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- Chapter 18 Notes - (Industrial Rise)

Originally written by Thomas Heissenberger.

Please edit this as you see fit. I can not guarantee 100% accuracy. Please use these for study purposes only, not to complete homework. Remember, reading and writing (in other words; processing the information), is the best way to learn and understand the subject. Reading notes will help you understand the general picture but reading details within the book will also help you find small details that might be on the multiple choice questions. However, all posted notes will have greater detail than average homework notes.

The Character of Industrial ChangeEdit

  • Factors of manufacturing
    • Large coal deposits
    • Rapid tech innovations
    • Large amounts of new workers
    • Budget cutting
    • Constant drop in prices (The start of everyday cheap prices like we have today)
    • Failure of money supply to keep up with productivity
  • All played rolls such as Penn. coal, and corporations destroying each other with cost cutting
  • Pollution rise
  • Everyone struggled especially during the depression.
  • Raw material boom e.g. gas, coal, petroleum, steel etc.

Railroad InnovationsEdit

  • Railroad experienced biggest boom during the period.
  • Connections to towns were made EVERYWHERE literally and increased distribution of goods.
  • Received or took loans from gov't or corporations. (Bond system was majorly used, )
    • Big debt as result from ($5.1 billion?)
  • Railroad relied big on telegraph
  • Extremely sharp management of profits and railroad management

Consolidating the Railroad IndustryEdit

  • Big variations in track industry (track width, car couplings, engine size)
    • Big railroad companies took smaller ones and united them under their name, creating a big network.
  • Railroad owners depicted as villains in media
  • Railroads eventually become standardized with similar interlocking parts
    • System became synchronized, works quite well. Comes at cost.
  • Government slaps hand on track industry over rate discrimination.
    • Congress passes Interstate Commerce Act
      • Used to oversee railroad practices
    • Railroads fight back with cases, vicious competition

Applying the Lessons of the Railroad to SteelEdit

  • Railroad expansion requires management --> Andrew Carnegie
    • Learns bookkeeping, became the BEST telegraph operator
    • Hired, becomes head of Penn Railroad western division. Has amazing success and cost cutting techniques
  • Vertical Integration - means controlling all of the making and selling, from manufacturing to selling products.
    • Carnegie owned a steel mill so he got many benefits from this with railroad building, maximum efficiency.
    • He donated a TON of his money for good causes (Universities, libraries etc.)
  • Corporations feared him, wanted to buy him, and do. ( 1/2 a Billion dollars, damn)

New Corp. OrganizationsEdit

  • Other businesses had fierce competition (oil, salt, tobacco)
  • Oil boom near Pittsburg and Cleveland, oil everywhere (spills that went into river, too much oil!)
  • John D. Rockefeller (You must know this guy or heard of his name)
    • A lot like Carnegie in cost cutting
    • Aggressively fought his competition out of business.
    • Price fixing
    • Forms Oil organization (Standard Oil Trust)
  • SHERMAN ANTI-TRUST ACT!
    • Prevents trusts among corporations so competition continues.
    • Stops price fixing
    • enforced by Fines / Jail time
  • Act was dodged by "exact definition", government was somewhat reluctant.

Triumph of TechnologyEdit

  • Tech helped industry
    • Sewing machine
    • Cigarette roller
    • Match production
    • Telephone explosion, Bell company
  • Thomas Edison perfects the light bulb and household drugs
    • Was somewhat like Carnegie, began small grew big.
    • Creates Edison Illuminating Company
    • Creates many new innovations, one after another.
      • Microphone, mimeograph, motion picture camera, film, battery

Specialized ProductionEdit

  • Manufactures of special things such as jewelry and furniture.
  • Needed skilled crafters, special skill labor.
  • Systematic process of precise planning needed for custom products (train engines, furniture etc.)

Advertising and MarketingEdit

  • Industries realize they could maximize profits with target marketing techniques.
  • All sorts of food companies use slogans, guarantees, jingles
    • Creates customer loyalty with "trusted" products

Economic Growth: Costs and BenefitsEdit

  • All small companies that tried to go against big ones died. Only special small companies stood.
  • Workers exploited, could be used as wanted.

