Chapter 17

Students will be able to describe the factors that led to the domination of monopolies in the late 19th century.

New inventions stimulated industrial output and created demand for consumer goods.
- Inventions:
- Sewing machine (developed by Singer in the 1860s): Revolutionized clothing production.
- Telephone (invented by Alexander Graham Bell in 1876): Enhanced communication across distances.
- Light bulb (created by Thomas Edison in 1879): Transformed indoor lighting and extended productive hours.
Edison’s Research Lab: Provided a blueprint for corporate innovation, leading to further advancements such as:
- Phonograph
- Motion-picture camera
- Power plant

A business form that acts as a fictional person, allowing members to be relieved of personal liability.
Capital Raising: Corporations sell stock to raise capital.
Integration Types:
- Vertical Integration: Consolidation of all functions related to a particular industry.
- Horizontal Integration: Merger of competitors within the same industry.
- Trusts: Combination of firms managed as a single entity, often leading to monopolistic practices.

The Industrial Age created powerful business tycoons, who were sometimes referred to as either “Robber Barons” or “Industrial Statesmen”. Key figures included:
- John D. Rockefeller: Founder of Standard Oil, became synonymous with monopoly.
- Gustavus Swift: Innovator in meatpacking industry.
- J.P. Morgan: Major player in investment banking.
- Cornelius Vanderbilt: Influential in the railroad industry.
- James B. Duke: Key figure in the cigarette industry.
- Andrew Carnegie: Led the steel industry; known for his philanthropic work discussed in his essay "Gospel of Wealth" (1889).
Many tycoons engaged in aggressive business practices such as:
- Predatory pricing: Undercutting competitors to drive them out of business.
- Intimidation and strikebreaking: Notably during events such as the Homestead Strike of 1892.

Economies of Scale: Lowered the price of consumer goods due to mass production.
Consumer Engagement:
- Department stores and mail-order catalogs encouraged mass consumption among the populace.
- Companies invested significantly in research and development to innovate products.
Advertising: Became a major industry as it created demand for consumer goods.

The management revolution led to the creation of new positions within organizations, contributing to:
- Rise of middle management
- Formation of departments emphasizing efficiency.
Traveling Salesmen: Played a key role in introducing new products and selling techniques to merchants.
Women in the Workforce: Took on roles as typists and phone operators, expanding women's employment opportunities.

Mass production resulted in the “deskilling” of labor, contributing to:
- Decline of small shops and skilled artisans.
- Management emphasizing efficiency, evidenced by Frederick Taylor’s Principles of Scientific Management.
Labor demands were largely met by immigrants, minorities, women, and children, often under:
- Poor and dangerous working conditions that remained largely unregulated.

Many Southern leaders, notably Henry Grady, advocated for industrialization of the South, promoting:
- Development in textiles, steel industries, Duke cigarettes, and Coca Cola.
Despite these efforts, the South largely remained agricultural and lagged in industrialization compared to the North.

Students will be able to describe how the domination of monopolies impacted farmers and industrial workers during the late 19th century.

Over 10 million Europeans arrived in the U.S. from 1860 to 1890, primarily from southern and eastern Europe.
- Push and Pull Factors: Economic hardship in Europe pushed immigrants away, while opportunities in America pulled them in.
- Many arrived via Ellis Island in New York, which handled immigration processing.
Social Darwinism: A controversial idea that suggested a natural social order favored certain races over others.
Asian immigrants faced significant discrimination, highlighted by:
- The Chinese Exclusion Act of 1882: Restricted Chinese immigration and laid the groundwork for future restrictions on Japanese and Korean immigrants as well.

The Great Railroad Strike of 1877 marked a pivotal moment in labor-management relations, highlighting tensions.
Henry George’s Progress and Poverty (1879): Advocated reforms intended to alleviate social issues arising from economic inequalities.
Farmers aligned with the Grange movement, leading to:
- The passing of Granger laws aimed at regulating railroad rates and practices.
- Formation of the Greenback-Labor Party, which pushed for issues relevant to both farmers and workers.

Formed during the economic depression of the 1870s, responding to challenges faced by farmers:
- Issues included drought, high shipping costs, and declining prices of agricultural products.
- Advocated for government loans and the creation of a “subtreasury” system to support farmers.
- Achieved some successes at the state level, but federal oversight remained elusive.
The Interstate Commerce Act of 1887 was established to create a commission tasked with investigating interstate shipping practices but was ultimately undermined by unfavorable Supreme Court decisions.

Founded in 1869, this labor union aimed to be largely inclusive, yet excluded Chinese immigrants. Their goals included:
- Advocating for the regulation of corporations.
- Demanding an end to child labor.
- Proposing an income tax for the wealthy and public ownership of railroads.
The Haymarket Square Riots (1886), which were infiltrated by anarchists, negatively impacted the Knights' reputation and led to a decline in their influence.

Formed in 1886 by Samuel Gompers focusing on organizing skilled workers into trade and craft unions.
The AFL avoided broader political goals, concentrating instead on:
- Improving wages, hours, and working conditions (often referred to as “bread and butter issues”).
- Promoted collective bargaining to achieve these aims.
Although less inclusive than other labor organizations, the AFL achieved more substantial successes in terms of labor rights and negotiations.