U.S. History A Chapter 6
A New
Industrial Age
228 C
HAPTER 6
Alexander
Graham Bell
invents the
telephone.
1876
USA
WORLD
Mother Jones
supports the Great
Strike of 1877.
Thomas A.
Edison invents
a workable
light bulb.
1879
Grover
Cleveland is
elected
president.
1884
Franco-Prussian
War breaks out.
1870
Germany
becomes the
first nation to
provide national
health insurance.
1883
Munn v. Illinois
establishes government
regulation of railroads.
1877
Laborers blasted tunnels and constructed
bridges to send the railroad through the
rugged Sierra Nevada mountains.
Central
Pacific and Union
Pacific complete
the transcontinental
railroad.
1869
United States
restricts Chinese
immigration.
1882
British
labor unions
win right to
strike.
1875
1870 1880
1870 1880
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Page 1 of 2
A New Industrial Age 229
Colonization of
sub-Saharan
Africa peaks.
1890
Haymarket
riot turns public
sentiment against
unions.
1886
INTERACT
INTERACT
WITH HISTORY
WITH HISTORY
The year is 1863 and railroad construc-
tion is booming. In six years, the U.S.
will be linked by rail from coast to
coast. Central Pacific Railroad employs
mainly Chinese immigrants to blast
tunnels, lay track, and drive spikes, all
for low wages. You are a journalist
assigned to describe this monumental
construction project for your readers.
What are the
pros and cons
of railroad
expansion?
Examine the Issues
What dangers do the railroad
workers encounter?
How will businesses and the
general public benefit from the
transcontinental railroad?
How might railroad construction
affect the environment?
Congress
passes the
Sherman
Antitrust Act.
1890
President Cleveland
sends federal troops to Illinois
to end the Pullman strike.
1894
William McKinley
is elected president.
1896
William McKinley
is reelected.
1900
First
modern Olympic
Games are held in
Athens, Greece.
1896
Women in New
Zealand gain voting
rights.
1893
Visit the Chapter 6 links for more information
about A New Industrial Age.
RESEARCH LINKS CLASSZONE.COM
1890 1900
1890 1900
228-229-Chapter 6 10/21/02 4:56 PM Page 229
Page 2 of 2
Terms & Names
Terms & Names
MAIN IDEA
MAIN IDEA
One American's Story
Edwin L. Drake
Bessemer
process
Thomas Alva
Edison
Christopher
Sholes
Alexander
Graham Bell
At the end of the 19th
century, natural resources,
creative ideas, and growing
markets fueled an industrial
boom.
Technological developments of
the late 19th century paved the
way for the continued growth of
American industry.
WHY IT MATTERS NOW
WHY IT MATTERS NOW
The Expansion
of Industry
230 C
HAPTER 6
One day, Pattillo Higgins noticed bubbles in the springs around
Spindletop, a hill near Beaumont in southeastern Texas. This and
other signs convinced him that oil was underground. If Higgins
found oil, it could serve as a fuel source around which a vibrant
industrial city would develop.
Higgins, who had been a mechanic and a lumber mer-
chant, couldn’t convince geologists or investors that oil was
present, but he didn’t give up. A magazine ad seeking
investors got one response—from Captain Anthony F. Lucas,
an experienced prospector who also believed that there was oil
at Spindletop. When other investors were slow to send money,
Higgins kept his faith, not only in Spindletop, but in Lucas.
A P
ERSONAL VOICE PATTILLO HIGGINS
Captain Lucas, . . . these experts come and tell you this or that
can’t happen because it has never happened before. You believe
there is oil here, . . . and I think you are right. I know there is oil
here in greater quantities than man has ever found before.
—quoted in Spindletop
In 1900, the two men found investors, and they began to drill that
autumn. After months of difficult, frustrating work, on the morning of
January 10, 1901, oil gushed from their well. The Texas oil boom had begun.
Natural Resources Fuel Industrialization
After the Civil War, the United States was still largely an agricultural nation. By
the 1920s—a mere 60 years later—it had become the leading industrial power in
the world. This immense industrial boom was due to several factors, including: a
wealth of natural resources, government support for business, and a growing
urban population that provided both cheap labor and markets for new products.
GUSHER!
Pattillo Higgins
and the Great
Texas Oil Boom
230-233-Chapter 6 10/21/02 4:57 PM Page 230
Page 1 of 4
BLACK GOLD
Though eastern Native American tribes had made fuel and medi-
cine from crude oil long before Europeans arrived on the continent, early
American settlers had little use for oil. In the 1840s, Americans began using
kerosene to light lamps after the Canadian geologist Abraham Gesner discovered
how to distill the fuel from oil or coal.
It wasn’t until 1859, however, when Edwin L. Drake successfully used a
steam engine to drill for oil near Titusville, Pennsylvania, that removing oil from
beneath the earth’s surface became practical. This breakthrough started an oil
boom that spread to Kentucky, Ohio, Illinois, Indiana, and, later, Texas.
Petroleum-refining industries arose in Cleveland and Pittsburgh as entrepreneurs
rushed to transform the oil into kerosene. Gasoline, a byproduct of the refining
process, originally was thrown away. But after the automobile became popular,
gasoline became the most important form of oil.
BESSEMER STEEL PROCESS
Oil was not the only natural resource that was
plentiful in the United States. There were also abundant deposits of coal and iron.
In 1887, prospectors discovered iron ore deposits more than 100 miles long and
up to 3 miles wide in the Mesabi Range of Minnesota. At the same time, coal pro-
duction skyrocketed—from 33 million tons in 1870 to more than 250 million
tons in 1900.
Iron is a dense metal, but it is soft and tends to break and rust. It also usually
contains other elements, such as carbon. Removing the carbon from iron pro-
duces a lighter, more flexible, and rust-resistant metal—steel. The raw materials
needed to make steel were readily available; all that was needed was a cheap and
efficient manufacturing process. The Bessemer process, developed indepen-
dently by the British manufacturer Henry Bessemer and American ironmaker
William Kelly around 1850, soon became widely used. This technique involved
injecting air into molten iron to remove the carbon and other impurities. By
1880, American manufacturers were using the new method to produce more than
90 percent of the nation’s steel. In this age of rapid change and innovation, even
M
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ATLANTIC
OCEAN
Chicago
Indianapolis
Cleveland
Cincinnati
Atlanta
New Orleans
Baltimore
Pittsburgh
Wilkes-Barre
Titusville
Buffalo
Philadelphia
New York
Boston
Milwaukee
Minneapolis
Detroit
St. Louis
Omaha
N
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Major industrial city
Other cities
Coal mining
Iron ore mining
Oil
Steel production
0 150 300 kilometers
0 150 300 miles
City Limits
City Limits
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Steel mills, 1886
Steel mills, 1906
Pittsburgh
Natural Resources and the Birth of a Steel Town, 1886–1906
GEOGRAPHY SKILLBUILDER
1.
Region Which state had the most steel-producing areas?
2.
Human-Environment Interaction What connection can you
draw between natural resources (including water) and steel
production in Pittsburgh?
Vocabulary
entrepreneur:
a person who
organizes,
operates, and
assumes the risk
for a business
venture
231
Skillbuilder
Answers
1. Pennsylvania
2. An abun-
dance of coal
and iron ore,
plus access to a
major river, con-
tributed to
Pittsburgh’s high
levels of steel
production.
