Unit 3: Compromise & Conflict Lesson 3.1 = Labor Unrest

Unit Overview In this Unit, students will analyze how conflict and compromise have shaped politics, economics and culture of the United States

Setting the Stage Despite different views in regard to American Business leaders of the time, labor unrest was common and often led to bloodshed during the late 19th century. Labor unions will not be fully legitimatized until the 1940’s, meaning that early attempts by workers to show solidarity in an effort to gain concessions from owners could mean trouble for the workers!

Essential Question How has labor unrest impacted America?

What do you think the “Gilded Age” is? Key Vocabulary Gilded Age What do you think the “Gilded Age” is? Definition. Examples/Impact. Create a test question.

Cornelius Vanderbilt Vanderbilt was one of the4 most successful consolidators of the railroad industry after the Civil War. By 1869, he had merged three railroads to form the New York Central. He extended his control to Chicago in just four years. Could be considered the “Grandfather” of modern industry.

Robber Barons The building of railroads required more money than private investors could raise on their own. To encourage railroad construction across the Great Plains, the federal government gave land grants to many railroad companies. In the 1850s-1860s, the federal land grant system gave more than 120 million acres of public land to railroad companies.

The great wealth acquired by many railway entrepreneurs led to accusations that they had built their fortunes by swindling investors & taxpayers, bribing officials, and cheating on contracts. Jay Gould was infamous for manipulating stock and probably the most corrupt. Some people would even bribe Congress.

Assessment Prompt 1 Robber Baron

Captains of Industry By the 1870s, competition in industry had reduced many industries in to just a few large, yet efficient, corporations. This led to what we have termed as big business. Andrew Carnegie is a perfect example of the rise of big business in the United States.

Andrew Carnegie Andrew Carnegie, a Scottish immigrant to the U.S., realized that by investing in companies that served the rail roads, he could make more money. He bought shares in iron mills, companies that build rail bridges, etc.

He opened a steel company in Pittsburgh after learning of the Bessemer process which allowed steel to be made cheaply and efficiently. T To increase efficiency, he began a process known as vertical integration. Vertical integration depended on owning all the different businesses a company needed to complete its operation.

John D. Rockefeller After oil was discovered in Pennsylvania, Rockefeller decided to build oil refineries instead of digging for oil. He owned the largest oil refinery, Standard Oil, by 1870.

By 1880, he owned almost 90% of the refining industry By 1880, he owned almost 90% of the refining industry. This meant that Rockefeller had achieved a monopoly in oil refining. Rockefeller was probably the most successful American businessman to achieve horizontal integration. This means to combine firms in the same business in to one large corporation.

J.P. Morgan John Pierpont Morgan began his career by working in his father’s New York banking company in 1857. Morgan, an investment banker, specialized in helping companies issue stock by allowing the bankers to buy large blocks of stock and in turn selling it to people for a profit.

In 1901, Morgan bought out Andrew Carnegie. He merged Carnegie Steel with other large steel companies and created a large holding company called the United States Steel Company. U.S. Steel was the first billion dollar company ($1.4 billion).

Assessment Prompt 2 Robber Baron Captains of Industry

Unions Within the U.S., there were two kinds of workers in the early 1800s: craft workers and common laborers. Craft workers were specialized workers and began forming trade unions in the 1830s. Unions represented workers whose skills were needed by businesses. Industrial unions were particularly opposed as they united ALL the workers in a particular industry.

Assessment Prompt 3 Write down one benefit and one problem with the creation of unions in the United States workforce.

Activity The Men Who Built America Episode 4-6 Guided Reading

Journal Answer the EQ. Consider the following: How did robber barons and captains of industry contribute to the growth of American industry? How did this growth create unrest? How did unions combat issues within the growing industries?