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APUSH: Ch 17 - Industrial America: Corporations and Conflicts, 1877-1911

Chapter 17: Industrial America: Corporations and Conflicts, 1877-1911

Harry Jarcho

on 3 March 2017

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Transcript of APUSH: Ch 17 - Industrial America: Corporations and Conflicts, 1877-1911

Immigrant Labor – Sweatshops
Immigrant Labor – Factories & Mines
Video: Mother Jones and Child Labor
Pullman Car Company Riot
Pullman Palace Car Co. lowered wages of workers during the depression of 1893
Labor leader
Eugene V. Debs
organized a strike – rail workers nationwide refused to switch trains that contained Pullman cars, crippling rail traffic running through Chicago.
Government and Public Reaction:
Pres. Grover Cleveland invoked the
Sherman Anti-Trust Act
to charge strike leaders with restraint of commerce
Supreme Court legalized the use of injunctions against labor unions
Riots broke out when troops moved in on strikers who refused to return to work – 13 died and 53 wounded
This incident further painted the public image of labor unions as un-American, anarchist – organized labor’s power was further weakened as courts increasingly side with employers.
Labor Unions and Industrial Conflict
Unionization: Motivation and Challenges
Early unions included the
Knights of Labor
, and the
American Federation of Labor.

Why unionize:
Rapid immigration of desperately poor foreigners led to low wages, long hours, poor and dangerous working conditions.
Workers joined unions to fight for higher wages, shorter working hours, to control immigration, and to get health benefits.
Obstacles to unionization:
Big business exploited ethnic and racial divisions among workers
Skilled craftsmen were reluctant to unite with unskilled labor or across craft lines
Even though conditions were bad, immigrants had a chance to make considerably more money in the U.S. than they could have in their homelands. They had a chance to save money and have a better life
Irish – Unskilled construction occupations
Germans – Skilled metalworking
French-Canadians – Worst jobs in textile mills
Chinese on the West Coast – Physically demanding jobs in mining and and railroad construction
To keep workers in place, employers kept wages low and set up low-cost housing for the workers

Immigrant Labor
Industrialization happened much more slowly in the South.
Civil War destruction, racism, primitive public education system, lack of capital all were obstacles to modernization.
Due to credit debt, farmers and sharecroppers were tie to the land, so there was a labor shortage for industrialization
North-favoring high tariffs made it more expensive for the South to gain technology needed to progress to industrialization.
Industrialization gained momentum in the 1880s
Iron and steel industries led the way, as ore was present
Although owned by Northern banks and corporations, iron and steel became successful
Textile industry later migrated south in order to avoid labor unions
Industrialization in the South
Inventions cont….
Invented by Alexander Graham Bell
Transformed communication
Changed people’s social behavior towards one another
Railroad monopoly depicted as Frankenstein monster destroying the U.S. Constitution while Dr. Frankenstein (Uncle Sam) looks on in horror.
Railroad companies pioneered important advances in large-scale business:
Created national markets for goods
Developed new business methods to control very large, complex operations
Enlisted government as an ally – land grants and subsidies from federal and state government to build tracks
Issued stock to raise huge sums of money
Separated ownership from management – the modern corporate model

Railroad Innovations
Chapter Essential Questions
How did industrialization change American business?
How did industrialization affect workers?
What innovations in technology and business contributed to industrialization?
How did the South’s experience in industrialization differ from that of the North?

Opposed to Intervention:
Laissez-faire (hands-off) argument - opposes government control of or intervention into the free market
Survival of the fittest - Free competition may be hard for the individual, but it is best (most efficient) for society – Also known as Social Darwinism)
The govt has a responsibility to provide law and order, and protect basic rights, not to assure the welfare of the people

