Industrialization 1865-1901

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Industrialization1865-1901
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Events of the Indian Wars
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• Immigration Why the United States?
• Promise of a better life
• European immigrants came to America because of
  rising population.
• Chinese and Japanese immigrants came to America
  because of transcontinental railroad in the West.
• Where did immigrants travel from?
• China and Japan
• Europe
• 1870-1920- Italian, Irish, German

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Transcontinental Railroad

• Pacific Railway Act of 1862 U.S. Government
  hired Union Pacific and Central Pacific Railway
  Company to extend railways across the United
  States.
• Central Pacific Started in Sacramento, CA
• Union Pacific Started in Omaha, NE
• The 2 railroad companies met in Promontory, Utah
  to drive the Golden Spike on May 10, 1869

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(No Transcript)
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Promontory, Utah May 10, 1869
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Who did the Railroad Impact?

• Native Americans (called it the Iron Horse)
• Helped Westward expansion
• Solve problems of over population
• Hurt the farmers economically because of the
  higher costs for farmers
• They made deals with wealthy businessmen (became
  corrupt)
• Became crucial to the U.S. economy
• Mass transportation of goods

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Dealing With Corruption

• Interstate Commerce Act of 1887 put in place
  for Govt. to supervise railroad activities
• Led to more financial problems
• Railroads were forced out of business
• Led to the Panic of 1893 caused by railroad
  overbuilding and shaky railroad financing which
  set off a series of bank failures.
• U.S. goes through a serious depression
• This caused the Large Firms to start buying up
  the railways, which paved the way for Big
  Businesses

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Essential Questions

1. Why did many immigrants come to the U.S.?
2. Explain the events of the Panic of 1893.
3. Discuss 3 groups of people that were directly
   impacted by the railroads.
4. Describe the Pacific Railway Act. What were the
   two companies trying to construct? From where did
   each company start?
5. Describe the Interstate Commerce Act. What did
   this cause large firms to do? Why?

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Industrialization Factors

• Unskilled and semi-skilled labor in abundance
• New, talented entrepreneurs
• Oil Wealth
• Inventions
• New technology that allows mass production
• Bessemer Process
• Railroads
• Changes in business strategy
• Vertical Integration Horizontal Consolidation
• Social Darwinism

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The Power of Steel

• Bessemer Process made it easier and cheaper to
  produce steel
• Contributed most to the growth of American
  industry
• Improved railroad industry and led to development
  of skyscrapers
• Railroads after the Civil War, many
  consolidated, or merged together
• standard gauge all the same size tracks
• Steel rails would replace iron rails
• New signals prevented accidents
• Twin tracks allowed for simultaneous opposite
  direction travel

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A Problem With Time

• Different times in different places caused
  problems
• Towns set time according to the sun
• 1883, the govt. established a system of standard
  time Divided the country into four time zones
• Railroads increased western settlement
• Stimulated urban growth and growth of other
  industries
• Led to increased urbanization mass movement to
  the cities

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Communications

• Telegraph invented by Samuel Morse (1844)
• Replaced the Pony Express
• Grew along with railroads
• Telephone invented by Alexander Graham Bell
  (1876)
• By 1880s over 300,000 telephones were used in
  business
• Would be early 1900s before homes had them (too
  expensive)

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Essential Questions 2

1. Define Bessemer Process, laissez-faire, Social
   Darwinsim, John D. Rockefeller, Andrew Carnegie,
   Cornelius Vanderbilt
2. Describe 4 effects that steel had on railroads.
3. Who invented the telegraph? Explain its
   significance.
4. Who invented the telephone? Explain its impact
   on businesses and homes.
5. Why did railroads have a problem with time? What
   did they do to solve this problem?
6. Define urbanization. How did the railroads
   impact urbanization? Explain.

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Other Inventions

• Other inventions affected other industries
• Refrigerated car meatpacking industry
• Pullman Car (sleeping, dining, and passenger
  railroad cars)
• Westinghouse Air Brake safer trains
• Increased passenger safety/comfort
• Allowed faster and longer trains
• Edison light bulb (1879) electrical
  transformers changed the lay out of cities
• other inventions of the mid-1800s to 1900
• elevator, typewriter, and electric streetcars

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Pullman Cars
A Pullman porter
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A CompanyTown Pullman, IL
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Mass Marketing

• Newspapers were cheap to produce (penny press)
• Advertising increased because it reached more
  people
• Brand names and packaging labels promoted goods
• Occurred in magazines, newspapers, and on
  billboards
• Special catalogs were distributed to rural areas
• Department stores gave people choice from a
  variety of items
• Offered credit, free delivery, and a marked fixed
  price
• Items could be bought in bulk and inexpensive
  items tempted customers to buy things they didnt
  really need.

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Rise of Big Business

• Many became wealthy because of American industry
• Business leaders supported laissez-faire
  capitalism
• No government intervention in the economy
• Ideas of good work ethic, individualism and
  self-reliance
• Led to belief economy would prosper best under
  competition allowed in a free market/enterprise
• Entrepreneurs believed govt regulation would
  reduce individuals prosperity and self-reliance
• Critics countered with proposals of socialism and
  communism
• Believed people who own means of production take
  advantage of workers
• Called for everyone in community to own property
  and means of production

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The Corporations

• After Civil War, business expanded and
  consolidated
• Formed corporations
• Industries found sources of capital to help them
  expand- 1) Banks 2) Selling stock to the people
• Corporations sought ways to get ahead of
  competitors
• Some formed trusts group of companies merge
  their stock together to a common board of
  trustees
• Trusts limit overproduction by reducing
  competition which leads to monopolies gain
  control of the market for a product.

