Note 17 for HISTORY 152 with Professor Horger at OSU
Note 17 for HISTORY 152 with Professor Horger at OSU
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Date Created: 02/06/15
The Unfinished Nation Chapter 17 Industrial Supremacy 0 Sources of Industrial Growth 0 Factors Contributing to the Growth of American History abundant raw materials growing labor supply surge in technological innovation the emergence of a talented ruthless group of entrepreneurs federal government assists business growth and an expanding domestic market for products 0 lndustrialTechnologies I Innovations in Communications telegraph cable to Europe telephone radio typewriter cash register adding machine I Electricity Charles F Brush arc lamp for streets Thomas A Edison lightbulb 0 Improving Generators 0 Building large power plants I Highefficiency Steam Engines 0 Capable of powering larger ships at faster speeds o Refrigerated Ships 0 The Technology of Iron and Steel Production I Revolutionizing of Iron and Steel Production 0 Rise of demand due to production of railways 0 Process for converting iron into steel more durable and versatile 0 Henry Bessemer Englishman 0 William Kelly American 0 quotThe Bessemer Process 0 quotOpen Hearth Process I Abram S Hewitt NJ 0 Centers of Steel Production Pittsburgh 1 upper peninsula of Michigan Mesabi Range MN Birmingham Cleveland Detroit Chicago 0 Furnaces redesigned o Cylindrical iron shells lined with brick I New transportation Systems 0 Steam Freighters 0 Demand for vessels capable of transporting oil 0 Development of new and more powerful steam engines 0 Closer relationship between emerging steel companies and railroads 0 Pennsylvania Railroad created the Pennsylvania Steel Company 0 Used for lubrication in the steel industry 0 Demand grew after discovery of uses 0 Burned in Lamps George Bissell o Paraffin o Naphtha o Lubricating Oil 0 Oil Wells Pennsylvania Ohio West Virginia 0 The Automobile and the Airplane I Automobiles 0 Two Critical Technologies Gasoline and Selfcontained engine 0 Nicolaus August Otto German o Gottfried Daimler 0 First Gasoline driven motor vehicle in America 0 1893 0 Charles and Frank Duryea 0 First Famous Cars 0 Henry Ford Airplane o Wilbur and Orville Wright 0 Glider propelled by internalcombustion engine 0 Begin in 1899 o 1903 test flight in Kitty Hawk 120 ft 12 sec 0 1904 able to fly 23 miles 0 Technology slow to take hold in US 0 Most early progress occurred in France 0 1915 US govt created National Advisory Committee on Aeronautics 0 Used in WWI 0 Commercial flights begin in 1920s 0 Research and Development Business leaders stated research operations Decline in government support for research Decentralized the source of research funding Inquiry moved in many directions not just that of the govt Engineers and Scientists o The Science of Production Changes in techniques of production llScientific Management quotTaylorism I 0 Frederick Winslow Taylor Subdividing Tasks 0 Make worked more interchangeable o Diminished dependence on any particular employee Mass Production and the Moving Assembly Line 0 Henry Ford 1914 o Interchangeability of parts 0 Raise wages and reduce hours 0 Cut base price for Model T o Became standard for many industries 0 Railroad Expansion in the Corporation Access to distant markets and remote sources of raw materials Subsidies from all govt local to federal Foreign loans and investments Growth of the modern corporation Stocks sold to raise money for businesses 0 Limited liability o Risked only the amount of investments and were not liable for any debts the corporation might accumulate beyond that point US Steel Corporation 0 Andrew Carnegie o 1873 opened in Pittsburgh 0 Spread to dominate the industry 0 Sold in 1901 J Pierpont Morgan 0 Bought for 450 million 0 Merged Carnegie interests with others Controlled 23 of the nation s steel production I Consolidation Horizontal Integration combined a number of firms engaged in the dame enterprise into a single corporation Vertical Integration a company took over all the different businesses on which it relied for its primary function Standard Oil 0 John D Rockefeller 0 Both types of integration 0 Became a leading symbol of monopoly 0 Established competition Pool Arrangements informal agreements among various companies to stabilize rates and divide markets 0 Often collapsed dues to firms unwilling to cooperating 0 Lead to new techniques Creation of trusts o Stockholders transferred their stocks to a small group of trustees in exchange for shares in the trust itself 0 No direct control over trustees decisions just receive a share of the profits 0 Trustees may own a few companies and could exercise control over many Buying up Rivals 0 Original trusts became unnecessary 0 Holding company a central corporate body that would buy up the stocks of various members of the trust and establish direct formal ownership of them Gave a few men most of the power over economy and politics 0 Capitalism and its Critics I Survival of the Fittest Ideology of Individualism the industrial economy was not shrinking opportunities for individual advancement but rather providing every individual with a chance to succeed and attain great wealth Social Darwinism only the fittest individuals survived and flourished in the marketplace misapplication to human society of Charles Darwin s laws of evolution and natural selection among species 0 Legitimized success and confirms virtues for corporate leaders 0 Had little to do with reality of the corporate economy Celebrated competition and free market but were trying to eliminate it I The Gospel of Wealth Gentler philosophy than Social Darwinism but still selfserving The Gospel of Wealth People of great wealth had not only great power but also great responsibility to use their riches to advance social progress 0 1901 book by Andrew Carnegie Idea of private wealth as public blessing Idea of great wealth being available to all Horatio Alger most famous promoter of success 100 novels that were tributes of the ragstoriches idea Louisa May Alcott gave voice to the unstated ambition