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TRAINS, STEEL,
CORPORATIONS
     AND
   UNIONS
   WHAT IS A NETWORK?
    ◦ A SYSTEM OF CONNECTED LINES USED FOR
      BUILDING RAILROADS
      Brought benefits to shippers in the U.S.


   How did Train companies help train
    schedules?
    ◦ Railroads setup a system of standardized
      time zones in 1883.

http://www.youtube.com/watch?v=kDWHM00sZJc
   Here we go:
    ◦ Q: If you were living in Pennsylvania and wanted to call
      your brother in California during his lunch break
      (Noon), what time would you call from in Pennsylvania?
    ◦ A: 3:00pm

    ◦ Q: If you were in Chicago and you wanted to call your
      buddy in Las Vegas, NV at 9:00pm his/her time what
      time would you call?
    ◦ A: 10:00pm
   GEORGE PULLMAN
    ◦ INVENTOR OF THE RAILROAD SLEEPING CAR
      INCLUDED:
        BATHROOMS, DINING CARS, BEDS


   GEORGE WESTINGHOUSE
    ◦ INVENTOR OF THE AIR BRAKE
      ALLOWED TRAINS TO STOP ON A DIME AND CAUSED LESS
       CRASHES TO HAPPEN ON THE RAILS.
   PROBLEM:
    ◦ TO MANY COMPANIES EQUALED LESS PROFITS

   ANSWER:
    ◦ CONSOLIDATE OR COMBINE
      RAILROAD COMPANIES COMBINED TO FORM LARGE COMPANIES


   HURTING THE FARMERS:
    ◦ COMPANIES GAVE REBATES TO LARGE COMPANIES FOR
      SHIPPING LARGE ITEMS
    ◦ FARMERS WERE GIVEN LESS REBATES BECAUSE THEY
      SHIPPED LITTLE
• DUE TO THE LARGE NUMBER OF COMPANIES IN THE UNITED STATES
    •COMPANIES CONSOLIDATED

•PROBLEM:
    •COMPETITION WAS HARSH AND “CUT THROAT”

•ANSWER:
   •COMPANIES SEPARATED INTO REGIONS AND CHARGED AND
   “POOLED” THEIR PRICES TOGETHER TO CHARGE ONE PRICE.

   •HURT FARMERS BECAUSE THEY HAD TO PAY HIGH PRICES FOR
   LITTLE SUPPLIES, WHEREAS CORPORATIONS PAID THE SAME PRICE
   FOR LARGER BULK ITEMS.
   HOW DO WE MAKE STEEL?
    ◦ BESSEMER PROCESS
      ENABLED STEELMAKERS TO PRODUCE STRONG STEAL AT A
       LOWER COST.

   WHO WAS ANDREW CARNEGIE?
    ◦ STEEL MOGUL
    ◦ STARTED THE IDEA OF VERTICAL INTEGRATION
      ACQUIRING CONTROL OF ALL THE STEPS REQUIRED TO CHANGE
       RAW MATERIALS INTO FINISHED PRODUCTS

   GOSPEL OF WEALTH
    ◦ BELIEF THAT THE RICH HAD A DUTY TO HELP THE POOR
      AND IMRPOVE SOCIETY
   WHAT IS A CORPORATION?
    ◦ A BUSINESS THAT IS OWNED BY INVESTORS

   WHAT IS A STOCK?
    ◦ SHARES OF A CORPORATION

   WHAT IS A DIVIDEND?
    ◦ SHARES OF A CORPORATIONS PROFIT
   WHO WAS J. PIERPONT MORGAN?

    ◦ THE MOST POWERFUL BANKER OF THE LATE 1800‟S

    ◦ USED BANKING PROFITS TO GAIN CONTROL OF MAJOR
      CORPORATIONS
   WHO WAS JOHN D. ROCKEFELLER?

