Industrialization
1st Transcontinental Railroad Pacific Railway Act of 1862 Pacific Railway Act of 1862 U.S. Government hired Union Pacific and Central Pacific Railway Company to extend railways across the United States. U.S. Government hired Union Pacific and Central Pacific Railway Company to extend railways across the United States. Central Pacific Central Pacific Started in Sacramento, CA Started in Sacramento, CA Union Pacific Union Pacific Started in Omaha, NE Started in Omaha, NE The two railroad companies met in Promontory, Utah to drive the “Golden Spike” on May 10, 1869 The two railroad companies met in Promontory, Utah to drive the “Golden Spike” on May 10, 1869
Promontory, Utah May 10, 1869
The Workers Workers were mainly Chinese and Irish immigrants Workers were mainly Chinese and Irish immigrants Working conditions were poor Working conditions were poor Reasons: Reasons: Weather Weather Rough terrain Rough terrain
Railroad Developments Train problems: Train problems: Dirty, noisy, uncomfortable Dirty, noisy, uncomfortable 1869 George Westinghouse: 1869 George Westinghouse: Development of air brakes Development of air brakes 1887 Granville Woods: 1887 Granville Woods: Telegraph system for train communication Telegraph system for train communication
Time Zones Scheduling was a major concern Scheduling was a major concern Set clocks according to solar time Set clocks according to solar time Time differences from town to town created confusion. Time differences from town to town created confusion. 1883: National System of Time Zones 1883: National System of Time Zones How many total time zones does the USA have? How many total time zones does the USA have?
USA Time Zones Name all 8 time zones. Name all 8 time zones.
Who did the Railroad Impact? Native Americans Native Americans called it the Iron Horse called it the Iron Horse Helped Westward expansion Helped Westward expansion Trade much easier Trade much easier Became crucial to the U.S. economy – shipping costs dropped drastically. Became crucial to the U.S. economy – shipping costs dropped drastically. Hurt farmers economically Hurt farmers economically Made deals with wealthy businessmen Made deals with wealthy businessmen Corruption Corruption
Legislation Interstate Commerce Act of 1887 – put in place for Govt to supervise railroad activities Interstate Commerce Act of 1887 – put in place for Govt to supervise railroad activities Led to more financial problems (railroads were forced out of business, which led to the Panic of 1893) Led to more financial problems (railroads were forced out of business, which led to the Panic of 1893) This caused the Large Firms to start buying up the railways, which paved the way for Big Businesses This caused the Large Firms to start buying up the railways, which paved the way for Big Businesses
Industrialization Factors Unskilled and semi-skilled labor in abundance Unskilled and semi-skilled labor in abundance New, talented entrepreneurs New, talented entrepreneurs Oil Oil Inventions Inventions New technology that allows mass production New technology that allows mass production Bessemer Process Bessemer Process Railroads Railroads Changes in business strategy Changes in business strategy Vertical Integration & Horizontal Consolidation Vertical Integration & Horizontal Consolidation Social Darwinism Social Darwinism
How was steel produced in mass amount???
The Bessemer Process Henry Bessemer Henry Bessemer English businessman English businessman William Kelly William Kelly Kentucky businessman Kentucky businessman Developed new way of making steel: Developed new way of making steel: Melt iron, add carbon, remove impurities
Brooklyn Bridge Old way to Manhattan to Brooklyn was ferry Old way to Manhattan to Brooklyn was ferry Winter: ferry could not run because of ice Winter: ferry could not run because of ice John Roebling John Roebling German began building German began building Dies in mid construction Dies in mid construction Washington Roebling completes Washington Roebling completes Son Son Disabled by accident during construction Disabled by accident during construction Completed on May 24, 1883 Completed on May 24, 1883
Growth of Big Business
Robber Barons or Capitals of Industry Robber barons: business leaders who built fortune from stealing from the public. Robber barons: business leaders who built fortune from stealing from the public. Capitals of Industry: business leaders served their nation in a positive way. Capitals of Industry: business leaders served their nation in a positive way.