230-233-Chapter 6 10/21/02 4:57 PM Page 231
Page 2 of 4
A
the successful Bessemer process was bettered by the 1860s. It
was eventually replaced by the open-hearth process,
enabling manufacturers to produce quality steel from scrap
metal as well as from raw materials.
NEW USES FOR STEEL
The railroads, with thousands of
miles of track, became the biggest customers for steel, but
inventors soon found additional uses for it. Joseph
Glidden’s barbed wire and McCormick’s and Deere’s farm
machines helped transform the plains into the food pro-
ducer of the nation.
Steel changed the face of the nation as well, as it made
innovative construction possible. One of the most remark-
able structures was the Brooklyn Bridge. Completed in
1883, it spanned 1,595 feet of the East River in New York
City. Its steel cables were supported by towers higher than
any man-made and weight-bearing structure except the
pyramids of Egypt. Like those ancient marvels, the com-
pleted bridge was called a wonder of the world.
Around this time, setting the stage for a new era of
expansion upward as well as outward, William Le Baron
Jenney designed the first skyscraper with a steel frame—the
Home Insurance Building in Chicago. Before Jenney had his
pioneering idea, the weight of large buildings was support-
ed entirely by their walls or by iron frames, which limited
the buildings’ height. With a steel frame to support the
weight, however, architects could build as high as they
wanted. As structures soared into the air, not even the sky
seemed to limit what Americans could achieve.
Inventions Promote Change
By capitalizing on natural resources and their own ingenuity,
inventors changed more than the landscape. Their inven-
tions affected the very way people lived and worked.
THE POWER OF ELECTRICITY
In 1876, Thomas Alva Edison became a pio-
neer on the new industrial frontier when he established the world’s first research
laboratory in Menlo Park, New Jersey. There Edison perfected the incandescent
light bulb—patented in 1880—and later invented an entire system for producing
and distributing electrical power. Another inventor, George Westinghouse, along
with Edison, added innovations that made electricity safer and less expensive.
The harnessing of electricity completely changed the nature of business in
America. By 1890, electric power ran numerous machines, from fans to printing
presses. This inexpensive, convenient source of energy soon became available in
homes and spurred the invention of time-saving appliances. Electric streetcars made
urban travel cheap and efficient and also promoted the outward spread of cities.
More important, electricity allowed manufacturers to locate their plants
232 C
HAPTER 6
Radio
Light Bulb
Phonograph
Telephone
Motion Pictures
X-Ray
Airplane
Electric Motor
Typewriter
Dynamite
Internal-
Combustion
Engine
1860184618371831 1867
1873
1879
1877
1876
1895
1826
1903
MAIN IDEA
MAIN IDEA
A
Summarizing
What natural
resources were
most important for
industrialization?
Vocabulary
incandescent:
giving off visible
light as a result of
being heated
A. Answer
oil, coal, iron
ore, water
The Technological Explosion, 1826–1903
ILLUMINATING THE
LIGHT BULB
Shortly after moving into a long
wooden shed at Menlo Park,
Thomas Alva Edison and his
associates set to work to develop
the perfect incandescent bulb.
Arc lamps already lit some city
streets and shops, using an elec-
tric current passing between two
sticks of carbon, but they were
glaring and inefficient.
Edison hoped to create a long-
lasting lamp with a soft glow, and
began searching for a filament
that would burn slowly and stay
lit. Edison tried wires, sticks,
blades of grass, and even hairs
from his assistants’ beards.
Finally, a piece of carbonized
bamboo from Japan did the trick.
Edison’s company used bamboo
filaments until 1911, when it
began using tungsten filaments,
which are still used today.
S
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HISTORICAL
HISTORICAL
Photography
Telegraph
Sewing Machine
Reaper
230-233-Chapter 6 10/21/02 4:57 PM Page 232
Page 3 of 4
wherever they wanted—not just near sources of power, such as rivers. This
enabled industry to grow as never before. Huge operations, such as the Armour
and Swift meatpacking plants, and the efficient processes that they used became
the models for new consumer industries.
INVENTIONS CHANGE LIFESTYLES
Edison’s
light bulb was only one of several revolutionary
inventions. Christopher Sholes invented the
typewriter in 1867 and changed the world of
work. Next to the light bulb, however, perhaps
the most dramatic invention was the telephone,
unveiled by Alexander Graham Bell and
Thomas Watson in 1876. It opened the way for
a worldwide communications network.
The typewriter and the telephone particu-
larly affected office work and created new jobs
for women. Although women made up less
than 5 percent of all office workers in 1870, by
1910 they accounted for nearly 40 percent of
the clerical work force. New inventions also had
a tremendous impact on factory work, as well as
on jobs that traditionally had been done at
home. For example, women had previously
sewn clothing by hand for their families. With
industrialization, clothing could be mass-pro-
duced in factories, creating a need for garment
workers, many of whom were women.
Industrialization freed some factory work-
ers from backbreaking labor and helped
improve workers’ standard of living. By 1890, the average workweek had been
reduced by about ten hours. However, many laborers felt that the mechanization
of so many tasks reduced human workers’ worth. As consumers, though, workers
regained some of their lost power in the marketplace. The country’s expanding
urban population provided a vast potential market for the new inventions and
products of the late 1800s.
A New Industrial Age 233
MAIN IDEA
2. TAKING NOTES
In a chart like the one below, list
resources, ideas, and markets that
affected the industrial boom of the
19th century. In the second column,
note how each item contributed to
industrialization.
CRITICAL THINKING
3. MAKING INFERENCES
Do you think that consumers gained
power as industry expanded in the
late 19th century? Why or why not?
4. HYPOTHESIZING
If the U.S. had been poor in
natural resources, how would
industrialization have been affected?
5. ANALYZING EFFECTS
Which invention or development
described in this section had the
greatest impact on society? Justify
your choice. Think About:
the applications of inventions
the impact of inventions on
people’s daily lives
the effect of inventions on
the workplace
The typewriter
shown here dates
from around
1890.
Resources, Impact
Ideas, Markets
B
MAIN IDEA
MAIN IDEA
B
Analyzing
Effects
How did
electricity change
American life?
B. Answer
It changed the
nature of busi-
ness, made pos-
sible the inven-
tion of new
appliances, and
helped cities
and industries
grow.
Edwin L. Drake
Bessemer process
Thomas Alva Edison
Christopher Sholes
Alexander Graham Bell
1. TERMS & NAMES For each term or name, write a sentence explaining its significance.
230-233-Chapter 6 10/21/02 4:57 PM Page 233
Page 4 of 4
One American's Story
In October 1884, the economist Richard Ely visited the
town of Pullman, Illinois, to write about it for Harper’s mag-
azine. At first, Ely was impressed with the atmosphere of
order, planning, and well-being in the town George M.
Pullman had designed for the employees of his railroad-
car factory. But after talking at length with a dissatisfied
company officer, Ely concluded the town had a fatal flaw:
it too greatly restricted its residents. Pullman employees
were compelled to obey rules in which they had no say. Ely
concluded that “the idea of Pullman is un-American.”
A PERSONAL VOICE RICHARD T. ELY
It is benevolent, well-wishing feudalism [a medieval social system], which
desires the happiness of the people, but in such way as shall please the authori-
ties. . . . If free American institutions are to be preserved, we want no race of men
reared as underlings.
“Pullman: A Social Study”
As the railroads grew, they came to influence many facets of American life,
including, as in the town of Pullman, the personal lives of the country’s citizens.
They caused the standard time and time zones to be set and influenced the
growth of towns and communities. However, the unchecked power of railroad
companies led to widespread abuses that spurred citizens to demand federal reg-
ulation of the industry.