In Favor of Intervention:
Utopian thinkers believed that societies based upon the common welfare, rather than individual gain, were possible, and that government should protect the weak
Socialism – State control of economy – distributes resources according to need
Marxism (next slide)
May 1, 1886: Thousands of McCormick Reaper workers walked off the job in support of the
8-hour workday
3 days later, during the walk-out, police shot and killed four strikers
During a rally at Haymarket Square, Chicago, held the next night to protest the police brutality at the McCormick plant, someone threw a bomb, killing seven policemen
The police fired into the crowd, killing four demonstrators
The public was outraged, and blamed the protesters, most of whom were German immigrants and thought to be anarchists
Despite the absence of any physical evidence, four strikers were convicted of throwing the bomb, tried, convicted, and executed
A panicked public was convinced that the nation was in the grip of a foreign, anarchist conspiracy to destroy America.
This event led to the decline of the Knights of Labor and the public turned against organized labor in general
Case Study:
The Haymarket Square Riot (Chicago, 1886)
Public sentiment turned against strikes – unions were increasingly viewed as violent and disruptive
Employers began to require that workers sign “yellow dog” contracts, in which they vowed not to join a union or go on strike
Private police forces (Pinkertons) and US army were used to suppress labor actions
Court decisions consistently supported employers and ruled against labor action
Between 1870 and 1905 there were over 37,000 labor strikes
Panic of 1873 led to riots and a strike that paralyzed two-thirds of the nation’s railroads and left over 100 dead
US was on the verge of a class war
Strikes and Violence – Overview
Competition is inherent in the capitalist system, which encourages the exploitation of labor:
Competition promotes low wages and hazardous conditions because of the need to minimize production costs
Instigates worker responses such as labor unions, violence, and strikes
Disruptive labor action leads to controversy over whether the government should take action to suppress strikes and declare unions an illegal restraint of commerce.
Labor Unions and Industrial Conflict: Overview
Labor Unions and Industrial Conflict
Between 1860 and 1900 industrial work force increased from 885,000 to 3.2 million (360%)
The transition from working in workshops to factories changed the nature and meaning of work for both skilled artisans and unskilled workers
Workers adapted to rigid time schedules and long, regulated working hours
Health and safety hazards abounded
Much factory work was monotonous, repetitive, and often hazardous - and disabled workers and/or widows received minimal financial aid from employers
Railroad and factory owners fought against state and federal health and safety regulation on the grounds that it would be too expensive
The Changing Nature of Work
The construction of railroads after the Civil War expanded the southern market towns and textile mills.
Many Southerners were optimistic that mill development would boost the failing southern economy.
Southern mills used a more varied labor force instead of mostly female and single laborers.
Southern mill economy experienced steady growth and became the center of the textile industry in the U.S.
The Southern Mill Economy
The great wealth of industrialization was built on the backs of workers, often unskilled immigrants, women, and children, who did not share the benefits from economic growth
Growing gap between the rich and poor
Ruthless competition often destroyed the dream of “the little guy” – the start-up costs for many industries were beyond the means of most Americans
Unregulated industrial growth led to widespread environmental pollution
Dark Side of Industrialization
Mass production heralded in new advertising and marketing techniques to influence consumers to buy the new products
To stimulate consumer demand, producers developed new product lines with catchy names.
- Ex. Quaker Oats in the flour industry
Consumer loyalty was gained my gimmicks, slogans, endorsements and guarantees
Advertising and Marketing
New Inventions streamlined production, stimulated consumer demand, and eased the drudgery of daily life:
Sewing Machine
Mass produced by the Singer Sewing Machine Company
Factory-stitched clothing faster and cheaper
Women no longer had to make clothes for their family by hand
More people could have more clothes
The Triumph of Technology
Horizontal Integration
Rockefeller bought up competing oil refineries, or undersold and drove them out of business
By 1879, Standard Oil controlled 90% of the nation’s oil-refining capacity
Congress passed the Sherman Anti-Trust Act (1890) to control trusts and restraint of trade, but business-friendly Supreme Court rulings rendered it largely ineffective.
The growth of the railroads was closely paralleled by the growth of the steel industry, and its first tycoon, Andrew Carnegie
Rising from nothing, but making a small fortune in the railroad industry, Carnegie decided, in the 1870s, to build a steel mill
With ruthless cost cutting, low wages, and kickbacks to railroad agents for doing business with him, Carnegie undercut competitors and drove them out of business
Andrew Carnegie:
Applying the Lessons of the Railroads to Steel
Using British and eastern banks, early railroad entrepreneurs (e.g., Jay Gould of the Union Pacific) consolidated the rails
by 1907 seven corporations controlled 2/3s of the nation’s rail mileage
Favoritism to large shippers and kickbacks (payoffs) to politicians fueled outrage that the economy was rigged against the common farmer and common working man
Interstate Commerce Act
(1887) was passed to try to curb abuses, but successful challenges to a business-friendly Supreme Court largely negated the Act’s impact

