1. THE AGE OF INDUSTRY 1865 TO 1900

2. AN INTRODUCTION BETWEEN 1865 & 1900 AMERICA WAS TRANSFORMED. A RURAL NATION BECOMES URBAN AND INDUSTRIAL SYMBOL OF THE AGE- THE BROOKLYN BRIDGE. STEEL WAS THE FOUNDATION

3. MORE… MANY NEW INVENTIONS NEW FORMS OF BUSINESS ORGANIZATION BIRTH OF THE ROBBER BARONS HORRIBLE WORKING CONDITIONS

4. THE TIES THAT BIND. 1844 SAMUEL MORSE INVENT THE TELEGRAPH BY 1860 EAST & WEST ARE CONNECTED. 1866 WESTERN UNION & AMERICAN TELEGRAPH MERGE.

5. MORE... 1858- CYRUS FIELDS - ATLANTIC CABLE. 1866 STRONGER CABLE.

6. THE TELEPHONE- 1876 ALEXANDER GRAHAM BELL “WATSON I WANT YOU!”….. 1877 FIRST LONG DISTANCE BOSTON TO NEW YORK BELL TELEPHONE COMPANY 1877 1885 AMERICAN TELEPHONE & TELEGRAPH COMBINE

7. RAILROAD TRANSPORTATION SINGLE MOST IMPORTANT TIE TO INDUSTRIAL EXPANSION. 1860- 30,000 MILES OF TRACK IN AMERICA. NO BRIDGES OVER THE MISSISSIPPI NO STANDARD GAGE.

8. RAILROAD CONSOLIDATION 1866 CORNELIUS VANDERBILT CREATES NEW YORK CENTRAL BY 1877 VANDERBILT CONTROLS 4,500 MILES OF TRACK. IN 1886 RAILROADS ADOPT A STANDARD GAGE. VANDERBILT INTRODUCES STEEL RAILS & AIR BRAKES

9. MORE… 1883- AMERICAN RAILROAD ASSOCIATION DIVIDES NATION INTO 4 TIME ZONES. EASTERN, CENTRAL, MOUNTAIN, AND PACIFIC.

10. PERSISTENT PROBLEMS FINANCING RAILROAD CONSTRUCTION BONDS AND STOCK CERTIFICATES- BUT FEW ACTUAL ASSETS. CUTTHROAT COMPETITION (E.G. BETWEEN ATLANTA & ST. LOUIS 20 DIFFERENT CARRIERS.

11. MORE… RATE WARS LEAD TO REBATES POOLING AGREEMENTS NOT TO COMPETE. LONG HAUL / SHORT HAUL ABUSES.

12. SOME INVENTIONS OF THE PERIOD. BETWEEN 1880 &1890 21,000 NEW PATIENTS PER YEAR. BELL’S TELEPHONE ESTABLISHES A WHOLE NEW INDUSTRY LEVI STRAUSS - DEVELOPES BLUE JEANS.

13. STEEL PRODUCTION 1859 HENRY BESSEMER AND WILLIAM KELLY FIND NEW METHOD OF STEEL PRODUCTION. BESSEMER PROCESS - BLAST FURNACE 1867- U.S. PRODUCED 2000 TONS PER YEAR.

14. MORE… BY 1900 WE PRODUCE 7 MILLION TONS PER YEAR. STEEL BECOMES THE BACKBONE OF THE INDUSTRIAL REVOLUTION. SKY SCRAPERS BEGIN TO APPEAR. (20 STORIES HIGH) LUIS SULLIVAN

15. INVENTIONS START MORE INDUSTRY GUSTAVUS SWIFT & PHILIP ARMOUR - MEATBACKING INDUSTRY GEORGE PULLMAN 1864 - INVENTS THE SLEEPING CAR. GEORGE WESTINGHOUSE 1868 INVENTS AIR BRAKES

16. MORE… CHRISTOPHER SHOLES- 1875 THE TYPEWRITER. THE THE REMINGTON FIRE ARMS COMPANY. 1852 ELISHU OTIS - INVENTS THE ELEVATOR. PERFECTED BY FRANK SPRAGUE.