Social Darwinism Charles Darwin – survival of the fittest Charles Darwin – survival of the fittest Social Darwin theory evolved: Social Darwin theory evolved: Society should do as little as possible to interfere with peoples pursuit of success Society should do as little as possible to interfere with peoples pursuit of success AS A RESULT Government did not TAX or REGULATE businesses!!!
So what happens?
Monopoly How does the game work? How does the game work? What is the goal of the game? What is the goal of the game?
Big Business Emerges! Monopoly Monopoly to have complete control of a product or service. to have complete control of a product or service. Cartel Cartel businesses who make the same product – agree to limit supply to keep prices high. businesses who make the same product – agree to limit supply to keep prices high. Trust Trust separate companies placed under a single managing board – Board of trustees separate companies placed under a single managing board – Board of trustees
Vertical and Horizontal Integration
Who did this??
Andrew Carnegie $ Scottish businessman $ “Gospel of Wealth” (1901). $ Inequality is inevitable and good. $ Vertical Consolidation $ Wealthy should act as “trustees” for their “poorer brethren.” $ 80% of fortune went to education. $ At time of death, he had given away – 350 million. $ Scottish businessman $ “Gospel of Wealth” (1901). $ Inequality is inevitable and good. $ Vertical Consolidation $ Wealthy should act as “trustees” for their “poorer brethren.” $ 80% of fortune went to education. $ At time of death, he had given away – 350 million.
John D. Rockefeller $ Standard Oil Co. $ Eventually owned all oil companies in US. $ Horizontal consolidation $ 40 companies $ Standard Oil Co. $ Eventually owned all oil companies in US. $ Horizontal consolidation $ 40 companies
Standard Oil Co.
The Reorganization of Work Frederick W. Taylor The Principles of Scientific Management (1911) Frederick W. Taylor The Principles of Scientific Management (1911)
The Reorganization of Work The Assembly Line Mass production
The Changing American Labor Force
Child Labor
Conditions Long hours Long hours Less than $1.00 per week Less than $1.00 per week Difficult, dangerous and unhealthy work Difficult, dangerous and unhealthy work Heavy machinery Heavy machinery Could lose finger, arm or be scalped by machinery Could lose finger, arm or be scalped by machinery Dusty, cold/hot respiratory conditions Dusty, cold/hot respiratory conditions Corporal punishment Corporal punishment
Child Labor today?
Management vs. Labor “Tools” of Management “Tools” of Labor “scabs” lockout blacklisting collective Bargaining informational picketing organized strikes
Newsies
A Striker Confronts a SCAB!
Knights of Labor Terence V. Powderly An injury to one is the concern of all!
Goals of the Knights of Labor ù Eight-hour workday. ù Abolition of child and prison labor. ù Equal pay for men and women. ù Safety codes in the workplace.
Labor Unrest:
The Great Railroad Strike of 1877
Haymarket Riot (1886) McCormick Harvesting Machine Co.
Haymarket Martyrs
The American Federation of Labor: 1886 Samuel Gompers
How the AF of L Would Help the Workers ù Catered to the skilled worker. ù Represented workers in matters of national legislation. ù Maintained a national strike fund. ù Evangelized the cause of unionism. ù Prevented disputes among the many craft unions. ù Mediated disputes between management and labor. ù Pushed for closed shops.
Homestead Steel Strike (1892) The Amalgamated Association of Iron & Steel Workers Homestead Steel Works
A “Company Town”: Pullman, IL A “Company Town”: Pullman, IL
Pullman Cars A Pullman porter
The Pullman Strike of 1894
Government by injunction!
The Socialists Eugene V. Debs
International Workers of the World (“Wobblies”)
“Big Bill” Haywood of the IWW Violence was justified to overthrow capitalism.
I W W
Labor Union Membership
Discussion Questions What were the cost and benefits of the industrial transformation of the Post- Civil War era? What were the cost and benefits of the industrial transformation of the Post- Civil War era? Was the growing class division of the time a threat to American democracy? Why or why not? Was the growing class division of the time a threat to American democracy? Why or why not?