IndustrializationIndustrialization

1st Transcontinental Railroad1st Transcontinental Railroad Pacific Railway Act of 1862Pacific Railway Act of 1862

U.S. Government hired Union Pacific and Central U.S. Government hired Union Pacific and Central Pacific Railway Company to extend railways across Pacific Railway Company to extend railways across the United States.the United States.

Central PacificCentral Pacific Started in Sacramento, CAStarted in Sacramento, CA

Union PacificUnion Pacific Started in Omaha, NEStarted in Omaha, NE

The two railroad companies met in The two railroad companies met in Promontory, UtahPromontory, Utah to drive the to drive the “Golden “Golden Spike”Spike” on May 10, 1869 on May 10, 1869

Promontory, Utah May 10, 1869Promontory, Utah May 10, 1869

The WorkersThe Workers

Workers were mainly Chinese and Workers were mainly Chinese and Irish immigrantsIrish immigrants

Working conditions were poorWorking conditions were poor Reasons:Reasons:

Weather Weather Rough terrainRough terrain

Railroad DevelopmentsRailroad Developments

Train problems:Train problems: Dirty, noisy, uncomfortableDirty, noisy, uncomfortable

1869 George Westinghouse:1869 George Westinghouse: Development of air brakesDevelopment of air brakes

1887 Granville Woods:1887 Granville Woods: Telegraph system for train Telegraph system for train

communicationcommunication

Time ZonesTime Zones Scheduling was a major concernScheduling was a major concern

Set clocks according to solar timeSet clocks according to solar time Time differences from town to town Time differences from town to town

created confusion.created confusion.

1883: National System of Time 1883: National System of Time ZonesZones How many total time zones does the How many total time zones does the

USA have?USA have?

USA Time ZonesUSA Time Zones

Name all 8 time zones. Name all 8 time zones.

Who did the Railroad Impact?Who did the Railroad Impact?

Native Americans Native Americans called it the Iron Horsecalled it the Iron Horse

Helped Westward expansionHelped Westward expansion Trade much easierTrade much easier Became crucial to the U.S. economy – Became crucial to the U.S. economy –

shipping costs dropped drastically.shipping costs dropped drastically. Hurt farmers economically Hurt farmers economically Made deals with wealthy businessmenMade deals with wealthy businessmen

CorruptionCorruption

LegislationLegislation

Interstate Commerce Act of 1887 – put in Interstate Commerce Act of 1887 – put in place for Govt to supervise railroad place for Govt to supervise railroad activitiesactivities

Led to more financial problems (railroads Led to more financial problems (railroads were forced out of business, which led to were forced out of business, which led to the Panic of 1893)the Panic of 1893)

This caused the Large Firms to start This caused the Large Firms to start buying up the railways, which paved the buying up the railways, which paved the way for Big Businessesway for Big Businesses

Industrialization FactorsIndustrialization Factors

Unskilled and semi-skilled labor in Unskilled and semi-skilled labor in abundanceabundance

New, talented entrepreneurs New, talented entrepreneurs Oil Oil InventionsInventions

New technology that allows mass productionNew technology that allows mass production Bessemer ProcessBessemer Process

RailroadsRailroads Changes in business strategy Changes in business strategy

Vertical Integration & Horizontal ConsolidationVertical Integration & Horizontal Consolidation Social DarwinismSocial Darwinism

How was steel produced How was steel produced in mass amount???in mass amount???

The Bessemer ProcessThe Bessemer Process

Henry BessemerHenry Bessemer English English

businessmanbusinessman William KellyWilliam Kelly

Kentucky Kentucky businessmanbusinessman

Developed new way Developed new way of making steel:of making steel:Melt iron, add carbon,

remove impurities

Brooklyn BridgeBrooklyn Bridge

Old way to Manhattan to Brooklyn was ferryOld way to Manhattan to Brooklyn was ferry Winter: ferry could not run because of iceWinter: ferry could not run because of ice

John RoeblingJohn Roebling German began buildingGerman began building Dies in mid constructionDies in mid construction

Washington Roebling completesWashington Roebling completes SonSon Disabled by accident during constructionDisabled by accident during construction

Completed on May 24, 1883Completed on May 24, 1883

Growth of Big BusinessGrowth of Big Business

Robber Barons or Capitals of IndustryRobber Barons or Capitals of Industry

Robber barons: business leaders who Robber barons: business leaders who built fortune from stealing from the built fortune from stealing from the public.public.

