Era of Big Business Essential Questions: Who were the leaders of industry in the early 1900s? How did the leaders of industry acquire their fortunes? What was Social Darwinism? How did laborers respond to their working and living conditions and treatment by leaders of industry? What was the Great Strike of 1877, the Haymarket Affair, and the Homestead Strike?

Essential Questions:

Who were the leaders of industry in the early 1900s?

How did the leaders of industry acquire their fortunes?

What was Social Darwinism?

How did laborers respond to their working and living conditions and treatment by leaders of industry?

What was the Great Strike of 1877, the Haymarket Affair, and the Homestead Strike?

Captain of Industry or Robber Baron? Robber Baron An American capitalist of the 19th century who became wealthy via ethically questionable tactics through use of natural resources , governmental influence , or low wage scales Captain of Industry An American business leader whose means of amassing a personal fortune contributes positively to the country in some way

Robber Baron

An American capitalist of the 19th century who became wealthy via ethically questionable tactics through use of natural resources , governmental influence , or low wage scales

Captain of Industry

An American business leader whose means of amassing a personal fortune contributes positively to the country in some way

Vertical and Horizontal Integration Horizontal Integration Vertical Integration A strategy used by a business that seeks to sell a type of product in numerous markets Horizontal integration occurs when a company in the same industry and in the same stage of production is being taken-over or merged with another company at the same stage of production Example: when one steel company takes over another steel company Vertically integrated companies are united through a hierarchy and share a common owner Each member of the hierarchy produces a different product or service, and the products combine to satisfy a common need Carnegie used Vertical Integration

Horizontal Integration

Vertical Integration

A strategy used by a business that seeks to sell a type of product in numerous markets

Horizontal integration occurs when a company in the same industry and in the same stage of production is being taken-over or merged with another company at the same stage of production

Example: when one steel company takes over another steel company

Vertically integrated companies are united through a hierarchy and share a common owner

Each member of the hierarchy produces a different product or service, and the products combine to satisfy a common need

Carnegie used Vertical Integration

Vertical Integration: Carnegie Coal Mines Ovens where coal was coked Railroads used to transport Coal Steel Mills that Manufactured Steel Ships used to transport Iron Ore Iron Ore Mines

Used vertical integration Controlled railroads and banks Disliked monopolies By 1900s was creating a 25% of the nation’s steel Made his fortune through control of oil In 1877 he controlled 95% of refineries nation Hiked oil prices far above original levels Gave over $500 million to charity Bought out Carnegie for $400 million Dedicated his life to donating money to charity By his death, in today's figures, he gave away about $4.3 billion dollars

Used vertical integration

Controlled railroads and banks

Disliked monopolies

By 1900s was creating a 25% of the nation’s steel

Made his fortune through control of oil

In 1877 he controlled 95% of refineries nation

Hiked oil prices far above original levels

Gave over $500 million to charity

Bought out Carnegie for $400 million

Dedicated his life to donating money to charity

By his death, in today's figures, he gave away about $4.3 billion dollars

A New Level of Wealth The wealthy proclaimed they were justified by God to have so much wealth God gave them their money or they were a product of natural selection Many fear a plutocracy would eventually form, or a government that is controlled by the wealthy

The wealthy proclaimed they were justified by God to have so much wealth

God gave them their money or they were a product of natural selection

Many fear a plutocracy would eventually form, or a government that is controlled by the wealthy

Social Darwinism Took Darwin’s theory of biological evolution and applied it to the social classes Said there were certain species , or individuals , that flourished and passed their traits along to the next generation Those that failed, died out , or did not succeed The wealthy used it to justify why they were so rich and others were so poor

Took Darwin’s theory of biological evolution and applied it to the social classes

Said there were certain species , or individuals , that flourished and passed their traits along to the next generation

Those that failed, died out , or did not succeed

The wealthy used it to justify why they were so rich and others were so poor

Gospel of Wealth by Andrew Carnegie Wealthy must distribute their fortune in a way that it will be put to good use Poverty in a society could be eliminated by wealthy men and women Softened his theory of Social Darwinism Said ostentatious living and amassing private treasures was wrong Said the wealthy were responsible for the recirculation of money back into society where it could be used to support the greater good

Wealthy must distribute their fortune in a way that it will be put to good use

Poverty in a society could be eliminated by wealthy men and women

Softened his theory of Social Darwinism

Said ostentatious living and amassing private treasures was wrong

Said the wealthy were responsible for the recirculation of money back into society where it could be used to support the greater good

In 1882 675 laborers were killed on the job Employers demanded 12 hour days; 7 day work weeks No sick or vacation days Women made $267 a year Men made $498 a year In 1900 Carnegie made $23 million dollars

Great Railroad Strike of 1877 Response to wage cuts for second time in a year by the Baltimore & Ohio Railroad Strike spread over 50,000 miles in the East Pittsburgh strikers clashed with militia 20 people died and 29 were wounded This infuriated Pittsburgh strikers They forced the militiamen to take refuge in a railroad roundhouse They set fire to buildings and trains Militia mounted an assault on strikers After a month President Hayes sent in federal troops to end the strikes

Response to wage cuts for second time in a year by the Baltimore & Ohio Railroad

Strike spread over 50,000 miles in the East

Pittsburgh strikers clashed with militia

20 people died and 29 were wounded

This infuriated Pittsburgh strikers

They forced the militiamen to take refuge in a railroad roundhouse

They set fire to buildings and trains

Militia mounted an assault on strikers

After a month President Hayes sent in federal troops to end the strikes

Haymarket Affair Took place in Chicago (1886) A rally in support of striking workers Person threw a bomb at police as they dispersed the gathering The blast and gunfire resulted in the deaths of 7 police officers and a number of civilians In the legal proceedings that followed 8 anarchists were tried and convicted 5 were sentenced to death and 3 were sent to jail Considered to be the origin of international May Day , or the day to observe the achievements of workers

Took place in Chicago (1886)

A rally in support of striking workers

Person threw a bomb at police as they dispersed the gathering

The blast and gunfire resulted in the deaths of 7 police officers and a number of civilians

In the legal proceedings that followed 8 anarchists were tried and convicted

5 were sentenced to death and 3 were sent to jail

Considered to be the origin of international May Day , or the day to observe the achievements of workers

Homestead Strike 1892 strike culminating in a battle between strikers and private security agents One of the most serious labor disputes in U.S. history Between Iron and Steel Workers and Carnegie Steel Company Carnegie won and the Iron and Steel Labor Union lost power and influence

1892 strike culminating in a battle between strikers and private security agents

One of the most serious labor disputes in U.S. history

Between Iron and Steel Workers and Carnegie Steel Company

Carnegie won and the Iron and Steel Labor Union lost power and influence

The Aftermath More powerful unions became the more the company leaders refused to recognize them Employers forbade union meetings , fired union members , and forced new employees to sign “ yellow-dog contracts ” swearing they would not join a union Unions did emerge to protect workers but the powerful forces of industry prevented them from gaining real power to implement change

More powerful unions became the more the company leaders refused to recognize them

Employers forbade union meetings , fired union members , and forced new employees to sign “ yellow-dog contracts ” swearing they would not join a union

Unions did emerge to protect workers but the powerful forces of industry prevented them from gaining real power to implement change