Railroads Span Time and Space
Rails made local transit reliable and westward expansion possible for business as
well as for people. Realizing how important railroads were for settling the West
and developing the country, the government made huge land grants and loans to
the railroad companies.
Terms & Names
Terms & Names
MAIN IDEA
MAIN IDEA
transcontinental
railroad
George M.
Pullman
Crédit Mobilier
Munn v. Illinois
Interstate
Commerce Act
The growth and consolidation
of railroads benefited the
nation but also led to
corruption and required
government regulation.
Railroads made possible the
expansion of industry across
the United States.
WHY IT MATTERS NOW
WHY IT MATTERS NOW
236 C
HAPTER 6
The town of
Pullman was
carefully laid out
and strictly
controlled.
The Age of the
Railroads
236-240-Chapter 6 10/21/02 4:58 PM Page 236
Page 1 of 5
A NATIONAL NETWORK
By 1856, the railroads extended
west to the Mississippi River, and three years later, they
crossed the Missouri. Just over a decade later, crowds across
the United States cheered as the Central Pacific and Union
Pacific Railroads met at Promontory, Utah, on May 10, 1869.
A golden spike marked the spanning of the nation by the first
transcontinental railroad. Other transcontinental lines
followed, and regional lines multiplied as well. At the start of
the Civil War, the nation had had about 30,000 miles of
track. By 1890, that figure was nearly six times greater.
ROMANCE AND REALITY
The railroads brought the
dreams of available land, adventure, and a fresh start within
the grasp of many Americans. This romance was made possi-
ble, however, only by the harsh lives of railroad workers.
The Central Pacific Railroad employed thousands of
Chinese immigrants. The Union Pacific hired Irish immi-
grants and desperate, out-of-work Civil War veterans to lay
track across treacherous terrain while enduring attacks by
Native Americans. Accidents and diseases disabled and killed
thousands of men each year. In 1888, when the first railroad
statistics were published, the casualties totaled more than
2,000 employees killed and 20,000 injured.
RAILROAD TIME
In spite of these difficult working condi-
tions, the railroad laborers helped to transform the diverse
regions of the country into a united nation. Though linked
in space, each community still operated on its own time,
with noon when the sun was directly overhead. Noon in
Boston, for example, was almost 12 minutes later than
noon in New York. Travelers riding from Maine to
California might reset their watches 20 times.
In 1869, to remedy this problem, Professor C. F. Dowd
proposed that the earth’s surface be divided into 24 time
zones, one for each hour of the day. Under his plan, the
United States would contain four zones: the Eastern,
Central, Mountain, and Pacific time zones. The railroad
companies endorsed Dowd’s plan enthusiastically, and
many towns followed suit.
Finally, on November 18, 1883, railroad crews and
towns across the country synchronized their watches. In
1884, an international conference set worldwide time
zones that incorporated railroad time. The U.S. Congress,
however, didn’t officially adopt railroad time as the stan-
dard for the nation until 1918. As strong a unifying force
as the railroads were, however, they also opened the way
for abuses that led to social and economic unrest.
Opportunities and Opportunists
The growth of the railroads influenced the industries and businesses in which
Americans worked. Iron, coal, steel, lumber, and glass industries grew rapidly as
they tried to keep pace with the railroads’ demand for materials and parts. The
rapid spread of railroad lines also fostered the growth of towns, helped establish
new markets, and offered rich opportunities for both visionaries and profiteers.
A New Industrial Age 237
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HISTORICAL
HISTORICAL
CHINESE IMMIGRANTS AND
THE RAILROADS
Although the railroads paid all
their employees poorly, Asians
usually earned less than whites.
The average pay for whites work-
ing a ten-hour day was $40 to
$60 a month plus free meals.
Chinese immigrants hired by the
Central Pacific performed similar
tasks from dawn to dusk for
about $35 a month—and they
had to supply their own food.
The immigrants’ working condi-
tions were miserable, as depicted
by artist Jake Lee below. In
1866, for example, the railroad
hired them to dig a tunnel
through a granite mountain. For
five months of that year, the
Chinese lived and worked in
camps surrounded by banks of
snow. The total snowfall reached
over 40 feet. Hundreds of the
men were buried in avalanches or
later found frozen, still clutching
their shovels or picks.
A
A. Answer
The growth of
industries that
could ship to new
markets; haz-
ardous jobs for
railroad workers;
an increase of
immigration and
migration to the
West.
MAIN IDEA
MAIN IDEA
A
Analyzing
Effects
What were the
effects of railroad
expansion?
236-240-Chapter 6 10/21/02 4:58 PM Page 237
Page 2 of 5
B
NEW TOWNS AND MARKETS
By linking previously iso-
lated cities, towns, and settlements, the railroads promoted
trade and interdependence. As part of a nationwide network
of suppliers and markets, individual towns began to special-
ize in particular products. Chicago soon became known for
its stockyards and Minneapolis for its grain industries. These
cities prospered by selling large quantities of their products
to the entire country. New towns and communities also
grew up along the railroad lines. Cities as diverse as Abilene,
Kansas; Flagstaff, Arizona; Denver, Colorado; and Seattle,
Washington, owed their prosperity, if not their very exis-
tence, to the railroads.
PULLMAN
The railroads helped cities not only grow up but
branch out. In 1880, for example, George M. Pullman built
a factory for manufacturing sleepers and other railroad cars on
the Illinois prairie. The nearby town that Pullman built for his
employees followed in part the models of earlier industrial
experiments in Europe. Whereas New England textile manu-
facturers had traditionally provided housing for their workers,
the town of Pullman provided for almost all of workers’ basic
needs. Pullman residents lived in clean, well-constructed brick
houses and apartment buildings with at least one window in
every room—a luxury for city dwellers. In addition, the town
offered services and facilities such as doctors’ offices, shops, and an athletic field.
As Richard Ely observed, however, the town of Pullman remained firmly
under company control. Residents were not allowed to loiter on their front steps
or to drink alcohol. Pullman hoped that his tightly controlled environment
would ensure a stable work force. However, Pullman’s refusal to lower rents after
cutting his employees’ pay led to a violent strike in 1894.
CRÉDIT MOBILIER
Pullman created his company town out of the desire for
control and profit. In some other railroad magnates, or powerful and influential
industrialists, these desires turned into self-serving corruption. In one of the most
infamous schemes, stockholders in the Union Pacific Railroad formed, in 1864, a
construction company called Crédit Mobilier (krDdPGt mI-bClPyEr). The stock-
holders gave this company a contract to lay track at two to
three times the actual cost—and pocketed the profits. They
donated shares of stock to about 20 representatives in
Congress in 1867.
A congressional investigation of the company, spurred by
reports in the New York Sun, eventually found that the officers
of the Union Pacific had taken up to $23 million in stocks,
bonds, and cash. Testimony implicated such well-known and
respected federal officials as Vice-President Schuyler Colfax
and Congressman James Garfield, who later became president.
Although these public figures kept their profits and received
little more than a slap on the wrist, the reputation of the
Republican Party was tarnished.
The Grange and the Railroads
Farmers were especially affected by corruption in the railroads.
The Grangers—members of the Grange, a farmers’ organiza-
tion founded in 1867—began demanding governmental con-
trol over the railroad industry.
