AP US HistoryJanuary 22 - 26 2018

The Western Project is now due in class on January 22. However, if you did complete it for the original due date, you will receive a few extra points.

On TUESDAY January 23 we will have a quiz covering our Monday class discussion as well as, the 4 major strikes of the 19th century. Please be aware that the TUESDAY quiz will be more dependent on web-notes than any quiz of the year. Do not expect success if you do not look at these notes.

MONDAY Examine the origins of the organized labor movement in the 19th century (NAT-7) (WXT-5,6) Discuss some of the causes and effects of major strikes (sources from Homework)

Materials Strategy/FormatPpt and primary sources Lecture-discussion SL.CCR.1 and

L.CCR.2-3 R.CCR.1Student Skill TypesChronological Reasoning (1, 2)

Given our topic and recent weather, this image seemed more fitting even though it is from the early 20th century.

Comp/Context (5)Historical evidence (6,7) Interpretation/Synthesis (8, 9)

Introduction One of the most important events of the Gilded Age was the formation of major labor unions. The

industrial system that formed had reduced the quality of life for the working class to such a degree that sometimes violent strikes became the only alternative to a system that was highly oppressive and in some ways like the sharecropping system whereby one made so little wages that escape from the cycle of poverty was very difficult.

There had always been a rather negative view of labor unions as bastions of radicalism. Some of this stemmed from the fact that unions in Europe were equated with socialism and communism. In fact, some of the early labor groups were led by European immigrants. The labor union had also been equated to the same status under the law as monopolies, both being seen as restraints of trade. In 1890 the Sherman Anti-trust Act was written to define monopolies (trusts) and that included labor unions if they tried to strike.

Today we will look at the development of these unions and some of the major strikes of this period. Be sure and pay attention to similarities and differences.

There was a good reason why labor unions had difficulty forming in this era. Nearly everything was ranged against labor and management had all of the advantages.

a. Scabs: People who will cross the picket line and they usually are non-union b. Blacklists: a list of "known radicals" circulated among business ownersc. "yellow dog contracts": an agreement not to unionize as a condition of employmentd. Open Shops: States that allow people to refuse to join a union (as opposed to "closed shops"d. Public Perception: Strikes smacked of communism or anarchism in the public eyee. Injunctions: Federal "cease and desist orders" making strikers stop protesting. f. A willingness to use force: This sort of speaks for itself. But to be clear National Guard troops and Federal troops were often called outg. Strike Breakers: These were professional thugs hired to attack strikers.

So what did the workers have at their disposal? Only the strike was a powerful weapon but it was hesitantly used. To lose a strike is to lose the union itself in many cases.

The Early Unions Early attempts by workers to organize for their own demands went all the way back to the early 19th

century. IN fact, women at the Lowell and Waltham mills in the early antebellum years launched a work stoppage in demands for better conditions.

Most often the major demand of organized labor involved better conditions more often than wage increases. The most common demand was for an 8 hour work day which we saw with the Populist Movement.

The earliest true union was called the National Labor Union. Founded in 1866 and dissolved in 1873, it paved the way for other organizations, such as the Knight of Labor and the AF of L American Fed. of Labor It was led by William Sylvis. The National Labor Union followed the unsuccessful efforts of labor activists to form a national coalition of local trade unions. The National Labor Union sought instead to bring together all of the national labor organizations in existence, as well as the "eight-hour leagues" established to press for the 8 hour work day, to create a national federation that could press for labor reforms and help found national unions. The National Labor Union was a utopian example of Sylvis’ desire to unite all workers. The union failed largely due to its attempted to form a political party and ultimately the formation of the more powerful Knights of Labor. Also, William Sylvis passed away and no real leadership replaced him.

The Knights of Labor Beginning while the NLU still had some membership, Uriah Stephens formed the Knights of Labor.

Following his death Terrence Powderly took over the union and expanded it to national prominence. The 1869, the Noble and Holy Order of the Knights of Labor was established in Philadelphia. The

organization believed that its predecessors had failed by limiting membership; the Knights proposed to organize both skilled and unskilled workers in the same union and opened their doors to blacks and women.