Consolidating the Railroad Industry
Six factors combined to shape industrial expansion in the post-Civil War period:
1. Availability of immense coal deposits
2. Rapid technological innovation in transportation,
communication, and factory production
3. Availability of a large, low-wage labor force
4. Fierce competitive pressures on businesses to cut
costs and prices
5. Relentless drop in prices of goods as
productivity increased
6. Easy bank credit policies which financed industrial

The Character of Industrial Change
The rise of industrial America was a story of risk, daring, innovation, conspiracy, and corruption.
By 1900 the US produced 35% of the world’s manufactured goods – more than England, Germany, and France combined
Large-scale investment and the national rail system had created a new economy and transformed work
Assembly-line mass production replaced skilled labor in the making of many goods
Ruthless cost-cutting produced cheap consumer goods and raised the quality of life for many
But also relegated many workers to poverty and brought air, water, and land pollution to new levels

The Rise of Corporate America
Significance: The Knights of Labor awakened thousands of workers to a sense of group solidarity and potential strength. The Knights of Labor faded when they were accused of radicalism and anarchy following the Haymarket riot
Called for an association of all workers, skilled and unskilled
Demanded end to child and convict labor
Demanded equal pay for women
Sought to include blacks
Sought alliance with owners, not use of strike
Opposed immigration, especially Chinese, who they feared would steal jobs since they worked for such low wages.
Knights of Labor faded after the Haymarket riots, when they were accused of radicalism and anarchy
Knights of Labor
Conditions were bad for both the worker’s health and safety
12hr shifts
Frequent Accidents
Dangerous Machinery
Inexperienced Workers
Rapid Rate of Production
Employer Indifference
Factory Working Conditions
Kodak labs developed the film and mailed the reloaded camera and the photographs back to the consumer
The camera industry boomed from this type of marketing.
Mass production heralded in new advertising and marketing techniques to influence consumers to buy the new products
In 1884 George Eastman developed a paper-based photographic film
To popularize his film, Eastman manufactured a cheap camera, the Kodak, bringing photography to the masses for the first time
Edison invented many other important products like the telegraph, the phonograph, the microphone, and storage battery
Edison influenced the ideas of many inventors.
His Menlo Park invention lab became the model for GE, Kodak, DuPont and other industries in which science was used to create consumer goods

Allowed for longer and more regular working hours

Thomas Edison and the Light Bulb
Vertical Integration
Rockefeller bought oil wells, refineries, built his own tanker cars and pipelines to deliver the oil
John D. Rockefeller and Standard Oil
Very similar to Carnegie – had same passion for cost cutting and efficiency
Built Standard Oil
A ruthless competitor - used price cuts and deal making to gain control of oil industry
Standard Oil was built on both vertical and horizontal integration

Lung disease a serious problem among children because of the dust and fumes in coal mines and textile mills
Children worked because they needed to make money for their families
Entered the work force at age 8 or 9
High accident rate due to fooling around while at work
Child Labor
A trust is a monopoly in which separate companies are all run by a common board of directors. They set prices and set quotas, rather than having the separate companies compete against each other.
The trust enabled businesses to control prices and output, to keep profits high
Trusts soon came to dominate oil, salt, tobacco, sugar, and meatpacking, as well as steel

The Trust
Samuel Gompers tries to keep a lid on wildcat strikes
As the Knights of Labor weakened, the American Federation of Labor, led by Samuel Gompers, grew.
The AFL included only skilled labor
Created a federation (alliance) of skilled trade unions, which retained control of their own members
An executive council coordinated action across member unions during boycotts and strikes
The AFL stressed “bread & butter” issues, like better wages and shorter hours - tried to avoid involvement in politics and ideology
By 1904, the AFL had grown to 1.6 million members

American Federation of Labor
Between 1870-1900, the number of women in the workplace tripled.
By 1900, 17% of the labor force was women
The presence of women in the workforce was often resented, especially when women replaced men at lower wages

Marital status and social class influenced whether one worked
Married, upper and middle class women didn’t work
Working class women worked to help support their families
Single women (immigrants, farming girls, and urban dwellers) thought that working gave them more opportunities
Women in the Workforce
Chapter 17: Industrial America: Corporations and Conflicts, 1877-1911
Advertising and Marketing
After Pullman lowered the wages of workers during depression of 1893, Eugene V. Debs led a huge strike in which rail workers nationwide refused to switch Pullman train cars, stopping all rail traffic running through Chicago.

