Industrial Supremacy, Chapter 17: 405-426 Recall/Reflect 1-5

Andrew Carnegie (411)

1835-1919 b. After making money through investments in a sleeping car company and oil, Andrew Carnegie moved on to a position in the War Department c. Later, he worked in the iron business and then moved into steel after learning the Bessemer Process, which formed steel from pig iron d. Grew Carnegie Steel Company through acquisitions e. Carnegie Steel Company was involved in the Homestead Strike with the Amalgamated Association of Iron and Steel Workers f. Wrote the article "Gospel of Wealth" for the North American Review, which promoted the belief that the wealthy were just trustees of their money and that they must use their efforts to benefit society g. His philanthropic ventures included Carnegie Hall and public libraries

Eugene V. Debs (424)

1855-1926 b. Became president of American Railway Union in 1893 c. Led successful strikes against the Great Northern Railway and against the Pullman Palace Car Company d. Was a found of the Social Democratic Party e. Ran for president as a Socialist candidate five times between 1900 and 1920

What was the gospel of wealth?

Carnegie's belief that the wealthy must serve as trustees for their wealth and the public good.

What changes took place in corporate organization in the late nineteenth century,and how did these changes affect the nation's economy?

Cars, electricity, mortgage bank, oil, and technology changed the US and the world. America changed in lifestyle and quality of living. These corporate organizations modernized and allowed the Industrial Era to transition to the Modern era.

How did Social Darwinism attempt to justify the social consequences of industrial capitalism?

Social Darwinism attempted to justify the social consequences of industrial capitalism in that some sections of society are more fit to survive than others. Society benefited from the elimination of the unfit and th survival of the strong and talented.

How did workers respond to the expansion of industrialization and the new industrial economy?

Some accepted their status, but most protested against the unfair work practices enacted by big businesses.

Who were some of the business and industrial titans of the late nineteenth century, and what did they contribute to America's industrial growth?

Some of the business and industrial titans of the late nineteenth century were Andrew Carnegie, John D. Rockefeller, Henry Ford, and Jp Morgan. Andrew Carnegie cut costs and prices by striking deals with the railroads. He later bought out rivals who could not compete with him. John D. Rockefeller was the richest man in the world who owned oil company and his products were essential to the industrial area. Henry Ford invented the automobile and had a mass production which improved America's social and cultural life. Jp Morgan nominated corporate and industrial finance. He arranged the merger of Edison General Electric, modernizing the area.

Horatio Alger (413)

The most famous promoter of the success story b. Originally a minister in a small town in Massachusetts but was driven from his pulpit as a result of a sexual scandal c. He moved to New York, where he wrote his celebrated novels i. There was a common message in his books: A poor boy from a small town went to the big city to seek his fortune d. Alger's name became synonymous with the powerful myth that anyone could advance to great wealth through hard work e. He grew very wealthy from his writings, which were among the most popular of his time, and became something of a folk hero in American culture

J.P. Morgan (411)

a. 1837-1913 b. Wall Street banker whose company financed railroads, banks, and insurance companies c. Bought out Carnegie for $400 million d. Pledged money to help shore up the United States banking system after the Panic of 1907 e. Philanthropist

John D Rockefeller (411)

a. 1839-1937 b. Founder of Standard Oil Company c. Used such business practices as horizontal integration, trusts, and rebates to grow Standard Oil d. Also invested in banks, railroads, and timber e. Focused on philanthropy toward the end of his life, including the Rockefeller Foundation and the University of Chicago

Henry Ford (408)

a. 1863-1947 b. His Model-T, introduced in 1908, was the first inexpensive, mass-produced automobile c. Use of the moving assembly line heavily influenced American manufacturing d. He paid workers $5 per day, more than doubling the average autoworker's wage e. He was strongly anti-union

Social Darwinism (412)

a. 1880s b. Theory that wealth was based on the survival of the fittest; associated with Charles Darwin's work c. Wealthy industrial leaders used the doctrines to justify vast differences in classes d. Supporters included Herbert Spencer and William Graham Sumner

Homestead Strike (423)

a. 1892 b. Iron and steel workers' strike against Carnegie Steel Company in Pittsburgh to protest salary reductions c. Henry Clay Frick hired Pinkerton security guards to protect Carnegie's plant, but fighting resulted in deaths among both the protesters and the guards d. The Pennsylvania State Militia was brought in to take control

Knights of the Labor (422)

a. Established 1869 b. Militant organization seeking solutions to labor problems c. Allowed skilled and unskilled workers (along with women and African Americans) to join d. Wanted an eight-hour work day, termination of child labor, equal pay for equal work, and the elimination of private banks e. Under Terrence Powderly's leadership, the Knights reached membership of over 700,000 f. Downfall caused by emergence of the AFL, mismanagement, and financial losses from unsuccessful strikes

Pullman Strikes (424)

a. In the winter of 1893-94, the Pullman Company slashed wages by about 25 percent, citing the declining revenues the depression was causing. At the same time, Pullman refused to reduce rents in its model town, which were 20 to 25 percent higher than rents for comparable accommodations in surrounding areas. b. Workers went on strike and persuaded the militant American Railway Union, led by Eugene V. Debs, to support them by refusing to handle Pullman cars and equipment. c. Opposing the strikers was the General Managers' Association, a consortium of twenty-four Chicago railroads. It persuaded its member companies to discharge switchmen who refused to handle Pullman cars i. Every time this happened, Debs's union instructed companies to walk off their jobs d. Within a few days thousands of railroad workers in twenty-seven states and territories were on strike, and transportation from Chicago to the Pacific coast was paralyzed

Samuel Gompers (422)

a. Leader of the American Federation of Labor (AFL) b. Strongly believed that a test of a man's worth was his ability to support a family, and that a women in the work force would undermine men's positions as heads of their families c. Accepted the basic premises of capitalism i. His goal was simply to secure for the workers he represented a greater share of capitalism's material rewards d. Rejected the idea of fundamental economic reform i. He opposed the creation of a worker's party ii. Was hostile to any government efforts to protect labor or improve working conditions > convinced that what government could give, it could also take away

horizontal integration (411)

a. The combining of a number of firms engaged in the same enterprise into a single corporation i. The consolidation of many different railroad line into one company was an example

vertical integration (411)

a. The taking over of all the different businesses on which a company relied for its primary function Example: Carnegie Steel i. Became popular in the 1890s

gospel of wealth (413)

a. Written by Andrew Carnegie in 1901 b. Carnegie wrote that the wealthy should consider all revenues in excess of their own needs as "trust funds" to be used for the good of the community; the person of wealth, he said, was "the mere trustee and agent for his poorer brethren."

Henry George (419)

a. Wrote Progress and Poverty in 1879 i. Became one of the best-selling nonfiction works in American publishing history ii. George tried to explain why poverty existed amidst the wealth created by modern industry. He blamed social problems on the ability of a few monopolists to grow wealthy as a result of rising land values b. George proposed a "single tax" to replace all other taxes, which would return the increment to the people. i. He believed that the tax would destroy monopolies, distribute wealth more equally and eliminate poverty