ANOTHER
P
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C
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ON THE WRONG TRACK
While the railroads captured the
imagination of most 19th-century
Americans, there were those who
didn’t get on the bandwagon. The
writer Herman Melville raged
against the smoke-belching iron
horse and the waves of change it
set in motion as vehemently as
his character Captain Ahab raged
against the white whale and the
sea in Moby-Dick. “Hark! here
comes that old dragon again—
that gigantic gadfly . . . snort!
puff! scream! Great improve-
ments of the age,” Melville
fumed. “Who wants to travel so
fast? My grandfather did not, and
he was no fool.
238 C
HAPTER 6
C
B. Answer
Railroads led to
a growth of
cities in the
Northeast and
the Midwest
and led to the
development of
new cities in the
West.
C. Answer
By charging too
much for rail-
road construc-
tion and paying
off government
officials.
MAIN IDEA
MAIN IDEA
B
Summarizing
How did the
railroads affect
cities?
MAIN IDEA
MAIN IDEA
C
Summarizing
How did
railroad owners
use Crédit Mobilier
to make huge,
undeserved
profits?
Pullman cars
brought luxury to
the rails, as shown
in this
advertisement
from around 1890.
236-240-Chapter 6 10/21/02 4:58 PM Page 238
Page 3 of 5
A New Industrial Age 239
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ATLANTIC
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Chicago
Indianapolis
Cleveland
Louisville
Atlanta
Savannah
Wilmington
Norfolk
New Orleans
Baltimore
Washington, DC
Pittsburgh
Buffalo
Albany
Philadelphia
New York
Boston
Minneapolis
Detroit
St. Louis
Omaha
San Francisco
Sacramento
Portland
Seattle
Butte
Los Angeles
Salt Lake City
Albuquerque
El Paso
Denver
Fort Worth
Topeka
Memphis
Nashville
St. Paul
Fargo
Richmond
Kansas
City
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Eastern time
Central time
Mountain time
Pacific time
Railroads by 1870
Railroads by 1890
0 150 300 kilometers
0 150 300 miles
RAILROAD ABUSES
Farmers were angry with railroad companies for a host of
reasons. They were upset by misuse of government land grants, which the rail-
roads sold to other businesses rather than to settlers, as the government intend-
ed. The railroads also entered into formal agreements to fix prices, which helped
keep farmers in their debt. In addition, they charged different customers different
rates, often demanding more for short hauls—for which there was no alternative
carrier—than they did for long hauls.
GRANGER LAWS
In response to these abuses by the railroads, the Grangers
took political action. They sponsored state and local political candidates, elected
legislators, and successfully pressed for laws to protect their interests. In 1871
Illinois authorized a commission “to establish maximum freight and passenger
rates and prohibit discrimination.” Grangers throughout the West, Midwest, and
Southeast convinced state legislators to pass similar laws, called Granger laws.
The railroads fought back, challenging the constitutionality of the regulatory
laws. In 1877, however, in the case of Munn v. Illinois, the Supreme Court
upheld the Granger laws by a vote of seven to two. The states thus won the right
to regulate the railroads for the benefit of farmers and consumers. The Grangers
also helped establish an important principle—the federal government’s right to
regulate private industry to serve the public interest.
INTERSTATE COMMERCE ACT
The Grangers’ triumph was short-lived, how-
ever. In 1886, the Supreme Court ruled that a state could not set rates on inter-
state commerce—railroad traffic that either came from or was going to another
state. In response to public outrage, Congress passed the Interstate Commerce
Act in 1887. This act reestablished the right of the federal government to super-
vise railroad activities and established a five-member Interstate Commerce
Commission (ICC) for that purpose. The ICC had difficulty regulating railroad
rates because of a long legal process and resistance from the railroads. The final
Major Railroad Lines, 1870–1890
D
Skillbuilder
Answers
1. Their location
as railroad hubs.
2. In 1869, the
transcontinental
railroad was
complete, which
spurred the
need for new,
smaller rail lines
across the
West.
D. Answer
The farmers
took political
action in one
united front.
They pressed
legislators to
pass laws to
protect them.
Background
Price fixing occurs
when companies
within an industry
all agree to charge
the same price for
a given service,
rather than
competing to offer
the lowest price.
MAIN IDEA
MAIN IDEA
D
Analyzing
Issues
How did the
Grangers, who
were largely poor
farmers, do battle
with the giant
railroad
companies?
GEOGRAPHY SKILLBUILDER
1.
Human-Environment Interaction What factor led
to rapid growth in Chicago, Minneapolis, and Denver?
2.
Movement Why was rail construction concentrated in
the East before 1870 and in the West after 1870?
236-240-Chapter 6 10/21/02 4:58 PM Page 239
Page 4 of 5
240 C
HAPTER 6
MAIN IDEA
2. TAKING NOTES
In a chart like the one below, fill
in effects of the rapid growth of
railroads.
How did the growth of railroads
affect people’s everyday lives?
How did it affect farmers?
CRITICAL THINKING
3. MAKING INFERENCES
Do you think the government and
private citizens could have done
more to curb the corruption and
power of the railroads? Give
examples to support your opinion.
Think About:
why the railroads had power
the rights of railroad customers
and workers
the scope of government
regulations
4. SYNTHESIZING
The federal government gave land
and made loans to the railroad
companies. Why was the
government so eager to promote the
growth of railroads?
5. ANALYZING MOTIVES
Reread Another Perspective” on
railroads (page 238). Why do you
think that some Americans disliked
this new means of transportation?
blow to the commission came in 1897, when the Supreme
Court ruled that it could not set maximum railroad rates.
Not until 1906, under President Theodore Roosevelt, did
the ICC gain the power it needed to be effective.
PANIC AND CONSOLIDATION
Although the ICC presented few problems for the
railroads, corporate abuses, mismanagement, overbuilding, and competition
pushed many railroads to the brink of bankruptcy. Their financial problems
played a major role in a nationwide economic collapse. The panic of 1893 was the
worst depression up to that time: by the end of 1893, around 600 banks and
15,000 businesses had failed, and by 1895, 4 million people had lost their jobs.
By the middle of 1894, a quarter of the nation’s railroads had been taken over by
financial companies. Large investment firms such as J. P. Morgan & Company
reorganized the railroads. As the 20th century dawned, seven powerful companies
held sway over two-thirds of the nation’s railroad tracks.
Rapid Growth
of Railroads
Skillbuilder
Answers
1. Criticism. The
Colossus of
Rhodes protect-
ed the harbor;
the magnates
controlled the
railroads for
their own gain.
2. Controlling
the tracks and
the station
implies that
Vanderbilt has
total control of
the whole oper-
ation.
transcontinental railroad
George M. Pullman
Crédit Mobilier
Munn v. Illinois
Interstate Commerce Act
1. TERMS & NAMES For each term or name, write a sentence explaining its significance.
Analyzing
Analyzing
“THE MODERN COLOSSUS OF (RAIL) ROADS”
Joseph Keppler drew this cartoon in 1879, featuring the railroad “giants”
William Vanderbilt (top), Jay Gould (bottom right), and Cyrus W. Fields (bottom
left). The three magnates formed a railroad trust out of their Union Pacific,
New York Central, and Lake Shore & Dependence lines.
SKILLBUILDER Analyzing Political Cartoons
1. The title of this cartoon is a pun on the Colossus of Rhodes, a statue
erected in 282
B.C.on an island near Greece. According to legend,the
100-foot-tall statue straddled Rhodes’s harbor entrance. Do you think the
artist means the comparison as a compliment or a criticism? Why?
2. The reins held by the railroad magnates attach not only to the trains but
also to the tracks and the railroad station. What does this convey about
the magnates’ control of the railroads?
