Big Business and Immigration notes

\ Robber Barons_______________ - very powerful men who controlled business and had great influence on the federal government A.) Cornelius Vanderbilt_________ - born in Stapleton, NY, 1794 Very successful in the steamboat industry - in NY state, rivals paid him to take his business elsewhere _Railroad______ Industry - entered the railroad industry in 1862 (age of 68), Controlled the RR’s between NYC and Chicago (NY Central), built his wealth to $100 million (about 2.8 billion in today’s value) Started Vanderbilt University in Nashville, Tenn. Died in 1877 __Biltmore_____ Estate - created by his family. Largest home in the U.S. Asheville, N.C. - 178,000 square feet, sat on 125,000 acre farm Took over 1,000 workers and 6 years to build (1889-1895) 35 bedrooms, 43 bathrooms, basement has an Olympic sized pool, a gymnasium and a bowling alley. Dining room table could seat 64 people Valued at $155 million today Built by Cornelius Vanderbilt’s grandson (George Washington Vanderbilt II) Cornelius Vanderbilt is the great-great-great grandfather of Anderson Cooper (whose net worth is $200 million) B.) Andrew Carnegie___________ - Scotland, 1835 Saw the future of __Steel________ - started Carnegie Steel in Pittsburgh. Eventually consolidated with other companies to form U.S. Steel. Consolidated (who worked the deal to merge these groups together) by J.P. Morgan and the 1st President of the U.S. Steel was Charles Schwab Built his wealth to $475 million Donated a great portion of his money to the advancement of education and society. Built about 1,700 __Libraries across the country, paid for Carnegie Hall in NYC (cost of $2 million), started Carnegie-Mellon Univ in Pittsburgh Donated approximately $350 million Wrote The Gospel of Wealth, which stated that the wealthy had a responsibility to give back to society. Died in 1919 C.) John D. Rockefeller______________ - Richfield, NY, 1839 Moved to _Clevelend____________ at a young age. 1863 - Started to refine oil with other businessmen. 1870 - created Standard oil of Ohio (SOHIO)___________ By 1882, controlled 95% of oil in the U.S. Also owned companies in lumber, iron-ore (which is used to make steel) and transportation Tried to eliminate all competition - would lower his prices in a region to drive all competitors out of business and then buy these Companies right before they went bankrupt for really low pricesNet worth - $1.4 billion. At one point, 3% of all of the money in the United States belonged to him Gave $135 million to the University of Chicago___ - which he founded Began at the age of 16 of giving at least 10% of his salary to charity. In total, gave over $600 million to charity His family also gave $250 million to build Rockefeller Plaza in NYC, which includes Radio City Music Hall and 30 Rockefeller Plaza Died in 1937 and is buried in Cleveland D.) John Pierpoint Morgan____ - Hartford Connecticut, 1837 Involved in banking and investing (best example of an investment Banker. His money and planning helped bring the formation of the following companies: U.S. Steel, General Electric, International Harvester Aetna, Western Union and 21 railroad companies He was concerned with financial control, not production Net worth - $80 million Died in 1913 E.) Frank Winfield woolworth_________ - Rodham, NY, 1852 Creates the idea of the department store. His stores were originally called “5 and Dime” stores. Eventually were called “Woolworth’s” Also created the idea of the price tag: before him, a customer had to ask a clerk how much something costs. Net worth - $76.5 million Died in 1919 G.) Henry _Ford_____ - Detroit, Michigan, 1863 Created Ford Motor Company________ - 1st automobile company to mass produce cars Created the assembly line_____________ - made cars cheaper and faster Net worth - $35.2 million Actually paid his workers decent wages and created cars that were affordable for common people Died in 1947 H.) Harvey Firestone - Columbiana, Ohio (just south of Youngstown), 1868 Worked in Columbus, Ohio for a company that made rubber tires for carriages 1900 - started his own company and soon saw the potential for tires for automobiles. Created Firestone Tire and Rubber Company in Akron, Ohio Net worth - $5 million Died in 1938 James Buchanan Duke________ - North Carolina, 1856 Created the American Tobacco Company - started the modern day cigarette Controlled over 90% of all cigarette manufacturing in the U.S. Also was excellent at marketing the cigarette so it seemed like something that you needed He gave $40 million to Trinity College in Durham, N.C. and they agreed to change the name to __Duke University________ Net Worth - $100 million Died in 1925 J.) The Wealthy had a completely different lifestyle They believed that they were selected by God to be rich Also believed it was a form of “Survival of the fittest” Also believed that it was necessary to express their wealth Mansions and “Summer Homes”
