government caused problems for immigrants, laborers, and farmers Term comes from a book written about the time period by Mark Twain and Charles Dudley Warner in 1873 The Gilded Age

Industry Expansion & Big Business / Labor

Why an INDUSTRIAL BOOM? Wealth of Natural resources (oil, coal, iron ore, water) Without these: Slower growth for America Government support for Business Growing population that provided cheap labor and new markets for products

*Edwin L. Drake & “BLACK GOLD” FIRST to successfully use a steam engine to drill OIL near Pennsylvania Who invented the “steam engine? ” FIRST “oil well” in America

Bessemer Process / “Cleaning IRON” Problem – Iron (which is turned into steel) has other elements (Carbon = WEAK) In order to make a profit with efficient iron…. get the carbon out!!! Developed by Henry Bessemer POINT: remove the imperfect elements out of the iron Successful – 90% of the nation’s steel was produced this way! First used by Andrew Carnegie

New Uses of Steel Railroads (linked isolated cities) Who did most of the work? Barbed Wire All innovative construction (Brooklyn Bridge -1883) (Skyscrapers in Chicago & NYC…etc. ) Innovations promote change…leads to inventions – boosts the economy!

Inventors/Inventions Thomas Edison Perfected the light bulb in 1880, and motion picture Organized power plants Established first research lab Samuel Morse Alexander Graham Bell Telephone (1876) Henry Ford Assembly Line George Eastman Camera (1885) 19 Century Typewriter Samuel Morse Telegraph (1837) Wright Brothers Airplane (1903) Christopher Sholes Typewriter (1867) Guglielmo Marconi Alexander Graham Bell Radio Wright Brothers on 1903 Flight th Marconi 19 th Century Camera

Railroads and the Government The Federal Government made HUGE land grants for the development of railroads Promontory Point, Utah (Union and Central Pacific / Iowa to California) = FIRST Transcontinental Railroad Civil War (1865)– America had 30, 000 miles of track but by 1890 – 180, 000 miles of track… 25 years! Who did most of the work on the railroads? ____________________ *Endured Native American attacks! Results: growth of industries, hazardous jobs for railroad workers, an increase in migration to the West

George Pullman Railroad Mogul (railcars) Provided a “COMPANY TOWN” homes, schools, hospitals for his workers Problem: You constantly were in debt / Very controlling! Pullman Strike (later) - raised the rent, but DID NOT give out raises! = leads to violent strike in 1894!

Monopoly One business that “CONTROLS” the market over a particular product or service Characteristics: (1) doesn’t worry about providing good service to the public (2) can charge whatever they want / (3) makes low-quality goods because of NO competition (4) Restrict production and raise prices

Industrial Moguls Examples of Industrialists / Monopolists / Tycoons or “Captains of Industry” Cornelius Vanderbilt 2. Andrew Carnegie 3. John D. Rockefeller 4. J. P. Morgan 1.

Cornelius Vanderbilt Captain of Industry Hated Philanthropy Shipping & Railroad Tycoon Nickname “The Commodore”

The Biltmore House – Ashville, NC

Andrew Carnegie WHY HE WAS SUCCESSFUL 1. Rags to Riches* (younger = poor, older = rich, The American Dream…), supported charities which led to… 2. GOSPEL OF WEALTH - the Monopolist or industrialist millionaires “GIVE BACK” to charities. 3. Philanthropy” – the act of giving back to the community (Carnegie – responsibility) 4. Carnegie “STEEL” Company” (1899) Social Darwinism 6. Vertical and Horizontal Integration (business strategies) 7. Bessemer Process 5.