Capitals of Industry: business leaders Capitals of Industry: business leaders served their nation in a positive way.served their nation in a positive way.

Social DarwinismSocial Darwinism

Charles Darwin – survival of the fittestCharles Darwin – survival of the fittest Social Darwin theory evolved:Social Darwin theory evolved: Society should do as little as possible to Society should do as little as possible to

interfere with peoples pursuit of successinterfere with peoples pursuit of success

AS A RESULTAS A RESULT

Government did not TAX or REGULATE Government did not TAX or REGULATE businesses!!!businesses!!!

So what happens?So what happens?So what happens?So what happens?

MonopolyMonopoly

How does the How does the game work?game work?

What is the goal of What is the goal of the game?the game?

Big Business Emerges!Big Business Emerges! Monopoly Monopoly

to have complete to have complete control of a product or control of a product or service.service.

Cartel Cartel businesses who make businesses who make

the same product – the same product – agree to limit supply to agree to limit supply to keep prices high.keep prices high.

Trust Trust separate companies separate companies

placed under a single placed under a single managing board – managing board – Board of trusteesBoard of trustees

Vertical and Horizontal Vertical and Horizontal IntegrationIntegration

Vertical and Horizontal Vertical and Horizontal IntegrationIntegration

Who did this??Who did this??

Andrew CarnegieAndrew CarnegieAndrew CarnegieAndrew Carnegie

Andrew CarnegieAndrew Carnegie

$ Scottish businessmanScottish businessman$ ““Gospel of WealthGospel of Wealth” ”

(1901).(1901).$ Inequality is inevitable Inequality is inevitable

and good.and good.

$ Vertical ConsolidationVertical Consolidation$ Wealthy should act as Wealthy should act as

“trustees” for their “trustees” for their “poorer brethren.”“poorer brethren.”$ 80% of fortune went 80% of fortune went

to education.to education.$ At time of death, he At time of death, he

had given away – 350 had given away – 350 million.million.

$ Scottish businessmanScottish businessman$ ““Gospel of WealthGospel of Wealth” ”

(1901).(1901).$ Inequality is inevitable Inequality is inevitable

and good.and good.

$ Vertical ConsolidationVertical Consolidation$ Wealthy should act as Wealthy should act as

“trustees” for their “trustees” for their “poorer brethren.”“poorer brethren.”$ 80% of fortune went 80% of fortune went

to education.to education.$ At time of death, he At time of death, he

had given away – 350 had given away – 350 million.million.

John D. RockefellerJohn D. RockefellerJohn D. RockefellerJohn D. Rockefeller

John D. RockefellerJohn D. Rockefeller

$ Standard Oil Co.Standard Oil Co.$ Eventually owned Eventually owned

all oil companies in all oil companies in US.US.$ Horizontal Horizontal

consolidationconsolidation$ 40 companies40 companies

$ Standard Oil Co.Standard Oil Co.$ Eventually owned Eventually owned

all oil companies in all oil companies in US.US.$ Horizontal Horizontal

consolidationconsolidation$ 40 companies40 companies

Standard Oil Co.Standard Oil Co.Standard Oil Co.Standard Oil Co.

