The Real Story Behind America's Big Shot Businesses #2

This is an update as an addition to the first blog post relating to the topic, Labor Vs. Big Business: Rise of Corporate America. Since the first post we did an interactive activity which helped us more thoroughly understand this topic. In the interactive activity there was a Venn diagram which we dragged the ten sources to compare and contrast between the three perspectives.  After completing and reading about the ten sources I was able to add additional important terms and remove terms that weren't as important.  With the additional knowledge I gained I was able to add another enduring understanding along with adding to the enduring understandings in post one.  

Key Terms

John d Rockefeller- formed the Stanford oil company in 1870 and donated to charities and institution that he believed would help humanity.

Andrew Carnegie-  In 1889 he established the Carnegie steel company. Carnegie preached a gospel of wealth in his books and speeches. Carnegie's donated more than 80 percent of his fortune went to education.

Social Darwinism- extended Darwin's natural selection to society and economic success, argued society and government should not interfere with business

Oligopoly- a market structure such as this which is dominated by only a few, large profitable firms, 

Monopoly- complete control of a product or service 

Cartel- a loose association of business that make the same product 

Vertical consolidation- gaining control of of the many different businesses that make up all phases of a products development 

Horizontal consolidation- involves bringing together many firms in the same business. 

Trust- The board of trustees, which Rockefeller controlled, managed the companies as a single unit. 

Sherman Antitrust Act- Outlawed any combination of companies that restrained interstate trade or commerce. This act proved ineffective against trusts for nearly 15 years. 

Sweatshop- a shop where employees worked long hours at low wages and under poor working conditions. 

Socialism- an economic and political philosophy that favors public instead private control of the means of production.   

The Great Railroad Strike of 1877- series of wage cuts for railroad workers that lead to violent strikes

Industrial Union-  Organized workers from all crafts in a given industry.

Scab- A negative term for a worker called in by an employer to replace striking laborers.

Anarchists- Radicals who oppose all government

Haymarket Riot- At the May 4 event, a bomb was thrown into a police formation killing an officer, following that a riot included gunfire between police and protesters.

Homestead Strike- 1892 strike at Carnegie plant in Homestead, Pennsylvania because Henry Frick tried to cut workers' wages at Carnegie Steel

Henry Frick- Tried to cut workers wages at Carnegie Steel while Carnegie was away. This lead to a strike.

George Pullman- Inventor of the Pullman sleeping train cart.

Pullman Strike- Strike at the plant in Pullman. This strike was set off because after the Panic of 1893 Pullman laid off workers laid off workers and cut wages 25 percent while keeping the rent and food prices the same in the town. 

Anarchist- Someone who promotes self-government and is anti government

Enduring Understandings:

People with power cared more about economic gains rather than their workers:

• "Conditions in the town took a turn for the worse after the Panic of 1893. Pullman laid off workers and cut wages by 25 percent. Meanwhile, he kept rent and food prices in his town at the same levels." (The Great Strikes, 482)
• "children often left school at the age of 12 or 13 to work. Girls sometimes took factory jobs so that their brothers could stay in school. If a mother could not make money working at home, she might take a factory job, leaving her children with relatives or neighbors. If an adult became ill, died, or could not find or keep a job, children as young as 6 or 7 had to bring in cash." (Industrialization and Workers, 476)
• “At 12 o’clock last night every department of the immense Carnegie steel works at Homestead was shut down, throwing about 3,800 men out of employment…It has been the custom of the Carnegies, and all other mills, to discharge their men on the night of the expiration of the yearly contract.” (The Pittsburgh Post, 30 June 1892)

Groups of people got together to fight back unfair changes by big business:

• "Under the leadership of former machinist Terence Powderly, the Knights pursued broad social reforms. These included equal pay for equal work, the eight-hour workday, and an end to child labor." (Industrialization and Workers, 478) 
• "In May 1894, a delegation of workers went to him to protest. In response Pullman fired three of the workers, an act that led the local union to go on strike." (The Great Strikes, 482)

• "Now, boys, we are out on strike, you can help us if you like,
  But you need not till I tell you what it's about.
  They want to lower our wages, we think it is not right;
  So for union's cause I want you all to shout."  In the Homestead Strike, workers wanted to gain as many workers as possible to help strike so their strike is effective. ("The Homestead Strike")

• "The struggle may be long, there's no one yet can say,
But we'll take it as it comes for a little while;
We will fight both night and day, for we're bound to win the day,
And down this great steel king in grandest style." The workers are putting the people in power in their place to show them that the workers will do strive to regain their deserved rights. ("The Homestead Strike")

 The above pictures are from the Homestead Strike

People need money to make money:

• Edison's boss awarded him 40,000 dollars as a bonus while working for New York company which led  Edison to leave his job to become an inventor and helped make electric energy using a sealed glass bulb light with a bamboo fiber filament. (America: Pathways to the Present, Chapter 13)
• Congress passed a bill which granted Samuel Morse money to continue to work on the telegraph since he was running out. (America: Pathways to the Present, Chapter 13)

I am a steel worker, and am taking part of the Homestead Strike. My fellow workers and I have been "locked out" of the Carnegie Plant on the night of our one year contract expiration. Myself along with 3,800 men are out of employment. ("The Pittsburgh Post, 30 June 1892") This "lock out" is the beginning of the strike. Many other workers along with me are joining the strike to help fight for better wages and hours.  I am treated absolutely terribly and I would like that have that changed as well, as a result of this strike.  Many workers are injured or dead because of the Governor sending in the National Guard. This is getting out of control, I just want to be treated fairly and have rights.