1. Industrial Supremacy

2. Reasons for Industrial Growth in United States
Abundant natural resources, including raw materials essential to industrialization – coal, iron ore, copper, lead, timber, oil
Abundant labor supply
Growing population
Advanced transportation network

3. Reasons for Industrial Growth in United States
Capital plentiful
Development of new, laborsaving technologies increased productivity
Businesses benefited from friendly government policies
Talented entrepreneurs emerged during this era

4. Technology and Innovations
Industrial Supremacy
Technology and Innovations

5. Causes of Rapid Industrialization
Technological innovations.
Bessemer and open hearth process -> steel
Refrigerated cars
Edison
“Wizard of Menlo Park”
light bulb, phonograph, motion pictures.

6. Thomas Alva Edison
“Wizard of Menlo Park”

7. The Light Bulb

8. The Phonograph (1877)

9. The Ediphone or Dictaphone

10. The Motion Picture Camera

11. Alexander Graham Bell
Telephone (1876)

12. Alternate Current
George Westinghouse

13. The Airplane Wilbur Wright Orville Wright
Kitty Hawk, NC – December 7, 1903

14. Model T Automobile
Henry Ford I want to pay my workers so that they can afford my product!

15. The Business of Railroads
Industrial Supremacy
The Business of Railroads

16. Railroads
Development of a nationwide railroad network had the greatest impact on American economic life
Promoted growth of coal and steel industries
Faster transportation prompted US government to divide country into four standard time zones

17. US Time Zones

18. Western Railroads Promoted settlement of the Great Plains
Linked the West with the East and thereby created one great national market
1870’s-1880’s -> railroads overbuilt
Speculators like Jay Gould & J.P. Morgan quickly moved in to take control of bankrupt railroads and consolidate them

19. Industrial Supremacy
Industrial Empires

20. The Steel Industry
Bessemer Process – In 1850’s, Henry Bessemer learned that blasting air though molten iron produced high quality steel
Great Lakes region, with abundant coal reserves and access to iron ore made region leading steel producer

21. Andrew Carnegie
Started manufacturing steel in Pittsburgh in the 1870’s
Used a business strategy known as vertical integration – a company controls every stage of the industrial process, from mining raw materials to transporting the finished product
By 1900, Carnegie Steel employed 20,000 workers and produced more steel than all mills in Great Britain

22. John D. Rockefeller and the Standard Oil Trust
By 1881, Rockefeller’s Standard Oil Trust controlled 90% of the oil refinery business
Used a business strategy known as horizontal integration – One company buys out all of its’ competitors under one single corporate umbrella (a trust)
By controlling the supply and prices of oil products, Standard Oil and Rockefeller’s fortunes soared

23. The Protectors of Our Industries

24. The ‘Bosses’ of the Senate

25. The ‘Robber Barons’ of the Past

26. Modern ‘Robber Barons’??

27. Regulating the Trusts 1877  Munn. v. IL
1886  Wabash, St. Louis & Pacific Railroad Company v. IL
1890  Sherman Antitrust Act
in “restraint of trade”
“rule of reason” loophole
1895  US v. E. C. Knight Co.

28. Laissez-Faire Capitalism
Industrial Supremacy
Laissez-Faire Capitalism

29. New Business Culture
Laissez Faire  the ideology of the Industrial Age.
Individual as a moral and economic ideal.
Individuals should compete freely in the marketplace.
The market was not man-made or invented.
No room for government in the market!

30. Social Darwinism British economist. Advocate of laissez-faire.
Adapted Darwin’s ideas from the “Origin of Species” to humans.
Notion of “Survival of the Fittest.”
Herbert Spencer

31. Social Darwinism in America
Individuals must have absolute freedom to struggle, succeed or fail.
Therefore, state intervention to reward society and the economy is futile!
William Graham Sumner Folkways (1906)

32. The Gospel of Wealth: Religion in the Era of Industrialization
Wealth no longer looked upon as bad.
Viewed as a sign of God’s approval.
Christian duty to accumulate wealth.
Should not help the poor.
Russell H. Conwell

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

34. The Reorganization of Work
Frederick W. Taylor
The Principles of Scientific Management (1911)

35. The Reorganization of Work
The Assembly Line

36. New Business Culture: “The American Dream?”
Protestant (Puritan) “Work Ethic”
Horatio Alger [100+ novels]
Is the idea of the “self-made man” a MYTH??

