SS- Chapter 14

Chapter 14: The Industrial Age

Post Civil War, technology changed the nation for three basic reasons:
1. The discovery and the uncovering of resources.
2. Burst of inventions.
3. Move to the cities- the city people wanted more products.

Resources:
1. Kerosene- in 1840, a Canadian geologist discovered that you could use kerosene to light lamps. Kerosene is a byproduct of oil. Edwin Drake used the steam engine to drill for oil. Oil refineries were now cropping up in many places. Oil produced another byproduct- gasoline. They used to chuck it, but with the invention of automobiles at the end of the 1800s, gas became a hot commodity. Because of this, oil became an even hotter commodity.
2. Coal- was cheap and easy. Fuel and coal mines opened up across the country.
3. Iron- was around and used, but it wasn’t so flexible. Realized that if you remove the carbon from iron, you get steal. It was hard and costly to remove the carbon from the iron until Henry Bessemer made the Bessemer process- it was an efficient way of removing the carbon from the iron. Steal was used for myriad of things such as:
a. Farm tools
b. Railroads
c. Cans for preserving food
d. Skyscrapers

Inventions:
1. Thomas Edison- he invented many things. He was nicknamed the Wizard of Menlo Park. He was a tinkerer. Edison didn’t event the light bulb, but got credit for it. Edison did invent the phonograph.
2. George Westinghouse- made electricity available to the average person. He harnessed it so that it was safer and less expensive. Electricity revolutionized the world- factories no longer had to be near water because electricity is now portable. This changed people’s lifestyles tremendously- people could now work even if it was dark outside. This also caused the invention of many appliances. The streetcar expanded the cities.

Inventions that changed woman’s lives:
1. Typewriter- was invented by Christopher Sholes. This brought woman into the offices.
2. Alexander Graham Bell and the telephone- brought woman into the work force. The switchboard connected the people.

By 1910, 40% of the office workforce was woman. People all over the world enjoyed the benefits of these inventions.

Inventions had a positive effect in the cities:
1. More leisure time because machinery could now produce quicker.
2. Inventions made life easier and more exciting:
a. Camera
b. Washing machine
c. Iron
d. Phonograph
Age of the railroads-

In 1869, the transcontinental railroad was completed. Over the next year, more and more rails were added. By 1890, there were 200,000 miles of track across the country. Railroads made it easier for travel and shopping. It linked the nation and also made long distance travel possible.

The railroads were built at the expense of the poor laborers.

The problem of the railroad- scheduling was difficult. Every city had different times because time was set by the sun. There was no organized time across the country. Professor Dowd organized time by dividing the country into twenty four time zones. Four out of these twenty four zones are located in the US:
1. Eastern
2. Central
3. Mountain
4. Pacific

This idea was instituted by railroads because they wanted a standard time. At first, many people were against it but eventually the entire world accepted time zones and there was now organization in clocks.

Railroads affected the way we travel and many businesses- they needed steel, coal, glass and oil so it impacted on many industries. Railroads also brought about new towns:
1. Stops along the way- once the railroad moved through an area, it was able to be lived in.
2. In 1850, George Pullman invented the sleeping car. This is a train car that can be slept in during travel. They built an entire town around the factory that made them. At first, Pullmantown was really nice, but over the course of many years, the workers felt that Pullman was controlling them. There were strikes against Pullman.

One of the most famous scandals was the Credit Mobilier scandal. The railroads offered opportunities to make money. Often, when there is an opportunity to make money, there is an opportunity for corruption. The Credit Mobilier scandal was an example of such corruption. The Union Pacific formed a construction company called the Credit Mobilier. They then went ahead and made fraudulent bills of how much the construction would cost. The Union Pacific gave the Credit Mobilier a contract to lay track at double the cost. They then pocketed the extra money. The Credit Mobilier scandal is one of the scandals that took place during the Grant presidency.

Farmers and the railroad-

People were unhappy with the railroads because:
1. They felt that the railroads were abusing them because they were charging insane prices to ship goods.
2. The farmers felt that the railroads were cheating the government- the government gave land to build railroads on, but they were selling the land to the people.

The Grange movement tired to fight the railroads politically and they were successful. They got some local official in to fight for the farmers. On a local level, farmers managed to pass laws to control the railroads. The railroads weren’t happy with these laws. They wanted to fight this so they went to the Supreme courts in Munn vs. Illinois, in 1877, the railroad said that a state can’t tell them what to do with business. The court ruled that private business can be regulated for the public good. The farmers won.

Ten years later, there was a new ruling in Wabush, St. Lois and Pacific Railroad vs. Illinois, they ruled that a state can’t control the railroad, only the Federal government can regulate the railroads now.

This set the stage for the Interstate Commerce Commission (ICC) - a federal commission which regulates railroads. In 1893, when there was a panic, many railroads lost business and were taken over by huge firms. There were only about seven companies that controlled the railroads.

Big business emerges-

America is now moving into big business. Now, Americas is becoming a country of businessmen, no longer a country of farmers and shopkeepers.

There are many ways to have a big business:
1. Corporation- when a private business goes public. They sell shares of stocks. People then invest in you and they make money when you make money.
2. Trust- many corporations held together by a group of trustees. They control the business and divide the money.
3. Holding company- a corporation that does nothing but buy stocks in other companies.

