Presentation on theme: "THE RISE OF INDUSTRIAL AMERICA, 1865–1900"— Presentation transcript:
1 THE RISE OF INDUSTRIAL AMERICA, 1865–1900 AP US HistoryEast High SchoolMr. PetersonSpring 2011
2 Focus QuestionsWhat innovations in technology and business drove increases in industrial production after 1865?How did Carnegie, Rockefeller, and other corporate leaders consolidate control over their industries?Why did the South’s experience with industrialization differ from that of the North and the Midwest?How did the changing nature of work affect factory workers’ lives, and how did they respond?How did corporations undercut labor’s bargaining power in the 1890s?
3 The Rise of Corporate America FIGURE 18.1 LATE NINETEENTH-CENTURY ECONOMIC GROWTH IN GLOBAL PERSPECTIVE
4 The Character of Industrial Change Large-scale manufacturingLarge coal depositsTechnological innovationDemand for workers who could be controlledConstant pressure to cut costs and pricesRelentless drop in pricesMoney supply shortage leads to high interest rates
5 ABUSIVE MONOPOLY POWER This Puck cartoon depicts ﬁ nanciers Jay Gould (left) and Cornelius Vanderbilt (right) and suggests that their manipulation of markets and their ownership of railroads, telegraph companies, and newspapers is powerful enough to strangle Uncle Sam.p. 538
6 Railroad Problems and Innovations 193,000 miles by 1900Collis Huntington, Jay Gould and others need capitalLand and loan subsidies from all levels of governmentBonds and stock to publicHigh levels of debt by 1900Magnetic telegraphNew organizations and accounting
7 Consolidating the Railroad Industry Large companies buy up smaller onesDivide country into 4 time zonesStandard gauge trackRelied on shipping rate cutsInterstate Commerce Act (1887)Oversee railroadsBanned monopolistic activityBanker J. Pierpont Morgan gets control of many railroads
8 Applying the Lessons of Railroads to Steel Andrew CarnegieRags to riches storyBuilds own steel millUses Bessemer process“watch the costs, and the profits will take care of themselves”Vertical integrationCould see big picture
9 ANDREW CARNEGIE Although his contemporaries called him “the world’s richest man,” Andrew Carnegie was careful to deﬂ ect criticism by focusing on his philanthropic and educational activities.p. 539
13 FIGURE 18.2 IRON AND STEEL PRODUCTION, 1875–1915 New technologies, improved plant organization, economies of scale, and the vertical integration of production brought a dramatic spurt in iron and steel production. Note: short ton = 2,000 pounds.Fig. 18-2, p. 541
18 John D. Rockefeller Took over competition in oil industry Lower pricesSet up pool of companies, trustStandard Oil Trust90% of oil refining capacityIntegrated oil industry vertically and horizontally
22 BASEBALL TRADING CARD To encourage boys and young men to smoke cigarettes, the American Tobacco Company included in the cigarette package collectable cards with pictures of baseball heroes such as Ty Cobb.p. 541
23 Sherman Anti-Trust Act 1890Outlawed trusts and monopoliesIneffectiveFailed to define trust or restraint of tradeUnited States v. E.C. Knight (1895)Manufacturing not interstate commerce
24 Stimulating Economic Growth COURT OF HONOR, WORLD’S COLUMBIAN EXPOSITION, 1893 The Chicago World’s Fair was seen as “the most signiﬁ cant and grandest spectacle of modern times.” The monumental neoclassical buildings announced that the United States, like Greece and Rome before it, had become one of the world’s most powerful economies.