The union reached out to all nationalities except the Chinese. At this juncture Asian immigration had accelerated and it was argued that they would weaken organized labor because they worked so cheaply.

In its early years, the organization was highly secret since in many areas union members were summarily fired. The Knights developed ornate rituals. But by the 1880s the Union started to become more political. You will recall that this was also the time when Populism was also forming. Another interesting aspect of the union was its membership preclusions. They sought to include within their ranks everyone but doctors, bankers, lawyers, liquor producers and gamblers. This expressed the economic and class arguments but also a growing moralistic viewpoint.1. An eight-hour work day (same as Populists)2. Termination of child labor 3. Termination of the convict contract labor system (the concern was not for the prisoners; the Knights of

Labor opposed competition from this cheap source of labor) 4. Establishment of cooperatives to replace the traditional wage system and help tame capitalism's

excesses Equal pay for equal work 5. Government ownership of telegraph facilities and the railroads (same as Populists) 6. A public land policy designed to aid settlers and not speculators 7. A graduated income tax (same as Populists)

The Knights in Decline Originally, the Knights of Labor opposed the use of strikes; however, new members and local leaders

gradually radicalized the organization. By the mid-1880s, labor stoppages had become an effective tool. The Knights won important strikes on the Union Pacific in 1884 and the Wabash Railroad in 1885. However, in 1886 a wildcat strike erupted (one that is unauthorized by union leadership) and the Haymarket Square Riot of the same year. This was a sympathy demonstration in Chicago that turned bloody when someone threw a bomb at police killing several. The police then fired into the crowd. This event quickly eroded the Knights' influence—although no member was implicated in the latter event. In the public mind, the eight-hour work day and other demands by the Knights became equated with radicalism. To many, the terms "unionism" and "anarchism" were synonymous. Labor leader Terence Powderly organizing skills had brought the group's membership to more than 700,000 in the early 1880s, but by 1900 that number had dropped to approximately 100,000.

The Haymarket incident was certainly pivotal in that it transformed a skeptical public into vocal opponents of the group. Beyond that, however, the Knights suffered from mismanagement and internal divisions, especially the longstanding strife between the skilled and unskilled worker members. Finally, the rise of the American Federation of Labor offered an alternative that rejected radicalism and organized its members along craft lines

The American Federation of Labor In the same year as the Haymarket Incident the American Federation of Labor (A.F. of L.) (now simply

AFL) began that same year. The AFL was spearheaded by Samuel Gompers, a cigar maker by trade, who had learned of the economic struggles of the American laborer through conversations with cigar makers at the factory.

Gompers led AFL member unions and individual workers into struggles for shorter hours and higher wages. At first, blacks were openly encouraged to join the AFL, until it was later seen that their explicit stand on race issues hampered the union's expansion. Thereafter, as long as a union did not include anything in their constitution regarding the exclusion members because of race, those unions were welcome to join the AFL.

The strength of the union (it is still around today combined with the CIO) can be traced to two major factors. First, there was an emphasis upon collective bargaining. This demanded that the union first attempt negotiations with management. This was calculated to reduce the image of radicalism and it worked very well. Today the Federal Government Department of Labor usually oversees the process. This also created sympathy with workers as ownership often refused to treat with unions. By the turn of the century and Theodore Roosevelt’s administration, there will be a noticeable move toward acceptance of labor unions. A second factor involved Gomper’s stance on trade unions (skilled labor). He realized that skilled labor had more power to bargain. So, he organized the union into local unions (called locals) that answered to the Federated board. Thus, it resembled the government’s power structure. Wildcat strikes were forbidden (though they sometimes did occur later on).

ConclusionDespite the growth of unions, owners still had great power to control workers. It would be late in the 19th century before strikes were avoided by collective bargaining. But this did not mean that all workers were content. Radical movements continued to proliferate with both the socialist and communist parties gaining power. A labor union called the IWW (International Workers of the World) or "the Wobblies" led by "Big Bill Heyward were particularly radical and were not above resorting to acts of terrorism themselves.