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Social Darwinism

• Many business leader supported Social Darwinism
  applied survival of the fittest to business
• Believed free market would determine who would
  produce goods and services
• Also supported Laissez-faire economics
• Small businesses can not compete
• Would often be bought out by larger businesses
  This is how trusts and monopolies would develop
• Eventually, a trust buster is needed

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Essential Questions 3

1. Define Trusts and Monopolies. How can they have
   a negative impact on economics?
2. Explain the concept of Social Darwinism.
3. What is laissez-faire economics? Explain the
   concepts of socialism and communism.
4. List and Explain 3 key developments in mass
   marketing.
5. List 4 key inventions that we discussed today,
   and explain their impact on the world.
6. Explain how small businesses were effected by the
   concept of Social Darwinism.

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Industrial Giants

• Andrew Carnegie invested money in steel
• Pioneered a new way of organization Vertical
  integration provided the materials and services
  required in his enterprise
• All were separate industries each critical in
  making steel
• John D. Rockefeller formed the Standard Oil
  Company
• Believed competition was wasteful and destructive

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Andrew Carnegie
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Standard Oil Co.
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• Rockefeller pioneered a form of organization
  called horizontal integration purchased other
  industries that all made the same type of
  product in this instance oil companies
• Allowed him to control production and prices of
  oil
• Eventually he would turn to vertical integration
  as well
• By expanding vertically and horizontally,
  Standard Oil gained a monopoly on the oil
  industry
• Vanderbilt, Westinghouse and Pullman
• All railroad giants

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Gospel of Wealth

• Philanthropy donate money for a cause.
• Many were philanthropists not afraid to throw
  their money around
• Carnegie believed in the Gospel of Wealth rich
  had right to earn wealth and the responsibility
  to spend it properly.
• Not everyone shared in his philosophy
• Many took advantage of their wealth
• J.P. Morgan made his money in the banking
  industry
• Responsible for creation of General Electric

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The Protectors of Our Industries
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Regulating the Trusts

• Sherman Anti-Trust Act allows the government to
  investigate and pursue trusts, companies and
  organizations suspected of corruption.
• First attempt to limit trusts
• Purpose is to protect competition and secure a
  competitive free-market
• Serves as the basis for anti-trust legislation
  today
• Named after Senator John Sherman of Ohio

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The Changing American Labor Force
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The Reorganization of Work
Frederick W. Taylor The Principles of Scientific
Management (1911)
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The Reorganization of Work
The Assembly Line
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Vertical and Horizontal Integration
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Standard Oil Co.
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Regulating the Trusts

• 1877 ? Munn. v. IL
• 1886 ? Wabash, St. Louis Pacific
  Railroad Company v. IL
• 1890 ? Sherman Antitrust Act
• in restraint of trade
• rule of reason loophole
• 1895 ? US v. E. C. Knight Co.

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On Wealth

• The Anglo-Saxon race is superior.
• Gospel of Wealth (1901).
• Inequality is inevitable and good.
• Wealthy should act as trustees for their
  poorer brethren.

Andrew Carnegie
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Cornelius Commodore Vanderbilt
Cant I do what I want with my money?
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William Vanderbilt

• The public be damned!
• What do I care about the law? Haint I got the
  power?

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New Financial Businessman

• The Broker
• J. Pierpont Morgan

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New Business CultureThe American Dream?

• Protestant (Puritan) Work Ethic
• Horatio Alger 100 novels

Is the idea of the self-made man a MYTH??
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The Protectors of Our Industries
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The Changing American Labor Force
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Child Labor
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Child Labor
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Management vs. Labor
Tools of Management
Tools of Labor

• scabs
• Pinkertons
• lockout
• blacklisting
• yellow-dog contracts

• Collective Bargaining
• informational picketing
• organized strikes

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A Striker Confronts a SCAB!
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Knights of Labor
Terence V. Powderly
An injury to one is the concern of all!
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Goals of the Knights of Labor

• Eight-hour workday.
• Workers cooperatives.
• Worker-owned factories.
• Abolition of child and prison labor.
• Increased circulation of greenbacks.
• Equal pay for men and women.
• Safety codes in the workplace.
• Prohibition of contract foreign labor.
• Abolition of the National Bank.

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Labor Unrest 1870-1900
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The Great Railroad Strike of 1877
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Haymarket Riot (1886)
McCormick Harvesting Machine Co.
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Haymarket Martyrs
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The American Federation of Labor 1886
Samuel Gompers
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How the AF of L Would Help the Workers

• Catered to the skilled worker.
• Represented workers in matters of national
  legislation.
• Maintained a national strike fund.
• Evangelized the cause of unionism.
• Prevented disputes among the many craft unions.
• Mediated disputes between management and labor.
• Pushed for closed shops.

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Homestead Steel Strike
(1892)
Homestead Steel Works
The Amalgamated Association of Iron Steel
Workers
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A CompanyTown Pullman, IL
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Pullman Cars
A Pullman porter
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The Pullman Strike of 1894
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The Pullman Strike of 1894
Government by injunction!
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The Socialists
Eugene V. Debs
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International Workers of the World (Wobblies)
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Big Bill Haywood of theIWW

• Violence was justified to overthrow capitalism.

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I W W
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Mother Jones The Miners Angel

• Mary Harris.
• Organizer for theUnited MineWorkers.
• Founded the SocialDemocratic Party in 1898.
• One of the founding members of the I. W. W. in
  1905.

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The Formula
unions violence strikes socialists
immigrants
anarchists
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Labor Union Membership
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The Rise Decline of Organized Labor
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Discussion Questions

• What were the cost and benefits of the industrial
  transformation of the Post- Civil War era?
• Was the growing class division of the time a
  threat to American democracy? Why or why not?