SEE SKILLBUILDER HANDBOOK, PAGE R24.
Vocabulary
consolidation: the
act of uniting or
combining
236-240-Chapter 6 10/21/02 4:58 PM Page 240
Page 5 of 5
A New Industrial Age 241
Born in Scotland to penniless parents, Andrew Carnegie
came to this country in 1848, at age 12. Six years later, he
worked his way up to become private secretary to the local
superintendent of the Pennsylvania Railroad. One morning,
Carnegie single-handedly relayed messages that unsnarled a
tangle of freight and passenger trains. His boss, Thomas A.
Scott, rewarded Carnegie by giving him a chance to buy stock.
Carnegie’s mother mortgaged the family home to make the
purchase possible. Soon Carnegie received his first dividend.
A PERSONAL VOICE ANDREW CARNEGIE
One morning a white envelope was lying upon my desk, addressed in
a big John Hancock hand, to Andrew Carnegie, Esquire.. . . All it contained
was a check for ten dollars upon the Gold Exchange Bank of New York. I shall
remember that check as long as I live. . . . It gave me the first penny of revenue
from capital—something that I had not worked for with the sweat of my brow.
‘Eureka!’ I cried. ‘Here’s the goose that lays the golden eggs.
—Autobiography of Andrew Carnegie
Andrew Carnegie was one of the first industrial moguls to make his own for-
tune. His rise from rags to riches, along with his passion for supporting charities,
made him a model of the American success story.
Carnegie’s Innovations
By 1865, Carnegie was so busy managing the money he had earned in dividends
that he happily left his job at the Pennsylvania Railroad. He entered the steel busi-
ness in 1873 after touring a British steel mill and witnessing the awesome
spectacle of the Bessemer process in action. By 1899, the Carnegie Steel Company
Terms & Names
Terms & Names
MAIN IDEA
MAIN IDEA
Andrew Carnegie
vertical and
horizontal
integration
Social Darwinism
John D.
Rockefeller
Sherman
Antitrust Act
Samuel Gompers
American
Federation of
Labor (AFL)
Eugene V. Debs
Industrial Workers
of the World
(IWW)
Mary Harris Jones
The expansion of industry
resulted in the growth of big
business and prompted
laborers to form unions to
better their lives.
Many of the strategies used
today in industry and in the
labor movement, such as
consolidation and the strike,
have their origins in the late
19th century.
WHY IT MATTERS NOW
WHY IT MATTERS NOW
Nineteenth-
century
industrialist
Andrew Carnegie
gave money to
build public
libraries, hoping
to help others
write their own
rags-to-riches
story.
One American's Story
Big Business and Labor
241-249-Chapter 6 10/28/02 3:08 PM Page 241
Page 1 of 9
A
manufactured more steel than
all the factories in Great Britain.
NEW BUSINESS STRATEGIES
Carnegie’s success was due in
part to management practices
that he initiated and that soon
became widespread. First, he
continually searched for ways to
make better products more
cheaply. He incorporated new
machinery and techniques,
such as accounting systems that
enabled him to track precise
costs. Second, he attracted tal-
ented people by offering them
stock in the company, and he
encouraged competition among
his assistants.
In addition to improving his own manufacturing operation, Carnegie
attempted to control as much of the steel industry as he could. He did this main-
ly by vertical integration, a process in which he bought out his suppliers—
coal fields and iron mines, ore freighters, and railroad lines—in order to control
the raw materials and transportation systems. Carnegie also attempted to buy out
competing steel producers. In this process, known as horizontal integration,
companies producing similar products merge. Having gained control over his
suppliers and having limited his competition, Carnegie controlled almost the
entire steel industry. By the time he sold his business in 1901, Carnegie’s compa-
nies produced by far the largest portion of the nation’s steel.
Social Darwinism and Business
Andrew Carnegie explained his extraordinary success by pointing to his hard
work, shrewd investments, and innovative business practices. Late-19th-century
social philosophers thought that Carnegie’s achievement could be explained sci-
entifically by a new theory—Social Darwinism.
PRINCIPLES OF SOCIAL DARWINISM
The philosophy called Social
Darwinism grew out of the English naturalist Charles Darwin’s theory of
biological evolution. In his book On the Origin of Species, published in 1859,
Darwin described his observations that some individuals of a species flourish
and pass their traits along to the next generation, while others do not. He
explained that a process of “natural selection” weeded out less-suited indi-
viduals and enabled the best-adapted to survive.
The English philosopher Herbert Spencer used Darwin’s biological theories
to explain the evolution of human society. Soon, economists found in Social
Darwinism a way to justify the doctrine of laissez faire (a French term mean-
ing “allow to do”). According to this doctrine, the marketplace should not
be regulated. William G. Sumner, a politcal science professor at Yale
University, promoted the theory that success and failure in business were
governed by natural law and that no one had the right to intervene.
A NEW DEFINITION OF SUCCESS
The premise of the survival and success of
the most capable naturally made sense to the 4,000 millionaires who had
emerged since the Civil War. Because the theory supported the notion of individ-
ual responsibility and blame, it also appealed to the Protestant work ethic of
242 C
HAPTER 6
Popular literature
promoted the
possibility of rags-
to-riches success
for anyone who
was virtuous and
hard-working.
A. Answer
Carnegie used
horizontal and
vertical integra-
tion, buying out
competitors as
well as suppli-
ers. He also
strove to
improve
machinery and
manufacturing
techniques.
MAIN IDEA
MAIN IDEA
A
Summarizing
What were
Andrew Carnegie’s
management and
business
strategies?
Vertical and Horizontal Integration
RESOURCES
Raw materials,
fields, forests,
and farms
MANUFACTURING
Production and
processing
DISTRIBUTION
Shipping and
transportation,
delivery to
customers
VERTICAL
HORIZONT AL
VERTICAL
HORIZONT AL
241-249-Chapter 6 10/28/02 3:08 PM Page 242
Page 2 of 9
A New Industrial Age 243
many Americans. According to Social Darwinism, riches
were a sign of God’s favor, and therefore the poor must be
lazy or inferior people who deserved their lot in life.
Fewer Control More
Although some business owners endorsed the “natural law”
in theory, in practice most entrepreneurs did everything
they could to control the competition that threatened the
growth of their business empires.
GROWTH AND CONSOLIDATION
Many industrialists
took the approach “If you can’t beat ‘em, join ‘em.” They
often pursued horizontal integration in the form of merg-
ers. A merger usually occurred when one corporation
bought out the stock of another. A firm that bought out all
its competitors could achieve a monopoly, or complete con-
trol over its industry’s production, wages, and prices.
One way to create a monopoly was to set up a holding
company, a corporation that did nothing but buy out the
stock of other companies. Headed by banker J. P. Morgan,
United States Steel was one of the most successful holding
companies. In 1901, when it bought the largest manufactur-
er, Carnegie Steel, it became the world’s largest business.
Corporations such as the Standard Oil Company, estab-
lished by John D. Rockefeller, took a different approach
to mergers: they joined with competing companies in trust
agreements. Participants in a trust turned their stock over to
a group of trustees—people who ran the separate companies
as one large corporation. In return, the companies were
entitled to dividends on profits earned by the trust. Trusts
were not legal mergers, however. Rockefeller used a trust to
gain total control of the oil industry in America.
