THE AGE OF INDUSTRY 1865 TO 1900
AN INTRODUCTION BETWEEN 1865 & 1900 AMERICA WAS TRANSFORMED. A RURAL NATION BECOMES URBAN AND INDUSTRIAL SYMBOL OF THE AGE- THE BROOKLYN BRIDGE. STEEL WAS THE FOUNDATION
MORE… MANY NEW INVENTIONS NEW FORMS OF BUSINESS ORGANIZATION BIRTH OF THE ROBBER BARONS HORRIBLE WORKING CONDITIONS
THE TIES THAT BIND SAMUEL MORSE INVENT THE TELEGRAPH BY 1860 EAST & WEST ARE CONNECTED WESTERN UNION & AMERICAN TELEGRAPH MERGE.
MORE CYRUS FIELDS - ATLANTIC CABLE STRONGER CABLE.
THE TELEPHONE ALEXANDER GRAHAM BELL “WATSON I WANT YOU!”… FIRST LONG DISTANCE BOSTON TO NEW YORK BELL TELEPHONE COMPANY AMERICAN TELEPHONE & TELEGRAPH COMBINE
RAILROAD TRANSPORTATION SINGLE MOST IMPORTANT TIE TO INDUSTRIAL EXPANSION ,000 MILES OF TRACK IN AMERICA. NO BRIDGES OVER THE MISSISSIPPI NO STANDARD GAGE.
RAILROAD CONSOLIDATION 1866 CORNELIUS VANDERBILT CREATES NEW YORK CENTRAL BY 1877 VANDERBILT CONTROLS 4,500 MILES OF TRACK. IN 1886 RAILROADS ADOPT A STANDARD GAGE. VANDERBILT INTRODUCES STEEL RAILS & AIR BRAKES
MORE… AMERICAN RAILROAD ASSOCIATION DIVIDES NATION INTO 4 TIME ZONES. EASTERN, CENTRAL, MOUNTAIN, AND PACIFIC.
PERSISTENT PROBLEMS FINANCING RAILROAD CONSTRUCTION BONDS AND STOCK CERTIFICATES- BUT FEW ACTUAL ASSETS. CUTTHROAT COMPETITION (E.G. BETWEEN ATLANTA & ST. LOUIS 20 DIFFERENT CARRIERS.
MORE… RATE WARS LEAD TO REBATES POOLING AGREEMENTS NOT TO COMPETE. LONG HAUL / SHORT HAUL ABUSES.
SOME INVENTIONS OF THE PERIOD. BETWEEN 1880 & ,000 NEW PATIENTS PER YEAR. BELL’S TELEPHONE ESTABLISHES A WHOLE NEW INDUSTRY LEVI STRAUSS - DEVELOPES BLUE JEANS.
STEEL PRODUCTION 1859 HENRY BESSEMER AND WILLIAM KELLY FIND NEW METHOD OF STEEL PRODUCTION. BESSEMER PROCESS - BLAST FURNACE U.S. PRODUCED 2000 TONS PER YEAR.
MORE… BY 1900 WE PRODUCE 7 MILLION TONS PER YEAR. STEEL BECOMES THE BACKBONE OF THE INDUSTRIAL REVOLUTION. SKY SCRAPERS BEGIN TO APPEAR. (20 STORIES HIGH) LUIS SULLIVAN
INVENTIONS START MORE INDUSTRY GUSTAVUS SWIFT & PHILIP ARMOUR - MEATBACKING INDUSTRY GEORGE PULLMAN INVENTS THE SLEEPING CAR. GEORGE WESTINGHOUSE 1868 INVENTS AIR BRAKES
MORE… CHRISTOPHER SHOLES THE TYPEWRITER. THE THE REMINGTON FIRE ARMS COMPANY ELISHU OTIS - INVENTS THE ELEVATOR. PERFECTED BY FRANK SPRAGUE.
