THE RISE OF AMERICAN BUSINESS INDUSTRY LABOR 1865

THE RISE OF AMERICAN BUSINESS, INDUSTRY, & LABOR: 1865— 1920. The US develops a prosperous new economy based on the mass production of goods.

Key Terms 1. 2. 3. 4. 5. 6. 7. 8. Transcontinental Railroad: effort to link the railroads across the US to increase trade and ease of movement. Sharecropper: Former slaves who worked the plantation land & turned over crop and profit. Monopoly: When one business has complete control of a field of business. Trust: Group of corporations agreeing to act under one board of directors. Illegal. Andrew Carnegie: Steel Industry, Pittsburgh. John D. Rockefeller: Standard Oil JP Morgan: Banking, loans. US Steel. Henry Ford: moving assembly line production of automobiles.

Key Terms 9. Laissez Faire: “Hands Off”. Supported by Adam 10. 11. 12. 13. 14. 15. 16. Smith. Government stays away from involvement with business. Robber Baron: gain wealth by ruthless means Munn v. Illinois: Wabash, St. Louis & Pacific v. Illinois: Sherman Anti-Trust Act: 1890, prohibits monopolies by declaring trusts “in restraint of commerce” US v E. C. Knight Company: Unions: Workers acting together to gain advances in hours, wages, benefits. Knights of Labor: Terrence Powderly, skilled / unskilled workers.

Key Terms 17. AFL: American Federation of Labor, unions of skilled workers. 18. International Ladies’ Garment Workers union: Response to the Triangle Shirtwaist Tragedy, fight for working conditions in garment industry. 19. Haymarket Riot: 1886 bombing blamed on Knights of Labor, killed 7 police officers in Chicago. 20. Homestead Strike: Carnegie Workers protest wage cuts, violence leads to 16 deaths.

Key Supreme Court Cases Munn v. Illinois (1877): grain elevator rates. State can regulate property that affects “public interest”. Wabash, St. Louis & Pacific Railway v. Illinois (1886): States cannot regulate interstate railroads. United States v. E. C. Knight Company (1895): Gov. has the right to restrict monopolies. In re Debs (1895): People, property, mail.

Economic Developments in the North Industrialization accelerates after the Civil War. Improvements in Railroads, steel, mines. Transcontinental Railroad completed 1869.

Transcontinental Railroad--1869

Economic Developments in the South War ruins Southern economy. Ends slavery, kills plantation system. New South: Railroads, textiles, mills. Sharecropping. Mass migration of blacks to the North.

Business Developments Rise of CORPORATIONS due to increased capital, stocks, dividends, investment. Involved risk, but possibility of tremendous gains. CAPITALISM RAILROAD, STEEL, COAL, OIL,

Coal, Oil, Steel

Business Organization Monopoly: Complete control over a particular field of business. (EC Knight Sugar Company) Vertical Control all of the aspects of the product. -Meat industry controls cattle, slaughterhouses, packing plants, delivery wagons. -Purchase companies at all levels of production…

Horizontal Integration (monopoly) Oil Company #1 + Oil Company #2 + Oil Company #3 = GIANT OIL COMPANY WHICH CONTROLS THE MARKET. -Prices, Jobs, supply Pools, Trusts, Holding Companies. All ways of keeping owners in control and fixing prices/competition.

Entrepreneurs Andrew Carnegie: Steel Industry, Pittsburgh. Carnegie Steel John D. Rockefeller: Oil Refining Business. Standard Oil (1882) owns 90% American refining $815, 647, 796. 89 at death… 40 million / year salary. JP Morgan: Financier & US Steel (1901) World’s largest Steel Company. Henry Ford: Assembly Line, mass production Captains of Industry? ? ? OR…. . Robber Barons?

Andrew Carnegie JD Rockefeller J. P. Morgan Cornelius Vanderbilt

Attitudes towards Business Laissez-Faire: “Hands off” Government has no right to interfere in Business. FREE ENTERPRISE SYSTEM. (Adam Smith, invisible hand theory) SOCIAL

Sherman Anti-Trust Act--1890 Prohibits Monopolies. Response to Standard Oil Any combination which “is in restraint of trade or commerce” Circumvented by EC Knight, and “holding companies”

Triangle Shirtwaist Fire Over 100 women die in 1911 fire. Leads to safety reforms in the private industry. Triangle Fire

LABOR ORGANIZATIONS Due to power of owners, Unions are formed to protect workers. Knights of Labor (1869): Terrence Powderly. Haymarket Riot leads to decline. 7 policeman killed.

American Federation of Labor (AFL) 1886: Samuel Gompers, skilled workers. By 1900, most powerful Union in the USA. 1900: ILGWU to protect sweatshop workers.

Labor Conflict Strikes, violence. Great Railway Strike 1877. Haymarket Riot 1886. Homestead Strike 1892: Carnegie Steel, 16 people killed. Pullman Strike 1894: President Cleveland sends in Federal Troops to end strike. (In re Debs)

Pullman Strike

Key Terms, Urbanization 1. 2. 3. 4. 5. 6. 7. Tenements: multifamily housing, poorly maintained. Political Machines: gain support of immigrants, leads to political corrpution in cities. Urbanization: Development of modern cities. Many positives and negatives. Immigration: People entering your country from another. Old Immigration: colonies-1850. (N/W Europe, Ireland, Germany) New Immigration: S/E Europe. Italy, Poland, Russia. 1870 -1924. Nativism: native born Americans were superior to immigrants.

Key Terms, Urbanization 8. Melting Pot Theory: People from various cultures meet in US to form a New Culture. Old cultures are surrendered to form a “new” culture. 9. Assimilation: Immigrants give up native language, traditions. “Americanize” 10. Cultural Pluralism: (Salad Bowl) Groups do not lose their distinctive cultures.

Immigration OLD: (until 1850) Northern and Western Europe (Britain, Ireland, Germany) NEW: (1850 -1924) South/East Europe (Italy, Poland, Russia)

Immigration, terms. Ø “Melting Pot” ØAssimilation: become “Americanized” ØCultural Pluralism: Salad Bowl Theory Ø“Know Nothing” Party: exlude immigrants ØChinese Exclusion Act: 1882 Ø“Gentleman’s Agreement”: Ends Japanese immigration in 1907. ØNational Origins Act 1924: favors N/W immigrants. ØLabor unions: NATIVISTS…. WHY? ? ?

Buffalo, the First Ward Grain Elevators

Immigration, Pictures

Ellis Island

Thomas Nast—Attacks Tamany Hall, Boss Tweed

Gangs of NY GW Plunkitt

TEST REVIEW TERMS… RECONSTRUCTION (13, 14, 15 amendments) Lincoln, Johnson, Republicans Due Process, Jim Crow, Plessy v. Ferguson THE MOVE WEST Homestead, Natives, Indian Wars, INDUSTRIALIZATION Why? Where? Effects? Robber Barron/C. O. I. Carnegie, Rockefeller, Morgan Monopolies, Trusts, Pools, Sherman Unions, conditions, strikes IMMIGRATION New/Old Challenges, TERMS

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