1. College Board APUSH Topic 15: Industrial America in the Late 19 th Century  Corporate consolidation of industry  Effects of technological development on the worker and workplace  Labor and unions  National politics and influence of corporate power  Migration and immigration: the changing face of the nation  Proponents and opponents of the new order, e.g. Social Darwinism and Social Gospel

2. Background Info Introductory reading – whole class

3. What’s a robber baron? In feudal times in Europe, some wealthy landowners would steal from travelers who passed through their lands. These not-so-noble noblemen became known as “robber barons.” (Baron is a nobleman’s title, like lord or earl). After the Civil War in America, different kinds of robber barons came along. They didn’t steal directly from travelers passing through their lands, but they found other unethical and even illegal ways to build enormous fortunes. They became so rich and powerful that people began to call them robber barons too. The secret of their wealth lay in the big businesses they built --- and the way they built them.

4. Why were they called “robber barons” And how did they get rich? Critics called industrialists “robber barons” because of some of the dirty tactics they used to beat the competition (like trusts) and create successful businesses. In addition, thanks to new machines, America’s rich natural resources, and plenty of cheap labor, big industries continued to boom after the Civil War. Some of the men who controlled these industries had made fortunes during the war by making weapons, uniforms, and food for soldiers. Most of them hadn’t fought themselves because they could pay for substitutes to take their places, which was allowed.

5. How Did Industrialists Add to Their Fortunes? Industrialists (or “robber barons”) added to their wartime fortunes by building railroads, mills, shipyards, oil wells, and factories. Soon some of these men controlled whole industries. Using unethical means, like unfair labor practices, they drove rivals out of business until all competition was gone. This created monopolies. The American robber barons could get away with this because this new large-scale industry was new to America and there were few laws to control them. Many government officials simply went along because they believed that such businesses were good for America. Others were dishonest and took bribes.

6. The “Gap” The rise of industry opened huge gaps between the masses of poor workers and the fabulously wealthy business owners. Though the wealthy were a distinct minority, they lived in such a glittery, over-the-top way that an author, Mark Twain, called the last quarter of the 19 th century the “Gilded Age” (gilded means “covered in a thin layer of gold).

7. Read &Run: Industrial Giants Andrew CarnegieJohn D. Rockefeller

8. Industrial Leaders – Read & Run!!! 1.What industry was Carnegie associated with? 2. What industry was Rockefeller associated with? 3. How did Carnegie “revolutionize” his industry? 4. What percentage of his industry did Rockefeller own in America? 5. Carnegie used both vertical and horizontal integration. What is the difference between these two business practices? 6. What business practice did Rockefeller use even though it was illegal? 7. How much of his own wealth did Carnegie donate? 8. What is the purpose of a trust? 9. What did Carnegie say in his Gospel of Wealth? 10. Name some of Rockefeller’s charitable contributions to society. 11. Why can Carnegie be supported both by Social Darwinism and Social Gospel? 12. What was the Sherman Antitrust Act? Why didn’t it achieve its goals?

9. Andrew Carnegie Andrew Carnegie (1835-1919) came to America with his poor Scottish parents and starting working when he was 12 years old. He is what many people would call a “rags-to-riches” story. Began as a bobbin boy in textile mill  Western Union messenger boy  secretary/personal telegrapher for superintendent of the Pennsylvania Railroad’s western division  promoted to division chief  investing in railroads  By 1868, $56,000 per year (wealthy!) Early 1870s, created Carnegie Steel Company – Cheaper methods for better products – New machinery & accounting techniques – Vertical & Horizontal Integration By 1901, produced the largest part of the nation’s steel Donated 90% of his wealth

10. Steel Manufacturing Carnegie revolutionized the steel industry with a new efficient method of turning iron into steel. (Steel is a stronger, more flexible, and lighter form of iron, and it became the foundation for the nation’s industrial growth). He was able to produce a higher quality steel using the Bessemer process, in which carbon and impurities were burned off with a blast off air. By applying this technique and cost- analysis (learned in his earlier days working in the railroad industry), Carnegie was the first to calculate and emphasize the production cost of each ton of steel. In addition to more efficient and cheaper production, Carnegie also was known for limiting wage increases for his workers and lowering prices to drive his competitors out of business. “Watch the costs, and the profits will take care of themselves.” - Carnegie

11. Vertical and Horizontal Integration Tried to control as much of the steel industry as possible through vertical integration (a process in which he bought out his suppliers) in order to control every aspect of the production and transportation of the product (from the raw materials to the finished product) – From the mining of ore to the selling of steel rails Tried to buy out his competitors through horizontal integration (companies producing similar products) By attempting vertical AND horizontal integration, Carnegie controlled almost the entire steel industry.