Read over the causes of the major strikes so that you’ll be able to understand. Most of this comes from the University of Houston digital history website. I included this link on our website and it is a great resourcehttp://www.digitalhistory.uh.edu/ Major Strikes of the 19th centuryIntroductionWhile there were small scale labor strikes in the early 19th century the larger ones were during the Gilded Age. One reason for this was the series of economic downturns. In 1873 and again in 1893 there were two panics each one worse than the previous. Another issue was the money question taking on class distinctions. In nearly all cases the strikes involved wage cuts, the workday, and safety concerns. Additionally, in nearly all cases Federal, state, and local authorities used force to end the strikes and often, the unions were the big losers. In all cases, there was terrible violence and bloodshed.

The Great Railroad Strike of 1877 The Great Railroad Strike of 1877 was the country's first major rail strike and witnessed the first general

strike in the nation's history. The strikes and the violence it spawned briefly paralyzed the country's commerce and led governors in ten states to mobilize 60,000 militia members to reopen rail traffic. The strike would be broken within a few weeks, but it helped set the stage for later violence in the 1880s and 1890s, including the Haymarket Square bombing in Chicago in 1886, the Homestead Steel Strike near Pittsburgh in 1892, and the Pullman Strike in 1894.

In 1877, northern railroads, still suffering from the Financial Panic of 1873, began cutting salaries and wages. The cutbacks prompted strikes and violence with lasting consequences. In May the Pennsylvania Railroad, the nation's largest railroad company, cut wages by 10 percent and then, in June, by another 10 percent. Other railroads followed suit. On July 13, the Baltimore & Ohio line cut the wages of all employees making more than a dollar a day by 10 percent. It also slashed the workweek to just two or three days. Forty disgruntled locomotive firemen walked off the job. By the end of the day, workers blockaded freight trains near Baltimore and in West Virginia, allowing only passenger traffic to get through.

Soon, violent strikes broke out in Baltimore, Chicago, Kansas City, Pittsburgh, St. Louis, and San Francisco. Governors in Maryland, Pennsylvania, and West Virginia called out their state militias. In Baltimore, Charles A. Malloy, a 20-year-old volunteer in the Maryland National Guard, described the scene: "We met a mob, which blocked the streets. "They came armed with stones and as soon as we came within reach they began to throw at us." Fully armed and with bayonets fixed, the militia fired, killing 10, including a newsboy and a 16-year-old student. The shootings sparked a rampage. Protesters burned a passenger car, sent a locomotive crashing into a side full of freight cars, and cut fire hoses. At the height of the melee, 14,000 rioters took to the streets. Maryland's governor telegraphed President Rutherford Hayes and asked for troops to protect Baltimore.

It appears that some 40 people were killed in the violence in Pittsburgh. Across the country more than a hundred died, including eleven in Baltimore and a dozen in Reading, Pa. By the end of July, most strike activity was over. But labor strikes in the rail yards recurred from 1884 to 1886 and from 1888 to 1889 and again in 1894.

Native-born Americans tended to blame the labor violence on foreign agitators. "It was evident," said the Annals of the Great Strikes in the United States, published in 1877, "that there were agencies at work outside the workingmen's strike. Not surprisingly these tensions led some to call for immigration restrictions from central-eastern Europe, the origins of what will later be known as the “Red Scare.” The people engaged in these riots were not railroad strikers.

The Haymarket Incident On May 1, 1886, thousands of people in Chicago began demonstrations in behalf of an eight-hour workday.

The marchers' slogan was, "Eight hours for work, eight hours for rest, eight hours for what we will." On May 4, 1886, a deadly confrontation between police and protesters erupted at Chicago's Haymarket

Square. A labor strike was in progress at the McCormick farm equipment works, and police and Pinkerton security guards had shot several workers.

A public demonstration had been called to protest police violence. Eyewitnesses later described a "peaceful gathering of upwards of 1,000 people listening to speeches and singing songs when authorities began to move in and disperse the crowd." Suddenly a bomb exploded, followed by pandemonium and an exchange of gunfire. Eleven people were killed including seven police officers. More than a hundred were injured.

