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Chapter 6 Section 3

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Eric Maya

on 15 September 2014

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Transcript of Chapter 6 Section 3

Carnegie's Innovations
Andrew Carnegie came to country in 1848
By age 18 he was secretary to the President of Penn. Railroad
Made great deal of money in stocks, then got into steel industry
1899 Carnegie Steel Company manufactured more steel that GB
NEW BUSINESS STRATEGIES
Better machinery and techniques
Accounting processes
Competition among employees
Vertical Integration: control your suppliers
Horizontal Integration: control your competition
Social Darwinism and Business
PRINCIPLES OF SOCIAL DARWINISM
On the Origin of Species 1859
Published by Darwin ("natural selection")
Success and failure in business were governed by natural law and no one should intervene
A NEW DEFINITION OF SUCCESS
Social Darwinism made sense to rich and Protestant workforce
Few Control More
GROWTH AND CONSOLIDATION
"If you can't beat 'em... join 'em
Horizontal Integration in the form of mergers
Holding companies (U.S. Steel) would buy out stock of other companies to become powerful (bought out Carnegie Steel in 1901)
John D. Rockefeller used trust to make his money
Trust mergers happened when multiple companies turned their stocks over to a group of trustees to run the companies as one
companies gain dividends from the provits the trustees make
Few Control More cont...
ROCKEFELLER AND THE ROBBER BARONS
Corrupt business practices... control market then hike up prices
Many people called these industrialists "Robber Barons" but Rockefeller gave over $500 million to good causes
"for they are the bees that make the most honey, and contribute most to the hive even after they have gorged themselves full." - Andrew Carnegie
SHERMAN ANTI-TRUST ACT
To ensure a free market, government outlawed trust mergers
Not able to enforce this,.. gave up cases
BUSINESS BOOM BYPASSES THE SOUTH
Natural and urban resources plentiful in North
Northerners controlled RRs in South
Lack of capital for risky business ventures
Labor Unions Emerge
Exploitation and unsafe working conditions brought workers together to join unions
LONG HOURS AND DANGER
Steel mills=7-day/week... Seamstress=12hr./day... ZERO benefits
Dirty poor ventilated factories, faulty machines
1882=675 dead/week
everyone in the family had to work wagers were so low
20% of boys and girls under the age of 15 held full-time jobs
Sweatshops only open to women in children (27cents/day) 14hr\
EARLY LABOR ORGANIZING
NLU formed by William Sylvis
convinced congress to move to an 8hour workday
Noble Order of the Knights of Labor
700,000 deep... looked to arbitration for resolution of conflict
Everyone welcome, unlike the NLU (men and women equal)
Essential Questions
DAY 1:

What strategies enabled big business to eliminate competition?

How did industrial working conditions contribute to the growth of the labor movement?


DAY 2:
How did the 1877 strike and Haymarket cause the public to resent the labor movement?

How did craft and industrial unions differ?
Big Business and Labor
Chapter 6 Section 3
Union Movements Diverge
CRAFT UNIONISM
skilled workers from one or more trades
American Federation of Labor: collective bargaining
strikes used as a major tactic
1890-1915 wages skyrocketed and workhours down
INDUSTRIAL UNIONISM
Eugene Debs... American Railway Union
Unskilled and semi-unskilled laborers
1894 won strike for higher wages (membership up to 150,000)
SOCIALISM AND THE IWW
Socialism: government contol of business and property and equal distribution of wealth
Industrial Workers of the World
formed in Chicago by extreme socialists (miners, lumberers, dock workers
Strikes Turn Violent
April 1903 Japansese and Mexican workers form Sugar Beet and Farm Laborers Union of Oxnard CA
Wyoming State Federation of Labor
THE GREAT STRIKE OF 1877
Baltimore and Ohio Railroad workers: 2 pay cuts in 2 months
federal troops had to come stop the strike due to president intervention
THE HAYMARKET AFFAIR
May 4 1886 3,000 protestors gathered in Chicago's Haymarket square to protest police brutality
incident prior day, rain, crown leaving, bomb
7 officers dead, several workers dead (police hatred)
Strikes Turn Violent cont...
THE HOMESTEAD STRIKE
1892 Carnegie Steel Mill in Homestead PA workers strike due to cutting of wages
Scabs (tempory workers to break a strike) were used, but workers broke through Pinkerton Dective Agency
eventually workers gave in to company
THE PULLMAN COMPANY STRIKE
Laid of 3,000 people in 1893 during Panic
Reduced wages upto 50% without reducing price of rent
Debs tried arbirtation... hired strikebreakers made strike turn violent
Grover Cleveland sent in Federal Troops (workers blacklisted)
Strikes Turn Violent cont...
WOMEN ORGANIZE
Mary Harris Jones: most prominent woman labor movement organizer
United Mine Workers... Child march
ILGWU: organized by 16 year-old (seamstress since the afe of 8)
Uprising of 20,000
Triangle Shirtwaist Factory NYC: fire in textile mill
oil, cloth, only one door unlocked, 146 women died
MANAGEMENT AND GOVERNMENT PRESSURE UNIONS
Managers feared unions
Yellow-Dog contracts, fired workers, forbid from joining
Sherman Anti-Trust Act turned against labor
However, by eve of WWI... AFL had membership over 2,000,000
Full transcript