12. J.P. Morgan Buys Carnegie Out By 1900, Carnegie Steel had 20,000 employees and was the world’s largest industrial corporation. Carnegie’s competitors feared his complete domination of the market. J.P. Morgan, an investment banker, was one of the few people who could afford to buy Carnegie out. Morgan took over the railroad system in 1893 when a national depression struck. He reorganized railroad administration, refinanced debts, and built alliances. (Under Morgan’s management, by 1906, two-thirds of the nations rail mileage were controlled by seven giant railway networks.) In 1901, J.P. Morgan purchased Carnegie’s companies and set up the U.S. Steel Corporation. J.P. Morgan took Carnegie’s company to an even greater level of success, worth more than $1 billion, made up of 200 smaller companies, and employing 168,000 people.

13. Andrew Carnegie’s Gospel of Wealth Carnegie portrayed his success as a result of self-discipline and hard work, but he was also a great philanthropist. In his Gospel of Wealth, Carnegie wrote that it was the duty of the wealthier to help society and those less fortunate than them. As young as his early thirties, Carnegie was donating money to various charities and projects. After J.P. Morgan bought Carnegie’s company, Carnegie gave away about 90% of his fortune (over $300 million) to schools, artists, and foundations. He built nearly 3,000 public libraries and Carnegie Hall in New York City. “It will be a great mistake for the community to shoot the millionaires, for they are the bees that make the most honey, and contribute most to the hive even after they have gorged themselves full.” – Carnegie

14. John D. Rockefeller Standard Oil Company Used trusts to gain control of the oil industry in U.S. Owned 90% business Payed workers low wages Drove prices below production level to drive out competition, then when competition was out, he increased prices to above normal Gave over $500 million to charity

15. John D. Rockefeller & the Standard Oil Company John D. Rockefeller (1839-1937) founded the Standard Oil Company in 1870. Soon, the company owned more than 90% of America’s oil refineries. Rockefeller kept costs low by buying up companies so that he could pump, refine, and sell his oil himself at the greatest profit. He also made secret deals with railroads to get low rates for shipping.

16. Rockefeller’s Business Strategies Rockefeller joined with competing companies in trust agreements. Trusts were not legal mergers, however. (The Sherman Antitrust Act of 1890 made it illegal to form a trust, but this was very difficult to enforce). Rockefeller used a trust to gain total control of the oil industry in America. By 1890, Rockefeller controlled 90% of the refining business. He reaped huge profits by paying his employees very little. He drove his competitors out of business by selling oil at a price lower than it cost to product it. Then, when he controlled the market, he hiked prices above the original levels.

17. Rockefeller the Philanthropist Philanthropist – a person who has a desire to improve the material, social, and spiritual welfare of humanity, especially through charitable activities Later in life, Rockefeller gave away half of his fortune (more than $500 million) to charities, started the University of Chicago, and founded the Rockefeller Institute for Medical Research which helped find a cure for yellow fever.

18. Big Business Terms to know Oligopoly - small number of sellers – Example: Only McDonalds, Burger King, and Farmer Boys sell hamburgers Monopoly – one seller (can be achieved when one seller buys out all the other sellers) – Example: Farmer Boys buys all the McDonalds and Burger Kings, now only Farmer Boys sells hamburgers Merger - combining of companies: the joining together of two or more companies or organizations – Example: Burger King and Farmer Boys join to become “Burger Boys” Trust – when different companies agree to join as one large corporation and share the profits (this is done to reduce competition and control prices); trusts were not legal mergers – Example: McDonalds, Burger King, and Farmer Boys all stay in business, but are run by one corporation or group of people. Each restaurant gets a share of the profits made by the entire corporation.