25 The Triumph of Technology New inventionsStreamlined manufacturingStimulated consumer demandSinger Sewing Machine CompanyAlexander Graham Bell-telephone
26 Thomas A. Edison “invention factory” Menlo Park laboratory Phonograph- “sound writer”Incandescent light bulbElectric power systemMotion picture cameraMenlo Park laboratoryModel for other businesses
27 THOMAS EDISON’S LABORATORIES IN MENLO PARK, NEW JERSEY, CA THOMAS EDISON’S LABORATORIES IN MENLO PARK, NEW JERSEY, CA Always a self-promoter, Edison used this depiction of his “invention factory” to suggest that his development of a durable light bulb in 1879 would have an impact on life around the globe.p. 543
28 Electricity Thomas Edison George Westinghouse Interrelated system of power plants, transmission lines, light fixturesDirect current-DCGeorge WestinghouseAlternating current-ACSystems combine-110 ACPrivate ownership, regulated monopolies
29 CREATION OF THE EDISON SYSTEM, MENLO PARK Frank Leslie’s Weekly in 1880 illustrated Thomas Edison’s process of making electric light bulbs using glass-blowers and vacuum machines in his Menlo Park laboratory.p. 544
30 THE NIAGARA FALLS POWER COMPANY As this diagram of the power station at Niagara Falls reveals, the early transmission of electric power was closely tied to large manufacturers who had the funds to support large investments in generating equipment and power lines.p. 545
31 Specialized Production ManufacturingSkilled workersSeamstressesShift styles quickly
32 SKILLED WOMEN DRESSMAKERS, 1890 As these dressmakers in Mary Malloy’s shop in St. Paul, Minnesota, indicate, industrialization did not displace all skilled workers. In this case, hand work and machine work continued together. Women’s dressmaking persisted as a skilled occupation into the 1890s and gave women entrepreneurs an opportunity to run their own businesses.p. 546
34 HEINZ KETCHUP ADVERTISEMENT, CA HEINZ KETCHUP ADVERTISEMENT, CA To sell its products in a mass market, H J Heinz company in Pittsburgh developed the brand name “57 Varieties” for its ketchup, pickles, and other condiments. The “girl with the white cap” was meant to symbolize the purity of its food processing.p. 547
35 Social and Environmental Costs and Benefits Social benefitsLabor-saving productsLower pricesAdvances in transportation and communicationsSocial costsBankrupt companies and dreamsExpendable workersEnvironmental devastation
36 INDUSTRIAL POLLUTION Although some Americans celebrated factory smoke as a sign of industrial growth, those who lived downwind, such as the longshoreman in this Thomas Nast cartoon, often suffered from respiratory diseases and other ailments. For him as well as for other Americans, the price of industrial progress often was pollution.p. 548
38 Obstacles to Economic Development Lagging industrial developmentLack of capitalFew banksGrowing cash crops such as cotton or tobacco made farmers vulnerable to world marketsLimited funds for education
39 The New South Creed and Southern Industrialization Henry GradyAtlanta ConstitutionIndustrialize SouthAttract Northern capitalMore opportunities for black workers in industry
40 The Southern Mill Economy Mill towns supported textile industryCenter of textiles by 1920Augusta, GA: Lowell of the SouthLow wagesOften paid in company scripDid little to help farmers/sharecroppers
41 The Southern Industrial Lag Birmingham (AL) Steel controlled by U.S. SteelHigher prices, despite lower costsSegregated work forceEnvironmental damage
42 PIG IRON SCENE, BIRMINGHAM, ALABAMA, BY CHARLES GRAHAM, 1886 Although the proximity of Birmingham’s foundries to iron and coal deposits enabled them to produce inexpensive iron ingots, northern owners forced them to price their products at the same rate as ingots produced in Pittsburgh.p. 550
43 Factories and the Work Force TEXTILE WORKERS Young children like this one often were used in the textile mills because their small ﬁngers could tie together broken threads more easily than those of adults.
44 From Workshop to Factory Restructuring of work habitsEmphasis on workplace disciplineExample of shoemakersSkilled artisan to unskilled factory workerLower-paid women and children
45 SHOEWORKERS Shoeworkers pose near their machines in Haverhill, Massachusetts, ca For them as well as for others, work became increasingly repetitive and routinized.p. 555
46 The Hardships of Industrial Labor High demand for unskilled laborersWorkers often drifted12-hour shiftsDangerous workChildren as young as 8Railroads dangerous for adultsMinimal financial aid for disabled and families
47 The Cameron Colliery, later called the Glen Burn, stands out because it was so visible as you entered Shamokin traveling north on route 61. The culm bank created by the waste from the Cameron Colliery mine is still there today. The Burnside Colliery ceased operations during the 1930s. The houses that make up the village of Burnside were originally owned by the coal company. They were sold to the residents in the late 1940s. It was interesting because a 3-story house went for $ and residents had to take a mortgage to buy one!
48 George Grantham Bain took this picture on May 1, 1909 (Labor Day) George Grantham Bain took this picture on May 1, 1909 (Labor Day). It shows two Jewish girls in New York City protesting against child labor.
