Monday, September 01, 2014

Sheer ruthlessness: a hallmark of American capitalism and "The Men Who Built America" (DVD Review)

A history resource article by  © 2014

I watched an absolutely fascinating series on the History Channel (now available on DVD) entitled "The Men Who Built America".  It traces the careers of some of the most powerful men in American history including Cornelius Vanderbilt, John D. Rockefeller, Andrew Carnegie, J. P. Morgan and Henry Ford.  It is one of the first series I have ever seen that does not white wash the rise to power of these so-called 20th century "titans" of industry.

Probably the thing I found most disturbing in the series was the apparent viewpoint of these men that they were somehow above the subhuman worker populations they employed. They were willing to acquire wealth through any means possible and their net worth, regardless of how it was acquired, represented to them their superior worth as a human being.

Each of these men had personal ambition that knew no bounds and a ruthlessness that drove them to exploit every opportunity in an industrial landscape that had little regulation to prevent insider trading, overt market manipulation and outright intimidation.

Andrew Carnegie was treated a little more gently than the others mainly because he handed off the day to day operations of Carnegie Steel to a totally ruthless chairman named Henry Frick so Carnegie could ostensibly sail off to Scotland to enjoy the fruits of his labors.
Andrew Carnegie portrait at the National
Portrait Gallery.  Image courtesy of Wikipedia.

Today, we associate Andrew Carnegie with education and the arts because of his philanthropic contributions to Carnegie Hall, Carnegie-Mellon University and thousands of libraries around the world.  But, in truth, Carnegie was the ultimate decision maker in the operation of his steel empire during a tumultuous period of violence and even death. He was certainly aware of the decisions implemented by his chairman and did nothing to intervene in plant operations until nine workers at his flagship Homestead Steel Works were gunned down by the Pinkertons under Frick's orders in 1892.

The steel workers had been ground down by increasingly longer hours - 12 hours a day six days a week by the time of the massacre - under absolutely hellish conditions, while wages were whittled away by Frick to increase profits.

When I researched the life of Andrew Carnegie further to write this review I read that Carnegie claimed he was a disciple of Herbert Spencer whose economic theory of evolution is best characterized as economic survival of the fittest.  Spencer declared that any provisions made to assist the weak, unskilled, poor and distressed to be an imprudent disservice to evolution and that "severe fate" was the natural process to single out the weak, debauched and disabled.

I noticed, however, that even Spencer was appalled when he visited one of Carnegie's steel works and remarked, "Six months' residence here would justify suicide."

The program pointed out that 1 in 11 steel workers at the time were suffering horrendous injuries or death.  Yet labor unions had only been formed to bargain for wages and working conditions for just the skilled workers, less than 1/4 of the workforce.  Even so, Frick complained about the labor union that represented the skilled workers at the Homestead Steel Works in a letter to Carnegie stating "The mills have never been able to turn out the product they should, owing to being held back by the Amalgamated men."  Although Carnegie had publicly claimed to be in favor of labor unions, privately he agreed with Frick and gave his approval to Frick's efforts to break the union at Homestead.

Carnegie's carefully cultivated public personae as a responsible industrialist and generous philanthropist was often used as a smoke screen to obscure his less noble activities.  For example, Carnegie publicly advocated less government while aggressively lobbying for protective trade tariffs that resulted in millions of dollars a year in extra revenue for his companies.

In this documentary, the producers pointed out that the development of Carnegie's benevolent personae was a direct result of the public relations nightmare generated by the Johnstown flood that killed 2,209 people in 1889.

Henry Frick, sometimes called the worst
CEO in American history.  Image courtesy
of Wikipedia.
Carnegie's chairman, Henry Frick, and a group of speculators, developed  an exclusive club for leading business tycoons of Western Pennsylvania, most connected through business dealings to Carnegie Steel.  The club was located  along the shore of Lake Conemaugh behind the South Fork Dam above the town of Johnstown, Pennsylvania.