Pullman Palace Car Company Strike
Economic Theory and the The Great Debate:
Should government intervene in the economy to ease the burden of the working poor?
Marxist theory:
Labor (not owners) creates wealth, therefore, labor should possess the wealth [
Labor Theory of Value
Capitalist competition leads to fewer and fewer owners, and more and more wretched conditions for the worker class
As wages decline and starvation ensues, the proletariat (industrial working class) will rise up and seize control of the state and the economy [See Communist Manifesto for clearest expression of this theory]

Anarchists - Marxism found few supporters in the U.S. beyond a small group of German immigrants - which only reinforced middle class views that labor troubles were caused by ungrateful immigrants, especially since the German Marxists tended to be anarchists calling for the overthrow of the state
Child labor in a textile mill in Macomb, Georgia in the early 1900’s
Carnegie pioneered vertical integration – ownership or control of all aspects of a manufacturing operation – to control profits. He bought mines to provide ore, built the smelters, and built or bought rail lines to deliver the finished product
By 1900 Carnegie Steel was the largest industrial corporation in the world
In 1901, Carnegie sold Carnegie Steel to banker J. P. Morgan for almost $500 million. Combined with Morgan’s Federal Steel, the new US Steel Corporation was the world’s first $1 billion business
Carnegie’s “rags to riches” story became part of the American mythology as an immigrant’s “land of opportunity.”

Carnegie believed that the rich had a duty to help the poor and improve society:
He defended amassing enormous wealth as a better way to distribute it and advance society
He donated millions to charity, building libraries and other cultural charities (like Carnegie Hall in NYC)
Carnegie’s Gospel of Wealth:
From Robber Baron to Philanthropist
YouTube Video:
The Ballad of Joe Hill
Sung by Pete Seeger
I dreamed I saw Joe Hill last night,
alive as you and me.
Says I "But Joe, you're ten years dead"
"I never died" said he,
"I never died" said he.

"The Copper Bosses killed you Joe,
they shot you Joe" says I.
"Takes more than guns to kill a man"
Says Joe "I didn't die"
Says Joe "I didn't die"

"In Salt Lake City, Joe," says I,
Him standing by my bed,
"They framed you on a murder charge,"
Says Joe, "But I ain't dead,"
Says Joe, "But I ain't dead."
And standing there as big as life
and smiling with his eyes.
Says Joe "What they can never kill
went on to organize,
went on to organize"

From San Diego up to Maine,
in every mine and mill,
Where working men defend their rights,
it's there you'll find Joe Hill,
it's there you'll find Joe Hill!

I dreamed I saw Joe Hill last night,
alive as you and me.
Says I "But Joe, you're ten years dead"
"I never died" said he,
"I never died" said he.

The Ballad of Joe Hill
Men walkin' 'long the railroad tracks
Goin' someplace there's no goin' back
Highway patrol choppers comin' up over the ridge
Hot soup on a campfire under the bridge
Shelter line stretchin' round the corner
Welcome to the new world order
Families sleepin' in their cars in the southwest
No home no job no peace no rest

The highway is alive tonight
But nobody's kiddin' nobody about where it goes
I'm sittin' down here in the campfire light
Searchin' for the ghost of Tom Joad

He pulls prayer book out of his sleeping bag
Preacher lights up a butt and takes a drag
Waitin' for when the last shall be first and the first shall be last
In a cardboard box 'neath the underpass
Got a one-way ticket to the promised land
You got a hole in your belly and gun in your hand
Sleeping on a pillow of solid rock
Bathin' in the city aqueduct
The highway is alive tonight
But where it's headed everybody knows
I'm sittin' down here in the campfire light
Waitin' on the ghost of Tom Joad

Now Tom said "Mom, wherever there's a cop beatin' a guy
Wherever a hungry newborn baby cries
Where there's a fight 'gainst the blood and hatred in the air
Look for me Mom I'll be there
Wherever there's somebody fightin' for a place to stand
Or decent job or a helpin' hand
Wherever somebody's strugglin' to be free
Look in their eyes Mom you'll see me."