The Chicago Tribune railed against "the McCormick insurrectionists." Authorities hurriedly rounded up 31 suspects. Eventually, eight men, "all with foreign sounding names" as one newspaper put it, were indicted on charges of conspiracy and murder.

No evidence tied the accused to the explosion of the bomb. Several of the suspects had not attended the rally. But all were convicted and sentenced to death. Four were quickly hanged and a fifth committed suicide in his cell. Then, the Illinois Governor, Richard Ogelsby, who had privately expressed doubts "that any of the men were guilty of the crime," commuted the remaining men's death sentences to life in prison. Illinois's new governor, John Peter Altgeld, pardoned the three surviving men. A German born immigrant who had enlisted in the Union army at the age of 15, Altgeld declared, "The deed to sentencing the Haymarket men was wrong, a miscarriage of justice. And the truth is that the great multitudes annually arrested are poor, the unfortunate, the young and the neglected. In short, our penal machinery seems to recruit its victims from among those who are fighting an unequal fight in the struggle for existence."

The Washington Post asked rhetorically: "What would one expect from a man like Altgeld, who is, of course, an alien himself?" The Chicago Tribune stated that the governor "does not reason like an American, does not feel like one, and consequently does not behave like one." In 1889, the American Federation of Labor delegate to the International Labor Congress in Paris proposed May 1 as international Labor Day. Workers were to march for an eight-hour day, democracy, the right of workers to organize, and to memorialize the eight "Martyrs of Chicago."

The Homestead Strike Originally built in 1880 and 1881 by local merchants, the Homestead Works was purchased by industrialist

Andrew Carnegie, who installed open-hearth furnaces and electricity in order to boost the plant's efficiency and reduce the need for skilled labor. Carnegie's steel mills produced armor for battleships, rails for western railroads, and beams, girders, and steel plates for bridges and skyscrapers.

Carnegie's drive for efficiency also led to an armed confrontation at Homestead. In contract talks in 1892, Henry Clay Frick, the superintendent of the Carnegie Steel Company, proposed to cut workers' wages, arguing that increased efficiency had inflated salaries. At the time, unskilled mill workers, who were mainly eastern European immigrants, made less than $1.70 for a 12-hour day. Skilled workers earned between $4 and $7.60 a day. Frick also wanted to eliminate the Amalgamated Association of Iron and Steel Workers union from the plant.

When the negotiations broke down, Frick shut down the mill, installed three-miles of wooden fence topped with barbed wire around the mill, and hired 300 guards supplied by the Pinkerton Detective Agency. The guards were placed aboard two company barges in Pittsburgh for the trip up the Monongahela River to nearby Homestead.

On July 6, the guards were confronted by hundreds of workers and townsfolk. In the gun battle that ensued, seven workers and three Pinkerton guards were killed. Twelve hours after the battle for Homestead began, the guards surrendered.

The union's apparent victory was short-lived. Within days, 8,500 members of the National Guard took control of the plant. When Frick was seriously wounded in an assassination attempt in his Pittsburgh office, public opinion turned against the steel workers' union. By November, the union had been broken and the mill had reopened as a non-union plant using African American and eastern European workers. Union leaders were blacklisted from the steel industry for life.

One of the strike's consequences was that the steel mills shifted from an eight hour to a 12-hour a day, six-day work week, with a 24-hour shift (followed by a day off), every two weeks. It would be some 44 years before the steel industry would again be unionized.

The Pullman Strike 1894 was the second of four years of depression. The pinch was felt even by the Pullman Palace Car

Company, which manufactured the sleeping cars used by most of the nation's railroads. George Pullman responded by laying off several thousand of his 5,800 employees and cutting pay 25 to 50 percent, while refusing to reduce rents charged employees, who lived in the company town of Pullman, near Chicago. Then he fired three members of a workers' grievance committee.

On May 11, 1894, 90 percent of his workers went on strike. The strike spread nationwide when the American Railway Union refused to move trains with Pullman cars. Within a month, more than a quarter million other railroad employees had joined the strike.

