1. Industrialism and Daily Life USH&G

2. The Rise of Industrialism Why Industrial Growth? Why Industrial Growth? Lots of natural resources Lots of natural resources Better transportation Better transportation People move to cities People move to cities Provided lots of workers for the factories Provided lots of workers for the factories Included lots of immigrants! Included lots of immigrants! Government support Government support Gov’t loans/support Gov’t loans/support Laissez Faire attitude Laissez Faire attitude Little &/no regulation Little &/no regulation No taxes (personal or business) No taxes (personal or business) No environmental controls No environmental controls Seamstresses in a textile factory

3. Invention & Innovation Spirit of Innovation Spirit of Innovation US issues 676,000+ patents US issues 676,000+ patents Inventors improve lives + receive fame & fortune Inventors improve lives + receive fame & fortune Steel is King Steel is King Replaces iron on RRs, skyscrapers, bridges… Replaces iron on RRs, skyscrapers, bridges… Electricity → widespread Electricity → widespread Telegraph & telephone, elevators Telegraph & telephone, elevators Machines ↑ production Machines ↑ production Mass production Mass production Assembly lines… Assembly lines… New York City Skyscraper, 1901

4. The Assembly Line Reading: The Assembly Line Reading: The Assembly Line Video: I Love Lucy, assembly line Video: I Love Lucy, assembly line Ford Automobile factory assembly line

5. Andrew Carnegie A. How/why did this person go into business? A. How/why did this person go into business? –Carnegie was an immigrant to the US who was looking for his big break. His is the quintessential “rags to riches” story. –He had been an office clerk for a RR when he saw that oil seemed to be a big deal… –In 1861 he formed a company that began drilling for oil –This gave him the money that he needed to switch to another industry that looked promising…. Andrew Carnegie, 1913

6. Andrew Carnegie B. What business or industry did he go into? B. What business or industry did he go into? In 1875 he chartered his first steel company began using the Bessemer Process to increase production In 1875 he chartered his first steel company began using the Bessemer Process to increase production In 1878 his company won the contract to build the Brooklyn Bridge (from Manhattan Island to Brooklyn, NY) In 1878 his company won the contract to build the Brooklyn Bridge (from Manhattan Island to Brooklyn, NY) In 1892 his steel companies were all consolidated into the Carnegie Steel Company, and by 1900 company profits had jumped from $4 million to $40 million In 1892 his steel companies were all consolidated into the Carnegie Steel Company, and by 1900 company profits had jumped from $4 million to $40 million In 1901 he sold his company to banker J.P. Morgan for a record $480 million, making him the richest man in the world; his company became the centerpiece for the largest corporation of the day, U.S. Steel In 1901 he sold his company to banker J.P. Morgan for a record $480 million, making him the richest man in the world; his company became the centerpiece for the largest corporation of the day, U.S. Steel Right: Andrew Carnegie and other business leaders

7. Andrew Carnegie C. What business practices did his company use? C. What business practices did his company use? –Carnegie was pretty ruthless getting to the top  His employees worked long hours & for as low of wages as possible –Carnegie hated unions  He always tried to negotiate terms that stopped unions from forming in his factories  By 1892 he began breaking the unions that did form by shutting mills down. In the 1893 Homestead strike he hired 300 armed men to keep workers out.

8. Andrew Carnegie D. Were any of these practices intended to form a monopoly? Describe. D. Were any of these practices intended to form a monopoly? Describe. Maybe not directly, but he did try to capture as much of the steel industry as possible by using vertical integration to integrate the steel and railroad industries. This practice allowed him to beat out his competition—and at this time monopolies were NOT illegal… Maybe not directly, but he did try to capture as much of the steel industry as possible by using vertical integration to integrate the steel and railroad industries. This practice allowed him to beat out his competition—and at this time monopolies were NOT illegal…

9. Andrew Carnegie E. What effect did his business have on other businesses in the same industry? Think of both positive and negative effects. E. What effect did his business have on other businesses in the same industry? Think of both positive and negative effects. –Only a two others in the steel industry, and one of these was his earlier partner (Henry Frick). –Many of the other steel industries were either bought out, or lost so much ground to the Carnegie company that they sold out.

10. Andrew Carnegie F. What was the response of the gov’t to this man’s business practices? F. What was the response of the gov’t to this man’s business practices? Initially the gov’t stayed out—employing a “laissez faire” attitude toward most businesses of the day. By 1890, however, the Sherman Anti-Trust Act declared that any contract that formed a trust, combination or any other conspiracy to restrain trade was illegal. Initially the gov’t stayed out—employing a “laissez faire” attitude toward most businesses of the day. By 1890, however, the Sherman Anti-Trust Act declared that any contract that formed a trust, combination or any other conspiracy to restrain trade was illegal. In regard to strikes, the government supported companies, like Carnegies, in the Homestead Strike the PA Governor sent 8,000 National Guardsmen to restore order (i.e. stand up against the strikers). In regard to strikes, the government supported companies, like Carnegies, in the Homestead Strike the PA Governor sent 8,000 National Guardsmen to restore order (i.e. stand up against the strikers). The Homestead Strike, 1892

11. Andrew Carnegie G. Is this man a “Captain of Industry” who revolutionized & expanded business or a “Robber Baron” whose wealth was based on the exploitation of others? G. Is this man a “Captain of Industry” who revolutionized & expanded business or a “Robber Baron” whose wealth was based on the exploitation of others? –Carnegie was both. By today’s standards, though he did nothing “illegal,” he didn’t treat his workers as humanely as he should have & he actively sought to force other companies out of business, rather than it being a natural result of competition. –He was a pretty amazing business man who had a vision that most of us will never have, or be able to accomplish. In 2001 it was still the biggest US steel producer; and the 15 th largest in the world by 2014. –Also, after selling his company he proceeded to follow his own “Gospel of Wealth” by giving away over $350 million to charities, including libraries, concert halls & universities Left: The Gospel of Wealth. Cartoon from Judge, 1903. New York Public Library Below: Seattle Public “Carnegie” Library, 1919 (Seattle has a total of 7 Carnegie libraries)

12. Trusts & Government Corruption Industrial Trusts ↑ Monopolies squeeze out competition Trusts influence gov’t affairs Laissez Faire City Gov’t Corruptions “Machines” & “bosses” Political Cartoon, “Bosses of the Senate,” Puck Magazine

13. Organized Labor Responds Labor Unions Emerge Labor Unions Emerge 2 million members by 1904 2 million members by 1904 Knights of Labor Knights of Labor American Federation of Labor American Federation of Labor Wobblies Wobblies Business Response to Labor Business Response to Labor Gov’t regulated unions Gov’t regulated unions Fear of communism Fear of communism Textile mill strike in Lawrence, MA Strikes and Violence Strikes and Violence Railway workers strike Railway workers strike Pullman strike Pullman strike Union Victories Union Victories By 1912, 38 states had minimum-wage laws & health standards By 1912, 38 states had minimum-wage laws & health standards