Unit 1: A New Industrial Age

1. Unit 1: A New Industrial Age Sections 3 and 4

2. Andrew Carnegie • One of the first industrial moguls to make his own fortune. • By 1899, the Carnegie Steel Co. manufactured more steel than all factories in Great Britain. • Philanthropy: Gospel of Wealth

3. Carnegie’s Business Strategies • Vertical integration – buying out all of his suppliers • Horizontal consolidation – buying out the competitors • By 1901, Carnegie Steel Co. produced 80% of the nation’s steel.

4. J.P. Morgan • J.P. Morgan – United States Steel was one of most successful holding companies(interlocking directorates); Bought out Carnegie Steel.

5. John D. Rockefeller • Trust – a group of trustees run separate companies as one large corporation. • John D. Rockefeller – Standard Oil Co. • Sherman Antitrust Act- "To protect the consumers by preventing arrangements designed, or which tend, to advance the cost of goods to the consumer." “WHAT A FUNNY LITTLE GOVERNMENT.” Horace Taylor drew this political cartoon of John D. Rockefeller holding the White House and Treasury department in the palm of his hand for the September 25, 1899 issue of The Verdict. Notice the smoke from the United States Capitol in the background? It has essentially become an oil refinery, itself demonstrating the power big business held over government.

6. Social Darwinism • Theory developed in late 19th century • Success and failure in business is actually governed by natural law. No one, especially government, should intervene. • Laissez Faire

7. Workers Unite • Long hours • Seamstresses and factory workers – 12 hours/day, 6 days/week. • Steel mill workers – 12-14 hours/day, 7 days/week. • Low pay • Men - $498/year, Women - $269/year, Children - $0.27/14-hour day. • Substandard conditions • In 1882, an average of 675 workers were killed per week. • Dirty, poorly ventilated, poorly lit • Faulty equipment

8. Labor Unions Emerge • National Labor Union • The Noble Order of the Knights of Labor • American Federation of Labor - Samuel Gompers • Average weekly wages went from $17.50 to $24. • Average workweek went from 54.5 hours to 49 hours.

9. Strikes Turn violent • The Great Strike of 1877 –Railroad Strike known as the Great Upheaval- local and state militias, and federal troops ended it. • The Haymarket Affair – McCormick Harvester Plant-labor radicals to protest the killing and wounding of several workers by the Chicago police • The Homestead Strike – Carnegie Steel Co. and the Pinkerton Detectives • The Pullman Strike • Company cut wages 25-40%, but did not cut costs of employee housing. Deaths: 30Injuries: 57

10. Women in the Labor Movement • Mary Harris “Mother” Jones – United Mine Workers of America • led 80 Mill children with deformities and injuries to President Roosevelt’s home - child labor laws. • Pauline Newman – International Ladies’ Garment Workers’ Union • Worked to change working conditions for textile industries • Triangle Shirtwaist Factory Fire

11. Triangle Shirtwaist Factory Fire

12. Pressure on Unions