1. Chapter 13: The Rise of Industry & Labor (1850 – 1900)

2. I.Foundations for Industrial Growth A.A Technological Revolution: Sheet & Charts B.Railroads: Effects 1.Faster Means of Transporting Goods 2.Lower Costs of Production 3.Creation of National Markets 4.A Model for Big Business 5.Stimulation of Other Industries 6.Settled the Frontier 7.Standard Time System

3. I.Foundations… (cont) C.The Growth of Corporations 1.Definition * Capital… Dividend… Limited Liability… economies of scale (HW ) * Disconnect… Division of Labor (HW) 2.Eliminating the Competition * Monopoly… Pool… Trust…

4. I.Foundations… (cont) D.Philosophy of the Era 1.Laissez-Faire 2.Social Darwinism * Darwin… Spencer… “Survival of the Fittest”

5. II.Foundations (cont) E.Resources 1.Vast natural resources: timber, coal, oil, copper 2.Companies could obtain cheap and not import resources 3.Petroleum * American oil industry built on demand for kerosene *1859: first oil field in PA *1900: Spread from PA to TX 4.Population growth: family size and immigrants

6. II.The Great Entrepreneurs: Robber Barons or Captains of Industry? A.Definition: org f of p; risks v. profits B.Entrepreneurs of the Period 1.Andrew Carnegie: Steel; Bess P; “VI”; G of W 2.John D. Rockefeller: Standard Oil; “HI” (trusts) 3.J.Pierpont Morgan: Bank: US Steel

7. II.The Great Entrepreneurs B.Entrepreneurs (cont) 4.Henry Ford: Cars; assembly line; wages 5.Philip Armour: meat 6.Cornelius Vanderbilt: railroads

8. II.The Great Entrepreneurs (cont) C.Robber Barons or Captains of Industry? 1.Robber Barons * Elimination of Competition: Price Wars * Power Over the Consumer: Price, Quality * Exploitation of Workers: Wages, Conditions * Influence over the Government: Bribery * “Conspicuous Consumption”

9. II.The Great Entrepreneurs (cont) C. Robber Barons or Captains of Industry? 2.Captains of Industry * Mass Production : assembly line, standardization of parts, division of labor, inventions… lower prices, quantity * Wide Distribution: RR, Dept, Catalogs: nationwide; improve quality of life * Efficient Manage’t: research, develop’t * Philanthropy

10. III.Government Policies Toward Business *** See Sheet A.Steps Towards Regulation: Why? 1.Downturns in the Economy 2.Growing Criticisms of Big Business 3.Increasing grassroots pressure: Populist

11. III.Government Policies (cont) B. Supreme Court Decisions 1. Issues: RR, rebates, “Granger Laws” 2. Munn v. Illinois (1877): upheld Police Power 3. Wabash v. Illinois (1886): Interstate C 4. The 14 th Amendment *Limited interpretation: ag fed/state *Corporations: “people” * Can’t deprive of property w/o “due process”

12. III.Government Policies (cont) C. Interstate Commerce Act/ Commission (1887) Regulations 1.Post RR rates publicly 2.Rates are to be “just” 3.Outlaw pools and rebates 4.Prohibit charging more for “short hauls” than for “long hauls” ** 1 st attempt to regulate business...precedent

13. III.Government Policies (cont) D. Sherman Antitrust Act (1890) * Any combination “in restraint of trade or commerce…” * Rarely enforced * Big Business: use against labor * Precedent: more important than act itself * Later: “Trustbuster” Teddy Roosevelt

14. IV. The Rise of Organized Labor A.The Growth of Unions 1.Problems and Goals 2.Tactics * strikes, closed shops, injunctions 3.Business Strikes Back! * Strike breakers, yellow dog contract, blacklisting, court injunctions, company unions

15. IV.The Rise of Organized Labor (cont) B.Workers Seek a National Voice 1.Knights of Labor 2.American Federation of Labor 3.Int’l Ladies Garment../ Triangle Shirtwaist Factory Fire 4.Industrial Workers… “Wobbies”/ Lawrence Textile Strike

16. IV.The Rise of Organized Labor: Labor Conflicts Great Railway StrikeHaymarket Riot

17. IV.Organized Labor… Labor Conflicts Homestead StrikePullman Strike