    ◦ PENNSYLVANIAN OIL TYCOON WHO USED OIL TO
      MAKE KEROSENE
      USES
          HEATING,
          LIGHT
          FUEL
          John D. Rockefeller
    ◦ CREATED THE CALLED STANDARD OIL
      USED PROFITS FROM HIS REFINERIES TO BUY UP ALL
       OTHER REFINERIES
      Conspiracy of Standard oil
   WHAT IS A TRUST?
    ◦ A GROUP OF CORPORATIONS THAT ARE RUN BY A SINGLE
      BOARD OF DIRECTORS.

   WHAT IS A MONOPOLY?
    ◦ WHEN A CORPORATIONS CONTROLS ALL OR NEARLY ALL
      THE BUSINESSES INAN INDUSTRY.

   HOW DID GOVERNMENTS COMBAT TRUSTS AND
    MONOPOLIES?
    ◦ SHERMAN ANTITRUST ACT OF 1890
   1866
    ◦ Cyrus Fields runs cable underwater in the Atlantic
      Ocean

    ◦ Impact:
      The United States and Europe was brought together
       through this invention.
   ALEXANDER GRAHAM BELL
    ◦ SCOTTISH BORN TEACHER OF THE DEAF
    ◦ WANTED TO TRANSMIT SOUND
    ◦ CREAT ION OF THE TELEPHONE
       SPILLED BATTERY ACID ON HIMSELF AND CALLED
        FOR HIS ASSISTANT TO COME HELP HIM AND “Mr.
        Watson come here, I want you!”
   THOMAS EDISON
    ◦ „THE INVENTION FACTORY”
      MENLO PARK, NEW JERSEY

    ◦ INVENTIONS:
      MOTION PICTURE PROJECTOR
      ELECTRIC POWER PLANT

      Short Story of Thomas Edison
   HENRY FORD
    ◦ CREATOR OF THE “AFFORDABLE
      “AUTOMOBILE

    ◦ ASSEMBLY LINE
       CREATED IN 1913
       METHOD OF PRODUCTION, WORKERS ARE
        STATIONED IN ONE PLACE AS PRODUCTS
        EDGE ALONG ON A MOVING BELT

    ◦ MASS PRODUCTION
       MAKING LARGE QUANTITIES OF A PRODUCT
        QUICKLY AND CHEAPLY
   ORVILLE AND WILBUR WRIGHT
    ◦ EXPERIMENTED WITH ANOTHER NEW METHOD
      OF TRANSPORTATION
      FLYING!

    ◦ TESTED FIRST FLYING MACHINE ON DECEMBER
      17, 1903
      CALLED THE “FLYING MACHINE”
      FLEW FOR 12 SECOND WITH A DISTANCE OF 120
       FEET
   LABORERS IN THE LATE 1800’S
    ◦ WORKERS
       MOSTLY NATIVE BORN WHITE MEN
       LEFT THE FARMS FOR LUCRATIVE JOBS IN THE
        CITIES

    ◦ OTHER TYPES OF WORKERS:
       AFRICAN AMERICAN-MIGRATED FROM SOUTH
       IMMIGRANTS-LARGE NUMBERS
          EUROPE
          ASIA
          MEXICO
       EARNED LESS WAGES THAN NATIVE BORN WHITE-
        MEN
   WORKPLACE BEFORE THE CIVIL WAR
    ◦ FACTORIES WERE SMALL AND FAMILY RUN


   AFTER THE WAR CIVIL WAR THINGS CHANGED
    ◦ WORKERS STOOD ALL DAY AND WORKED
    ◦ LOUD NOISY MACHINES
    ◦ WORKED FOR WAGES FIXED BY BOSSES
       SWEATSHOP
         WORKPLACE WHERE PEOPLE LABOR LONG HOURS IN POOR
          CONDITIONS FOR LOW PAY
   CHILD LABOR
    ◦ CENSUS BUREAU REPORT:
      NEARLY 2 MILLION CHILDREN UNDER AGE 15 WORKED
       THROUGHOUT THE COUNTRY