Elaborate wardrobes: wealthy women (socialites) sometimes would wear a dress that cost over $10,000 (over $300,000 in today’s money) Lavish parties with over 1,000 guests Lavish cars - Rolls Royce, Duesenberg_________ (today, the average sale price of a Duesenberg is just over $1.6 million) The Wealthy felt it was necessary to “out do” each other. Bribed (bought off) government officials - their companies received Government contracts, favorable rulings from judges or laws from the legislature They had many methods of dealing with workers a.) __black Lists - Employers had lists of union members who were to be punished or boycotted b.) Yellow Dog Contracts - workers had to sign a contract that promised not to join a union c.) Hired “Pinkerton_ Men” (private detectives from the Pinkerton National Detective Agency), who would work as spies. They would appear to be union members, then would go back to the factory owner and report the union plans Pinkertons would also be hired as strikebreakers - very rough and violent d.) Lockouts - lock down the factory and not allow the workers to work and earn paychecks until the factory owner got the contract terms that they wanted. e.) Hired Immirgrants__________ as cheap labor - the immigrants did not realize that they were hurting the labor movement f.) The wealthy had the support of the courts and gov’t _Sherman Antitrust Act (1890) - the goal of this law was to break up large corporations (often called “Trusts”) because they hindered competition and trade. However, it was ruled by the federal courts that Labor Unions could not go on strike because that also restricted trade - severely hurt unions. Social____ Darwinism - the idea of survival of the fittest in business and the economy. The belief that a person excelled because of their intelligence and desire, not because of their environment. This was a way for the wealthy to justify their actions. Labor Gains a.) 1882 - 1st immigration law (_Chinese______ Exclusion Act) limited the number of new workers entering the country. Helped reduce job competition = higher wages b.) 1887 - __Interstate____ Commerce Act - placed restrictions on the railroad industry, which in some area were monopolies. Stated that RR rates had to be “reasonable and just”. Established an Interstate Commerce Commission: ICC 5 person committee whose purpose was to regulate Railroads (and later trucking). The ICC was abolished in 1995, as it’s authorities were transferred to other agencies c.) By 1890, some labor laws were passed at the state level: Child Labor Law in 9 states: a child must be at least 10 yrs old to work 8 hour work day was established in 5 states II. The labor_________ Movement A.) There were some craft unions by the early 1800’s __strikes____ had little success for 2 reasons: a.) Too many available replacement workers (immigrants) b.) Most courts ruled that strikes were illegal By the 1840’s, some unions had gained a 10 hour work day - Considered a major victory B.) The civil__________ War had caused dissatisfaction (anger): Prices had risen faster than wages - people could actually buy less with their paycheck The __government allowed the wealthy to avoid military service, because you could pay someone to take your place (a substitute) There was a great demand for jobs and employers showed little appreciation for workers Workers realized they needed to be organized___ - why? a.) No job____ security - too many immigrants b.) New machinery - needed fewer workers and the machines were dangerous c.) Labor abuses - child labor, work hours and conditions C.) 1866 - The National Labor Unions - great goals: a.) _8 hour____ work day b.) restrict immigration c.) Establish a Department of Labor 1872 - NLU collapsed - William Sylvis (leader) died and NLU lost it’s unity D.) Depression of 1873 - hurt unions - people were desperate for