The rapid growth of cities forced people to contend with problems of housing, transportation, water, and sanitation.

Vocabulary for Industrialism Urbanization San Francisco Earthquake 1906 Brooklyn Bridge Skyscrapers Social Darwinism Laissez-faire Industrialist Vertical Integration Horizontal Integration Philanthropist Gospel of Wealth Robber Baron Monopoly Trust Sherman Anti-Trust Act Triangle Shirtwaist Factory Labor Union

Growth of Cities The technological boom in the 19 th century contributed to the growing industrial strength of the US – resulting in rapid Urbanization – growth of cities. This mainly effected the Northeast and Midwest.

Fire Many cities had limited water supplies, which led often to widespread fires. During the San Francisco Earthquake of 1906, lack of water for the wooden dwellings, as well as use of candles and kerosene heaters caused widespread destruction and death. It killed about 3000 people, and destroyed 80% of San Francisco. Of its 410,000 population, about 250,000 were left homeless. Though the quake was estimated at 7.9 magnitude, 90% of the destruction was caused by the 4 days of fires that ravaged the city after.the San Francisco Earthquake of 1906

Fire and Police Departments To help with fires and lawlessness, New York City organized the first full-time salaried police force in 1844, and Cincinnati, Ohio established the nations first paid Fire Department in 1853

Industrial Boom in America,

Due to… Wealth of natural resources ▫New ways to create and find oil and steel Government support of business ▫Laissez-faire attitude allowed them to grow unrestricted Growing urban populations ▫Due to immigration explosion Cheap labor ▫Due to immigration explosion Markets for new products ▫Due to immigration explosion

The Brooklyn Bridge Thanks to innovations in steel (Bessemer) and construction, the Brooklyn Bridge was completed in 1883, it spanned 1595 feet Called a wonder of the world due to its height and weight bearing structure

Skyscrapers Thanks to new stronger steel (Bessemer), and the steel frame created by Louis Sullivan, buildings could now be built to astronomical heights because of the steel beams used in construction

Inventions change workforce Women became 40% of the clerical work force thanks to the typewriter (Sholes) and the telephone (Bell) Industrialization freed workers from back- breaking labor By 1890 work day reduced to about 10 hours

Industry Changes Business Social Darwinism - Success and failure in business governed by natural law Justifies “laissez-faire,” or “allow to do” attitude of government, which keeps government out of marketplace and allows business to run unrestricted.

Business Big business created more than 4000 millionaires after the Civil War Industrialists, owners of the new industries - like Rockefeller and Carnegie, were the new money, and they facilitated a rise in the American economy faster than in any other period in American history! Appealed to Protestant work ethic ▫If you have riches = God’s favor ▫If you are poor = Lazy and inferior

New Business Tactics Monopolies ▫When industries buy out all competitors and completely control industry (US Steel and AT&T then to DeBeers and Monsanto GMO’s now) ▫Allows them to set wages, prices, and production ▫Illegal – no competition Trusts (like Rockefeller’s Standard Oil Trust) ▫Stocks in companies held by trustees and ran as one business ▫Not legal – creates a monopoly Standard Oil (Rockefeller) Oil Company 2 Oil Company 3 Oil Company 4 Oil Company 1

Carnegie’s Management Practices Vertical Integration – Buying out all of your suppliers to control production costs Horizontal Integration – Buying out all competitors to control industry But Carnegie was also a philanthropist, as were many other industrialists. He believed in promoting human welfare by giving back to the community. He preached his “Gospel of Wealth”: “It will be a great mistake for the community to shoot the millionaires, for they are the bees that make the most honey, and contribute the most the to the hive even after they have gorged themselves full.” Carnegie donated about 90% of his wealth, which still supports the arts and learning today. Carnegie Steel Railway Line Competitor Steel Company Iron Ore Mine Competitor Steel Company

Rockefeller’s Business Practices Rockefeller, along with other industrialists like Andrew Carnegie and JP Morgan, were considered to be Robber Barons – they used their business practices to exploit others to make themselves very rich….Robber Barons Rockefeller would sell his oil for dirt cheap, which competitors could not match, then when they went out of business his prices would skyrocket. He paid railroads to only carry his oil, buying out all the barrels for oil, etc.

John Jacob Astor (real estate, fur) – New York Andrew Carnegie (steel) – Pittsburgh and New York William A. Clark (copper) – Butte, Montana Jay Cooke (finance) – Philadelphia Charles Crocker (railroads) – California Daniel Drew (finance) – New York Duke James Buchanan Duke (tobacco) – Durham, North Carolina Marshall Field (retail) – Chicago James Fisk (finance) – New York Henry Morrison Flagler (railroads, oil) – New York and Florida Henry Clay Frick (steel) – Pittsburgh and New York William Henry Gates (Technology) – Seattle John Warne Gates (barbed wire, oil) – Texas Jay Gould (railroads) – New York Edward Henry Harriman (railroads) – New York Charles T. Hinde (railroads, water transport, shipping, hotels) - Illinois, Missouri, Kentucky, California Mark Hopkins (railroads) – California Collis Potter Huntington (railroads) - California Koch Family (Oil and Industrials) - Kansas and New York Andrew W. Mellon (finance, oil) - Pittsburgh J. P. Morgan (finance, industrial consolidation) – New York John Cleveland Osgood (coal mining, iron) - Colorado Henry B. Plant (railroads) – Florida John D. Rockefeller (oil) – Cleveland, New York Charles M. Schwab (steel) – Pittsburgh and New York Joseph Seligman (banking) – New York John D. Spreckels (water transport, railroads, sugar) – California Stanford Leland Stanford (railroads) - California Vanderbilt Cornelius Vanderbilt (water transport, railroads) – New York Charles Tyson Yerkes (street railroads) – Chicago

Sherman Anti-Trust Act of 1890 Made it illegal to form trusts that the government believed interfered with competition Hard to uphold because it didn’t define what a “trust” was

AFTER FACTORY SIMULATION!!

Exploitation and Unsafe Working Conditions Draw People Together in Labor Movement

Statistics By 1882, an average 675 people killed in work-related accidents, out of 100,000 workers (today it’s 4) Wages so low, most families had to send everyone out to get jobs ($438 a year avg income, well below poverty level)

Sweatshops 20% of boys and 10% of girls under age 15 held full-time jobs, no school By 1899 women averaged $267 per year, men $498, and Carnegie $23 million not taxed Sweatshops were unregulated ▫Paid about $.27 for a child’s 14 hour day

Triangle Shirtwaist Factory More than 146 women died in fire Company had locked all doors to prevent theft When factory owners acquitted of the deaths, the public was outraged This tragedy led to the establishment of a task force to study factory working conditions

Labor Unions Urban problems spread to the workplace – and as cities cleaned up, so did workplaces. Many leaders rose up to take charge, working on collective bargaining and negotiating. When negotiating stopped working, strikes got them the wages and working conditions they needed.

Management vs Unions Management tried to stop unionizing by: ▫Forbidding union meetings ▫Firing union members ▫Forcing employees to sign “Yellowdog Contracts,” making their employees snitches Courts punished unions using the Sherman Anti-Trust Act ▫Said unions were interrupting trade by shutting down the industries