The government, under President Grover Cleveland, swiftly won a court injunction ordering strikers back to work. When they refused to comply, he dispatched more than 14,000 federal troops and marshals. In Chicago, when soldiers fired into a crowd of 10,000, 25 persons were killed, 60 badly injured. Hundreds were jailed, including union leader Eugene Debs, who subsequently founded the Socialist party. Railroad attorney Clarence Darrow switched sides and defended Debs, launching his career as a defender of underdogs. Social Worker Jane Addams led an investigation of the strike.

Samuel Gompers and his fellow craft unionists at the helm of the American Federation of Labor spurned Debs' plea for a general strike to protest enlistment of the White House and the courts on the side of management.

Homework for Monday NightReview the class discussion and web-notes (especially on labor strikes)

TUESDAY (5th Period go to 1st Lunch) Quiz on the Labor Union movement major strikes of the 19th century(NAT-7) (WXT-5,6)

Materials StrategyQuiz forms on Labor-Strikes assessment W.CCR.1

Instructions This will be a rather long quiz without primary sources! However, there may be a few Multiple-Choice

questions

HomeworkFollow the link below and read about the causes and effects of the 1893 Panic (you cannot copy the source but you are free to jot down a few notes to use on bell work quiz on Wednesday

https://www.saylor.org/site/wp-content/uploads/2011/08/HIST312-10.1.2-Panic-of-1893.pdf

WEDNESDAY (Textbook Today) Bell work on the Panic of 1893 Analyze sources on Corporate growth during the Gilded Age (WXT-3) (WXT-7)

Materials Strategy/FormatTextbook and bell work questions Review and close-text reading

Student skillsChronological Reasoning (1,2,3)Comparison/Context (4,5)Crafting Arguments/Evidence (7)

Instructions Today we will review your reading about the panic of 1893 reading and then complete a short text section

on the rise of big business and corporate America. The text section is designed to be a preview of the other side of wealth during the Gilded Age. We will do a detailed discussion of this material on Thursday in class.

You will answer your bell work questions from the smart board and then proceed to the text materials

HomeworkNone

THURSDAY Examine the rise of modern day corporations by examining the development in the steel and oil industries

during the Gilded Age Period (WXT-3) (WXT-7)

Materials Strategy/Formatppt Lecture-discussion

Student skillsChronological Reasoning (1,2,3)Comparison/Context (4,5)Crafting Arguments/Evidence (7)

Introduction The late 19th century is one of the most rich periods in U.S. history and we will be examining it in great

detail over the next couple of weeks. Between 1869 and 1910, the value of American manufacturing rose

from $3 billion to $13 billion. The steel industry produced just 68,000 tons in 1870, but 4.2 million tons in 1890. The central vehicle of this surge in economic productivity was the modern corporation (digitalhistory.com). You got the section started last night by looking at some information about the all important railroad industry. The development of railroads was really the key to nearly every economic advancement (and a few crises) in this period. It spawned the stock market, foreign and state investments, and a wave of new technologies that fed into the railroad industry. The railroad business was unlike anything that the world had seen and there were vast fortunes won and lost in its development. The competition was cut-throat and eventually the normally laissez-faire ideas of the Republicans and most Democrats were forced to change and initiate a wave of corporate regulation in this period. The Sherman Anti-Trust Act was passed in 1890 to regulate trusts and monopolies. The Interstate Commerce Act 1887 was designed to regulate railroads in particular (which it still does today).

Today we are going to examine the growth of the corporation in what was sometimes called the "new economy" by using two of the most famous corporate giants of the period: Andrew Carnegie and John D. Rockefeller as our examples. Both men embody the period in multiple ways. John D. Rockefeller's Standard Oil Company was worth $600 million and when Carnegie sold his steel empire to J.P. Morgan and his investors the result, Unites States Steel, was the first $1 billion corporation. In both cases, the rail industry was a major buyer and a vital supplier. We will also look at how they built their empires using new innovations and practices that were sometimes questionable. Both are remembered today but for sometimes different reasons.