Obstacles to Economic DevelopmentEdit

  • Southern banks were still in the drops after Civil War.
  • Merchants became bankers in the south, literally.
  • South victim to all sorts of policies

The New South Creed and Southern IndustrializationEdit

  • South has coal and timber, their new source.
  • South gives tax breaks to encourage business and gives land cheap.
  • Alabama becomes large pig iron distributor
  • Large scale black employment for work but were segregated from whites.
    • Black workers were for some reason better in the steel industries and had higher earnings than white textile workers.
  • Black miners used in West Virginia, high wages, cheap company housing ---> coal boom.

Southern Mill EconomyEdit

  • Cotton mill economy slightly grows
  • Post war redone railroad construction allowed Southern Mills to ship goods, their capacity greatly increases because of this.
  • South becomes the nation’s leading textile center.
    • Sharecrop farmers and others savored new mills, but then loathed them. Somewhat deceptive deals and agreements.
  • Mills often hired poor whites, paid once per month to keep workers. Given 'certificates' to buy things from the company or mill stores. (Since there really wasn't any standard currency in the south as well.)

The South’s Industrial LagEdit

  • South slower in industrial rise
  • South was behind because of poor education
  • Damaged the environment.

From Workshop to FactoryEdit

  • Shoe factories became mechanized over artisan and skilled laborers

The Hardships of LaborEdit

  • Large rise in unskilled labor hire because machines began to take over
    • Poor pay
  • Child labor
  • Minimal financial aid from employers

Immigrant LaborEdit

  • German-Irish labor used as they were common immigrants
  • Other Europeans came such as Polish, Hungarian, and of other European decent

Women & Work in AmericaEdit

  • Most women accept the idea of separate spheres (where they would stay home and do other tasks)
    • Worked at home for family, wages for sewing, button making, etc other small cash tasks.
    • Working family system was exploited by corporations, lured them to working at mills, then pushed to live in tenants.
      • Women saw this work as a special opportunity (Why?)
      • Abandoned many domestic work and tasks to work at mills
      • Long hours, poor pay. Paid nearly 1/2 of what men were paid.
  • Rise in women labor prompted by farming changes.
  • New Jobs --> Typists for typewriters and telephone operators

Hard Work and Gospel of SuccessEdit

  • Stories preached and religion intermixed about the new opportunities of America, despite all the hardships, success could be found.
  • Horatio Alger a Unitarian minister was a special novelist of this Era
    • Wrote novels about adventures of good honest, hardworking fellows with hardships but who found success.
  • Mark Twain was the polar opposite and claimed cheating and lying was the only way to succeed.
  • Wages did gradually rise for unskilled workers by 31% and 74% for skilled. However, this was setback with other family costs like medical, or family essential.

Organizing WorkersEdit

- Workers unions used to help workers organize for their needs, and demands from their employers - Rise of special unions that represented general interests.