    ◦ PROBLEMS WITH WORK
      LACK OF SCHOOLING=NO CHANCE TO BETTER THEIR LIFE

   DANGERS OF THE WORKPLACE
    ◦ Dust filled the air hurting the lungs
    ◦ Cave-ins and gas explosions
    ◦ Owners more concerned with profit than safety
      Example: one year 195 workers killed in Pittsburgh alone!
   KNIGHTS OF LABOR
    http://www.youtube.com/watch?v=SteWSnKVh
    OE
    ◦ UNION OPENED TO SKILLED WORKERS ONLY
    ◦ TERENCE POWDERLY WAS FIRST PRESIDENT
      OPENED MEMEBERSHIP TO
         WOMEN
         BLACKS
         IMMIGRANTS
         UNSKILLED WORKERS
   AMERICAN FEDERATION OF LABOR
    ◦ LED BY SAMUEL GOMPERS
    ◦ OPENED TO SKILLED WORKERS ONLY
    ◦ LIMITED GOALS
      SHORTER HOURS, IMPROVED WAGES,
      COLLECTIVE BARGAINING:
       RIGHTS OF UNIONS TO NEGOTIATE WITH MANAGEMENT
        FOR WORKERS AS A GROUP.
   HAYMARKET RIOTS
    ◦ MCCORMICK HARVESTER COMPANY WORKERS
      GO ON STRIKE
    ◦ COMPANY HIRES STRIKEBREAKERS
      REPLACEMENTS FOR STRIKING WORKERS
      WORKERS CLASH WITH POLICE
       4 WORKERS WERE KILLED
    ◦ NEXT DAY:
      WORKERS CLASH WITH POLICE IN HAYMARKET
       SQUARE-CHICAGO
      ANACRCHISTS
       PEOPLE WHO OPPOSE ALL FORMS OF GOVERNMENT;
        SETOFF A BOMB THAT KILLS MANY AND WOUNDING
        OTHERS
      RESULT:
       KNIGHTS OF LABOR LOSE MEMBERSHIP
   IN 1911,
    ◦ FIRE BROKE OUT IN THE TRIANGLE
      SHIRTWAIST FACTORY IN CHICAGO
    ◦ WORKERS RACED FOR THE DOORS TO FIND
      THEM LOCKED!
       RESULT:
         WORKERS RAN INTO DOORS BLOCKING THE DOORS WITH
          THEIR BODIES

       OVERALL RESULT:
         NEARLY 150 PEOPLE, MOSTLY WOMEN LOST THEIR LIVES

       EFFECT:
         IMPROVED SAFETY LAWS ENACTED
Railroads, Steel, Corporations and the Rise of Unions

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Railroads, Steel, Corporations and the Rise of Unions