Andrew Carnegie and the Steel Industry He was a compelling figure that embodied the "Horatio Alger" stories about people who rose from "rags to

riches." Coming to America as an immigrant from Scotland where the family business ironically was destroyed by the new factory system, he enrolled in night classes and worked long arduous hours. he studied a new discipline, accounting and learned the techniques of "cost-benefit "analysis. Carnegie also served as a messenger boy met at the telegraph office was Thomas A. Scott, then superintendent at Pennsylvania Railroad. Scott was quite taken by the young worker hiring him as his private secretary and personal telegrapher at $35 a month. Carnegie worked his way up the ladder in Pennsylvania Railroad and succeeded Scott as superintendent of the Pittsburgh Division. At the outbreak of the Civil War, Scott was hired to supervise military transportation for the North and Carnegie worked as his right hand man. It was here that Carnegie first realized the connection between steel and the rail business.

One of the keys to Carnegie's success was his interest in innovation. He used this when he build his first steel mills. Carnegie would embrace a new steel refining process being used by Englishman Henry Bessemer to convert huge batches of iron into steel, which was much more flexible than brittle iron. Carnegie threw his own money into the process and even borrowed heavily to build a new steel plant near Pittsburgh. Carnegie was ruthless in keeping down costs and managed by the motto "watch costs and the profits take care of themselves."

Vertical integration and horizontal integration were two key business practices that would Carnegie's steel juggernaut was unstoppable, By 1900 Carnegie Steel produced more of the metal than all of Great Britain, then the second largest steel producer. Here's how these practices worked: Horizontal integration is the process of merging similar industries, industries that produce similar products. Horizontal integration would include tactics like buying competing companies that produce the same goods as you do. Vertical integration is the process of buying out suppliers of that particular industry. For example, a steel company would have an advantage over competitors by vertical integration if that company bought out places like coal fields or iron mines, places that competing steel companies rely on to make their steel. This would let you control the raw materials and transportation systems. The principle difference is that horizontal integration buys the competing companies while vertical integration aims at the raw material sources necessary to produce that product.

Carnegie and Labor There was no doubt that on some level Carnegie appreciated the plight of the working class. Carnegie was

unusual among the industrial captains of his day because he preached for the rights of laborers to unionize and to protect their jobs. He even pioneered the concept of profit sharing with his workers. However, Carnegie's actions did not always match his rhetoric. Carnegie's steel workers were often pushed to long hours and low wages. In the Homestead Strike of 1892, Carnegie threw his support behind plant manager Henry Frick, who locked out workers and hired Pinkerton strike breakers to intimidate strikers. Many were

killed in the conflict, and it was an episode that would forever hurt Carnegie's reputation and haunt the man.

"The Gospels of Wealth"Carnegie once said, "The man who dies thus rich dies disgraced." Carnegie believed that the wealthy should repay their debt to society. True to his beliefs, by his death in 1919 he had divested himself of more than 95 percent of his fortune. He built a library building for any town that would provide a site, stock the building with books, and guarantee maintenance expenses. He provided pensions for professors at universities that agreed to meet strict academic standards. In addition to funding music halls, outdoor swimming pools, and church organs, he also set up endowments to promote teaching and world peace. Of course the Carnegie Endowment exists to this very day. Because of these ideas men like Carnegie were sometimes referred to as being "captains of industry"

John D. Rockefeller and the Oil Business The modern impression of Rockefeller is somewhat different. Many have called his a "robber baron"

implying that he somehow used illegal means to build the oil business. Of course, that was true to some degree as it was even for Carnegie. Here's one of my favorite stories about him. At the urging of his mother, he loaned a local farmer $50 at 7% interest payable in one year. When the farmer paid him back with interest the next year Rockefeller was impressed and said of it in 1904: "The impression was gaining ground with me that it was a good thing to let the money be my servant and not make myself a slave to the money."

Unlike Carnegie who did odd jobs until he finally was fortunate enough to meet Thomas Scott, Rockefeller was a lower middle class young man who was fortunate to attend a private academy in New York. Rockefeller excelled at mental arithmetic and was able to solve difficult arithmetic problems in his head -- a talent that would be very useful to him throughout his business career. In other subjects Rockefeller was an average student but the quality of the education was very high. Then he attended what we would now call a business school in Cleveland where the family had moved. His first official job like Carnegie was bookkeeping.