Industry Business Models ** Vertical Integration ** ** Horizontal Integration** Practiced by Andrew Carnegie Vertical Integration: process in which Carnegie “bought out his suppliers” (iron mines, railroad systems) …. . WHY? ? Horizontal Integration: process in which Carnegie “bought out OTHER companies” smaller companies merge into Carnegie Steel Company

SOCIAL DARWINISM (Social Philosophy) “Survival of the Fittest” - Trying to apply biological reasoning to society • Some individuals of a species “flourish” and pass their traits to their next generation, while others do not flourish. • 1859 English naturalist Charles Darwin: On the Origins of Species • “Natural Selection / Law” • Can explain the success of industrialists / tycoons / moguls Why does Laissez Faire SUPPORT Social Darwinism (vice versa)? • “Laissez faire” government • “allow to do” – NO government regulation of business / economy / “Pure / fair Competition” “unrestricted capitalism” – Answer: to allow the “fittest to survive” NATURALLY without government intervention.

What explains Andrew Carnegie’s Success? The American Dream the ideal that every US citizen should have an equal opportunity to achieve success and prosperity through hard work, determination, and initiative. Rags to Riches Gospel of Wealth Bessemer Process Vertical Integration Horizontal Integration Social Darwinism

John D. Rockefeller Creates the “Standard Oil Company” “ROBBER BARON” (RUTHLESS) Sold his oil at a very LOW price to make people buy the product from him, while other companies had HIGH prices / once you control the market…. hike the prices back up! Richest man in history Philanthropist

John D. Rockefeller Standard Oil Co.

TRUSTS (1880 s-early 1900 s) q Stockholders from numerous companies (ex. Bob’s company) would hand over their shares / stocks to the a board of trustees (TRUST). q In return, the stockholders make a profit off the success of the business (Standard Oil monopoly) q Dictate prices and charge whatever they want! q (PRICE FIXING) MAIN POINT of a TRUST: To eliminate competition

JP MORGAN

1899 publication

Influence of “Trusts” over Congress

Sherman Anti-Trust Act (1890) - Purpose: an attempt by the federal government to “REGULATE” businesses & to promote FAIR COMPETITION First legislation to attempt to limit trusts by claiming unfair trading options Result of Sherman Anti-Trust Act INEFFECTIVE!!!!! (until Teddy Roosevelt and Woodrow Wilson years = CLAYTON ANTI-TRUST ACT) Later: Federal Trade Commission (still used today) (Language too vague to enforce / pressure from fed. gov’t = trusts will get around it and MERGED)

Granger Laws through Sherman Anti - Trust Act - against railroad abuses - More power to the “STATES” and uphold Granger law - “interstate commerce” - Interstate Commerce Commission – Enforce federal control of Interstate commerce - Prohibited monopolies / trusts

Business Boom “BYPASSES” the South Reason: South is still “rebuilding” from Civil War (economic stagnation) Only thing that offered hope – tobacco, textiles, furniture, etc. (Cotton is no longer King! = tobacco) *Result of consolidation of monopolies Labor Unions / Union Movements are emerging & collective bargaining

Organized Labor Unions / Strikes

What is a union? Union – a group of laborers with a common cause: expose the harsh conditions of jobs 2 major types: 1. Craft (SKILLED) 2. Industrial / Trade SKILLED / UNSKILLED: “United we stand, divided we fall”

Poor Working Conditions in the Late 1800’s 12 hour days, 6 days a week Steel mills often demanded 7 days a week No vacations, sick leave, unemployment compensation, or workers compensation for injuries on the job ALL family members had to work to survive Children -. 27 every 14 hours Men - $498 / year Women - $267 / year 1882 – 675 (avg. ) weekly deaths in America

Collective Bargaining Unions form to fight for TWO things Better wages / more money 2. Better working conditions 1. “Negotiation between laborers and management”

Early Labor Unions National Labor Union (NLU) 1866 – refused African Americans as members Skilled and unskilled (Trade unionism) Leader: William Sylvis Lobbied Congress, not the Employers MAIN LEGACY: 8 hours a day (Originally pushed by Populist…later adopted by Democrats) Colored National Labor Union (CNLU) – accepted African Americans

Knights of Labor Beliefs: EQUALITY = Equal pay for equal work ACCEPTED EVERYONE…(women and African Americans) / “skilled AND unskilled” Leader: Terrence Powderly DID NOT USE STRIKES – refusal to work, as a LAST resort (favored nonviolence) Practiced Arbitration: resolving a dispute OUTSIDE of the court system “Injury to one is the concern of all”

