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Presentation on theme: "THE RISE OF INDUSTRIAL AMERICA, 1865–1900"— Presentation transcript:

AP US History East High School Mr. Peterson Spring 2011

2 Focus Questions What innovations in technology and business drove increases in industrial production after 1865? How did Carnegie, Rockefeller, and other corporate leaders consolidate control over their industries? Why did the South’s experience with industrialization differ from that of the North and the Midwest? How did the changing nature of work affect factory workers’ lives, and how did they respond? How did corporations undercut labor’s bargaining power in the 1890s?

3 The Rise of Corporate America

4 The Character of Industrial Change
Large-scale manufacturing Large coal deposits Technological innovation Demand for workers who could be controlled Constant pressure to cut costs and prices Relentless drop in prices Money supply shortage leads to high interest rates

5 ABUSIVE MONOPOLY POWER This Puck cartoon depicts fi nanciers Jay Gould (left) and Cornelius Vanderbilt (right) and suggests that their manipulation of markets and their ownership of railroads, telegraph companies, and newspapers is powerful enough to strangle Uncle Sam. p. 538

6 Railroad Problems and Innovations
193,000 miles by 1900 Collis Huntington, Jay Gould and others need capital Land and loan subsidies from all levels of government Bonds and stock to public High levels of debt by 1900 Magnetic telegraph New organizations and accounting

7 Consolidating the Railroad Industry
Large companies buy up smaller ones Divide country into 4 time zones Standard gauge track Relied on shipping rate cuts Interstate Commerce Act (1887) Oversee railroads Banned monopolistic activity Banker J. Pierpont Morgan gets control of many railroads

8 Applying the Lessons of Railroads to Steel
Andrew Carnegie Rags to riches story Builds own steel mill Uses Bessemer process “watch the costs, and the profits will take care of themselves” Vertical integration Could see big picture

9 ANDREW CARNEGIE Although his contemporaries called him “the world’s richest man,” Andrew Carnegie was careful to defl ect criticism by focusing on his philanthropic and educational activities. p. 539



12 p. 539

13 FIGURE 18.2 IRON AND STEEL PRODUCTION, 1875–1915 New technologies, improved plant organization, economies of scale, and the vertical integration of production brought a dramatic spurt in iron and steel production. Note: short ton = 2,000 pounds. Fig. 18-2, p. 541

14 Table 18-1, p. 541

15 The Trust: Creating New Forms of Corporate Organization
Consolidation in many industries Oligopolies Petroleum drilled in 1859 Edwin Drake Titusville, PA “crude-oil” distilled Lubricants, kerosene



18 John D. Rockefeller Took over competition in oil industry
Lower prices Set up pool of companies, trust Standard Oil Trust 90% of oil refining capacity Integrated oil industry vertically and horizontally


20 James B. “Buck” Duke Cigarette industry American Tobacco trust
Targeted young with trading cards and prizes


22 BASEBALL TRADING CARD To encourage boys and young men to smoke cigarettes, the American Tobacco Company included in the cigarette package collectable cards with pictures of baseball heroes such as Ty Cobb. p. 541

23 Sherman Anti-Trust Act
1890 Outlawed trusts and monopolies Ineffective Failed to define trust or restraint of trade United States v. E.C. Knight (1895) Manufacturing not interstate commerce

24 Stimulating Economic Growth
COURT OF HONOR, WORLD’S COLUMBIAN EXPOSITION, 1893 The Chicago World’s Fair was seen as “the most signifi cant and grandest spectacle of modern times.” The monumental neoclassical buildings announced that the United States, like Greece and Rome before it, had become one of the world’s most powerful economies.

25 The Triumph of Technology
New inventions Streamlined manufacturing Stimulated consumer demand Singer Sewing Machine Company Alexander Graham Bell-telephone

26 Thomas A. Edison “invention factory” Menlo Park laboratory
Phonograph- “sound writer” Incandescent light bulb Electric power system Motion picture camera Menlo Park laboratory Model for other businesses

THOMAS EDISON’S LABORATORIES IN MENLO PARK, NEW JERSEY, CA Always a self-promoter, Edison used this depiction of his “invention factory” to suggest that his development of a durable light bulb in 1879 would have an impact on life around the globe. p. 543

28 Electricity Thomas Edison George Westinghouse
Interrelated system of power plants, transmission lines, light fixtures Direct current-DC George Westinghouse Alternating current-AC Systems combine-110 AC Private ownership, regulated monopolies

29 CREATION OF THE EDISON SYSTEM, MENLO PARK Frank Leslie’s Weekly in 1880 illustrated Thomas Edison’s process of making electric light bulbs using glass-blowers and vacuum machines in his Menlo Park laboratory. p. 544

30 THE NIAGARA FALLS POWER COMPANY As this diagram of the power station at Niagara Falls reveals, the early transmission of electric power was closely tied to large manufacturers who had the funds to support large investments in generating equipment and power lines. p. 545