19. The Government Tries to Step In * Sherman Antitrust Act – passed by Congress in 1890; made trusts and monopolies and illegal * impossible to enforce the Sherman AA - did not clearly define “trust” - Supreme Court did not support the Act and threw out 7 out of 8 cases that the U.S. Government brought against trusts. * President Theodore Roosevelt was against trusts and monopolies

20. Railroads Jigsaw Reading  Settling the West and The First Transcontinental Railroad pg. 514 – 515, Settlers and the Railroad pg. 515-516  Railroad innovations pg. 537  Consolidating the Railroad Industry pg. 537-538  (DKMA AH How did “Buffalo Bill” Cody get his nickname and How did the transcontinental railroad change America? Pg. 113-115) FOCUS ON IMPORTANT DATES AND SIGNIFICANT EVENTS/CHANGES.

21. Share Out Take turns sharing the main ideas and significance from your reading within your small groups.

22. Railroad Jigsaw & Timeline In your group, you will be completing 2 posters (partners): Jigsaw: summary of each of the sections with small visuals or one large visual overall. Remember to title your Jigsaw. – Settling the West – The First Transcontinental Railroad pg. 514 – 515 – Settlers and the Railroad pg. 515-516 – Railroad innovations pg. 537 – Consolidating the Railroad Industry pg. 537-538 – How did “Buffalo Bill” Cody get his nickname – How did the transcontinental railroad change America? Pg. 113-115) Timeline: Timeline of the TOP 10 major events in the expansion of railroads (from the various readings) – Each event should have: Date title/name of event with brief summary and SIGNIFICANCE Visual (or large visual overall for all 10 events) – Title your Timeline

23. Group Discussion Question Whiteboard Anyone can be successful. Those who are not successful can only blame themselves. Agree or disagree? Be ready to explain with examples.

24. Stand Up! In the following slides, there will be a series of opinion-based statements. Stand Up if you agree with the statement. Stay seated if you disagree. Please be respectful of others’ opinions. Please refrain from starting discussions during the activity…we will debrief after the activity. The statements refer situations in the United States.

25. You see a homeless person with a sign asking for food…you secretly think that its probably their own fault that they are homeless…probably a drug addict.

26. There is a higher percentage of minorities in prison because they commit more crimes.

27. It is their own fault if people are on welfare (i.e. food stamps, government assistance, etc.).

28. We have had mostly white presidents in the United States because they were the most qualified.

29. Anyone in America can be successful/wealthy if they work hard enough.

30. I’m tired of people blaming their problems on slavery…slavery ended over 100 years ago.

31. The students in AP classes are the smarter ones.

32. The strongest people always win.

33. Ethnic minorities always blame their problems on others.

34. Smarter people go to better colleges and universities.

35. Its not the government’s job to fix poverty.

36. The United States should not go around the world trying to fix other countries problems.

37. We should get rid of the welfare system in the United States.

38. If you found yourself standing up for much of this activity, you may agree with Social Darwinism. If you found yourself seated most of the time, you may agree with Social Gospel or you may just be lazy…

39. Social Darwinism vs. Social Gospel Responses to Urban Problems

40. Social Darwinism v. Social Gospel Divide your paper into two sections: – Social Gospel – Social Darwinism

41. Social Darwinism Social Darwinism - the idea that humans compete in a struggle for existence in which natural selection results in “survival of the fittest.” Fitness is demonstrated with wealth, property, and social status.

42. Social Darwinism William Graham Sumner (1840- 1910), American sociologist and Yale Professor (1872-1909) Like Carnegie, opposed any governmental interference in the free-market economy, whether in the form of tariffs to help businesses or antitrust laws to restrain them. Wrote What Social Classes Owe to Each Other (1883), in which he applied Darwin’s evolutionary theories to human society – One of first statements of “Social Darwinist” theory “A drunkard in the gutter is where he ought to be…The law of survival of the fittest was not made by man, and it cannot be abrogated by man. We can only, by interfering with it, produce the survival of the unfittest.” - Sumner

43. Social Gospel Early religious movement and reform program that responded to the poverty created by industrialism and preached salvation through service to the poor

44. Social Gospel 1870s and 1880s – Protestant ministers who served upper-class congregations were appalled by slum conditions. Argued that that the rich and well-born had a Christian duty to help alleviate urban poverty. William Rainsford, Irish-born minister in New York, helped develop the movement. With the help of J.P. Morgan, a member of his church, he organized a boy’s club, built recreational facilities for the poor, and started an industrial training program.