At around age 20 Rockefeller went into business for himself, forming a partnership with a neighbor Clark & Rockefeller -- commission merchants in grain, hay, meats, and miscellaneous goods. At the end of the first year of business, they had grossed $450,000, making a profit of $4,400 in 1860 and a profit of $17,000 in 1861. The commission merchant business was very competitive and Clark & Rockefeller's success was due in large part to Rockefeller's natural business abilities.

Like many northern businesses theirs expanded rapidly during the Civil War. Grain prices went up and so did their commissions. Most of their selling was done on commission, so Clark & Rockefeller took no risks from price fluctuations. Rockefeller's style was very precise and calculated. He was not a gambler but a planner. He avoided speculation and refused to make advances or loan. But despite the success he was not content and believed the future lay in development of raw materials and that's how he came to be in the oil game.

In 1859 the oil business had its first great innovation when Edwin Drake struck oil near Titusville, Pennsylvania, setting off a frenzied oil boom in what soon became known as the "oil regions" of northwestern Pennsylvania. A sample of the Pennsylvania oil was sent to a Yale University chemist analyze it. The chemist determined that the Pennsylvania oil was of very high quality and could be refined into a variety of useful products. The technology used by Drake was not new. What was new was the idea of drilling for oil -- the idea that you could pump oil out of the ground like you could pump water. The Pennsylvania oil was of high quality. One barrel yielded 60-65% illuminating oil, 10% gasoline, 5-10% naphtha (a volatile inflammable liquid used as a solvent in dry cleaning, varnish making, etc.), with the remainder tar and wastes. All of these were valuable but Rockefeller hated to waste anything and wanted to perfect a new process.

The next step in the process was vertical integration where bought his own pipe making and barrel making operation. He did not have to initially buy transportation because his product was valuable enough that dealt with railroads to get rebates on shipping. He was eventually served by two railroads and by 1869 was the largest refiner in the world. Imagine how wealthy he'd be if the gasoline engine had been yet perfected!

His technique was always the same. The merger would be effected by an increase in the capitalization of The Standard Oil. The rival refinery would be appraised and the owners would be given Standard Oil stock in proportion to the value of their property and good will and they would be made partners in Standard Oil.

The more talented owners would also be brought into the Standard Oil management. If they insisted upon cash they received it.

Later some owners who had been bought out complained to the press that they had been treated unfairly. The evidence is overwhelming that the Standard’s rivals were paid fair -- even generous -- prices for their property, and if they had the wisdom to take Standard Oil stock, they ended up very rich indeed.

By 1872, Rockefeller had bought up and/or merged with almost all the refineries in Cleveland. The inefficient and poorly constructed refineries were dismantled. Eventually Rockefeller controlled 90% of the oil market.

The Standard Oil Trust: Rise and Fall By 1890, The Standard had set up an elaborate nationwide distribution system that reached nearly every

American town. By 1904, 80% of American towns were served by Standard Oil carts that delivered the various products directly to businesses and homes. Standard Oil’s campaign to dominate even the smallest of the retail markets is probably the single most important reason that company became so disliked by the American public. The Standard was aggressive in its marketing practices and tried to force all grocery and hardware stores that sold kerosene and lubricants to sell only Standard products. This policy -- though successful in the short run -- made the Standard widely unpopular and simply increased its vulnerability to political attack….. I call that the "Walmart Effect"

In 1892 the Trust was formally dissolved. The Attorney General of Ohio had brought suit against the Trust in 1890 and it lost in 1892. Each trust certificate was to be exchanged for the proportioned share of stock in the 20 component companies of the Standard. The irony is that this had no practical effect on the Combination. The same men were still in charge, only now they were simply the majority shareholders of all the component companies.