THOMAS ALVA EDISON TO 1931 “THE WIZARD OF MENLO PARK.” HELD OVER 1000 PATIENTS IMPROVED TELEGRAPH, TICKER TAPE FOR STOCK MARKET PHONOGRAPH INCANDESCENT ELECTRIC LAMP
MORE ON EDISON... VITASOPE ( MOTION PICTURE DEVICE) STOREAGE BATTERY, ELECTRIC MOTOR, ELECTRIC LOCOMOTIVE 1877 FOUNDED EDISON GENERAL ELECTRIC. LATER BECAME GENERAL ELECTRIC CORP.
BUSINESS PHILOSOPHY BY 1900 THERE WERE 4000 MILLIONAIRES RICH PRACTICES CONSPICUOUS CONSUMPTION
ANDREW CARNEGIE’S “GOSPEL OF WEALTH” “I HAVE A RIGHT TO MAKE MONEY & A RESPONSIBILITY TO SPEND IT PROPERLY.” RICH ARE GOD’S STEWARTS ON EARTH. WEALTHY MUST USE MONEY TO IMPROVE SOCIETY.
SOCIAL DARWINISM HERBERT SPENCER OF ENGLAND APPLIES DARWINISM TO SOCIETY. WEALTHY ARE PRODUCTS OF “NATURAL SELECTION.” WILLIAM GRAHAM SUMNER (YALE COLLEGE) AMERICAN PROPONENT.
LAISSEZ- FAIRE ECONOMICS REJECTS GOVERNMENT INVOLEMENT IN THE ECONOMY MARKET MECHANISM OF SUPPLY & DEMAND IS BEST WAY TO MAKE CHOICES. COMPETITION WILL PROTECT CONSUMERS ACCEPTED GENERALLY BY RICH AND POOR
HORATIO ALGER.
HORATIO ALGER STORIES DIME NOVELS TELL STORY OF YOUNG MAN WHO MAKES GOOD THROUGH HARD WORK & DETERMINATION. “LUCK & PUCK.” “RAGGED DICK” “THE ERRAND BOY: HOW PHIL WON SUCCESS” SUPPORTS THE AMERICAN DREAM.
NEW WAYS OF DOING BUSINESS SIZE IS HALLMARK OF THE TIME. GNP GROSS NATIONAL PRODUCT GROWS. IN 1860 = $1.8 BILLION. BY 1890 = $10 BILLION. AIM OF BUSINESS INCREASE PROFITS, CUT COSTS & REDUCE COMPETITION
ADVANTAGES OF CORPORATIONS LIMITED LIABILITY POOL CAPITAL LEGAL STATUS OF “PERSON” UNDER THE 14TH AMENDMENT IMMORTAL PROFESSIONAL MANAGEMENT
CORPORATIONS DOMINATE MOST KEY INDUSTRIES. IRON, STEEL, COAL, RAILROADS, COPPER, ELECTRICITY, TELEPHONE, TEXTILES, BANKING & CHEMICALS.
CARNEGIE AND ROCKEFELLER CARNEGIE DEVELOPS A VERTICAL MONOPOLY IN STEEL CONTROLS ALL ASPECT OF STEEL PRODUCTION AND SALES HE IS MODEL FOR HORATIO ALGER STORIES. FIRST TO ADOPT BESSEMER PROCESS.
JOHN D. ROCKEFELLER TITUSVILLE FIRST OIL WELL. OIL USED TO MAKE KEROSENE FOR LAMPS. ROCKEFELLER SEE REFINING AND TRANSPORTING OIL AS THE KEY. ESTABLISHES A HORIZONTAL MONOPOLY CONTROL ONE KEY STEP IN PRODUCTION PROCESS FORMS STANDARD OIL OF OHIO IN 1870
MORE ON ROCKEFELLER… FORCES RAILROADS TO GIVE HIM REBATES. ON HIS SHIPMENTS ALSO ON HIS COMPETITORS SHIPMENTS. BY 1879 STANDARD OIL CONTROL 90 % OF REFINING CAPACITY.
COMPARES STANDARD OIL TO A ROSE BOTH REQUIRE EARLY SACRIFICE SLOGAN: “LET US PREY!”
TRUSTS AND MONOPOLIES INTERLOCKING DIRECTORATES HOLDING COMPANIES CONSUMERS AND WORKERS ARE HARMED BY MONOPOLIES.