ROCKEFELLER AND THE “ROBBER BARONS”
In 1870,
Rockefeller’s Standard Oil Company of Ohio processed two
or three percent of the country’s crude oil. Within a decade,
it controlled 90 percent of the refining
business. Rockefeller reaped huge profits
by paying his employees extremely low
wages and driving his competitors out of
business by selling his oil at a lower
price than it cost to produce it. Then,
when he controlled the market, he
hiked prices far above original levels.
Alarmed at the tactics of industrial-
ists, critics began to call them robber
barons. But industrialists were also phil-
anthropists. Although Rockefeller kept
most of his assets, he still gave away
over $500 million, establishing the
Rockefeller Foundation, providing funds
to found the University of Chicago, and
creating a medical institute that helped
find a cure for yellow fever.
Background
See monopoly on
page R43 in the
Economics
Handbook.
B
This 1900 cartoon, captioned “What a funny little government!”
is a commentary on the power of the Standard Oil empire. John D.
Rockefeller holds the White House in his hand.
B. Answer
Big businesses
formed partner-
ships to create
monopolies.
They merged
small compa-
nies into large
corporations.
They aimed for
total control of
an industry, so
that they could
fix prices and
wages to their
advantage.
MAIN IDEA
MAIN IDEA
B
Summarizing
What
strategies enabled
big businesses to
eliminate
competition?
K
E
Y
P
L
A
Y
E
R
K
E
Y
P
L
A
Y
E
R
JOHN D. ROCKEFELLER
1839–1937
At the height of John Davison
Rockefeller’s power, an associate
noted that he “always sees a little
farther than the rest of us—and
then he sees around the corner.
Rockefeller’s father was a flashy
peddler of phony cancer cures
with a unique approach to raising
children. “I cheat my boys every
chance I get. . . . I want to make
’em sharp,” he boasted.
It seems that this approach
succeeded with the oldest son,
John D., who was sharp enough
to land a job as an assistant
bookkeeper at the age of 16.
Rockefeller was very proud of his
own son, who succeeded him in
the family business. At the end of
his life, Rockefeller referred not
to his millions but to John D., Jr.,
as “my greatest fortune.
241-249-Chapter 6 10/28/02 3:08 PM Page 243
Page 3 of 9
Andrew Carnegie donated about 90 percent of the wealth he accumulated
during his lifetime; his fortune still supports the arts and learning today. “It will
be a great mistake for the community to shoot the millionaires,” he said, “for
they are the bees that make the most honey, and contribute most to the hive even
after they have gorged themselves full.”
SHERMAN ANTITRUST ACT
Despite Carnegie’s defense of millionaires, the
government was concerned that expanding corporations would stifle free com-
petition. In 1890, the Sherman Antitrust Act made it illegal to form a trust
that interfered with free trade between states or with other countries.
Prosecuting companies under the Sherman act was not easy, however, because
the act didn’t clearly define terms such as trust. In addition, if firms such as
Standard Oil felt pressure from the government, they simply reorganized into sin-
gle corporations. The Supreme Court threw out seven of the eight cases the feder-
al government brought against trusts. Eventually, the government stopped trying
to enforce the Sherman act, and the consolidation of businesses continued.
BUSINESS BOOM BYPASSES THE SOUTH
Industrial growth concentrated in
the North, where natural and urban resources were plentiful. The South was still
trying to recover from the Civil War, hindered by a lack of capital—money for
investment. After the war, people were unwilling to invest in risky ventures.
Northern businesses already owned 90 percent of the stock in the most profitable
Southern enterprise, the railroads, thereby keeping the South in a stranglehold.
The South remained mostly agricultural, with farmers at the mercy of railroad
rates. Entrepreneurs suffered not only from excessive transportation costs, but
also from high tariffs on raw materials and imported goods, and from a lack of
skilled workers. The post-Reconstruction South seemed to have no way out of
economic stagnation. However, growth in forestry and mining, and in the tobac-
co, furniture, and textile industries, offered hope.
Labor Unions Emerge
As business leaders merged and consolidated their
forces, it seemed necessary for workers to do the same.
Although Northern wages were generally higher than
Southern wages, exploitation and unsafe working con-
ditions drew workers together across regions in a
nationwide labor movement. Laborers—skilled and
unskilled, female and male, black and white—joined
together in unions to try to improve their lot.
LONG HOURS AND DANGER
One of the largest
employers, the steel mills, often demanded a seven-day
workweek. Seamstresses, like factory workers in most
industries, worked 12 or more hours a day, six days a
week. Employees were not entitled to vacation, sick
leave, unemployment compensation, or reimburse-
ment for injuries suffered on the job.
Yet injuries were common. In dirty, poorly venti-
lated factories, workers had to perform repetitive, mind-
dulling tasks, sometimes with dangerous or faulty
equipment. In 1882, an average of 675 laborers were
killed in work-related accidents each week. In addition,
wages were so low that most families could not survive
unless everyone held a job. Between 1890 and 1910, for
example, the number of women working for wages
244 C
HAPTER 6
In this photograph,
taken by Lewis
Hine in 1912, a
young sweatshop
laborer in New
York City carries
piecework home.
D
C
C. Answer
Agree: Everyone
is dependent on
the millionaires
to run business-
es efficiently
and to provide
for the needs of
the surrounding
communities.
or, Disagree: If
the millionaires
control every-
thing, they will
always make
people work
unfairly and pay
unfair prices.
D. Answer
The South had a
devastated
economy from
the Civil War. It
was at the
mercy of
Northern rail-
road companies
for transporting
goods to mar-
kets. It also paid
added costs for
raw materials
due to high
tariffs.
MAIN IDEA
MAIN IDEA
C
Evaluating
Do you agree
with Carnegie’s
defense of
millionaires? Why
or why not?
MAIN IDEA
MAIN IDEA
D
Synthesizing
How did
economic
factors limit
industrialization
in the South?
241-249-Chapter 6 10/28/02 3:08 PM Page 244
Page 4 of 9
E
doubled, from 4 million to more than 8 million. Twenty percent of the boys and
10 percent of the girls under age 15—some as young as five years old—also held
full-time jobs. With little time or energy left for school, child laborers forfeited
their futures to help their families make ends meet.
In sweatshops, or workshops in tenements rather than in factories, workers
had little choice but to put up with the conditions. Sweatshop employment,
which was tedious and required few skills, was often the only avenue open to
women and children. Jacob Riis described the conditions faced by “sweaters.”
A PERSONAL VOICE JACOB RIIS
The bulk of the sweater’s work is done in the tenements, which the law that reg-
ulates factory labor does not reach. . . . In [them] the child works unchallenged
from the day he is old enough to pull a thread. There is no such thing as a dinner
hour; men and women eat while they work, and the ‘day’ is lengthened at both
ends far into the night.
—How the Other Half Lives
Not surprisingly, sweatshop jobs paid the lowest wages—often as little as 27
cents for a child’s 14-hour day. In 1899, women earned an average of $267 a year,
nearly half of men’s average pay of $498. The very next year Andrew Carnegie
made $23 million—with no income tax.
EARLY LABOR ORGANIZING
Skilled workers had formed
small, local unions since the late 1700s. The first large-scale
national organization of laborers, the National Labor Union
(NLU), was formed in 1866 by ironworker William H.
Sylvis. The refusal of some NLU local chapters to admit
African Americans led to the creation of the Colored
National Labor Union (CNLU). Nevertheless, NLU member-
ship grew to 640,000. In 1868, the NLU persuaded Congress
to legalize an eight-hour day for government workers.
