Railroads Lead The Way Inventions An Age of Big Business Industrial Workers
Questions Setting up for Cornell Notes Draw a line across the paper about 3 lines down from the top Draw line down 1/3 rd across the page. Put the title up top Heading in right corner The Age of Big Business Name 9.27.17 Period EQ: What was the business growth driven by? ALL NOTES GO HERE! Pg. 35
Black sticky substance petroleum seeped from the ground 1850 could burn petroleum to make heat, also to lubricate machinery Oil becomes valuable Edwin Drake thought he could find oil by digging a well 1 st well Titusville, PA struck oil Created multi-million dollar industry
New technology transportation and business methods tap into rich supply of natural resources Change from agricultural economy to an industrial one was possible because the US had what it needed; land, labor and capital Land not just land itself but all natural resources Labor Large number of workers to turn raw materials into goods Needed due to population growth (pop. Doubled between 1860 and 1900) Capital (money for investments) Manufactured goods used to make other goods and services Machines, buildings and tools are examples of capital goods. One source to make capital is the sale of stock
With an economy growing, businesses were looking to expand To do so, they needed capital to buy materials One way was to become a corporation (a company that sells shares or stock of its business to the public) People who invest in the corporation are stockholders Good times receive dividends Bad times lose investments Late 1800 s many bought and sold stocks in special markets stock exchange Growth of corporations fueled expansions Banks made money by lending money
As oil grew prospectors and investors came oil rush towns John D. Rockefeller famous figure in oil industry Four partners agree to run business together Built oil refinery (to process oil) in Cleveland, OH 1870 s formed Standard Oil company Set out to dominate oil industry (horizontal integration combining competing companies into one Standard oil grew powerful and wealthy
Rockefeller lower prices to drive out competitions Pressed customers not to deal with Rivals Railroad to give him special rates
Did this by buying stock in different companies Shareholders traded stock for standard oil stock paid higher dividends Equals Standard oil is part owner of other companies Created a monopoly total control of an industry by a single producer.
1800 s became huge Idea material for railroad tracks and bridges Henry Bessemer open hearth process New process produce at good prices and large amounts 1870 built steel mill plants near source of iron ore (Western PA) Pittsburgh becomes steel capital Located near Cleveland, Detroit and Chicago
Leading figure in American Steel 1865 invested in growing iron industry After learning Bessemer s process, started mill near Pittsburgh 1890 dominated steel industry Became powerful by vertical integration (getting companies that provide equipment and services needed i.e. mines, warehouses, ships and railroads) 1900 s produced half of nations steel
Philanthropy the use of money to benefit the community Carnegie and Rockefeller Used money to fund colleges and libraries Carnegie Hall and Rockefeller Center
General trend in business was monopolies Buy stock instead of buying company outright Mergers combining of companies Some admired, others argued that lack of competition hurts consumers 1890 the Sherman Anti-trust act did not allow trusts or monopolies
Answer the Question How did Rockefeller create a monopoly with Standard Oil Company?
Railroads Lead The Way Inventions An Age of Big Business Industrial Workers
Questions Setting up for Cornell Notes Industrial Workers EQ: Why would workers organize? Name 9.28.17 Period Draw a line across the paper about 3 lines down from the top Draw line down 1/3 rd across the page. Put the title up top Heading in right corner ALL NOTES GO HERE! Pg. 37
Industrial growth means jobs Mass production increased, people decreased 10 to 12 hour days, 6 days a week could be fired at any time Lost jobs to immigrants for lower pay Conditions were bad and unsafe Steel workers burns Coal miners cave ins, gases, coal dust Garment workers crowded and dangerous factories in urban areas called sweat shops
1900 s one million women in workforce No laws for pay, women paid half of men Hundreds of kids worked There were child labor laws but no one obeyed
....
What would you do? To solve the problems of child labor laws not being followed & equality in pay in the workforce.
Unhappy workers organize union Unions promise better pay and conditions Skilled workers formed for specialized jobs 1800 s conditions worsened labor leaders looked to expand unions 1869 garment cutters in Philadelphia founded Noble and Holy Order of the Knights of Labor If employees found out about union would be fired Group created secret handshakes Knights of Labor grew, allowed Women, African Americans, Immigrants and Unskilled Laborers 1886 members grew to 700,000 Strikes turned public opinion against unions and they lost power
1881 a national trade union for formed American Federation of Labor (AFL) AFL led by Samuel Gompers (tough minded president from cigar makers union) Fought for higher pay, shorter hours, better conditions and right to collective bargaining Collective bargaining when unions represent workers and talk with management Even with strikes AFL grew to 1.6 million by 1908
Many didn t admit women, so they founded their own Mary Harris Jones (Mother Jones) fought 50 years for worker s rights 1911 Triangle Shirtwaist company sweatshop in New York Fire broke out, workers couldn t get out (mostly immigrant women) 160 died This pushed the ILGWU (International Ladies Garment Workers Union) to push for safer working environment
1870 1890 Economic depressions forced wages to drop and fire employees This triggered strikes and sometimes violence When depression hit to cut cost companies forced pay cuts People went on strike and violence and damage occurred Companies hired strikebreakers and Federal troops to maintain order
....
From The
1886 - Chicago McCormick Harvester Company gathered to protest the four dead who were killed the previous day When police came to break up crowd, someone threw a bomb and killed a police officer As a result, public associated the labor movement with terrorism and disorder
To weaken steelworkers union, company lowered wages Union called strike, managers hired nonunion workers and brought in 300 armed guards Battle left 10 dead Governor sent in state militia to restore order After this, steelworker union member numbers dwindled
Union went on strike due to lowering of wages Pullman closed plants Railroad union supported strikers, refused to handle Pullman cars This stopped all rail traffic Pullman fought back with US Attorney General Richard Olney Obtained an injunction, a court order, to stop union from obstructing the railways Union Leader Eugene V. Debs refused to end strike and went to jail President Cleveland sent Federal troops to end strike This dealt another blow to unions Still unions organize for better pay and working conditions
Question: If the working conditions of workers in the late 1800 s and early 1900 s were a song title, what would the title be? I Don t GET IT!! MEH/ KINDA I GET IT!!