1. Chapter 17: Industry Comes of Age

2. Andrew Carnegie “Man of Steel” a. Management techniques i. Hired talented workers 1.Offered stock 2.Competition = increased production/lower costs ii. Better products cheaper b. “Winning” Strategy i. Vertical integration 1. Buy out all of your suppliers 2. Control quality and costs

3. Bessemer Process

4. Iron & Steel Production

5. Chicago, 1884 183 ft Dubai, 2009 2,717 ft

7. Standard Oil Co.

9. Henry Ford

10. Mr. Ford’s First Auto

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

12. Frederick Winslow Taylor Subdivide tasks = ?

13. The Iron Colt Becomes an Iron Horse 1. TRR funded by fed gov’t a. Pacific RR Act 1862 - Land grants and subsidies paid out by gov’t i. 20 sq. mi per one mi of track ii. Loans of $16,000- $48,000 depending on grade iii. >200M acres

14. Transcontinental RR (1862-1869)

15. Last Spike: Promontory Summit, Utah

18. Cornelius Vanderbilt

19. RR Spur Growth: Opportunities 4. Markets a. Promoted trade b. Towns specialized in specific products c. International trade 5. Corruption! 6. Issues with farmers 1. Economy stimulated: raw materials for RR 2. Consolidation of RR’s 3. Towns a. New towns dev. Along RR lines b. Supplied products to passerby

20. John D. “Slick” Rockefeller a. Standard Oil Company b. Owned 95% of refining business c. Treated employees poorly d. Winning Strategy i. Horizontal consolidation Merging of companies with similar products; oil companies

21. Standard Oil 2010

22. 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.” × 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

23. The Gospel of Wealth 1. Personal wealth is God’s reward for hard work 2. Carnegie’s Philosophy: use it philanthropically - make as much money as you can so that you can give it away

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

25. Business and Social Darwinism “Survival of the Fittest”

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

27. New Business Culture 1. 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!  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!

28. Horatio Alger 1. Emphasized the individual work ethic 2. “Rags to Riches” 3. Good virtue 4. Hard work will pay off

30. Rags to Riches 1900: 1/10 th has 9/10 th of wealth

32. U. S. Corporate Mergers

33. Conspicuous Consumption

34. Immigrant Workforce

35. Wages and Working Conditions

36. Women and Children at Work

37. Molly Maguire’s

38. C. Homestead Strike (steel workers/1892) 1. Wage cuts/break union 2. Pinkerton’s hired 3. Fighting ensues 4. Pa. National Guard sent out/scabs hired 5. Conditions worsen: hrs increased, wages cut, union defeated

39. D. Pullman Strike (1894) 1. Wages cut but not rent 2. Il National Guard sent in then federal troops 3. Led by Eugene Debs ARU-American Railway Union 4. Nationwide strike 5. End result: 25 dead

40. B. Ellis Island

41. C. Populating the City Ethnic Enclaves

42. D. Immigrants Arrive 1. Ellis Island (East) 2. B/4 1890, most came from N. and W. Europe “old immigrants” 3. After 1890, most came from E. and S. Europe “new immigrants” 4. Asian immigrants came in through Angel Island in San Francisco 5. Process a. 5 hr. process b. Health & mental exams c. Literacy test, healthy, $25 (must haves) 6. 2% did not pass

43.  Central Pacific  Chinese and Mex.  California to Utah  Union pacific  White/Blacks/Irish immigrants  Nebraska to Utah

45. Standardized Time Zones 1918 created by the American Railway Association

46. Credit Mobilier (1872) a. Construction company b. stockholders of Union Pacific made contracts with themselves c. Paid off congressmen d. Scam from start to finish e. No one prosecuted f. Pres. Grant in office

47. The Grange (1867) (farmers political association) 1. Corporations such as RR and banks to blame for their hard times 2. Foreign competition = decrease prices of US crops 3. Banned together to dev. own grain elevators, stores, equip to control prices = Cooperatives

48. Growth of Government 1. Regulation by gov’t increasing 2. Local & nat’l level interdependent 3. Interstate Commerce Act: no rebates or pools; RR publish rates; works out better for the RR 4. Interstate Commerce Commission (ICC) – regulation of RR  1 st attempt by gov’t to regulate on behalf of the people

49. The Rise of Industry Four main factors which contributed to the success of industrialization: a. Natural resources b. A large population to support market for new products; workforce c. Explosion of inventions d. Free Enterprise

50. Revolution: Technology & Transportation  Alexander Bell  Thomas Edison – Menlo Park; electricity replaces steam  Henry Ford  Wright Brothers  RR  By 1900: 1 st in manufactured goods; 1/3 of all goods in the world

51. Mechanization = 2 nd Industrial Revolution 1. Meachanization = increased productivity 2. assembly lines and mass production = effieciency 3. Hierarchy of workers

52. Robber Barons or Captains of Industry? Business men who participated in questionable business practices gaining huge personal wealth Carnegie Rockefeller JP Morgan Jay Gould Steel Standard Oil Banking RR

53. The South & Industry  James B. Duke and cigarettes  “Pittsburgh Plus”  Cotton mills and textiles  Worse working conditions than the north

55. Sherman-Antitrust Act a. An act to protect trade and commerce against unlawful restraints and monopolies. b. Supposed to check monopolies and stop big businesses from forming; didn’t work. c. Used against union instead d. Big business actually increases!

56. The “Gibson Girl” Independent & athletic Romantic image Reality?

57. From Independent producers to wage workers Becoming more dependent on the market

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

59. Labor in the Age of Big Business (union game) Unions represented the most significant and lasting response of workers to the rise of big business and consolidation or corporate power

60. The Wage System 1. Relationships among workers and employers change; worker to worker 2. Machines and women replaced male workers 3. New employment opportunities for women; blk and wht 4. “minority” males have it the worse 5. Hazardous and poor working conditions

61. The Knights of Labor 1. 8 hour work week 2. Skilled and unskilled 3. Zero race or gender bias 4. No child labor 5. Graduated income tax 6. Equal pay for all Terence Powderly

62. Downfall of the Knights of Labor 1. Haymarket Riot a. Protesters assembly re: recent police violence b. End with more police violence and 7 dead c. Union labeled trouble due to anarchist supporting them = political radicalism

63. American Federation of Labor 1. “pure and simple unionism” 2. Skilled workers 3. No blks or immigrants 4. Women s/b @ home! Samuel Gompers