45. Social Darwinism or Social Gospel? – base their beliefs on theories of evolution developed by British naturalist Charles Darwin who said that the weaker in society are naturally “weeded out.”

46. Social Darwinism or Social Gospel? – can be used to justify imbalances of power between individuals, races, and nations because they consider some people more fit to survive than others.

47. Social Darwinism or Social Gospel? – Applied Christian principles to social problems (like poverty, liquor, drugs, crime, racial tensions, slums, bad hygiene, poor schools, and war).

48. Social Darwinism or Social Gospel? Washington Gladden, clergyman in 1870s, insists that true Christianity commits men and women to fight social injustice wherever it exists.

49. Social Darwinism or Social Gospel? Laissez-faire (“hands off”) policies. Insist that the government should never attempt to control business. Defenders of capitalism use ideas from economist Adam Smith’s The Wealth of Nations (1776), which says that an invisible hand guided the market.

50. Social Darwinism or Social Gospel? – these 19 th century reformers established settlement houses (community centers in slum neighborhoods that provided assistance to people in the area, especially immigrants). – Jane Addams was one of the most famous persons associated with settlement homes.

51. Social Darwinism or Social Gospel? – Andrew Carnegie’s Gospel of Wealth. Carnegie justifies laissez-faire by arguing, “The law of competition may be sometimes hard for the individual, but it is best for the race, because it insures the survival of the fittest in every department.”

52. Social Darwinism or Social Gospel? – supports laissez faire (means no government intervention) & argue that governments should not interfere with human or business competition by attempting to regulate the economy or cure social ills like poverty.

53. Labor Unions Emerge

54. As business leaders joined forces, it seemed necessary for workers to do the same.

55. Factory Facts 1882- an average of 675 laborers were killed in work-related accidents each week Many factories demanded 7-day work weeks Employees were not entitled to vacation, sick pay, leave unemployment compensation, or reimbursement for injuries on the job. Wages were so low that many families could not survive unless everyone (including children) had a job Between 1890 & 1910, the number of women working for wages doubled (from 4 million to more than 8 million) 20% of boys and 10% of girls under age 15 (some as young as 5) held full-time jobs Sweatshop jobs paid the lowest wages – often as little as 27 cents for a child’s 14-hour day 1899 – women earned an average of $267 a year, while men earned $498 (the same year, Carnegie made $23 million)

56. 2 Types of Unions Craft Unions – the joining of skilled workers from one or more trades Industrial Unions – the joining of skilled and unskilled workers from a specific industry

57. Management & Government Pressure Unions The more powerful unions became, the more employers/management (bosses) feared them – refused to recognize unions as representatives for workers – Forbade union meetings – Fired union members – Forced employees to sign “yellow-dog” contracts swearing they would not join a union

58. Industrial Workers of the World Aka the Wobblies Founded by Eugene v. Debs – US Presidential candidate for the Socialist Party of America for President of the United States – one of the best-known socialists living in the US First major attempt to reach all workers (industrial union) Wage system should be abolished All workers should be in one class

59. American Federation of Labor alliance different craft unions Founded by Samuel Gompers Higher wages, shorter work weeks, & job security against socialism Used strikes as major tactic

60. Knights of Labor Largest US labor organization in 1880s Rejected socialism 8-hour work day, “equal pay for equal work” accepted all workers regardless of race, gender, or skill level Saw strikes as last resort

61. Mary Harris “Mother” Jones most prominent labor organizer in women’s labor Joined United Mine Workers of America Endured jail and death threats Led strikes Led 80 mill children to Roosevelt’s home to expose cruelties of child labor

62. Government –Laws tried to restrict the effectiveness of unions –Troops would help put down strikes –Courts often sided with management

63. If you were a manager/employer, would you have liked unions? Why?

64. What might you do to try to get rid of unions or reduce their effectiveness?