of women independence and drive I Alternative Visions Challenges to the corporate ethos and capitalism Socialist Labor Party radical approach to reform 1870s Daniel De Leon never a major political force Henry George 0 Progress and Poverty published 1879 bestselling nonfiction in American publishing history 0 Blamed social problems on the ability of a few monopolies to grow wealthy as a result of rising land values 0 Proposed a llsingle tax on land and replace all other taxes which would return the increment to the people 0 Argued the tax would destroy monopolies distribute wealth more equally and eliminate poverty Edward Bellamy s Looking Backward trust continued to grow until a single great trust controlled by the government was formed I The Problems of Monopoly People were becoming concerned about the growth of monopoly Argued that monopolistic industries could charge whatever they wished since they know the consumers had no choice but to pay Artificially high prices contributed to the instability of the economy 0 Production consistently outpaced demand 1873 economy began fluctuating erratically severe recession every fivesix years 0 The Ordeal of the Worker I Many workers experienced a rise in their standard of living but at the cost of dangerous working conditions and loss of controlpower in the workplace I The Immigrant Workforce Americans were moving to factory areas and away from farming Immigration following the civil war 25 million from 18651915 0 Left poverty and oppression o Expectations of new opportunities Working class greatly expanded Labor Contract Law permitted employers to pay for the passage of workers in advance and deduct the amount from their wages later repeal in 1885 Employers encouraged immigration of unskilled laborers Growing Ethnic tensions due to shift in wages I Wages and Working Conditions Little job security due to technological advances Paid 100200 less than the amount believed to maintain a comfortable lifestyle Wages often cut Most people in poverty Long hours 6 days per week frequent industrial accidents Hired women and children at lower wages than men 17 million children under sixteen worked in factories Child Labor Laws passed in 38 stated in the late 19 h century set min age to 12 and a max work day of 10 hours child workers employed in agriculture were typically exempt from the laws I Emerging Unionization Creation of national unions to fight against working conditions Little success by end of century Widespread public hostility towards unions in the 1870s Molly Maguires militant labor organization that used violence and at times murder while fighting with coal operators Railroad Strike of 1877 eastern railroads announced wage cut violent strikers police in Pittsburgh and other cities Federal troops sent over 100 people died before the strike collapsed I The Knights of Labor I The AFL Noble Order of the Knights of Labor founded in 1869 open to all who lltoiled included workers most business and professionals people and women there were no lawyers bankers liquor dealers or professional gamblers Championed 8 hour work days and abolished child labor Wanted longrange reform of the economy Cooperative system workers would control their workplace Secret Fraternal Organization Terence V Powderly moved the order into the open leader during large expansion Strikes in 1880s despite what Powderly wanted Failure discredited the organization Large drop in membership The American Federation of Labor For skilled workers not for all Leader Samuel Gompers Objectives wages hours and working conditions National strike on May 11886 when not given 8hour work days Haymarket Square May 1 o Strike against McCormick Harvester Company Chicago 0 Police ordered people to disperse 0 Bomb thrown killing 7 policemen and injured 67 0 Police killed 4 strikers the previous day and 4 more after the bomb o Rounded up 8 anarchists and charged them with murder after a demand for retribution all were found guilty 7 set to death 0 People feared anarchists Tried to distance from radicals I The Homestead Strike Amalgamated Association of Iron and Steel Workers 0 Most powerful trade union in US 0 Skilled Workers in high demand Demand for skilled workers decreased with new production methods Maintained jobs in the Homestead plant near Pittsburgh Carnegie and Henry Clay Frick repeatedly cut wages Strike occurred when company no longer informed union of decisions and gave two days to accept a pay cut Plant shut down and 100 guards Pinkerton Detective Agency called in by Henry Clay Frick July 6 1892 Strikers poured gas on water and set it on fire 3 guards and 10 strikers killed Pinkertons surrendered Governor sent in the state s National Guard after the victory production resumed Radical attempted to assassinate Frick public opinion changed Strike ended after 4 months with strikers resuming work I The Pullman Strike 1894 The Pullman Place Car Co near Chicago Constructed town around plant and rented homes to employees complain of high rent Cut wages 25 citing declining revenue but maintained high rent Strike American Railway Union supported the strike by refusing to handle Pullman cars and equipment Railroad workers in 27 states and territories on strike Transportation from Chicago to Pacific Coast Halted John Peter Altgeld governor of IL refused to call militia employers turned to federal govt Used prevention of movement of the mail as reason Grover Cleveland ordered 2000 troops to area Federal Court issued injunction forbidding the union to continue the strike Union leaders thrown in jail troops protected the hiring of new workers Strike collapsed I Sources of Labor Weakness Few gains for the labor force Many accomplishments were not enforced Didn t make greater gains for many reasons Major labor organizations only represented a small amount of the industrial workforce Shifting of the workforce shift to immigrant workers Corporate organizations of wealth and power ruined any efforts by workers to challenge them usually has support of authorities
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