NLU organizers concentrated on linking existing local
unions. In 1869, Uriah Stephens focused his attention on
individual workers and organized the Noble Order of the
Knights of Labor. Its motto was “An injury to one is the
concern of all.” Membership in the Knights of Labor was
officially open to all workers, regardless of race, gender, or
degree of skill. Like the NLU, the Knights supported an
eight-hour workday and advocated “equal pay for equal
work” by men and women. They saw strikes, or refusals to
work, as a last resort and instead advocated arbitration. At
its height in 1886, the Knights of Labor had about 700,000
members. Although the Knights declined after the failure of
a series of strikes, other unions continued to organize.
Union Movements Diverge
As labor activism spread, it diversified. Two major types of
unions made great gains under forceful leaders.
CRAFT UNIONISM
One approach to the organization of
labor was craft unionism, which included skilled workers
from one or more trades. Samuel Gompers led the Cigar
Makers’ International Union to join with other craft unions
in 1886. The American Federation of Labor (AFL),
A New Industrial Age 245
Vocabulary
arbitration: a
method of settling
disputes in which
both sides submit
their differences to
a mutually
approved judge
E. Answer
Poor working
conditions and
low wages
forced workers
to organize into
unions to
demand fair
treatment.
S
P
O
T
L
I
G
H
T
S
P
O
T
L
I
G
H
T
HISTORICAL
HISTORICAL
AFRICAN AMERICANS AND
THE LABOR MOVEMENT
Angered by their exclusion from
the NLU, African American labor-
ers formed the Colored National
Labor Union (CNLU) in 1869. Led
by Isaac Meyers, a caulker from
Baltimore, the CNLU emphasized
cooperation between manage-
ment and labor and the impor-
tance of political reform.
The CNLU disbanded in the
early 1870s, but many African-
American laborers found a home
in the Knights of Labor, the first
union to welcome blacks and
whites alike. The Great Strike of
1877 brought whites and African
Americans together, but the labor
movement remained largely divid-
ed along racial lines.
Management often hired African
Americans as strikebreakers,
which intensified white unions’
resistance to accepting blacks.
African Americans continued to
organize on their own, but dis-
crimination and their small num-
bers relative to white unions hurt
black unions’ effectiveness.
MAIN IDEA
MAIN IDEA
E
Analyzing
Issues
How did
industrial working
conditions
contribute to the
growth of the labor
movement?
241-249-Chapter 6 10/28/02 3:08 PM Page 245
Page 5 of 9
with Gompers as its president, focused on collective bargaining, or negotiation
between representatives of labor and management, to reach written agreements
on wages, hours, and working conditions. Unlike the Knights of Labor, the AFL
used strikes as a major tactic. Successful strikes helped the AFL win higher wages
and shorter workweeks. Between 1890 and 1915, the average weekly wages in
unionized industries rose from $17.50 to $24, and the average workweek fell from
almost 54.5 hours to just under 49 hours.
INDUSTRIAL UNIONISM
Some labor leaders felt that unions should include all
laborers—skilled and unskilled—in a specific industry. This concept captured the
imagination of Eugene V. Debs, who made the first major attempt to form such
an industrial union—the American Railway Union (ARU). Most of the new
union’s members were unskilled and semiskilled laborers, but skilled engi-
neers and firemen joined too. In 1894, the new union won a strike for
higher wages. Within two months, its membership climbed to 150,000,
dwarfing the 90,000 enrolled in the four skilled railroad brotherhoods.
Though the ARU, like the Knights of Labor, never recovered after the failure
of a major strike, it added to the momentum of union organizing.
SOCIALISM AND THE IWW
In an attempt to solve the problems faced by work-
ers, Eugene Debs and some other labor activists eventually turned to socialism, an
economic and political system based on government control of business and
property and equal distribution of wealth. Socialism, carried to its extreme form—
communism, as advocated by the German philosopher Karl Marx—would result
in the overthrow of the capitalist system. Most socialists in late-19th-century
America drew back from this goal, however, and worked within the labor move-
ment to achieve better conditions for workers. In 1905, a group of radical union-
ists and socialists in Chicago organized the Industrial Workers of the World
(IWW), or the Wobblies. Headed by William “Big Bill” Haywood, the Wobblies
included miners, lumberers, and cannery and dock workers. Unlike the ARU, the
IWW welcomed African Americans, but membership never topped 100,000. Its
only major strike victory occurred in 1912. Yet the Wobblies, like other industrial
unions, gave dignity and a sense of solidarity to unskilled workers.
OTHER LABOR ACTIVISM IN THE WEST
In April 1903, about 1,000 Japanese
and Mexican workers organized a successful strike in the sugar-beet fields of
Ventura County, California. They formed the Sugar Beet and Farm Laborers
Union of Oxnard. In Wyoming, the State Federation of Labor supported a union
of Chinese and Japanese miners who sought the same wages and treatment as
other union miners. These small, independent unions increased both the overall
strength of the labor movement and the tension between labor and management.
In New York City’s
Union Square in
1914, IWW
members protest
violence against
striking coal
miners in
Colorado.
The strike is the
weapon of the
oppressed.
EUGENE V. DEBS
F
Background
See socialism on
page R44 in the
Economics
Handbook.
246 C
HAPTER 6
MAIN IDEA
MAIN IDEA
F
Contrasting
How did
craft unions and
industrial unions
differ?
F. An s wer
A craft union
included skilled
workers from
many industries.
An industrial
union included
skilled and
unskilled
workers from
a specific
industry.
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Page 6 of 9
The Growth of Union Membership, 18781904
Members in Thousands
1500
1300
1100
900
700
500
300
100
0
1878 1880 1882 1884 1886 1888 1890 1892 1894 1896 1898 1900 1902 1904
Wabash Railroad
Strike
Haymarket Riot
Pullman Strike
Total Nationwide Union Membership
American Federation of Labor
Knights of Labor
American Railway Union
SKILLBUILDER
Interpreting Graphs
1.
Which union’s
membership
increased in
1889–1890?
2.
What effect(s) did
the Haymarket Riot
have on union
membership?
A New Industrial Age 247
Strikes Turn Violent
Industry and government responded forcefully to union activity, which they saw
as a threat to the entire capitalist system.
THE GREAT STRIKE OF 1877
In July 1877, workers for the Baltimore and
Ohio Railroad (B&O) struck to protest their second wage cut in two months. The
work stoppage spread to other lines. Most freight and even some passenger traf-
fic, covering over 50,000 miles, was stopped for more than a week. After several
state governors asked President Rutherford B. Hayes to intervene, saying that the
strikers were impeding interstate commerce, federal troops ended the strike.
THE HAYMARKET AFFAIR
Encouraged by the impact of the 1877 strike, labor
leaders continued to press for change. On the evening of May 4, 1886, 3,000
people gathered at Chicago’s Haymarket Square to protest police brutality—a
striker had been killed and several had been wounded at the McCormick Harvester
plant the day before. Rain began to fall at about 10 o’clock, and the crowd was dis-
persing when police arrived. Then someone tossed a bomb into the police line.
Police fired on the workers; seven police officers and several workers died in the
chaos that followed. No one ever learned who threw the bomb, but the three speak-
ers at the demonstration and five other radicals were charged with inciting a riot.
All eight were convicted; four were hanged and one committed suicide in prison.
After Haymarket, the public began to turn against the labor movement.
THE HOMESTEAD STRIKE
Despite the violence and rising public anger, work-
ers continued to strike. The writer Hamlin Garland described conditions at the
Carnegie Steel Company’s Homestead plant in Pennsylvania.
