INDUSTRIALIZATION, IMMIGRATION, AND THE GILDED AGE INDUSTRIALIZATION Why? -Civil War -railroads -quickened pace -Cheap Labor: immigrants -Resources -farmland -oil -coal -iron -Advances -Samuel Morse: telegraph -Cyrus Field: underwater telegraph cable -Alexander Graham Bell: telephone -Thomas Edison: electric light -invention factory -Westinghouse and Stanley: generator -Henry Bessemer: process for making steel stronger Railroads -key to America’s business development -advances -standard gauge -steel rails -air brakes -time zones executives -Cornelius Vanderbilt -New York Central -Jay Gould -Erie, Kansas and Pacific, Union Pacific -James Hill -Great Northern Northwest -Abuses -rebates -secret discounts off the public price -watered stocks -worthless -pooling -price fixing -Credit Mobilier -lay track and two or three times the cost -bribed Congressmen Munn v Illinois: states can regulate railroads Interstate Commerce Act: regulated by ICC Big Business -Social Darwinism: “survival of the fittest in business” -natural aristocracy -poverty is inevitable -individual is responsible for their position -philanthropy -giving money to charity -laissez faire -no government involvement -government protects people with money Result of Social Darwinism: INDUSTRIAL GIANTS -called ROBBER BARONS John D. Rockefeller -Standard Oil -first monopoly/trust -horizontal integration -sold products below cost -competitors go out of business -he buys their business and combines it with his own Andrew Carnegie - “rags to riches” -U.S. Steel -made $25 million a year -vertical integration: owned all means of production J.P. Morgan -banker -bought businesses and improved them James Duke -American Tobacco -advertising Terms -Corporation: company owned by several people -Charter: license -Stock holders: investors/part owner of a company -Board of trustees: top stockholders that run the company -Advantages -large capital: resources, land, tools, workers -limited liability: lose only what is invested -indefinite life: live after owner dies -Monopoly: one person controls the industry -Trust: giant business combination Labor -people move to cities -job competition -result: workers treated poorly -12 to 14 hour days -7 days a week -$1.50 a week -poor conditions -company towns and stores RESULT: WORKERS FORMED LABOR UNIONS!!!!!! Labor Union difficulties -scabs -strikebreakers -yellow dog contracts -no job if you join a union -black listing -not hired anywhere -too many workers to unite WORKERS STILL UNIONIZED!!!!!! Labor Unions -Knights of Labor -Terrance Powderly and Uriah Stephens -skilled and unskilled workers -no liquor dealers or lawyers -goals -8 hour work day -no child labor -NO STRIKES -boycotts: not buying -arbitration: 3rd party FAILED: -HAYMARKET SQUARE RIOT, CHICAGO a striker is killed by police strikers kill 8 police KNIGHTS ARE BLAMED American Federation of Labor -Samuel Gompers -only skilled workers -Goals -8 hour day -no child labor -improved conditions -collective bargaining -group that represents workers -group that represents owners -strikes Industrial Workers of the World -Wobblies -Mother Jones -Big Bill Haywood -unskilled workers and blacks -goals -improved conditions -world revolution STRIKES!!!!! -Homestead Strike -Carnegie steel mill -low pay $10 a week pay, $11.50 to live -Frick closes the factory -barbed wire fence -towers built, sharpshooters hired -workers lose -BLACKLISTED!!!!!!! Pullman Strike -railroad car company -five wage cuts in one year -American Railway Union -Eugene V. Debs -Cleveland sends in troops -mail wouldn’t run -INJUNCTION!!!!!! -COURT ORDER THAT MAKES A STRIKE ILLEGAL INJUNCTION BECOMES A POWERFUL TOOL!!!!!!! Bellwork "What is the chief end of man?--to get rich. In what way?--dishonestly if we can; honestly if we must." -- Mark Twain-1871 How does this quote by Twain apply to the Gilded Age? What does this say about morals and priorities in this time? IMMIGRATION Urban growth -expansion of industry -immigration Immigrants -came to avoid war, famine, and persecution -terrible trip -Ellis Island Ellis Island: east coast -immigrant processing -medical exam -document check -literacy test Angel Island: west coast -more like a prison -Asia Problems: -housing -boarding houses -row houses -dumbbell tenements -fire -sanitation -crime -pick pockets -street gangs -underpaid cops Nativism -only native born -WASP, others not welcome -Chinese Exclusion Act -no Chinese for 10 years (until 1943) -Gentlemen’s Agreement -no Japanese emigration to America Social Reforms: -Social Gospel -salvation through helping the poor -Jane Addams -Hull House -services to slums -education, babysitting -John Dewey -free public education -make immigrants American -Salvation Army -Red Cross GILDED AGE!!!!! -named by Mark Twain -CORRUPTION Mugwumps -fight corruption -laissez faire -against spoils system (patronage) -wanted a civil service -CLEAN UP POLITICS -Sherman Anti-trust Act -tried to make trusts illegal Political Machines -trades favors for votes -ward boss: local level -city boss: highest level -usually the mayor -builds schools, roads, fire departments -CORRUPT!!!!! -graft -bribes -election fraud Tammany Hall -New York Democratic political machine -MOST CORRUPT -Boss Tweed -depicted in Thomas Nast cartoons Gilded Age Presidents: BIG BUSINESS -U.S. Grant -Credit Mobilier -Whiskey Ring -Rutherford B. Hayes -investigated corrupt custom houses -James A. Garfield -civil service reform -assassinated by Charles Guiteau -Chester A. Arthur -Pendleton Act: merit for civil service -Grover Cleveland -Benjamin Harrison