49 Immigrant Labor French Canadians in NE Chinese in West Eastern and Southern European immigrantsSubject to discipline and eviction from company provided homesFaced discrimination
50 ETHNIC AND RACIAL HATRED Conservative business owners used racist advertising such as this trade card stigmatizing Chinese laundry workers to promote their own products and to associate their company with patriotism.p. 559
51 Eugene V. Debs, arguably the foremost union activist in American history, described the 1909 McKees Rock, Pa., strike this way: "The greatest labor fight in all my history in the labor movement." Yet today, few remember this struggle when immigrant workers rose up and changed the course of American unionism. The strike took place at the huge Pressed Steel Car Co. plant in McKees Rock, a few miles down the Ohio River from Pittsburgh, where between 5,000 and 8,000 mostly immigrant workers from some 16 nationalities created railway cars. Hailing mainly from southern and eastern Europe, they included "Russians who had served in the 1905 Duma [parliament], Italians who had led resistance strikes, Germans who were active in the metal workers' union," according to historian Sidney Lens. "But because of the language barrier they were easily divided, and thoroughly exploited."At McKees Rock, "exploited" literally meant daily injuries and deaths. Labor historian Charles McCollester quotes from an article in the Pittsburgh Leader, one of the city's daily newspapers, which reported that when a worker is maimed and mangled in his work, "some foreman or other petty 'boss' pushes the bleeding body aside with his foot to make room for another living man, that no time be lost in the turning out of pressed steel cars. The new man often works for some minutes over the dead body until a labor gang takes it away." A former county coroner testified that the death toll averaged one person a day.The workers also were subjected to a corrupt "pool system" in which their pay was determined not by any established wage rate but by the whim of the foremen. On July 10, 1909—a payday—workers received less pay than normal and 40 riveters told the company they wouldn't work unless they were told the pay rates. When they returned to work three days later, they were fired. That was the breaking point. Within 48 hours, 5,000 workers went on strike.When management brought strikebreakers to the plant on a steamer along the Ohio River, strikers fired their rifles at the steamer and it fled to the opposite shore. Soon, there were more skirmishes when the company brought in hundreds of deputy sheriffs and state constables. One striker was killed at the plant entrance, and 5,000 mourners marched in his funeral procession.The Pressed Steel Car workers received welcome support from other workers. Railway trainmen on lines leading into the city and the motormen on the local streetcar lines all refused to haul scabs. This solidarity was critical. In the end, the workers won what Lens called "a victory of towering proportions." As he recounted, management "agreed to end the pool system, raise wages by an immediate 5 percent and 10 percent more in 60 days, fire the remaining scabs and rehire all strikers."The victory at McKees Rock extended well beyond the plant. This was the moment when immigrant workers who had no power—"persecuted, robbed, and slaughtered," as one local priest described them—found their voice. The turning point may have come at a giant rally on Indian Mound, a hill near the Ohio River, when 8,000 workers joined together and heard fiery speeches in nine languages. After that, they and the union movement itself were never the same.Eugene Debs correctly interpreted the workers' victory. He predicted the McKees Rock success would be "a harbinger of a new spirit among the unorganized, foreign-born workers in the mass production industries who can see here in McKees Rock the road on which they must travel—the road of industrial unionism."SourcesMcCollester, Charles, The Point of Pittsburgh.Battle of Homestead Foundation, Brody, David, Steelworkers in America: The Nonunion Era. Harper & Row, Lens, Sidney, The Labor Wars: From the Molly Maguires to the Sit-Downs.Haymarket Books, 2008.
52 Women and Work in Industrial America Working-class women had to contribute to family incomeSingle women could see opportunityTypewriter and telephone lead to shift in work for womenClerical and secretarialTelephone operators
53 WOMEN IN THE WORKPLACE The women in this photograph are testing their typing skills at a civil service exam in Chicago in the 1890s. The expansion of banking, insurance, and a variety of other businesses opened up new career opportunities for women as secretaries, stenographers, and typists.p. 553
54 Hard Work and the Gospel of Success Horatio Alger and Ragged Dick (1867)“rags to riches”Andrew CarnegieMost industrial leaders came from middle- and upper-classRise in real wages31% for unskilled74% for skilledIncome disparity
55 Labor Unions and Industrial Conflict THE FIRST LABOR DAY PARADE, 1882 Thousands of workers, led by the Knights of Labor, marched in the ﬁrst Labor Day Parade in New York. As the numerous American flags in this contemporary illustration suggest, the workers believed that labor deserved substantial credit for building the American nation.
56 Organizing Workers National Labor Union (NLU) Knights of Labor Membership soared by 1886Political success through existing partiesWildcat strikes fail, membership declines
57 American Federation of Labor Group of craft unionsHeaded by Samuel Gompers“trade unionism, pure and simple”“bread and butter” issuesWages, reducing hours, safety1.6 million members by 1906THE FIRST LABOR DAY PARADE, 1882 Thousands of workers, led by the Knights of Labor, marched in the ﬁrst Labor Day Parade in New York. As the numerous American flags in this contemporary illustration suggest, the workers believed that labor deserved substantial credit for building the American nation.p. 558
58 Strikes and Labor Unrest Panic of 1873Strikes in coal and railroadsHomestead Strike (PA)Carnegie SteelViolence, union crushedPullman Strike (Chicago)Eugene V. Debs leaderPres. Cleveland gets injunction against strikersDebs jailed, strike crushed
59 PINKERTONS SURRENDER AT THE HOMESTEAD STEEL STRIKE, 1892 After a gun battle, Pinkerton security forces surrender to strikers at the Homestead, Pennsylvania, steel works. Companies cited worker violence such as this as justification for government suppression of labor unrest.p. 560
60 Social Thinkers Probe for Alternatives Social DarwinismNatural law controlled social order“Survival of the fittest”William Graham SumnerDisapproved of govt. interferenceOpposed by Lester Frank WardDynamic SociologyLaws of nature could be circumvented by human will
61 Utopian Solutions Henry George-socialism Edward Bellamy Marxism Progress and Poverty“unearned increment”Land taxEdward BellamyLooking BackwardFuture without poverty or strife-2000MarxismKarl Marx and Das CapitalCapitalism would wither away