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19 Cards in this Set

  • Front
  • Back
What were the major labor unions and when were they present?
National Labor Union- 1866 started by Sylvis, endorsed 8 hours work day and an end to convict labor, a federal department of labor, currency and banking reform, restriction on immigration, supported women, urged blacks to organize separately.
Knights of Labor- 1869 welcomed all wage earners except bankers, doctors, alcohol distributors, stockbrokers, and professional gamblers. They called for a tax on earnings that made higher incomes pay more, equal pay for women, end to child and convict labor, and cooperative employer employee ownership of factories. The new president Powderly (1880s) opposed strikes and allowed blacks and women but allowed the segregation in the south. He wanted restrictions on immigration and to totally ban the Chinese from immigrating because the worked very cheaply. Brought a sense of group solidarity and strength.
American Federation of Labor-1886 allowed both skilled and unskilled laborers, recognized that groups were independent so formed as a federation of trade unions, focused on short term improvements like wages and hours, not as enthusiastic about women.
Describe the major strikes.
Wabash Strike: 1st major strike that ended successfully and peacefully
- due to rage reduction on Baltipore and Ohio railroad, spread to ny Kansas, ect, union depot and Pennsylvania railroad roundouse torched, 100 people dead, prompted yellow dog contracts.
McCormick Harvest Plant:May 1 1886- 340000 workers walked off jobs in support of eight hour workday.
1887- police shot and killed 4 strikers at McCormick Harvester plant and the next evening a rally took place anarchist threw bombs so it gave the KOL a bad name that was associated with violence even though it wasn’t their fault. Resulted in arrest of labor activists and animosity towards labor unions.
What were the new ways to run business started in this era?
- Experimented and made big profit
- Vertical integration
- Trusts, Holding companies, pools
- Horizontal integration- eliminating competition
- Advertising: Kodak, Ivory soap,
- Standardize everything (railroads)
- Paying in scrip (can connect to Grantism/corruption)
- Patents- Thomas Edison- Invention= big business
- No Lost Cause (south couldn’t industrialize) Henry Grady and Waterson- Made the new south creed
- Silver is demonetized. Very little loans and credit to capitalize.
- Tax exemptions brought big business into the south
- Workers and Laborers developed strong ties- led to unions
Led to the Panic of 1873- profits from railroads didn’t keep up with the cost to operate, increased investments= increased risks.
What was the point of labor unions not being recognized by the government?
employers could hire strikebreakers (blacks/immigrants) or get injunctions
There were no stipulations of negotiations
What was the most successful labor union?
AFL was the most successful labor union which could bring together members by brining in craft and noncraft. But because they aren’t recognized by government ehy couldn’t make that much headway
Interstate Commerce System
railroad company had a monopoly by controlling interstate railroads- ICC created to oversee them.
Sherman Anti-Trust Act
1890- outlawed trusts and monopolies and had huge penalties for fixed prices.
United States v. EC Knight
, 1895- court threw out the federal government’s suit against the sugar trust because they said that manufacturing wasn’t interstate commerce even though they had a widespread network.
In re Debs,
1895- upheld Deb’s prison sentence and legalized the use of injunctions against labor unions.
Bessemer Process
- new technology to purify steel- helped Carnegie predict cost of steel.
• Horizontal Integration-
exhibited in trusts b/c several companies made up a huge monster organization. Standard oil trust= made an umbrella organization- Rockefeller
• New factory system
-workers did only one part of the task over and over again, workers could not drink or take time off for special occasions.
- Ragged Dick
(Don’t say it JJ!!!!!!!!)- a novel where honest men were rewarded by the rich and rose from rags to riches.
Pullman Strike
Formed American Railway Union after Pullman slashed workers' wages without reducing their rents and refused to transfer mail into Pullman Cars. The Judge cited the Sherman Anti Trusst Act for restraint of commerce and when the union refused to order its members back to work Debs (leader of ARU) was arresteed
who were the major thinkers of this time period?
Adam Smith wrote Wealth of Nations and thougt self interest was an invisible hand in the marketplace that regulated supply and demand.-- defended Laissez faire argument.

Marx- Karl Marx Das Kapital 1867 and other works thought that labor put into something was the measure of that thing;s value. Surplus values came from exploited workers. Thought that wages would decline to a dangerous level and society would have a huge wealth gap with a small number of wealthy people and that pould prompt a revolt from the poor to seize the control of the government. Wanted a classless society. Founded societies in Europe but had little appeal in America.
bourgeoisie- capitalists/ merchants/middle class professionals
proletariat- workers
What obstacles did the south face in attempting to industrialize?
-Civil war caused banks to fail leaving very few at the war’s end.
-Requirements to start a bank were too high for even wealthy southerners—crop lien system replaced banks which relied on farming leaving few laborers available to work industry.
-southerners were vulnerable to a fluctuating agricultural market causing many to go in debt.
-suffered from northern policies that raised the cost of machinery to be imported and exported making industry tough.
- poor schools= low attendance= few educated people to meet the requirements of working in business.
- veteran’s pensions guzzled up most of the state’s budgets leaving little money for the south to develop at the pace of the north.
• What factors allowed for significant industrial expansion and what were the characteristics that followed?
o Exploitation of immense coal deposits from PA, WV, and KT that was cheat energy to fuel railroads and factories.
o Technological innovation in areas such as transportation, communication, and factories. This was spurred by the exploitation of the coal deposits.
o The heightened need for workers. Because of the technological innovation the workers did not have to be as skilled.
o Competition between firms to have lowest prices and eliminate competition- companies could afford to cut costs because the technology made the manufacturing process cheaper.
o Drop in prices due to all the previous factors
o Failure of money supply to keep up with the productivity.
Characteristics that followed- depression caused suffering because gov didn’t get involved. They face famine and poverty due to the new system of business where those at the top made huge fortunes and those at the bottom did not. Capital goods were manufactured more and these along with petroleum and steel helped the nation’s economy. Also….. pollution.
• Describe the benefits to railroad innovations.
-These railroad companies pioneered a system of stockholding where bond-holders had a faced interest rate and only earned when the company profited- helped them to raise capital when loans weren’t enough.
- Created a hierarchical structure where areas were divided into geographic units, each of which having their own superintendant to run that portion.
- Used magnetic telegraph to coordinate the flow of cars
- Had elaborate accounting systems to keep track of the costs of each division so that they could predict what prices they should charge. This was extremely advanced for the times
• Explain the benefits and disadvantages to railroad consolidation.
Benefits: cars could all run on the same track, created a large business enterprise, brought a bunch of railroads into one, used the advanced methods of accounting and organization, best equipment, created time zones, uniform rates
Disadvantages: uneven rates- ICC had to step in to prevent monopoly activity. Could not abate depression- bank owners stepped in.