The Reorganization of The Reorganization of WorkWork

The Reorganization of The Reorganization of WorkWork

Frederick W. TaylorThe Principles of Scientific Management (1911)

Frederick W. TaylorThe Principles of Scientific Management (1911)

The Reorganization of The Reorganization of WorkWork

The Reorganization of The Reorganization of WorkWork

The Assembly LineThe Assembly Line

Mass productionMass production

The Changing American

Labor Force

The Changing American

Labor Force

Child LaborChild Labor

Child LaborChild Labor

ConditionsConditions

Long hoursLong hours Less than $1.00 per weekLess than $1.00 per week Difficult, dangerous and unhealthy Difficult, dangerous and unhealthy

workwork Heavy machineryHeavy machinery Could lose finger, arm or be scalped by Could lose finger, arm or be scalped by

machinerymachinery Dusty, cold/hot respiratory conditionsDusty, cold/hot respiratory conditions

Corporal punishmentCorporal punishment

Child Labor today?Child Labor today?

Management vs. Labor

Management vs. Labor

““Tools” of Tools” of ManagementManagement

““Tools” of Tools” of LaborLabor

““scabs”scabs”

lockoutlockout

blacklistingblacklisting

collective collective BargainingBargaining

informational informational picketingpicketing

organized organized strikesstrikes

NewsiesNewsies

A Striker Confronts a SCAB!

A Striker Confronts a SCAB!

Knights of LaborKnights of Labor

Terence V. PowderlyTerence V. Powderly

An injury to one is the concern of An injury to one is the concern of all!all!

Goals of the Knights of Labor

Goals of the Knights of Labor

ù Eight-hour workday.Eight-hour workday.

ù Abolition of child and prison labor.Abolition of child and prison labor.

ù Equal pay for men and women.Equal pay for men and women.

ù Safety codes in the workplace.Safety codes in the workplace.

Labor Unrest: 1870-1900

Labor Unrest: 1870-1900

The Great Railroad Strike of 1877

The Great Railroad Strike of 1877

Haymarket Riot (1886)

Haymarket Riot (1886)

McCormick Harvesting Machine Co.McCormick Harvesting Machine Co.

Haymarket MartyrsHaymarket Martyrs

The American Federation

of Labor: 1886

The American Federation

of Labor: 1886

Samuel GompersSamuel Gompers

How the AF of L Would Help the

Workers

How the AF of L Would Help the

Workersù Catered to the skilled worker.Catered to the skilled worker.

ù Represented workers in matters of Represented workers in matters of national legislation.national legislation.

ù Maintained a national strike fund.Maintained a national strike fund.

ù Evangelized the cause of unionism.Evangelized the cause of unionism.

ù Prevented disputes among the many Prevented disputes among the many craft unions.craft unions.

ù Mediated disputes between Mediated disputes between management and labor.management and labor.

ù Pushed for Pushed for closed shopsclosed shops..

Homestead Steel Strike

(1892)

Homestead Steel Strike

(1892)

The Amalgamated The Amalgamated Association of Association of

Iron & Steel WorkersIron & Steel Workers

Homestead Steel Homestead Steel WorksWorks

A “CompanyTown”:

Pullman, IL

A “CompanyTown”:

Pullman, IL

Pullman CarsPullman Cars

A Pullman A Pullman porterporter

The Pullman Strike of 1894

The Pullman Strike of 1894

The Pullman Strike of 1894

The Pullman Strike of 1894

Government by injunction!Government by injunction!

The SocialistsThe Socialists

Eugene V. DebsEugene V. Debs

International Workers of the World (“Wobblies”)

International Workers of the World (“Wobblies”)

“Big Bill” Haywood of the

IWW

“Big Bill” Haywood of the

IWW

Violence was justified to Violence was justified to overthrow capitalism.overthrow capitalism.

I W WI W W

Labor Union MembershipLabor Union Membership

Discussion QuestionsDiscussion Questions

What were the cost and benefits of the What were the cost and benefits of the industrial transformation of the Post- industrial transformation of the Post- Civil War era?Civil War era?

Was the growing class division of the Was the growing class division of the time a threat to American democracy? time a threat to American democracy? Why or why not?Why or why not?