37. The Struggle of Organized Labor
Industrial Supremacy
The Struggle of Organized Labor

38. The Changing American Labor Force

39. Child Labor

40. Labor Unrest:

41. Industrial Warfare
With surplus of cheap labor, management held most of the power in its struggle with organized
Strikers could easily be replaced by bringing in strikebreakers, or scabs – unemployed persons desperate for jobs

42. A Striker Confronts a SCAB!

43. Industrial Warfare
Employers used all of the following tactics for defeating unions:
The lockout: closing the factory to break a labor movement before it could get organized
Blacklists: names of prounion workers circulated among employers
Yellow-dog contracts: workers being told that they must sign an agreement not to join a union
Calling in private guards and state militia to put down strikes
Obtaining court injunctions against strikes

44. Management vs. Labor “Tools” of Management “Tools” of Labor “scabs”
P. R. campaign
Pinkertons
lockout
blacklisting
yellow-dog contracts
court injunctions
open shop
boycotts
sympathy demonstrations
informational picketing
closed shops
organized strikes
“wildcat” strikes

45. National Labor Union Founded in 1866
The first attempt to organize all workers in all states – both skilled and unskilled, agricultural and industrial
Championed goals of 8 hour workday and higher wages
Equal rights for women and blacks
Lost support after the strikes of 1877

46. Great Railroad Strike of 1877
One of the worst outbreaks of labor violence in the 19th century
During economic depression, railroad companies cut wages to reduce costs
Strike on Baltimore & Ohio Railroad shut down 2/3 of country’s railroads
Railroad workers joined by an estimated 500,000 workers from other industries

47. The Great Railroad Strike of 1877

48. Knights of Labor
Founded in > opened its membership to all workers, including African Americans and women
Worker cooperatives
Abolition of child labor
Abolition of trusts and monopolies
Declined after the violence of the Haymarket riot in Chicago in 1886

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

50. Haymarket bombing (1886)
Chicago, > site of the first May Day labor movement, calling for a general strike to achieve 8 hour workday
Police attempted to break up meeting -> an anarchist threw a bomb
Result – Americans concluded that the union movement was radical and violent
Knights of Labor lost popularity and membership

51. McCormick Harvesting Machine Co.
Haymarket Riot (1886)
McCormick Harvesting Machine Co.

52. American Federation of Labor (AFL)
Concentrated on attaining practical economic goals
Led by Samuel Gompers
Went after basics of higher wages and improved working conditions
Used tactic of collective bargaining -> process through which employers negotiate as a united group rather than individuals
Pressed for closed shop workplaces

53. Homestead Strike (1892)
Henry Clay Frick, manager of Carnegie’s Homestead Steel plant, forced a strike when he cut wages by nearly 20 percent
Frick used the lockout, Pinkerton Guards (private security guards), and strikebreakers to defeat the walkout
Failure of strike set the union movement in steel industry back until New Deal of 1930’s

54. The Corporate “Bully-Boys”: Pinkerton Agents

55. A “Company Town”:
Pullman, IL

56. Pullman Strike (1894)
George Pullman’s company town (Pullman, Illinois) manufactured famous railroad sleeping cars
Announced general cut in wages and fired workers that came to bargain with him
Workers appealed to the American Railroad Union whose leader, Eugene V. Debs, directed railroad workers not to handle any trains with Pullman cars
Tied up rail transportation across the country

57. Results of Pullman Strike
Pullman linked his railroad cars to mail trains
Pullman appealed to President Grover Cleveland to use the army to keep mail trains running – he agreed
In re Debs (1895) -> Supreme Court approved the use of court injunctions against strikes, giving employers a weapon to break unions

58. Pullman Cars
A Pullman porter

59. International Workers of the World (“Wobblies”)

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

61. The Hand That Will Rule the World One Big Union

62. Mother Jones: “The Miner’s Angel”
Mary Harris.
Organizer for the United Mine Workers.
Founded the Social Democratic Party in 1898.
One of the founding members of the I. W. W. in 1905.

63. Labor Union Membership

64. Workers Benefits Today