Industrialism

“Key Ingredients for Industrialism Pie” OIL-Edwin Drake –Titusville, PA –Oil boom –By products of refining-gasoline originally thrown away –Becomes one of America’s most lucrative exports

Key Ingredients for Pie STEEL-Bessemer process –Coal and Iron abundant Development of steel –Inject Oxygen into Iron-Steel –Uses Railroads Farming products

MMMM….PIE Electricity-Thomas Edison Wizard on Menlo Park, NJ –His home becomes an invention factory –Westinghouse developed after Edison

Pie! People INVENTIONS! –Sholes-Typewriter –Bell and Watson-Telephone New jobs for women

Age of Rail Transcontinental railroad –Promontory Point, Utah (Golden Spike) Time of Civil War 30,000 miles of rail –6 times that in 1890

Age of Rail C.F. Dowd –World 24 Zones –Nov. 18, 1883-sycronized –Birth of towns –Western Expansion

Opportunities Iron, steel, coal, lumber and glass Birth of towns-Necessities Pullman car-Sleeper Cars Pullman’s treatment of workers-Towns

Rail in the “Golden Age of Laissez- Faire” Credit Mobilier –Construction Co. set up by Union Pacific –Charged too much and “donated” shares to representatives in Congress –Union Pacific had taken about $23 million Greed, deception w/ prices also rails allowed to do what it “needs to do” after being given government land

Vanderbilt Cornelius Vanderbilt owned “New York Central” Helped to popularize steel rails His personal wealth valued at close to $100 Million Donated a million to found Vanderbilt University in Tennessee

Industrialism Dinner Party: Two Follow-ups Was “Necessity the Mother of Invention?” What was similar in the “stories” of each inventor?

Robber Barons or Captains of Industry? Carnegie –Came to America from Scotland –Rags to riches –PRR-private secretary of Superintendent Practices that made him a success –Searched for a cheap way to produce –New machinery and techniques –Attracted talent w/ stock options –Vertical and horizontal integration –US STEEL sale made him first Billionaire

John D. Rockefeller Rockefeller-Standard Oil Similar to Carnegie “If you can’t beat’em, join’em” Joined in Trust Agreement –Turned their stock into group of trustees –In return, companies were entitled to dividends on profits –Not legal merger Controlled % of Refining business and 90% of refining business in 1890 Low wages-sold lower and then would raise prices Called ROBBER BARON-but gave away a lot of money –$500 million funded University of Chicago medical institute

Origins of Regulation Grassroots Movements-The Grange –Farmer organization –Angered by misuse of land grants –Munn v. Illinois Individual Citizens-Muckrakers –i.e. Jacob Riis Groups of Citizens-Unions –American Federation of Labor

Why? Government very reluctant to regulate Didn’t have a history of regulation Many measures were not effective –Interstate Commerce Act (1887) –Sherman Anti-Trust Act (1890)Sherman Anti-Trust Act (1890)

Birth of Major Labor Unions Why was there a need? Problems included: Low wages, long hours, equal pay and child labor. Government did not regulate business effectively

Why Unionize? What are some of the reasons someone would want to join a Union? –Modern Example NEA-PSEA Giant in Springfield

Major Unions and Leaders National Labor Union (NLU) (Sylvis leader) Knights of Labor (Stephens then Powderly American Federation of Labor (AFL) American Railway Union (ARU)  Eugene V. Debs leader International Workers of the World aka “Wobblies” (IWW)

This will lead to Violence Great Strike of 1877 Haymarket Affair (1886) Homestead Strike (1893) Pullman Strike (1893)