The highway is alive tonight
But nobody's kiddin' nobody about where it goes
I'm sittin' downhere in the campfire light
With the ghost of old Tom Joad
The Ghost of Tom Joad
Video: The Ghost of Tom Joad
by Bruce Springsteen
Link to "Gospel of Wealth" excerpt: https://docs.google.com/document/d/1RMLoKyZvGtX2XdrkHlE7x-1SMx1KqFdp6YsD--zkxjg/edit
Link to Terrance Powderly and the platform of the Knights of Labor:
Case Study:
Andrew Carnegie and the Homestead Steel Strike (1892)
Link to Industrial Conflict: Andrew Carnegie and the Homestead Steel Strike:
MAP 17.2: Sources of European Immigration to the United States, 1871–1910
Around 1900, Americans began to speak of the “new” immigration. They meant the large numbers of immigrants arriving from Eastern and Southern Europe — Poles, Slovaks and other Slavic peoples, Yiddish-speaking Jews, Italians — who overwhelmed the still substantial number of immigrants from the British Isles and Northern Europe.
A Flood of Immigrants: Why did many people immigrate to the United States during this period?
The New Immigrants
Push Factors for immigration are reasons that immigrants came in order
to escape problems in their homeland
Examples of Push Factors:
Poverty, starvation, religious persecution, political persecution

– ex. Ireland, China
Scarcity of land
in Europe – land ownership for those not born to land was virtually impossible
Political and religious persecution
the pogroms, organized attacks by the Russian government on Russian Jews caused millions of Russian and Eastern European Jews to flee to America
Persecution and slaughter of 1 million ethnic Armenians by the Ottoman Empire between 1880 and 1910
1910 Revolution in Mexico
Push Factors
Pull Factors
for immigration are reasons that immigrants came because they saw opportunities in America.

Examples of Pull Factors:
Job opportunities,
cheap available land,
religious or political freedom
Pull Factors
What is the difference between “old immigrants” and “new immigrants”?
Old immigrants
primarily from northern and western Europe
mostly Protestant from Britain, Ireland, Scotland
Also, Germans, Scandinavians, who were Catholic, as well as Irish Catholics
New immigrants
primarily Southern and Eastern European (Italian, Polish, Greek, Russian, Hungarian)
More likely to be Catholic or Jewish
Also, Asians, esp. Chinese and Japanese
McCormick Reaper workers went on strike for the 8-Hour Day
A Mass Meeting was called to protest the deaths and police violence that had taken place at the McCormick plant.

The violent language of the flyer and the German used made it easy to portray the rally as anarchist-inspired.
What are
Why did they resent immigration?
Nativism and Nativist Fears

Without offense, but with regard to the salvation of our own, let us shut the door and assimilate what we have, and let us breed pure American citizens and develop our own American resources. … and develop what we have, assimilate and digest what we have into pure Americans, with American aspirations, and thoroughly familiar with the love of American institutions, rather than the importation of any number of men from other countries. If we may not have that, then I am in favor of putting the quota down to the lowest possible point, with every selective element in it that may be.
We do not want to tangle the skein of America’s progress by those who imperfectly understand the genius of our Government and the opportunities that lie about us. Let up keep what we have, protect what we have, make what we have the realization of the dream of those who wrote the Constitution.