  • 2. WHAT IS A NETWORK? ◦ A SYSTEM OF CONNECTED LINES USED FOR BUILDING RAILROADS  Brought benefits to shippers in the U.S.  How did Train companies help train schedules? ◦ Railroads setup a system of standardized time zones in 1883. http://www.youtube.com/watch?v=kDWHM00sZJc
  • 3.
  • 4. Here we go: ◦ Q: If you were living in Pennsylvania and wanted to call your brother in California during his lunch break (Noon), what time would you call from in Pennsylvania? ◦ A: 3:00pm ◦ Q: If you were in Chicago and you wanted to call your buddy in Las Vegas, NV at 9:00pm his/her time what time would you call? ◦ A: 10:00pm
  • 5. GEORGE PULLMAN ◦ INVENTOR OF THE RAILROAD SLEEPING CAR  INCLUDED:  BATHROOMS, DINING CARS, BEDS  GEORGE WESTINGHOUSE ◦ INVENTOR OF THE AIR BRAKE  ALLOWED TRAINS TO STOP ON A DIME AND CAUSED LESS CRASHES TO HAPPEN ON THE RAILS.
  • 6. PROBLEM: ◦ TO MANY COMPANIES EQUALED LESS PROFITS  ANSWER: ◦ CONSOLIDATE OR COMBINE  RAILROAD COMPANIES COMBINED TO FORM LARGE COMPANIES  HURTING THE FARMERS: ◦ COMPANIES GAVE REBATES TO LARGE COMPANIES FOR SHIPPING LARGE ITEMS ◦ FARMERS WERE GIVEN LESS REBATES BECAUSE THEY SHIPPED LITTLE
  • 7. • DUE TO THE LARGE NUMBER OF COMPANIES IN THE UNITED STATES •COMPANIES CONSOLIDATED •PROBLEM: •COMPETITION WAS HARSH AND “CUT THROAT” •ANSWER: •COMPANIES SEPARATED INTO REGIONS AND CHARGED AND “POOLED” THEIR PRICES TOGETHER TO CHARGE ONE PRICE. •HURT FARMERS BECAUSE THEY HAD TO PAY HIGH PRICES FOR LITTLE SUPPLIES, WHEREAS CORPORATIONS PAID THE SAME PRICE FOR LARGER BULK ITEMS.
  • 8. HOW DO WE MAKE STEEL? ◦ BESSEMER PROCESS  ENABLED STEELMAKERS TO PRODUCE STRONG STEAL AT A LOWER COST.  WHO WAS ANDREW CARNEGIE? ◦ STEEL MOGUL ◦ STARTED THE IDEA OF VERTICAL INTEGRATION  ACQUIRING CONTROL OF ALL THE STEPS REQUIRED TO CHANGE RAW MATERIALS INTO FINISHED PRODUCTS  GOSPEL OF WEALTH ◦ BELIEF THAT THE RICH HAD A DUTY TO HELP THE POOR AND IMRPOVE SOCIETY
  • 9.
  • 10. WHAT IS A CORPORATION? ◦ A BUSINESS THAT IS OWNED BY INVESTORS  WHAT IS A STOCK? ◦ SHARES OF A CORPORATION  WHAT IS A DIVIDEND? ◦ SHARES OF A CORPORATIONS PROFIT
  • 11. WHO WAS J. PIERPONT MORGAN? ◦ THE MOST POWERFUL BANKER OF THE LATE 1800‟S ◦ USED BANKING PROFITS TO GAIN CONTROL OF MAJOR CORPORATIONS
  • 12. WHO WAS JOHN D. ROCKEFELLER? ◦ PENNSYLVANIAN OIL TYCOON WHO USED OIL TO MAKE KEROSENE  USES  HEATING,  LIGHT  FUEL  John D. Rockefeller ◦ CREATED THE CALLED STANDARD OIL  USED PROFITS FROM HIS REFINERIES TO BUY UP ALL OTHER REFINERIES  Conspiracy of Standard oil
  • 13. WHAT IS A TRUST? ◦ A GROUP OF CORPORATIONS THAT ARE RUN BY A SINGLE BOARD OF DIRECTORS.  WHAT IS A MONOPOLY? ◦ WHEN A CORPORATIONS CONTROLS ALL OR NEARLY ALL THE BUSINESSES INAN INDUSTRY.  HOW DID GOVERNMENTS COMBAT TRUSTS AND MONOPOLIES? ◦ SHERMAN ANTITRUST ACT OF 1890
  • 14. 1866 ◦ Cyrus Fields runs cable underwater in the Atlantic Ocean ◦ Impact:  The United States and Europe was brought together through this invention.