  • National Labor Union (NLU) - Lead by William H. Sylvis
    • Union advocated for working hours and MANDATORY sleeping time such as 8 hours and 8 hours for personal things.
    • Called for end of convict labor
    • Fair wages and equality in pay
    • Urged blacks to organize for their rights. Also supported women working rights.
    • Despised immigration and endorsed immigration restrictions, especially on Chinese.
    • Carries out strike around 1866, fails, Sylvis turns to politics for assistance and special advocates such as Elizabeth Cady Stanton
    • Sylvis dies suddenly in 1869, NLU declines and eventually dies out in 1872.
  • Knights of Labor (KOL) - Lead by Uriah H. Stephens
    • Union based on mason ideals
    • A skilled labor union vs. NLU which was more or less a workforce union
    • Had similar demands like NLU such as end of child labor and convict labor, women and equal pay.
    • Change in charge, Terence V. Powderly takes over and the Union experiences a large membership surge.
      • Powderly hates strikes, things of it as uncivil
      • Keen man who recognizes special factors and traits of problems.
    • Union wants black and women members
    • Wanted immigration restrictions and to ban Chinese immigration all together.
      • Massive riot against the Chinese in California during 1877, destroy Chinese neighborhoods and terrorized local Chinese population.
      • Congress passes Chinese Exclusion Act which restricted Chinese immigration per 10 years and was extended until 1943.
    • KOL has huge success by telling all union members to walk off from Wabash Car's Company. Wabash company operations are crippled and they agree to end their campaign against the union. Membership soars from the success!
    • KOL has random spontaneous strikes which leads to a membership surge, and the Union becomes very influential in politics
      • Ban convict labor. Companies fear the union.
    • Union slowly dies around 1886 and dies out around the late 1880s.
  • American Federation of Labor (AFL) - Lead by Samuel Gompers
    • Samuel Gompers claimed workers should work with dignity and create fair opportunities.
      • Higher wages so workers could live decently.
      • Wanted to combine craftsmen of all types so they would stand together while all feeling special and needed.
        • Realized this and decided to organize the AFL as an organization of trade unions.
      • Did not take interest in women workers.
    • AFL Membership took over KOL and grew to over 1.6 million members.
    • Took over with bread-and-butter issues.

Strikes and Labor ViolenceEdit

  • Riots and protests were common and were spawned by labor union strikes and the economic situation of the time.
  • Stock Market strikes around 1873 because of Stock Market Panic
    • People fired from work businesses close.
    • US soldiers exercised to control strikes.
    • Railroad was put on pause, public anger shifts at both corporations and the workers.
  • Strikes continue through the 1880s
    • Police sometimes opened fire during riots ---> causes outcry among public.
  • Homestead Strike
    • Big gunfight at Carnegie's steel mill in Penn. Workers angry at management, use weapons and open fire.
    • Local National Guard thrown into overdrive and sent to restore order.
    • Union crushed, mill resumed operation.
  • Pullman Strike
    • Railroad worker union lead by Eugene V. Debs
    • Pullman company slashes workers pay because of 1893 depression. Spins workers into a new dimension of anger.
    • Union members create basically a giant boycott against Pullman Railroad Cars by refusing them.
    • Union members also refuse to work, even though they are ordered, Debs is arrested and US soldiers step in to restore order.
    • Strike ends on July 18th.
    • Supreme Court dealing with Debs.
      • Court ruled in gov't favor and gave Debs jail time, also allowed businesses to fight labor unions. ---> Serious problem for workers.
  • United Mine Workers
    • Mini strike/protests.
    • Their union had 300,000 members.

Social Thinkers for AlternativesEdit

Americas poor social situation created a large influx in literature and attention over problems of the time.

  • Thinkers questioned capitalism, and business control. Corruption or just business?
  • William Graham Sumner, a Yale professor who denounced government interfering with businesses.
    • Wrote a book called What Social Classes Owe to Each Other. This book applies the idea of Darwinism (Survival of the fittest, the weak die of while the strong survive.)
      • Creates Social Darwinism idea over where society should be. For example if your a drunk, you will go nowhere, nor should you get any benefits or assistance in any way. Everyone should be left to manage the situation the best they can.
    • His ideals were challenged by others such as Lester Frank Ward who claimed against his views.
  • Others came up with their own ideals on how the situation and distribution of wealth could be viewed or explained.
    • This was met with theories over opportunists and speculators.
    • Others came up with more "nicer" theories.
  • German Philospher, Karl Marx
    • Idea of Marxism where workers should have control and own their factories and manage the process fairly, everyone is treated equally. (COMMUNISM is based on this!)
    • Believed only so much should be made to meet demand. Founded social parties in Europe, grew steadily, spread quickly in some European states. Socialist Labor Party of 1877 is formed.
    • Event in Russia with party over attempted assassination of Henry Clay Frick. Party action backfires and the public views their act as barbaric.

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