31 Specialized Production
Manufacturing Skilled workers Seamstresses Shift styles quickly

32 SKILLED WOMEN DRESSMAKERS, 1890 As these dressmakers in Mary Malloy’s shop in St. Paul, Minnesota, indicate, industrialization did not displace all skilled workers. In this case, hand work and machine work continued together. Women’s dressmaking persisted as a skilled occupation into the 1890s and gave women entrepreneurs an opportunity to run their own businesses. p. 546

33 Advertising and Marketing
Mass-produced consumer goods Flour, soap, matches, canned goods Brand names, trademarks, guarantees, slogans, endorsements, unique products Demand and brand loyalty

HEINZ KETCHUP ADVERTISEMENT, CA To sell its products in a mass market, H J Heinz company in Pittsburgh developed the brand name “57 Varieties” for its ketchup, pickles, and other condiments. The “girl with the white cap” was meant to symbolize the purity of its food processing. p. 547

35 Social and Environmental Costs and Benefits
Social benefits Labor-saving products Lower prices Advances in transportation and communications Social costs Bankrupt companies and dreams Expendable workers Environmental devastation

36 INDUSTRIAL POLLUTION Although some Americans celebrated factory smoke as a sign of industrial growth, those who lived downwind, such as the longshoreman in this Thomas Nast cartoon, often suffered from respiratory diseases and other ailments. For him as well as for other Americans, the price of industrial progress often was pollution. p. 548

37 The New South

38 Obstacles to Economic Development
Lagging industrial development Lack of capital Few banks Growing cash crops such as cotton or tobacco made farmers vulnerable to world markets Limited funds for education

39 The New South Creed and Southern Industrialization
Henry Grady Atlanta Constitution Industrialize South Attract Northern capital More opportunities for black workers in industry

40 The Southern Mill Economy
Mill towns supported textile industry Center of textiles by 1920 Augusta, GA: Lowell of the South Low wages Often paid in company scrip Did little to help farmers/sharecroppers

41 The Southern Industrial Lag
Birmingham (AL) Steel controlled by U.S. Steel Higher prices, despite lower costs Segregated work force Environmental damage

42 PIG IRON SCENE, BIRMINGHAM, ALABAMA, BY CHARLES GRAHAM, 1886 Although the proximity of Birmingham’s foundries to iron and coal deposits enabled them to produce inexpensive iron ingots, northern owners forced them to price their products at the same rate as ingots produced in Pittsburgh. p. 550

43 Factories and the Work Force
TEXTILE WORKERS Young children like this one often were used in the textile mills because their small fingers could tie together broken threads more easily than those of adults.

44 From Workshop to Factory
Restructuring of work habits Emphasis on workplace discipline Example of shoemakers Skilled artisan to unskilled factory worker Lower-paid women and children

45 SHOEWORKERS Shoeworkers pose near their machines in Haverhill, Massachusetts, ca For them as well as for others, work became increasingly repetitive and routinized. p. 555

46 The Hardships of Industrial Labor
High demand for unskilled laborers Workers often drifted 12-hour shifts Dangerous work Children as young as 8 Railroads dangerous for adults Minimal financial aid for disabled and families

47 The Cameron Colliery, later called the Glen Burn, stands out because it was so visible as you entered Shamokin traveling north on route 61. The culm bank created by the waste from the Cameron Colliery mine is still there today. The Burnside Colliery ceased operations during the 1930s. The houses that make up the village of Burnside were originally owned by the coal company. They were sold to the residents in the late 1940s. It was interesting because a 3-story house went for $ and residents had to take a mortgage to buy one!

48 George Grantham Bain took this picture on May 1, 1909 (Labor Day)
George Grantham Bain took this picture on May 1, 1909 (Labor Day). It shows two Jewish girls in New York City protesting against child labor.

49 Immigrant Labor French Canadians in NE Chinese in West
Eastern and Southern European immigrants Subject to discipline and eviction from company provided homes Faced discrimination

50 ETHNIC AND RACIAL HATRED Conservative business owners used racist advertising such as this trade card stigmatizing Chinese laundry workers to promote their own products and to associate their company with patriotism. p. 559