17. THOMAS ALVA EDISON - 1847 TO 1931 “THE WIZARD OF MENLO PARK.” HELD OVER 1000 PATIENTS IMPROVED TELEGRAPH, TICKER TAPE FOR STOCK MARKET PHONOGRAPH 1877 1879 INCANDESCENT ELECTRIC LAMP

18. MORE ON EDISON... VITASOPE ( MOTION PICTURE DEVICE) STOREAGE BATTERY, ELECTRIC MOTOR, ELECTRIC LOCOMOTIVE 1877 FOUNDED EDISON GENERAL ELECTRIC. LATER BECAME GENERAL ELECTRIC CORP.

19. BUSINESS PHILOSOPHY BY 1900 THERE WERE 4000 MILLIONAIRES RICH PRACTICES CONSPICUOUS CONSUMPTION

20. ANDREW CARNEGIE’S “GOSPEL OF WEALTH” “I HAVE A RIGHT TO MAKE MONEY & A RESPONSIBILITY TO SPEND IT PROPERLY.” RICH ARE GOD’S STEWARTS ON EARTH. WEALTHY MUST USE MONEY TO IMPROVE SOCIETY.

21. SOCIAL DARWINISM HERBERT SPENCER OF ENGLAND APPLIES DARWINISM TO SOCIETY. WEALTHY ARE PRODUCTS OF “NATURAL SELECTION.” WILLIAM GRAHAM SUMNER (YALE COLLEGE) AMERICAN PROPONENT.

22. LAISSEZ- FAIRE ECONOMICS REJECTS GOVERNMENT INVOLEMENT IN THE ECONOMY MARKET MECHANISM OF SUPPLY & DEMAND IS BEST WAY TO MAKE CHOICES. COMPETITION WILL PROTECT CONSUMERS ACCEPTED GENERALLY BY RICH AND POOR

23. HORATIO ALGER.

24. HORATIO ALGER STORIES DIME NOVELS TELL STORY OF YOUNG MAN WHO MAKES GOOD THROUGH HARD WORK & DETERMINATION. “LUCK & PUCK.” “RAGGED DICK” “THE ERRAND BOY: HOW PHIL WON SUCCESS” SUPPORTS THE AMERICAN DREAM.

25. NEW WAYS OF DOING BUSINESS SIZE IS HALLMARK OF THE TIME. GNP GROSS NATIONAL PRODUCT GROWS. IN 1860 = $1.8 BILLION. BY 1890 = $10 BILLION. AIM OF BUSINESS INCREASE PROFITS, CUT COSTS & REDUCE COMPETITION

26. ADVANTAGES OF CORPORATIONS LIMITED LIABILITY POOL CAPITAL LEGAL STATUS OF “PERSON” UNDER THE 14TH AMENDMENT IMMORTAL PROFESSIONAL MANAGEMENT

27. CORPORATIONS DOMINATE MOST KEY INDUSTRIES. IRON, STEEL, COAL, RAILROADS, COPPER, ELECTRICITY, TELEPHONE, TEXTILES, BANKING & CHEMICALS.

28. CARNEGIE AND ROCKEFELLER CARNEGIE DEVELOPS A VERTICAL MONOPOLY IN STEEL CONTROLS ALL ASPECT OF STEEL PRODUCTION AND SALES HE IS MODEL FOR HORATIO ALGER STORIES. FIRST TO ADOPT BESSEMER PROCESS.

29. JOHN D. ROCKEFELLER 1859- TITUSVILLE FIRST OIL WELL. OIL USED TO MAKE KEROSENE FOR LAMPS. ROCKEFELLER SEE REFINING AND TRANSPORTING OIL AS THE KEY. ESTABLISHES A HORIZONTAL MONOPOLY CONTROL ONE KEY STEP IN PRODUCTION PROCESS FORMS STANDARD OIL OF OHIO IN 1870

30. MORE ON ROCKEFELLER… FORCES RAILROADS TO GIVE HIM REBATES. ON HIS SHIPMENTS ALSO ON HIS COMPETITORS SHIPMENTS. BY 1879 STANDARD OIL CONTROL 90 % OF REFINING CAPACITY.

31. COMPARES STANDARD OIL TO A ROSE BOTH REQUIRE EARLY SACRIFICE SLOGAN: “LET US PREY!”

32. TRUSTS AND MONOPOLIES INTERLOCKING DIRECTORATES HOLDING COMPANIES CONSUMERS AND WORKERS ARE HARMED BY MONOPOLIES.