Topic 2: Industrialization Key Terms

Capital and Labor

Bessemer Process

was a method of converting iron into steel by blowing air through molten iron to remove impurities. Introduced in the U.S. in the 1850s, it revolutionized steel production by making it faster and cheaper. It was vital to the growth of industries like railroads and construction, allowing the U.S. to become the world’s leading steel producer by 1900. The process symbolized the industrial transformation and mass production era.

Telegraphs

were communication devices that transmitted messages via electric signals over wires, developed in the mid-19th century. By linking towns, cities, and rural areas, the telegraph revolutionized long-distance communication and was key to coordinating the expanding railroads and commerce. Western Union became a dominant telegraph company. The technology enabled faster business operations and helped integrate the national economy during industrialization.

Robber Barons

was a term used to describe powerful 19th-century industrialists like Carnegie, Rockefeller, and Vanderbilt, who amassed vast fortunes often through exploitative or monopolistic practices. They dominated key industries like steel, oil, and railroads during the Gilded Age. While they advanced industrial growth and philanthropy, they were also criticized for abusing workers and corrupting politics. The term reflects tensions between wealth inequality and democratic ideals.

Social Darwinism

applied Charles Darwin’s theory of evolution to human society, promoting the idea that economic success proved natural superiority. Popularized by Herbert Spencer and supported by elites like Rockefeller, it justified inequality, anti-unionism, and laissez-faire capitalism. The theory discouraged welfare or government aid, claiming it would interfere with "survival of the fittest." It provided a moral rationale for the harsh realities of industrial capitalism.

Vertical Intergration

is a business strategy where a company controls every step of production, from raw materials to distribution. Andrew Carnegie’s steel empire used this model to reduce costs and control quality. It became common in late 19th-century American industry. This strategy allowed large firms to dominate their sectors and eliminate dependence on outside suppliers.

Horizontal Intergration

occurs when a company buys out competitors in the same industry to consolidate control. John D. Rockefeller used this tactic to dominate the oil industry through Standard Oil. It was key to the “Great Merger Movement” between 1895 and 1904. This led to monopolies that controlled markets, reduced competition, and triggered public backlash and antitrust legislation.

Monopoly

exists when a single company or group controls an entire industry or market. During the Gilded Age, firms like U.S. Steel and Standard Oil became monopolies by crushing or absorbing rivals. Monopolies limited competition, raised prices, and concentrated wealth and power. Public concern over monopolies eventually led to antitrust laws like the Sherman Antitrust Act.

Trusts

were legal arrangements where multiple companies in the same industry transferred control to a central board to limit competition. Popular in the late 1800s, trusts helped businesses like Standard Oil achieve near-total industry control. They symbolized the rise of corporate power and the decline of free markets. Public outrage at trusts contributed to progressive calls for reform and regulation.

Great Railroad Strike of 1877

was a nationwide protest against wage cuts by railroad companies during a financial depression. Beginning in West Virginia, it spread across cities like Pittsburgh and St. Louis, halting rail traffic and turning violent. Federal troops ultimately suppressed the strike. It marked the first major national labor conflict and revealed the deep tensions between labor and capital.

Knights of Labor

Founded in 1869, a broad labor organization that welcomed all workers regardless of skill, race, or gender. At its peak in the 1880s, it had over 700,000 members and pushed for reforms like the eight-hour workday. The group declined after the 1886 Haymarket incident associated it with violence. It was one of the earliest attempts at inclusive labor organizing in the U.S.

Haymarket incident

occurred in Chicago in 1886 during a labor rally for the eight-hour day. A bomb exploded, killing seven police officers; police responded by shooting into the crowd. Eight anarchists were convicted, and four were executed, though evidence was thin. The event discredited the labor movement, especially the Knights of Labor, and linked unionism with radicalism in the public eye.

American Federation of Labor

The AFL, founded in 1886 by Samuel Gompers, was a national federation of craft unions for skilled workers. Unlike the Knights, it focused on “pure and simple unionism,” seeking practical gains like higher wages and safer conditions. The AFL avoided political activism and radicalism, aiming for gradual workplace improvements. It became the most influential labor organization of the early 20th century.

Homestead Steel Strike of 1892

was a violent labor conflict at Carnegie Steel in Pennsylvania after management cut wages. Workers clashed with hired Pinkerton guards and briefly took over the plant. The state militia eventually broke the strike. The defeat weakened the steelworkers’ union and highlighted how industrialists, with state backing, could crush organized labor.

Pullman Strike of 1894

began after the Pullman Company cut workers’ wages without lowering rents in its company-owned town. The American Railway Union, led by Eugene V. Debs, launched a nationwide rail boycott. President Cleveland sent federal troops to end the strike, citing disruption of mail and commerce. The strike’s suppression revealed the federal government’s alignment with big business over labor.