51 Eugene V. Debs, arguably the foremost union activist in American history, described the 1909 McKees Rock, Pa., strike this way: "The greatest labor fight in all my history in the labor movement." Yet today, few remember this struggle when immigrant workers rose up and changed the course of American unionism.  The strike took place at the huge Pressed Steel Car Co. plant in McKees Rock, a few miles down the Ohio River from Pittsburgh, where between 5,000 and 8,000 mostly immigrant workers from some 16 nationalities created railway cars. Hailing mainly from southern and eastern Europe, they included "Russians who had served in the 1905 Duma [parliament], Italians who had led resistance strikes, Germans who were active in the metal workers' union," according to historian Sidney Lens. "But because of the language barrier they were easily divided, and thoroughly exploited." At McKees Rock, "exploited" literally meant daily injuries and deaths. Labor historian Charles McCollester quotes from an article in the Pittsburgh Leader, one of the city's daily newspapers, which reported that when a worker is maimed and mangled in his work, "some foreman or other petty 'boss' pushes the bleeding body aside with his foot to make room for another living man, that no time be lost in the turning out of pressed steel cars. The new man often works for some minutes over the dead body until a labor gang takes it away." A former county coroner testified that the death toll averaged one person a day. The workers also were subjected to a corrupt "pool system" in which their pay was determined not by any established wage rate but by the whim of the foremen. On July 10, 1909—a payday—workers received less pay than normal and 40 riveters told the company they wouldn't work unless they were told the pay rates. When they returned to work three days later, they were fired. That was the breaking point. Within 48 hours, 5,000 workers went on strike. When management brought strikebreakers to the plant on a steamer along the Ohio River, strikers fired their rifles at the steamer and it fled to the opposite shore. Soon, there were more skirmishes when the company brought in hundreds of deputy sheriffs and state constables. One striker was killed at the plant entrance, and 5,000 mourners marched in his funeral procession. The Pressed Steel Car workers received welcome support from other workers. Railway trainmen on lines leading into the city and the motormen on the local streetcar lines all refused to haul scabs. This solidarity was critical. In the end, the workers won what Lens called "a victory of towering proportions." As he recounted, management "agreed to end the pool system, raise wages by an immediate 5 percent and 10 percent more in 60 days, fire the remaining scabs and rehire all strikers." The victory at McKees Rock extended well beyond the plant. This was the moment when immigrant workers who had no power—"persecuted, robbed, and slaughtered," as one local priest described them—found their voice. The turning point may have come at a giant rally on Indian Mound, a hill near the Ohio River, when 8,000 workers joined together and heard fiery speeches in nine languages. After that, they and the union movement itself were never the same. Eugene Debs correctly interpreted the workers' victory. He predicted the McKees Rock success would be "a harbinger of a new spirit among the unorganized, foreign-born workers in the mass production industries who can see here in McKees Rock the road on which they must travel—the road of industrial unionism." Sources McCollester, Charles, The Point of Pittsburgh.Battle of Homestead Foundation, Brody, David, Steelworkers in America: The Nonunion Era. Harper & Row, Lens, Sidney, The Labor Wars: From the Molly Maguires to the Sit-Downs.Haymarket Books, 2008.

52 Women and Work in Industrial America
Working-class women had to contribute to family income Single women could see opportunity Typewriter and telephone lead to shift in work for women Clerical and secretarial Telephone operators

53 WOMEN IN THE WORKPLACE The women in this photograph are testing their typing skills at a civil service exam in Chicago in the 1890s. The expansion of banking, insurance, and a variety of other businesses opened up new career opportunities for women as secretaries, stenographers, and typists. p. 553

54 Hard Work and the Gospel of Success
Horatio Alger and Ragged Dick (1867) “rags to riches” Andrew Carnegie Most industrial leaders came from middle- and upper-class Rise in real wages 31% for unskilled 74% for skilled Income disparity

55 Labor Unions and Industrial Conflict
THE FIRST LABOR DAY PARADE, 1882 Thousands of workers, led by the Knights of Labor, marched in the first Labor Day Parade in New York. As the numerous American flags in this contemporary illustration suggest, the workers believed that labor deserved substantial credit for building the American nation.

56 Organizing Workers National Labor Union (NLU) Knights of Labor
Membership soared by 1886 Political success through existing parties Wildcat strikes fail, membership declines

57 American Federation of Labor
Group of craft unions Headed by Samuel Gompers “trade unionism, pure and simple” “bread and butter” issues Wages, reducing hours, safety 1.6 million members by 1906 THE FIRST LABOR DAY PARADE, 1882 Thousands of workers, led by the Knights of Labor, marched in the first Labor Day Parade in New York. As the numerous American flags in this contemporary illustration suggest, the workers believed that labor deserved substantial credit for building the American nation. p. 558

58 Strikes and Labor Unrest
Panic of 1873 Strikes in coal and railroads Homestead Strike (PA) Carnegie Steel Violence, union crushed Pullman Strike (Chicago) Eugene V. Debs leader Pres. Cleveland gets injunction against strikers Debs jailed, strike crushed

59 PINKERTONS SURRENDER AT THE HOMESTEAD STEEL STRIKE, 1892 After a gun battle, Pinkerton security forces surrender to strikers at the Homestead, Pennsylvania, steel works. Companies cited worker violence such as this as justification for government suppression of labor unrest. p. 560

60 Social Thinkers Probe for Alternatives
Social Darwinism Natural law controlled social order “Survival of the fittest” William Graham Sumner Disapproved of govt. interference Opposed by Lester Frank Ward Dynamic Sociology Laws of nature could be circumvented by human will

61 Utopian Solutions Henry George-socialism Edward Bellamy Marxism
Progress and Poverty “unearned increment” Land tax Edward Bellamy Looking Backward Future without poverty or strife-2000 Marxism Karl Marx and Das Capital Capitalism would wither away

62 p. 563

AP US History East High School Mr. Peterson Spring 2011

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