South Carolina Senator Ellison DuRant Smith, April 9, 1924
Many immigrants attempted to settle in by moving into neighborhoods with their own ethnic group, people of common origin and culture
Religion played an important role in organizing immigrant life
are citizens who
opposed immigration,
claiming that immigrants did not want to
to American culture and, therefore, posed a threat to American values
Nativists also feared economic competition
, believing that immigrant labor pulled down wages and threatened natives’ jobs
U.S. Senator Speaks Against Immigration
New Immigrants
were viewed as alien – more “foreign” – and less likely to assimilate into American culture
They had their own neighborhoods, customs, holidays, and languages
Fewer spoke English
Religious prejudice
Those from eastern or southern Europe were more likely to be Catholic, Jewish, or Eastern Orthodox
Those from Asia were more likely to be Buddhist or Daoist
Religious, cultural, and language barriers made the "New Immigrants" seem more foreign to settled Americans
Prejudice toward Chinese immigrants was especially intense, leading to violence and Congress passing the
Chinese Exclusion Act
(1882) which was not repealed until 1943
Congress also passed laws denying entry to immigrants who could not read, laws that were consistently vetoed by Presidents, until Congress overrode Woodrow Wilson’s veto in 1917
Why was there so much prejudice against the “New Immigrants"?
Nativist Prejudice and Chinese Immigration
Click to watch video
Andrew Carnegie:
Applying the Lessons of the Railroads to Steel
The Great Railroad Strike of 1877
Video: New Immigration and the American Dream
European Immigrants Arrive at Ellis Island, NY
Asian Immigrants Arrive at Angel Island,
San Francisco Bay, CA
Immigrants being inspected at Angel Island.
Immigrants with sickness or disease were either placed in quarantine or refused entry.
The Agricultural West and South Mobilize:
The Grange and Farmers Alliance Movements
Originally founded as a fraternal organization
to provide fellowship and emotional support for isolated midwestern farmers
to provide economic support to farmers through cooperative buying, selling and storing grain – cutting out the “middle man”
National political parties largely ignoring problems of farmers:
Falling wheat prices
tight money
mounting debt
The Grange focused its efforts on electing law makers who would be sympathetic to the needs of small farmers – regulating railroad prices and fees charged by grain storage companies

“Granger Laws”
: The Grange succeeded in passing laws fixing grain prices and maximum freight rates in Illinois, Wisconsin, Minnesota and Iowa, BUT:

Munn v Illinois (1877)
: Supreme Court ruled that these law regulating grain prices were constitutional
Wabash v Illinois (1886)
: Court ruled that state efforts to set limits on railroad freight prices was an unconstitutional interference with interstate commerce

In 1887 Congress passed the
Interstate Commerce Act
granting Congress the power to regulate railroad rates, and prohibiting short-haul/ long-haul rate differences, which discriminated against small farmers.

The "Granger Laws" and Limits
The railroads responded to federal legislation by pressuring state governments to repeal freight price controls.
Although the railroads continued to exercise monopolistic power over prices, a precedent was set for the future.
The Grange movement faded, because its dreams of freeing its members from dependence on banks and credit were unrealizable, but it gave birth to future, more effective, agrarian reform efforts

The Grange Movement
Begun in the South in the 1870s, the Farmers Alliance spread eastward and to the Great Plains in the 1880s
Originally an effort to save money by buying equipment cooperatively, the Alliance became a political force determined to change the nation’s economic and political system
The Farmers’ Alliance
In 1892 alliance leaders organized the Populist Party, adopting the alliance agenda, and calling for the return of government “to the hands of the ‘plain people’ with which class it originated.”

Political agenda of the Farmers’ Alliance:
Tariff reduction
Graduated income tax
Public ownership of the railroads
Federal funding for irrigation research
Ban on landownership by aliens
Free and unlimited coinage of silver
Interracial agrarian cooperation

The Farmers’ Alliance
The Grange Movement
Link to good description of the strike and its significance to the rise of labor violence
The Sherman Antitrust Act (1890)
The Sherman Antitrust Act was the 1st federal effort to attempt to rein in the power of trusts and monopolies
it forbid any "combination, in the form of trust or otherwise, or conspiracy, in restraint of trade"
its impact was severely weakened by Supreme Court rulings
infamously, the Sherman Act was invoked in the Pullman Strike, in which the courts ruled that the strike and the American Railway Union were a conspiracy in restraint of trade
In 1914, Congress passed the Clayton Antitrust Act, which strengthened the Sherman Act and which specifically exempted labor unions from antitrust legislation
Progressive Era Reforms:
Exposes of factory treatment of children led to the formation of
National Child Labor Committee
in 1907 and, under Teddy Roosevelt, the
Children's Bureau
in the U.S. Labor Department
Full transcript