GROWTH OF INDUSTRY

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GROWTH OF INDUSTRY

1865-1900

RAILROADS

1865-35,000 miles of track

1900-193,000 miles of track

Greatest impact on economy

Encouraged mass production, mass consumption, & specialization

Creates time zones

Creation of modern stockholder corporation

RAILROADS

Early building-local lines

– Resulted in incompatible equipment

Age of railroad coincides with settlement of the frontier

Linking east & west creates a national market

Federal government provides loans & land grants to private railroad companies

– Hasty & poor construction

– Corruption-Credit Mobilier

RAILROADS

First Transcontinental Railroad

– Link CA with rest of nation

– Work divided between two railroad companies

Union Pacific-start from Omaha, NE, build west

Central Pacific-start from Sacramento, CA-build east

– Labor

Union Pacific-Civil War vets & Irish

Central Pacific-Chinese

– May 10 th

, 1869-Promontory Point, UT

Golden spikes

RAILROADS

Four other transcontinental railroads

– New Orleans to Los Angeles (1883)

– Kansas City to Los Angeles (1883)

– Duluth, MN to Seattle, WA (1883)

– St. Paul, MN to Seattle, WA (1893)

Only one built without government subsidies

TECHNOLOGY

1867-typewriter (Christopher Shoales)

1876-telephone (Alexander G. Bell)

1879-Cash register

1884-fountain pen

1888-adding machine & Kodak camera

Greatest inventors of 19 th century

– Thomas Edison

– George Westinghouse

CONSUMPTION

New ways for businesses to sell products

Large Department stores

– RH Macy-New York

– Marshall Fields-Chicago

“Give the lady what she wants”

Neighborhood discount stores

– Frank Woolworth

CONSUMPTION

Mail order catalogues

– Sears Roebuck

Pre-packaged foods

– Kellogg & Post

Refrigerated railroad cars

INDUSTRIAL EMPIRES

Shift in industrial production from textiles to heavy industry

– Production of steel, petroleum, electric power, & machinery

New forms of business-monopolies

– John D. Rockefeller-Standard Oil (trust/horizontal integration)

– Andrew Carnegie-US Steel (Holding

Company/vertical integration)

– JP Morgan-banking (Interlocking Directorate)

INDUSTRIAL EMPIRES

Anti-trust movement

– Give power back to consumers

– Sherman Anti-trust Act (1890)

“prohibited any contract, combination or conspiracy in restraint of trade or commerce.”

Too vague-did not stop monopolies

Hard to enforce

Social Darwinism

– Darwin’s theory of natural selection

– 10% of the population controlled 9/10 th of nation’s wealth

Horatio Alger theory

– “Rags to Riches” stories

– Hard work & honesty leads to wealth

LABOR

By 1900-2/3 rd of Americans working

10 hours a day

6 days a week

Wages determined by employers

In 1890, most families earned less than

$380 a year

LABOR

Biggest change of time-working women

1 out of 5 worked

Most young & single

Most in the textile, garment, or food processing industries

New inventions led to new occupations

– Secretaries, book keepers, typists, & telephone operators

LABOR

Changes in factory work

– Highly structured

– Regulated to increase productivity

– Repetitive

– Very dangerous-especially for children

– Huge turnover

– Workers easily replaced

LABOR

Management held all the power

Only protests-absenteeism & quitting

Formed first unions

Employers created techniques to discourage workers from joining unions

– Lockout

– Blacklist

– Yellow Dog Contract

– Private detectives

“Pinkertons”

– Court injunctions

UNIONS

National Labor Union (1866)

– First attempt to organize all workers

– 640,000 members by 1868

– Wanted 8 hour day & equal rights for women and African-Americans

– Lost support after Railroad strike of 1877 & the creation of the Knights of Labor

UNIONS

Great Railroad Strike (1877)

– Panic of 1876-railroad cut wages

– Strike spreads across county

– Shut down 2/3 rd of nation’s railroads

– Pres. Hayes used troops to end strike

– 100 people killed

UNIONS

Knights of Labor (1869)

– All workers

– Used political activity, education, & arbitration

– More success with strikes

– Downfall due to

Haymarket Affair &

Creation of the

American Federation of Labor

UNIONS

Haymarket Affair (1886)

– Union rally-against police actions

– Ends with 10 workers dead & hundreds injured

UNIONS

American Federation of Labor

(1886)-Samuel Gompers

– Skilled workers only

– Excluded women &

African-Americans

– Believed in supporting candidates & collective bargaining

– Helped raise the weekly wage and the average work week decreased

– But only for skilled workers

30% of population

UNIONS

American Railway

Union (1893)

– Eugene Debs

– All railroad workers, except

Chinese & African-

Americans

– Believed in strikes

& violent protests

– Downfall due to

Pullman strike

UNIONS

Pullman strike (1894)

– Cut wages & fired Union leader who brought demands to management

– Boycott of Pullman cars

– Pullman links cars with federal mail cars

– Pres. Cleveland orders boycott to end

– Union leaders jailed-strike ends

UNIONS

By 1900-Only 3% of workers belonged to a union

Industrial Workers of the

World (1905)

– “Big Bill” Haywood

– Unskilled workers

– Concentrated in the west

– Radical & violent

– Very successful, but

WWI begins and conditions improve

– Proved unskilled workers could organize

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