  • 15. ALEXANDER GRAHAM BELL ◦ SCOTTISH BORN TEACHER OF THE DEAF ◦ WANTED TO TRANSMIT SOUND ◦ CREAT ION OF THE TELEPHONE  SPILLED BATTERY ACID ON HIMSELF AND CALLED FOR HIS ASSISTANT TO COME HELP HIM AND “Mr. Watson come here, I want you!”
  • 16. THOMAS EDISON ◦ „THE INVENTION FACTORY”  MENLO PARK, NEW JERSEY ◦ INVENTIONS:  MOTION PICTURE PROJECTOR  ELECTRIC POWER PLANT  Short Story of Thomas Edison
  • 17. HENRY FORD ◦ CREATOR OF THE “AFFORDABLE “AUTOMOBILE ◦ ASSEMBLY LINE  CREATED IN 1913  METHOD OF PRODUCTION, WORKERS ARE STATIONED IN ONE PLACE AS PRODUCTS EDGE ALONG ON A MOVING BELT ◦ MASS PRODUCTION  MAKING LARGE QUANTITIES OF A PRODUCT QUICKLY AND CHEAPLY
  • 18.
  • 19. ORVILLE AND WILBUR WRIGHT ◦ EXPERIMENTED WITH ANOTHER NEW METHOD OF TRANSPORTATION  FLYING! ◦ TESTED FIRST FLYING MACHINE ON DECEMBER 17, 1903  CALLED THE “FLYING MACHINE”  FLEW FOR 12 SECOND WITH A DISTANCE OF 120 FEET
  • 20.
  • 21. LABORERS IN THE LATE 1800’S ◦ WORKERS  MOSTLY NATIVE BORN WHITE MEN  LEFT THE FARMS FOR LUCRATIVE JOBS IN THE CITIES ◦ OTHER TYPES OF WORKERS:  AFRICAN AMERICAN-MIGRATED FROM SOUTH  IMMIGRANTS-LARGE NUMBERS  EUROPE  ASIA  MEXICO  EARNED LESS WAGES THAN NATIVE BORN WHITE- MEN
  • 22. WORKPLACE BEFORE THE CIVIL WAR ◦ FACTORIES WERE SMALL AND FAMILY RUN  AFTER THE WAR CIVIL WAR THINGS CHANGED ◦ WORKERS STOOD ALL DAY AND WORKED ◦ LOUD NOISY MACHINES ◦ WORKED FOR WAGES FIXED BY BOSSES  SWEATSHOP  WORKPLACE WHERE PEOPLE LABOR LONG HOURS IN POOR CONDITIONS FOR LOW PAY
  • 23. CHILD LABOR ◦ CENSUS BUREAU REPORT:  NEARLY 2 MILLION CHILDREN UNDER AGE 15 WORKED THROUGHOUT THE COUNTRY ◦ PROBLEMS WITH WORK  LACK OF SCHOOLING=NO CHANCE TO BETTER THEIR LIFE  DANGERS OF THE WORKPLACE ◦ Dust filled the air hurting the lungs ◦ Cave-ins and gas explosions ◦ Owners more concerned with profit than safety  Example: one year 195 workers killed in Pittsburgh alone!
  • 24. KNIGHTS OF LABOR http://www.youtube.com/watch?v=SteWSnKVh OE ◦ UNION OPENED TO SKILLED WORKERS ONLY ◦ TERENCE POWDERLY WAS FIRST PRESIDENT  OPENED MEMEBERSHIP TO  WOMEN  BLACKS  IMMIGRANTS  UNSKILLED WORKERS  AMERICAN FEDERATION OF LABOR ◦ LED BY SAMUEL GOMPERS ◦ OPENED TO SKILLED WORKERS ONLY ◦ LIMITED GOALS  SHORTER HOURS, IMPROVED WAGES,  COLLECTIVE BARGAINING:  RIGHTS OF UNIONS TO NEGOTIATE WITH MANAGEMENT FOR WORKERS AS A GROUP.
  • 25. HAYMARKET RIOTS ◦ MCCORMICK HARVESTER COMPANY WORKERS GO ON STRIKE ◦ COMPANY HIRES STRIKEBREAKERS  REPLACEMENTS FOR STRIKING WORKERS  WORKERS CLASH WITH POLICE  4 WORKERS WERE KILLED ◦ NEXT DAY:  WORKERS CLASH WITH POLICE IN HAYMARKET SQUARE-CHICAGO  ANACRCHISTS  PEOPLE WHO OPPOSE ALL FORMS OF GOVERNMENT; SETOFF A BOMB THAT KILLS MANY AND WOUNDING OTHERS  RESULT:  KNIGHTS OF LABOR LOSE MEMBERSHIP
  • 26. IN 1911, ◦ FIRE BROKE OUT IN THE TRIANGLE SHIRTWAIST FACTORY IN CHICAGO ◦ WORKERS RACED FOR THE DOORS TO FIND THEM LOCKED!  RESULT:  WORKERS RAN INTO DOORS BLOCKING THE DOORS WITH THEIR BODIES  OVERALL RESULT:  NEARLY 150 PEOPLE, MOSTLY WOMEN LOST THEIR LIVES  EFFECT:  IMPROVED SAFETY LAWS ENACTED