The area had been prone to flooding since its founding by Joseph Johns at the confluence of the Stoney Creek and Little Conemaugh rivers in 1800.  The steep hills of the narrow Conemaugh Valley and the Allegheny Mountains range to the east produced large amounts of runoff from annual rain and snowfall.  This vulnerability was further compounded as the community grew and became the site of Cambria Iron Works who dumped slag from its iron furnaces along the river to create more land for building, but further narrowed the riverbed.

To make matters worse, Frick and his development speculators then lowered the dam,  so the top of the dam could be used as a roadway for Frick and his fellow wealthy clubmembers' carriages. They also built a fish screen in the spillway, the only remaining water control mechanism. A previous owner had already removed and sold for scrap the three cast iron discharge pipes that had been originally used to control the release of water.

A Johnstown house skewered by a tree.
Amazingly, all six people in the house
survived .  Image courtesy of Wikipedia.
Then the worst downpour ever recorded in the area, 6 - 10 inches of rain in just 24 hours, struck.  Following a night of unrelenting rain, at 3:10 p.m. on May 31, 1889, the South Fork Dam collapsed sending a 60 foot wall of water and debris down upon the residents of Johnstown.  The death toll was the largest loss of civilian life in American history until the collapse of the Twin Towers on September 11, 2001.  Wikipedia states the 1900 Galveston hurricane claimed more lives but the program producers must not have agreed.

As is usually the case when the uber rich are involved, the South Fork Fishing and Hunting Club was never held legally responsible for the disaster.  The court ruled the disaster an "act of God" and denied the survivors any legal compensation.  But the club members, including Carnegie, were vilified in the national press.  (The court ruling was considered so irresponsible a number of states adopted Rylands v. Fletcher, a British common-law precedent establishing the liability of a landowner with a reservoir for flood damage if the reservoir is not properly maintained.)

Anyway, since then, Carnegie had worked very hard to restore his reputation.

So back to the Homestead Strike of 1892 - just before the confrontation, the union had requested a wage increase in their collective bargaining agreement that was due to expire on June 30, 1892.  Frick countered with a 22% wage decrease and proposed the elimination of a number of positions and that the steel works would become non-union after the expiration of the current contract.  Pointing out that the union only represented the skilled workers at the plant, Carnegie exclaimed the union was "an elitist discriminatory organization that was not worthy of the Republic!"

Frick eventually relented a little and offered a slightly better wage agreement. But the union refused the offer so Frick shuttered the mill the night before the contract expired and built a barricade around the mill to keep workers from returning.  The workers took possession of the mill anyway, determined to prevent operation by strikebreakers imported by Frick.  So Frick called in the Pinkertons to route the workers from the mill using any means necessary.

I had no idea that the Pinkertons at this point in history actually had more firepower than the entire United States military.  When the program explained this and I reacted with incredulity my husband pointed out "Where do you think we got companies like Blackwater?!!"

The Homestead riot / drawn by W.P. Snyder after a
photograph by Dabbs, Pittsburg. Image courtesy of
Wikipedia.


When I further researched this statement, I found it to be absolutely true.  Apparently the Pinkertons by the 1890s had more agents than there were soldiers in the U.S. Army and were often hired by late 19th and early 20th century businessmen to infiltrate unions, block strikers, keep unionists out of factories and even recruit "goon" squads to intimidate workers.  It sounds more like the mob than a reputable security agency!

Anyway, 300 Pinkerton agents armed with Winchester rifles fired on the striking workers at Carnegie's Homestead Steel Works, killing  nine of the men and wounding 23 others.  Seven Pinkerton agents were also killed.

As the program recounted these turbulent events I was totally riveted.  The production was punctuated by short reenactments by professional actors playing the different industrialists in crucial scenes of their careers.  These cut scenes were just enough to draw you into their world and make the program seem more of a drama rather than a documentary.

I would highly recommend this series as a way to understand not only the history of the individuals portrayed but the evolution of industry in the United States and how it impacts our lives today.  I would especially encourage any American history teachers out there to incorporate this series into their curiculum to provide their students with an unvarnished look at the foundations of American capitalism.