Different entrepreneurs:
1. Andrew Carnegie- came to this country as a pauper. He moved up the social ladder by doing smart things. Eventually, he owned the Carnegie Steel Company. He had a process by which he grew rich:
a. Vertical integration- owns all raw products that are needed for your business.
b. Horizontal integration- own all your products.
He also worked to make business run efficiently.
2. Rockefeller- owned oil. He had a huge oil trust.
3. JP Morgan- was a banker and also owned railroads.
4. Vanderbilt- owned railroads.

The success of these entrepreneurs led to an intellectual movement called Social Darwinism- Darwin believed in the survival of the fittest. Social Darwinism is the economical survival of the fittest- if I have to crush you along the way up, so be it. These people live by their strength. Many Rags to Riches movies came out. This was the culture of the day.

Two views on entrepreneurs:
1. They’re robber barons- they are nothing but robbers
a. You’re a robber
b. Your workers are being crushed.
2. Philanthropists- big charity givers. They built libraries and museums.

Many institutes were named after these philanthropists. They felt that it was benevolent to give money and would be a crime to die rich.

Eventually, to help curve monopolies, the government passed the Sherman Anti-Trust Act. This outlawed trusts. This act set a precedent- more of an understanding that government should control business more than it really did. Courts didn’t back the act. In the case of USA vs. EC Knight, the court said that EC Knight (sugar business) isn’t a trust- said that certain businesses are exempt. Businesses themselves fought the law. They instead formed holding companies.

Unions form-

Industrialization had a nasty little effect on the poor little worker- now they could work and had to work sixteen hours a day and horrible working conditions. No one cared about the worker, just the output. They had a tremendous lack of identity. People used to have important jobs and now they were left turning screws.


Unions that formed:
1. National Labor Union formed in 1866. It was made up of about 300 smaller labor unions. They managed to get an eight hour work day. They formed a political party called the Labor Reform Party. They even nominated someone for president in 1872.
2. Knights of Labor- Terrance Powderly formed this union. Everyone was allowed to join this union- the skilled and the unskilled workers, the black and the white.

As the union movement grew, two types of unions formed:
1. Trade and Craft Union. One had to have the skill to join this union. This fell under the umbrella of the American Federation of Labor. It was led by Samuel Gompers- was a Jew. The AFL’s tactic was called collective bargaining- union bosses were the mediators between the factory owners and the workers. Gompers campaigned for bread and water unionism- they wanted basics such as an eight hour workday and pay.
2. American Railway Union- led by Eugene Debs. He believed in allowing everyone in regardless of race, gender, skilled and unskilled. Debs felt the problem wasn’t the rich people, rather in how our economic system is set up. He said that a system of private ownership and competition allows for the rich to get richer and the poor to get poorer. He said that Americans should lean towards socialism because if the government owns business, then everyone is equal and everything is perfect.

A radical union that formed: Industrial Workers of the World (IWW) - it was founded in 1905. They advocated for extreme socialism, almost to the point of communism.

One of the major tactics all unions used was striking:
1. Great Railway Strike- took place in 1876. It was so powerful, the B and O (Baltimore and Ohio) railroads were shut down. President Hayes sent the workers back to work.
2. Haymarket Riot- took place in Haymarket Square, Chicago. The Knights of Labor organized a rally in Haymarket Square to protest the death of a fellow striker. They are unsure how it happened, but suddenly a bomb exploded. There was a riot. Strikers were displayed as violent groups. Within a few years, the Knights of Labor shut down.
3. Homestead Strike- Homestead, Pennsylvania in the Carnegie steel plant. He gave the workers of a pay cut so they went on strike. Carnegie hired scabs to take the place of the striking workers. Fights broke out between the workers and managers. Seventeen people ended up dead. When the strike was over, fewer than 25% of the strikers got their jobs back and there was no more striking in steel plants for the next twenty years.
4. Pullman Strike- the workers of Pullmingtown went on strike and the government forced them back to work.
5. Lawrence Textile Mill Strike- in 1912. Led by the IWW. They were successful.

Two women that helped unionize:
1. Mary Harris Jones- she was nicknamed Mother because she was a mother to all children. She helped unionize them. She took the children on a march before the White House. She also helped unionize mine workers.
2. Pauline Neuman- she helped unionize other woman in the garment industry- most of the woman were Jewish and Italian immigrants. No one listened to her about the plight of woman as she described the terrible factory conditions until there was a fire in the Triangle Shirtwaist Factory in 1911. 150 women died. When this went to the judge, the factory owners were found to be guilty. The bosses didn’t agree- said that a fire is a natural disaster. This started a new awareness and a trend toward improvement.

Three cases that show that judges sided with big businesses and one that showed improvement:
1. Hammer vs. Dagenhardt- was against child labor laws. Child labor laws had begun to be passed. Business men apposed child labor laws. The Supreme Court ruled in favor of business. They said that child labor laws are unconstitutional because they are denying children their rights.
2. Lockner vs. New York- in 1905. The Supreme Court ruled that you can’t limit a work day. This ruling was also in favor of businesses.
3. Muller vs. Oregon- somewhat overturned. Women were working in a bakery for very long hours. Woman sued for a shorter work day. Their lawyer named Brandice proved scientifically why a woman’s workday should be cut and he was successful.

With all the improvements, the government is now moving slowly toward change, and the businesses were continuously fighting. Some even forced yellow dog contracts on people- if you want to be employed by them, you can’t join a union.