A PERSONAL VOICE HAMLIN GARLAND
Everywhere . . . groups of pale, lean men slouched in faded garments, grimy
with the soot and grease of the mills. . . . A roar as of a hundred lions, a thunder
as of cannons, . . . jarring clang of falling iron . . . !
quoted in McClure’s Magazine
The steelworkers finally called a strike on June 29, 1892, after the company
president, Henry Clay Frick, announced his plan to cut wages. Frick hired armed
G. Answer
The public began
to associate
labor activists
with violence
and danger.
Skillbuilder
Answers
1. The American
Federation of
Labor
2. Membership
in the Knights of
Labor declined
sharply.
MAIN IDEA
MAIN IDEA
G
Analyzing
Causes
How did the
1877 strike and
Haymarket cause
the public to
resent the labor
movement?
G
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248 C
HAPTER 6
guards from the Pinkerton Detective Agency to protect the plant so that he could
hire scabs, or strikebreakers, to keep it operating. In a pitched battle that left at
least three detectives and nine workers dead, the steelworkers forced out the
Pinkertons and kept the plant closed until the Pennsylvania National Guard
arrived on July 12. The strike continued until November, but by then the union
had lost much of its support and gave in to the company. It would take 45 years
for steelworkers to mobilize once again.
THE PULLMAN COMPANY STRIKE
Strikes continued in other industries, how-
ever. During the panic of 1893 and the economic depression that followed, the
Pullman company laid off more than 3,000 of its 5,800 employees and cut the
wages of the rest by 25 to 50 percent, without cutting the cost of its employee
housing. After paying their rent, many workers took home less than $6 a week. A
strike was called in the spring of 1894, when the economy improved and the
Pullman company failed to restore wages or decrease rents. Eugene Debs asked for
arbitration, but Pullman refused to negotiate with the strikers. So the ARU began
boycotting Pullman trains.
After Pullman hired strikebreakers, the strike turned violent, and President
Grover Cleveland sent in federal troops. In the bitter aftermath, Debs was jailed.
Pullman fired most of the strikers, and the railroads blacklisted many others, so
they could never again get rail-
road jobs.
WOMEN ORGANIZE
Although
women were barred from many
unions, they united behind
powerful leaders to demand bet-
ter working conditions, equal
pay for equal work, and an end
to child labor. Perhaps the most
prominent organizer in the
women’s labor movement was
Mary Harris Jones. Jones sup-
ported the Great Strike of 1877
and later organized for the
United Mine Workers of America
(UMW). She endured death
threats and jail with the coal
miners, who gave her the nick-
name Mother Jones. In 1903, to
expose the cruelties of child
labor, she led 80 mill children—
many with hideous injuries—on
a march to the home of
President Theodore Roosevelt.
Their crusade influenced the pas-
sage of child labor laws.
Other organizers also
achieved significant gains for
women. In 1909, Pauline New-
man, just 16 years old, became
the first female organizer of the
International Ladies’ Garment
Workers Union (ILGWU). A gar-
ment worker from the age of
eight, Newman also supported
MOTHER JONES
1830–1930
Mary Harris “Mother” Jones
was a native of Ireland who
immigrated to North America
as a child. She became
involved in the American labor
movement after receiving
assistance from the Knights
of Labor. According to a
reporter who followed “the
mother of the laboring class”
on her children’s march in
1903, “She fights their
battles with a Mother’s Love.
Jones continued fighting until
her death at age 100.
Jones was definitely not the
kind of woman admired by
industrialists. “God almighty
made women,she declared,
“and the Rockefeller gang of
thieves made ladies.
EUGENE V. DEBS
1855–1926
Born in Indiana, Eugene V.
Debs left home at the age of
14 to work for the railroads.
In 1875 he helped organize
a local lodge of the Brother-
hood of Locomotive Firemen,
and after attempts to unite the
local railroad brotherhoods
failed, Debs organized the
American Railway Union.
While in prison following the
Pullman strike in 1894, Debs
read the works of Karl Marx
and became increasingly disil-
lusioned with capitalism. He
became a spokesperson for
the Socialist Party of America
and was its candidate for presi-
dent five times. In 1912, he
won about 900,000 votes—an
amazing 6 percent of the total.
K
E
Y
P
L
A
Y
E
R
S
K
E
Y
P
L
A
Y
E
R
S
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A New Industrial Age 249
Andrew Carnegie
vertical and horizontal
integration
Social Darwinism
John D. Rockefeller
Sherman Antitrust Act
Samuel Gompers
American Federation of
Labor (AFL)
Eugene V. Debs
Industrial Workers of the
World (IWW)
Mary Harris Jones
1. TERMS & NAMES For each term or name, write a sentence explaining its significance.
MAIN IDEA
2. TAKING NOTES
Make a time line of the notable
achievements and setbacks of the
labor movement between 1876 and
1911.
In what ways did strikes threaten
industry?
CRITICAL THINKING
3. EVALUATING LEADERSHIP
Do you think that the tycoons of the
late 19th century are best described
as ruthless robber barons or as
effective captains of industry?
Think About:
their management tactics and
business strategies
their contributions to the economy
their attitude toward competition
4. DRAWING CONCLUSIONS
Does the life of Andrew Carnegie
support or counter the philosophy
of Social Darwinism? Explain.
5. HYPOTHESIZING
If the government had supported
unions instead of management in
the late 19th century, how might
the lives of workers have been
different?
<caption TK:
image of Triangle
Shirtwaist Factory
fire>
event one event three
event two event four
the “Uprising of the 20,000,” a 1909 seamstresses’ strike that won labor agree-
ments and improved working conditions for some strikers.
The public could no longer ignore conditions in garment factories after
a fire broke out at the Triangle Shirtwaist Factory in New York City on March 25,
1911. The fire spread swiftly through the oil-soaked machines and piles of
cloth, engulfing the eighth, ninth, and tenth floors. As workers attempted
to flee, they discovered that the company had locked all but one of the
exit doors to prevent theft. The unlocked door was blocked by fire. The
factory had no sprinkler system, and the single fire escape collapsed
almost immediately. In all, 146 women died; some were found huddled
with their faces raised to a small window. Public outrage flared after a
jury acquitted the factory owners of manslaughter. In response, the
state of New York set up a task force to study factory working
conditions.
The fire department’s ladders reached only
to the sixth floor, two floors below the
burning Triangle Shirtwaist Company.
H. Answer
The factory had
only one fire
escape and no
sprinklers. The
factory was full
of cloth and oil.
MAIN IDEA
MAIN IDEA
H
Summarizing
What factors
made the Triangle
Shirtwaist fire so
lethal?
H
MANAGEMENT AND GOVERNMENT PRESSURE UNIONS
The more powerful the unions became, the more employers
came to fear them. Management refused to recognize unions
as representatives of the workers. Many employers forbade
union meetings, fired union members, and forced new
employees to sign “yellow-dog contracts,” swearing that they
would not join a union.
Finally, industrial leaders, with the help of the courts,
turned the Sherman Antitrust Act against labor. All a compa-
ny had to do was say that a strike, picket line, or boycott
would hurt interstate trade, and the state or federal govern-
ment would issue an injunction against the labor action. Legal
limitations made it more and more difficult for unions to be
effective. Despite these pressures, workers—especially those in
skilled jobs—continued to view unions as a powerful tool. By
1904, the AFL had about 1,700,000 members in its affiliated
unions; by the eve of World War I, AFL membership would
climb to over 2 million.
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