2 types of Unions / Craft vs. Trade Craft Unionism: includes skilled workers American Federation of Labor (AFL) Leader - SAMUEL GOMPERS believed in “collective bargaining” used STRIKES as a MAJOR / FIRST tactic /resort (supported violence)* Complete opposite of Knights of Labor Industrial Unionism / Trade Unionism: skilled AND unskilled American Railway Union (ARU) Leader - EUGENE V. DEBS (SOCIALIST) “The Strike is the weapon of the oppressed” Eugene V. Debs

Eugene V. Debs – Socialist

Socialism & the I. W. W. Socialism – an economic system in which the government controls business and property / less extreme version of communism Individuals do not work for themselves, but live in corporation of one another Purpose: Overthrow Capitalism Pro: total equality regardless of physical differences Con: hard workers get no support “EQUAL DISTRIBUTION OF WEALTH”

Industrial Workers of the World ( I. W. W. ) Example of Socialist Union Mostly Unskilled workers Leader: Eugene V. Debs / Bill Haywood Nickname: Wobblies Used STRIKES…. all the time! (USED VIOLENCE)

Strikes Federal Government response to Strikes / Unions: unhappy and acted with force (threat to the capitalist government – messes w/$) Federal troops are sent in (injunction) Great Railroad Strike of 1877 – B & O Railroad lead a strike (covered 50, 000 miles) President Rutherford B Hayes claimed they threatened *interstate commerce* - sent federal troops to end the strike!

Great Railroad Strike of 1877

INJUNCTION Injunction: when federal government “jumps in” and tries to fix everything Example: Great Railroad Strike of 1877 Pullman Strike (federal troops were sent in)

**HAYMARKET AFFAIR STRIKE** Strike in Chicago…. police show up, workers threw a bomb into police lines! Several police officers died MAJOR EFFECT: THE PUBLIC BEGAN TO TURN AGAINST THE LABOR MOVEMENT (due to violence) ENDS THE LABOR MOVEMENT

Homestead Strike Carnegie Steel Company (Homestead Plant in PA) – cut wages – a strike occurs! Henry Frick, Homestead Plant manager hired, SCABS, or strikebreakers, that continued to work, despite the strike to keep the company going

The Pullman Company Strike Pullman Company laid off 3, 000 workers George Pullman hired employees and gave them housing…after lay offs, didn’t lower the rent on the house! ****George Pullman wanted to control the lives of his workers (no loitering on front porch!) George Pullman hired SCABS, strikebreakers…strikes turned violent Major effect: federal troops were sent in *** Railroads “BLACKLISTED” the strikers *Blacklist – a list that included people that COULD NOT work on the railroads, due to their connection to strikes

Women Organize Fighting for: Better working conditions Equal pay for equal work End of child labor ****MAIN LEADER: MARY HARRIS JONES (MOTHER) To expose the cruelties of child labor – Mary Harris Jones led a march of 80 mill children to home of President Teddy Roosevelt…. this crusade influenced the passage of Child Labor Laws

Child Labor / Mary Harris Jones

CHILD LABOR

Triangle Shirtwaste Fire March 25, 1911 (New York City) Oil-drenched machines caught on fire! (conditions) Company locked all of the doors *(Crime / force) 146 women died (from fire or jumping) MAJOR EFFECT/ Public Reaction: a task force was set up to study the terrible working conditions of many industries in New York * spurred the growth of improved factory conditions and safety standards

Triangle Shirtwaste Fire (1911)

Factors that LIMIT the success of Labor Unions / Employers CONTROL Yellow Dog Contracts – swearing / oath they will NOT join a Union Blacklist – if you are part of or leader of a union against the productivity of a business, you are placed on this list / difficult for you to get a job Lockout: owner tells the employees not to bother showing up until they agree to a pay cut Scabs: Strikebreakers (hired to continue economy of business while strikers are not working) Interstate Commerce: a company claims strikers are affecting interstate commerce and the federal government comes running!

Monopoly vs. Labor Union