Chapter 17 precis Ummi Ciptasari The revolutionizing of iron and steel production in the late of nineteenth century was

perhaps the most important technological development at the time. Henry Bessemer and William Kelly were the ones who invented process to turn iron to steel, followed by Abram Hewitt’s new way to make steel, possible to produce large quantities and dimensions for construction such as railroads. The steel industry spread all over the U.S. New transportation systems emerged to serve steel industry, steam freighters were built to transport steel, and railroads gave steel capital, transported it, and provided a market for it. Oil industry also grew because of the needs to lubricate mill machinery. Development of automobile dependent upon growth of two technologies: creation of gasoline from crude oil extraction, and 1870s Europe development of “internal combustion engine”. By 1910 car industry was a major role in economy. First gas-car built by Duryea brothers by 1903, Henry Ford began the production in 1906. The U.S. and Europe soon started to experimenting with aeronautic devices. Wilbur and Orville Wright had the first successful flight tests in North Carolina. Aviation had its farthest progress in France due to government funding, but the U.S. tried to compete by created the National Advisory Committee on Aeronautics in 1915. New industrial technologies lead companies to sponsor their own researches. General Electric established first corporate lab in 1900, marked decentralization of government sponsored research. A rift between scientists and engineers over the commercializing of knowledge occurred. Universities and corporations became interconnected, and commerce and education are still connected. Principles of “scientific management” began to be employed. Fathered by Frederick Taylor who argued employers subdivide tasks to decrease need for highly skilled workers and increase efficiency by doing simple tasks with machines, the adoption of “Taylorism” led to increased efficiency, but it made workers less independent. Henry Ford introduced the moving assembly line into his car plants in 1914, which raised wages, shortened hours, and cut prices. However, railroads were still nation’s principal form of transportations that helped determine the path of agricultural and industrial development and changed the economic, social and physical landscape. It also altered concepts of time, divide US into four times zones in 1883. The rapid extension of these railroads were keep going until there were about 193,000 miles of track by 1900. The law of incorporation passed in many states led to the modern corporation. Americans could buy stock with limited liability. In the steel industry, Andrew Carnegie dominated the business before sold it to J.P. Morgan, who created the U.S. Steel Corporation. Corporate organizations developed new management system included a division of responsibilities, cost-accounting procedures, and the introduction of the middle manager. Consolidation occurred through horizontal integration that combined firms with the same enterprise and vertical integration, control of all aspects of an industry. J.D. Rockefeller’s Standard Oil Company, formed by both integration controlled 90% refined oil n US. Failure of pools (informal agreements to stabilize rates and divided markets) led to less cooperation and more centralized control company. Trusts were created, but they became obsolete when it was possible for companies to buy other companies. Holding companies then emerged as corporate body

but movement grew in opposition to monopolies and economic concentrations. which said that civilization was not governed by natural selection but by human to buy up stock and establish formal ownership of corporations in trust. But most came to be wealthy as a result of ruthlessness. Ireland. th Industrial work force grew late 19 century because of migration to industrial cities from both rural areas and foreign immigration. Many children were employed in factories and agriculture for extra money for their families. system where power in hands of a few men. There was a loss of control over production. Claims that millionaires were the product of hard work led to the concept of Social Darwinism or survival of the fittest as the application of Darwin’s law. A railroad strike occurred in 1877 when eastern railroads announced a 10% wage cut. William H. Russell H. advocated idea that with great wealth came great responsibility to use riches to advance social progress. perseverance. They were unskilled labor and were paid very low wages. the Knights of Labor had 700. Henry George wanted a “single tax” to replace all other taxes and distribute wealth. by end shit toward South and East Europeans. telling people that get rich is their duty. criticism started to grow from middle class society. As big businesses rose. which was lower than needed for a comfortable life. Horatio Alger promoted stories of individual success in his works. More than 100 people died in resulting conflicts. competition was key and also supported the idea of supply and demand.000 members.late century most migrants from England. Conwell known for his “Acres of Diamonds” speech. that anybody could become rich thru work. lured by opportunity and advertisements by companies. The Socialist Labor Party and the American Socialist Party were also against Social Darwinism. The middle class was hostile toward union because they blamed them for violent labor disputes. the average income of a worker was $4-500 a year. By 1866. lowering of advancement opportunities. politics. The huge strike disrupted rail service and destroyed equipment. but by 1890 . and luck. which was disappeared after the Panic of 1873. 1% of corporations controlled 33% of manufacturing. In 1900. Unions faced difficulty during 1870s recessions because of high unemployment and hostility of middle class. or vice. The standard of living was rising but the gap between rich and poor was increasing. arrogance and corruption. Immigrants came to escape poverty. Andrew Carnegie wrote the Gospel of Wealth. Ethnic tensions increased because of job displacement and competition. Defenders argued capitalist economy expanding opportunities for individual advancement. and grossly lavish people they created. with no want. Sylvis founded the National Labor Union in 1866. Lester Frank Ward wrote Dynamic Sociology. A baptist minister. In the end of 19 century. Men had even worse working conditions. 17% of the workforce was women. In 1900. This showed the resentment of the workers against the employers and the frailty of the labor movement. Child labor laws were passed but were ineffective. which made strikes useless. Edward Bellamy wrote a utopian novel called Looking Backwards where the government helped society become a great machine that ran itself. The Noble Order of the Knights of Labor was established in 1869 and was the first labor organization to accept women. Social Darwinism justified businessmen’s methods and said that unions would fail. Low-paid immigrants replaced higher-paid ones. and some tycoons were selfmade men. North Europe. and people considered it inappropriate for women to be working outside the home. Herbert Spencer and William Graham Sumner were important proponents of this theory. and the artificially high prices. While few questioned capitalism.

collection of autonomous craft unions of skilled workers. but there was spotty enforcement and strikes continued to fail. Anarchism became widely feared by middle class. The Amalgamated Association of Iron and Steel Workers. The abolition of the Contract Labor Law and the establishment of the 8-hour workday for government workers occurred. On May 1. In the Pullman strike of 1894. unions didn’t want unskilled workers. and the company responded with guards. They were averse to unskilled workers and women in the workforce. Members had control over their working conditions and had a foothold in the Homestead Plant in Pittsburgh. When wages were cut a second time. . became most important and enduring national labor group . Eugene Debs of the American Railway Union started the strike. There were few labor gains because only 4% of workers were in unions. Someone threw a bomb and eleven people died that day. 1886 in Haymarket Square. There was some social mobility. In1880s American Federation of Labor was created. which had to be put down by federal troops because transportation had been disrupted and mail was not being delivered. They demanded an 8hour workday and threatened to strike. and immigrants weren’t willing to organize. Seven anarchists were sentenced to death.Knights had collapsed due to failure of strikes in the Gould railway system. workers at the Pullman Palace Car Company held a strike to remove wage cuts without rent cuts. It was also associated with radical labor. the Amalgamated called for a strike. a part of the AFL held large amount of power in steel industry because of reliance on skilled workers. Chicago. the guards were attacked and state troops were sent in to end the strike. a large crowd of strikers and police gathered. The Amalgamated lost members. but mostly labor had no gains because of corporate strength. They also didn’t want government interference in the labor movement.