Industrialization Some slides courtesy of M. Siebert

Building the 1st 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. 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 Central Pacific – Started in Sacramento, CA Union Pacific – Started in Omaha, NE Union Pacific – Started in Omaha, NE The 2 railroad companies met in Promontory, Utah to drive the “Golden Spike” on May 10, 1869 The 2 railroad companies met in Promontory, Utah to drive the “Golden Spike” on May 10, 1869

Promontory, Utah May 10, 1869

Impact of the Railroads Native Americans (called it the Iron Horse) Native Americans (called it the Iron Horse) Helped Westward expansion Helped Westward expansion Made trade much easier Made trade much easier Charged farmers a lot of money Charged farmers a lot of money Became crucial to the U.S. economy Became crucial to the U.S. economy Became exceedingly powerful and looked to consolidate (join together) Became exceedingly powerful and looked to consolidate (join together) Consolidation created monopolies Consolidation created monopolies

Industrialization Factors Railroads Railroads New, talented entrepreneurs New, talented entrepreneurs Oil Oil Inventions Inventions New technology that allows mass production New technology that allows mass production Bessemer Process Bessemer Process Changes in business strategy Changes in business strategy Vertical Integration & Horizontal Consolidation Vertical Integration & Horizontal Consolidation Social Darwinism Social Darwinism

Vertical and Horizontal Integration

Cornelius [“Commodore”] Vanderbilt Can’t I do what I want with my money?

George Pullman Inventor of the Pullman train car Had his own town where he basically was the ruler Federal government helped put down the Pullman railroad strike of 1894

A “Company Town”: Pullman, IL A “Company Town”: Pullman, IL

William Vanderbilt $ The public be damned! $ What do I care about the law? H’aint I got the power? $ The public be damned! $ What do I care about the law? H’aint I got the power?

New Financial Businessman The Broker:  J. Pierpont Morgan The Broker:  J. Pierpont Morgan

Standard Oil Co.

The Protectors of Our Industries

“Social” Darwinism Accumulation of wealth is natural Accumulation of wealth is natural Poor should not be helped Poor should not be helped The “unfit” should simply be allowed to die out The “unfit” should simply be allowed to die out Based upon the evolutionary ideas of the nineteenth century Based upon the evolutionary ideas of the nineteenth century Becomes the basis for justifying imperialism, fascism, and Nazism Becomes the basis for justifying imperialism, fascism, and Nazism

The Gospel of Wealth: Russell H. Conwell $ Wealth no longer looked upon as bad. $ Viewed as a sign of God’s approval. $ Christian duty to accumulate wealth. $ Wealth no longer looked upon as bad. $ Viewed as a sign of God’s approval. $ Christian duty to accumulate wealth.

“On Wealth” Andrew Carnegie $ The Anglo-Saxon race is superior. $ “Gospel of Wealth” (1901). $ Inequality is inevitable and good. $ Wealthy should act as “trustees” for their “poorer brethren.” $ The Anglo-Saxon race is superior. $ “Gospel of Wealth” (1901). $ Inequality is inevitable and good. $ Wealthy should act as “trustees” for their “poorer brethren.”

The Changing American Labor Force

Child Labor

Knights of Labor Terence V. Powderly An injury to one is the concern of all!

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

The American Federation of Labor: 1886 Samuel Gompers

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

Labor Unrest:

The Great Railroad Strike of 1877

Haymarket Riot (1886) McCormick Harvesting Machine Co.

Haymarket Martyrs

Homestead Steel Strike (1892) The Amalgamated Association of Iron & Steel Workers Homestead Steel Works

The Pullman Strike of 1894

Government by injunction!

The Socialists Eugene V. Debs

International Workers of the World (“Wobblies”)

“Big Bill” Haywood of the IWW  Violence was justified to overthrow capitalism.

I W W

Mother Jones: “The Miner’s Angel”  Mary Harris.  Organizer for the United Mine Workers.  Founded the Social Democratic Party in  One of the founding members of the I. W. W. in 1905.

The “Formula” unions + violence + strikes + socialists + immigrants = anarchists

Labor Union Membership