THE RISE & DEVELOPMENT OF AMERICAN INDUSTRY IN THE LATE 19 TH CENTURY OBJECTIVE: WHAT FACTORS LED TO THE GROWTH OF AMERICAN INDUSTRY & HOW DID GOVERNMENT & WORKERS RESPOND TO THIS GROWTH?

BIG BUSINESS 1876 CENTENNIAL EXHIBITION RISK TAKING & INNOVATION RESOURCES, TECHNOLOGY, LABOR, COMPETITION, PRICE RAILROAD MOST SIGNIFICANT TECHNOLOGICAL ADVANCE VANDERBILT, GOULD, HILL CONSOLIDATION & MODEL FOR OTHER BUSINESSES AIR-BRAKE, REFRIGERATION COMPETITION MORGANIZATION

STEEL ANDREW CARNEGIE RR SPURS NEED FOR STEEL ARRIVED 1848 POOR SELLS COMPANY FOR ½ BILLION 1890 VERTICAL INTEGRATION GOSPEL OF WEALTH – WEALTHY ARE RESPONSIBLE TO SOCIETY – PROVIDE OPPORTUNITIES FOR OTHERS SELLS TO J.P. MORGAN, TURNS IT INTO U.S. STEEL – 1 ST BILLION DOLLAR CORPORATION 1888 PROFIT 2MILL – MILL PRIOR TO SALE

BLACK GOLD 1859 PENNSYLVANIA JOHN D. ROCKEFELLER COMPETITION WASTEFUL CONSOLIDATION NECESSARY ENTERS INDUSTRY PRESIDENT STANDARD OIL (EXXON) HORIZONTAL INTEGRATION CONTROLS 90% OF OIL REFINERIES BY 1879 CREATED TRUST VIRTUALLY ELIMINATED COMPETITION % OF US COMPANIES OWNED MORE THAN 1/3 OF INDUSTRIAL PRODUCTION

REACTIONS & REFORMERS – FEW QUESTION UNDERLYING VALUES OF THE MIDDLE CLASS 1879 WALT WHITMAN 1879 PROGRESS & POVERTY HENRY GEORGE 1888 LOOKING BACKWARD EDWARD BELLAMY 1889 GOSPEL OF WEALTH ANDREW CARNEGIE 1894 WEALTH AGAINST COMMONWEALTH HENRY D. LLOYD

WERE GOVERNMENT ATTEMPTS AT REGULATION CONTRADICTORY OR SUPPORTIVE OF GOVERNMENT CLAIMS OF LAISSEZ FAIRE ? AS CORPORATIONS ROSE CALLS FOR REFORM & REGULATION FEDERAL, STATE & LOCAL GOVERNMENTS STEP IN TOP 10% OWNED 73% OF THE WEALTH IN 1890 >½ OF THE INDUSTRIAL WORKFORCE EARNED < $500 SMALL, SPECIALTY MANUFACTURING: KODAK, SINGER, EDISON OVERALL STANDARD OF LIVING INCREASED FOR MOST IN U.S. BUT GAP BETWEEN RICH & POOR EXPANDED OLIGOPOLY –GOVERNMENT RUN BY SMALL GROUP OF INDUSTRIALISTS VERY FEW QUESTION THE PROCESS BY WHICH PEOPLE ‘MAKE IT’ IN THE U.S. & AS A RESULT IN PRACTICE NOT MUCH WILL CHANGE

RAILROAD CONTROL OF ECONOMY FORCES CHANGES THE GRANGE ORGANIZATION –OLIVER KELLEY 1867 THE GRANGE AG-RICULTURAL ORGANIZATION –OLIVER KELLEY 1867 MUNN V. ILLINOIS – 1877 STATE HAS RIGHT TO REGULATE RR RATES MUNN V. ILLINOIS – 1877 STATE HAS RIGHT TO REGULATE RR RATES CIVIL RIGHTS CASES CIVIL RIGHTS CASES WABASH V. ILLINOIS 1886 REVERSES MUNN – FEDS CONTROL INTERSTATE COMMERCE WABASH V. ILLINOIS 1886 REVERSES MUNN – FEDS CONTROL INTERSTATE COMMERCE INTERSTATE COMMERCE ACT 1887 INTERSTATE COMMERCE ACT 1887 I.C.COMMISSION – 1 ST FEDERAL REGULATORY BOARD I.C.COMMISSION – 1 ST FEDERAL REGULATORY BOARD 1890 SHERMAN ANTI-TRUST ACT : RESTORE COMPETITION - LOOPHOLES 1890 SHERMAN ANTI-TRUST ACT : RESTORE COMPETITION - LOOPHOLES US V EC KNIGHT 1895 EMASCULATES SHERMAN US V EC KNIGHT 1895 EMASCULATES SHERMAN 14 TH AMEND CONTRIBUTED MOST TO GROWTH OF BIG BUSINESS 14 TH AMEND CONTRIBUTED MOST TO GROWTH OF BIG BUSINESS

WORKERS RESPOND WITH LABOR UNIONS EARLY 19 TH C. UNIONS TOO RADICAL/FOREIGN AS BUSINESS GROWS UNIONS MORE ACCEPTABLE 1866 NATIONAL LABOR UNION 1869 KNIGHTS OF LABOR – STEPHENS & POWDERLY HARDEST TO ORGANIZE – INDUSTRIES W/ FOREIGN BORN WORKERS 1886 AMERICAN FEDERATION OF LABOR: SAM GOMPERS – SKILLED & WHITE MEN ONLY, CONCRETE ECONOMIC GAINS MORE IMPT. THAN POL & SOC ISSUES

UNIONS FIGHT BACK - STRIKES WILDCAT STRIKES GREAT RAILROAD STRIKE 1877 – WILDCAT, NATIONAL, AMERICAN RAILWAY UNION LEADER E. DEBS PRES. HAYES SENDS IN TROOPS HAYMARKET STRIKE 1886 END OF KNIGHTS OF LABOR HOMESTEAD & COEUR d’ALENE STEEL MILLS, PINKERTON GUARDS, NATIONAL GUARD CALLED IN IDAHO PULLMAN STRIKE 1894 MOST SYSTEMATIC USE OF TROOPS IN RE DEBS – UPHOLD USE OF INJUNCTION FEDERAL GOV’T INTERVENTION BENEFITS EMPLOYERS NOT WORKERS