The irony is that because of his practice and the anti-trust case Rockefeller is somehow seen as a villain. From the mid-1890s until his death in 1937, Rockefeller’s activities were philanthropic. Rockefeller's fortune peaked in 1912 at almost $900,000,000, but by that time he had already given away hundreds of millions of dollars. The University of Chicago alone received $75 million by 1932! The list of recipients is really too long to recount but like Carnegie, his money is still around as part of the Rockefeller Foundation

HomeworkBegin Prepping your timed essay on Monday. See weekend homework under the Friday instructions

FRIDAY (text and notes optional) Review Activity History Period 5 antebellum, Civil War and Reconstruction

Materials Strategy/FormatQuiz forms and notes (optional) assessment with partners

Instructions So, as I mentioned last week, we would have quite a few review activities and bell work this semester. The

AP Exam is Friday, May 11, 2018. With that in mind today we will be completing a practice test (alone or with a partner). This will involve both MC and SA questions from history period 5 so it’s like a flashback to big parts of midterm exam.

The Person (or partnership) with the highest score will get points on the next unit test (approximately) January 22nd (Monday)

Homework MONDAY in class we will complete the timed LEQ part of the next unit testStudy for potential essays on the following topics. You will choose ONE of the topics for the in class from a List of THREE potential topics. Understand that you will not know the full prompt until you walk in.

You will NOT be allowed to use notes

The Rise and Fall of Populism (be certain to know key beliefs) The problems of organized labor in America (Be sure to know terms and a few example strikes) The explosion of big business in America (be sure to know key business leaders and innovations,

also factors why corporations developed.

Here is a rubric in case you have forgotten…………..Notice that the C part is dependent on the essay prompt that you will see in class. This is a shorter version of our usual rubric for LEQ essays.

Long Essay Question Rubric for AP US History A. THESIS (1 POINT) Targeted Skill: Argumentation

1 point: Presents a thesis that makes a historically defensible claim that responds to all parts of the question. The thesis must consist of one or more sentences located in the introduction and reflects all parts of the prompt.

B. USING EVIDENCE (2 POINTS) Targeted Skill: Argumentation 1 point: Introduces specific evidence that is relevant to the topic of the question but does not necessarily support the stated thesis or relevant argument. The response uses too limited a range of evidence to effectively support the argument. 2 points: Utilizes specific evidence that is relevant to the topic of the question AND clearly supports the stated thesis or relevant argument. The response uses a sufficiently broad range of evidence to fully support the argument.

C: USING THE TARGETED HISTORICAL THINKING SKILL (2 POINTS) Targeted Skill: Argumentation and Targeted Skill COMPARISON: 1 point: Describes similarities AND differences among historical individuals, events or developments.

1 point: Explains the reasons for their similarities AND differences. OR, DEPENDING ON THE PROMPT Evaluates the relative significance of historical individuals, events, developments or processes.

CAUSATION: 1 point: Describes causes AND/OR effects of a historical event, development, or process. 1 point: Explains the reasons for the causes AND/OR effects of a historical development.

Scoring Note: If the prompt requires discussion of both causes and effects, responses must address both causes and effects in order to earn either point.

CCOT: 1 point: Describes historical continuity AND change over time. 1 point: Explains the reasons for historical continuity AND change over time.

PERIODIZATION: 1 point: Describes the ways in which the historical development specified in the prompt was different from and similar to developments that preceded AND/OR followed.

1 point: Explains the extent to which the historical development specified in the prompt was different from and similar to developments that preceded AND/OR followed.

Scoring Note: If the prompt requires evaluation of a turning point then responses must discuss developments that preceded AND followed in order to earn either point. If the prompt requires evaluation of the characteristics of an era, then responses can discuss developments that EITHER preceded OR followed in order to earn either point.

D: SYNTHESIS (1 POINT) Targeted Skill: Synthesis

1 point: Extends the argument by explaining the connections between the argument and one of the following:a) A development in a different historical period, situation, era or geographical area. b) A course theme and/or approach to history that is not the focus of the essay (such as political, economic,

social, cultural, or intellectual history). c) A different discipline or field of inquiry (such as economics, government and politics, art history, or anthropology).Scoring Note: The synthesis point requires an explanation of the connections to different historical period, situation, era, or geographical area, and is not awarded for merely a phrase or reference.

TOTAL POINTS (out of 6):_____ 6=97 5=87 4=77 3=67 2=57 1=47 GRADE:______