1. Technology and Greed at Its Best
Industrialization
Technology and Greed at Its Best
1, 4, 6

2. U.S. Economy Consolidation of business into trusts
Technological innovations
Growing concentration of wealth
Control of industries by bankers

3. Attitudes of Businesses
Social Darwinism
allowed men of wealth justify the economic inequality that favored them over the nation's poor
Supported no regulation of business
Herbert Spencer

4. Attitudes of Businesses
Government should not Protect workers from unfair labor practices (laissez faire)
Standard Oil corporate structure –horizontal integration-creating a monopoly by combining all competing companies into a single area of business.

5. Big Business Practices
Horizontal Integration: Creating a monopoly in one area of the business cycle in order to control an entire industry.
John D. Rockefeller’s Standard Oil
Rockefeller eventually controlled 90% of the oil refineries in the United States
He had a monopoly on the oil supply and could drive his competition out of business
Oil wells
Standard Oil
refineries
Gas stations

6. Andrew Carnegie’s Gospel of Wealth
People with wealth should help society
Each man had a duty to become rich
Use wealth for the good of society
Wealth was God’s reward for a life of virtue and hard work
Support educational, health, and religious institutions

7. Andrew Carnegie’s Vertical Integration
Vertical Integration: controlling all aspects of business from the gathering of raw materials to the final distribution of a product

8. Big Business Practices
Vertical Integration: controlling all parts of the business cycle from finding raw materials to the final delivery of a product
Carnegie Steel is an example
Coal Mine
Steel Factory
Railroad to ship steel
Carnegie Steel
Carnegie Steel became the biggest steel company in America

9. Railroad Expansion Transcontinental Railroad 1869
Union Pacific meets Central Pacific at Promontory Point, Utah
In General, Railroad lines were overcapitalized ( more money invested than what was needed)
Significance of the Railroad network:
Spurred Industrialization

10. Railroad Expansion The nation became united physically
Created a nationwide market for mining, ranching and agriculture
Facilitated immigration
Advertisements of free transportation to western fars
Chinese and Irish immigrant work on the rail lines.

11. Railroads-corruption
Cornelius Vanderbilt set up a RR Trust
formed pools in order to fix prices and divide business for greater profit
Rebates and kickbacks

12. Laws passed to regulate RR
Interstate Commerce Act
RR’s must publish rates and charge the same amount all year long.

13. Problems in the Workforce
Workers had been mistreated for years
10-12 hours per day
Dangerous jobs
Child labor
Very little pay

14. Labor-Unhappiness on the job
Labor Unions began to appear in the mid 1800’s
Knights of Labor (1869) – Wanted eight-hour working day. Allowed all to join—skilled/unskilled, men/women, black/white
The labor strike was the number one tool of the union.

15. Labor major strikes were defeated by business and government
RR strike of 1877: troops called in by Hayes
Homestead Strike 1892: Strike at Carnegie Steel was broken by troops
Pullman Strike 1894: American Railway Union led by Eugene V. Debs strikes. 2,000 troops sent by Pres Cleveland. Debs is jailed.

16. Labor The Haymarket bombing Chicago 1886
aroused public opposition against labor,
contributed to the decline of the Knights of Labor
caused an increase in the membership of the AFL

17. THE NEW SOUTH
Influential Southerners like Henry W. Grady, encouraged Southern industrialism during this time.
James Buchanan Duke: American Tobacco Co. produced machine rolled cigarettes.
Offering Cheap labor, Textile mills began operation in the South

18. THE NEW SOUTH: Obstacles to success
The industrial North’s control of the Railroads kept Southern industry down.
Rates for shipping to the South cheaper than shipping North.
Steel from the South was often charged an additional fee.
NET RESULT: Some industrial progress was made but the Southern economy continued to be dominated by sharecropping, racism and a low standard of living.