jobs. Turned miners against each other in Pennsylvania. E.) Railroad Strikes of 1877 Baltimore and Ohio (B&O) Railroad Company - 2nd cutback of Workers and 2nd pay cut since 1873 Workers went on strike and Violance broke out in Baltimore, St. Louis, Chicago and Pittsburgh Federal troops and state militia were called in to restore order Troops usually attacked the workers____ on strike Shots were fired in Pittsburgh, killing 25 workers Citizens now joined the workers and rioted, causing $25 million in damages in Pittsburgh. President Hayes and the gov’t backed management and most people agreed - felt that workers should accept the terms (hours, conditions and salary) offered by management. F.) 1886 - The Haymarket Riot The Knights of _Labor___ was formed in 1869 by Uriah Stephens 1st mass organization of the working class in the U.S. Expanded rapidly in the 1880’s: 1880: 28,000 members 1884: 100,000 members 1886: 800,000 members Mostly unskilled workers They favored the following: a.) 8 hour work day b.) Fair labor laws c.) Graduated_____ Income Tax - in proportion to your income ( The more money you make, the higher percentage of taxes will be taken) Haymarket________ Square (Chicago) - a peaceful rally was held with various speakers talking on behalf of labor. a.) Police were there and there were no problems b.) Began to rain and the crowd dispersed c.) A bomb was thrown into a group of police officers, killing 8 d.) 8 men were arrested and all 8 were anarchists (someone who wants to overthrow the gov’t). e.) Now the Knights of Labor is associated with anarchists, which kills their movement. By 1890, the Knights of Labor were gone. G.) 1886 - Formation of the American Federation of Labor (AFL) Samuel __Gompers_ - created this new organization and led it until he died in 1924. This was a union of unions - a national organization that smaller unions belonged to The AFL originated in Columbus, Ohio, where it’s headquarters were also located. Pushed for job security and their main weapon was the strike Not a Civil Rights organization - women and minorities were not allowed to join. AFL became very popular: 1890 - 150,000 members 1915 - 2,000,000 members 1892 - _Homestead___ Strike Carnegie Steel Plant implemented pay cuts and the workers refused to accept this Henry Clay Frick (Carnegie’s top asst) closed the factory Special deputies tried to install barbed wire around the plant but the workers, who went on strike, ran them out. Pinkerton men were brought in to guard the plant and fired guns at the workers, who then fired back. 7 workers were killed 8 Pinkerton’s were killed The Governor of Pennsylvania (Robert Pattison), sent in 8,000 members of the Penn. National Guard to restore order and guard the factory. Frick brought in replacement workers (“Scabs”) A man not associated with the strike (Alexander Berkman) attempts to kill Frick - shot him and stabbed him. Frick survived, Berkman got 22 years in prison The assassination attempt turned public support away from the workers and the strikers returned to work after 6 weeks on strike 1894 - __Pullman____ Strike a.) George Pullman invented the sleeping car for trains Looked like a typical train car during the day, but could convert into a sleeping area at night - very luxurious b.) Built a town for his workers where they had to live They had to buy all supplies from the company store Rent was expensive, so was gas and water c.) Wages were cut by __25%____ - anyone who complained was fired d.) The American Railway Union (led by Eugene Debs) called for a strike and asked workers to avoid violence. e.) Pullman closed the plant (lockout), laid off the workers and would not listen to the demands of labor f.) Across the country, members of the American Railway Union refused to handle trains with Pullman cars - nationwide boycott. g.) The Midwest was practically at a standstill h.) Pullman cars were now attached to trains carrying the U.S. __Mail. Any interference would be a federal offense - tampering with the U.S. Mail i.) The strike was broken and the union was destroyed - the Federal Gov’t had been influenced by Big Business Only skilled laborers could belong to the AFL - no factory workers Eventually, the AFL would join with the Congress of Industrial Organizations (CIO), which represented factory workers and form the AFL-CIO in 1955. The AFL-CIO is the largest labor organization still, today.