1. The Gilded Age Or was it? The negative side…

2. Legislation At first, government stayed out of business ◦ Laissez-Faire had them “hands off” and looking the other way ◦ Wealth and power had some government officials benefiting from the success of the monopolies

4. Legislation: Interstate Commerce Act (1887) ◦ Situation:  RR’s were charging small companies more to ship short distances than large companies to ship long distance  What would you do?

5. Legislation Interstate Commerce Act (1887) ◦ State passed laws to stop this  Problem: Supreme Court ruled this Unconstitutional  Why?  Because interstate commerce (biz happening over state lines) is regulated by the US Congress per the Constitution ◦ US Congress passed Interstate Commerce Act to prohibit unfair pricing across state lines  Who made sure they followed the law?  Interstate Commerce Commission

6. Legislation: Sherman Anti-Trust Act (1890) Situation ◦ Large corporations are forcing small companies out of business or buying them ◦ Reformers called for government to step and stop the unfair practice What would you do?

7. Legislation: Sherman Anti-Trust Act (1890) Sherman Anti-Trust Act ◦ Stops monopolies from unfair practices that prevented fair competition Significance? ◦ Changed how Congress is looked at big business and its abuses

8. Labor - Situation Long hours – average 10-14 hours per day Wages – extremely low Employees – whoever could be hired for the least money Conditions – extremely dangerous The work – boring and repetitive Children – worked in mills and mines, did dangerous work no one else was small enough for (1/5 under 15 in 1910 worked) Job security – None! You could be fired for any reason, any time

9. Labor Reforms Unions – groups formed by some workers to act together ◦ Held strikes and protests ◦ Carnegie used immigrant workers or shut down his plants rather than negotiate

10. Labor Reforms Knights of Labor – Terrence Powderly (founder) ◦ Single national union ◦ United skilled and unskilled laborers ◦ Demands  8 hour work day  Higher wages  Safety codes  No child labor  Equal pay for women ◦ Results  Dissolved – too loosely organized & skilled laborers resented being grouped with unskilled laborers

11. Labor Reforms American Federation of Labor (AFL) – Samuel Gompers (founder) ◦ Unions of people with similar interests (skilled workers) ◦ All the unions joined in a federation Demands ◦ 8 hour work day ◦ Higher wages ◦ Better conditions ◦ Closed shops (places where only union members could work)

12. Labor Reforms Now… Let’s think about the two unions…How you ask? Why, with a thinking map, of course! We need to compare/contrast the unions…What map should we use? A circle map! Don’t use just 2 circles, this is just an example.

13. Labor The Government Business leaders had political influence ◦ Saw worker demands as greedy Concern was to protect the economy not the people ◦ Sherman Anti-Trust Act was used to rule unions a “restraint of trade” ◦ Troops were used to put down strikes

14. Labor The Government Laissez Faire ◦ Supported by the people ◦ People feared higher prices ◦ Haymarket Affair of 1886  Worker striking in Haymarket Square in Chicago  Labor leaders blamed when bomb exploded  7 policemen killed – 67 others wounded