The Rise of Industrial America

1. The Rise of Industrial America

2. A Network Of Rails • Early RR lines were short and served local communities. • Different lines used different _________________ • In 1886 RR’s adopted the North’s gauges. • Once track was standardized the RR formed a ________________________________________

3. Linking World Markets By the 1880’s, American exports of ______________________ dominated the international market. At the time, the United States had almost as many miles of railroad tracks as _________________________________________

4. In order to make rail service safer and more reliable, the country was divided into 4 time zones. • Pacific (3 pm) • Mountain (4 pm) • Central (5 pm) • Eastern (6pm)

5. New and Improved! • 1864 _____________________________________ • Allowed engineer to stop all rail cars at once. • Much Safer!

6. New and Improved! • 1864 ____________ invented the sleeping car. • Eventually they added bathrooms and dining cars as well.

7. Cornelius Vanderbilt American business entrepreneur and philanthropist ____________________________________________________________ He was also the patriarch of the Vanderbilt family and one of the richest Americans in history. He provided the initial gift to found Vanderbilt University, which is named in his honor.

8. Consolidation Brings Efficiency • As RR companies grew they began to consolidate smaller companies • ___________________ • One company would buy up competition

9. Jay Gould • 1. Infamous for _________________________ • 2. Widely considered the most notoriously ____________________________________________________ • 3. BY 1874, Gould owned more than 15,000 miles of railroad track around the nation.

10. These practices included… 1. Exerting control over __________________ 2. Accruing high levels of __________________ 3. Paying extremely low wages to workers 4. Squashing competition by acquiring competitors in order to create ___________________________________ 5. Schemes to sell stock at inflated prices to unsuspecting investors in a manner which would eventually destroy the company for which the stock was issued and impoverish investors.

11. Eliminating the Competition • Before long, there was actually too much track. • RR’s were forced to grant __________________________ to the biggest customers. • To end the cut throat competition they began pooling. • pool- several RR companies agreed to divide up business in an area. • The big companies even bribed the government.

12. The ICC is Formed • Congress passes the Interstate Commerce Act, creating the _________________________________________ • The law bans monopolistic activity like pooling, rebates, and discriminatory short-distance rates

13. Railroads fight back • Railroads file suit, and win in 15/16 court cases against the ICC • A depression in 1893 forced a number of RR into the hands of __________________, an investment banker • He reorganized and refinanced, and by 1906 seven networks controlled 2/3 of the nation’s railways

14. The Rise of Big Business Carnegie Vanderbilt Rockefeller Morgan

15. The Rise of Big Business Corporations What is it??? An organization owned by many people but treated by the law as though it were a person, making big business possible. Advantages?? They are very stable because they do not depend on just one person They can raise large amounts of money There is no liability to stockholders They sell stock (Part ownership in the company)

16. Danger of Corporations Corporations could form Trusts A Trust could form a Monopoly A Monopoly is a corporation that has 100% control of a single industry A Trust is a group of companies that join together and control a majority of an industry

17. Business Methods • ________________________Buying up all competition in the same industry • ________________________Owning all steps of a business in order to take a product from raw material to finished product

19. Vertical Horizontal

20. Growth of Steel Industry • Growth of RR industry, led to the growth of the steel industry • Henry Bessemer created __________________ • Enabled steel makers to _________________________________________

21. Steel Mills Thrive • Pittsburg, PA becomes one of the leaders in steel production • The boom in the industry brought jobs and prosperity to the cities • Negative effects • Air and water pollution

22. Andrew Carnegie • Dominated the _____________________ • Began buying up all phases of the steel industry • Iron mines, railroad and steamship lines, and warehouses • Vertical integration

23. Andrew Carnegie continued… • “______________________” • Carnegie believed in giving to those who were less fortunate. • Sold his steel empire in 1901 and spent the rest of his life helping people and donating to charity

24. J.P. Morgan • Most powerful banker and investor of industrial age. • Used his banking profits to gain control of other major corporations. • Gained control of most of the nation’s RR’s. • Became head of ______________________________________________________________________ • “I like competition, but I like combination more.”

25. John D. Rockefeller • Rockefeller built oil _________________________________ • He bought up all competition. • Used ___________________________ • He started his own large company called ______________________. • Eliminated competition by forming trusts • __________________________________________________________________

26. Rockefeller • He slashed prices to undercut competition. • Forced RR companies to grant rebates and lower shipping costs to keep his business • The Standard Oil trust allowed Rockefeller to call the shots for all the companies that he overtook.

27. The Case Against Trusts • Many Americans felt that trusts and monopolies went against the ___________________________________ • Free enterprise system- businesses are owned by private citizens. • They felt that it eliminated competition and without competition there was no reason for companies to keep prices low or improve

28. Inventions Change the Nation http://www.youtube.com/watch?v=JcnXOhrmDB8

29. Speeding Up Communication • Cyrus Field- ___________________________________ • Allowed for telegraph communication across the Atlantic Ocean • Linking Europe with the U.S.

30. Alexander Graham Bell • Invented the _________________ in 1876

31. “The Wizard of Menlo Park” • Most notable- ________________________________________________ • He opened a workshop in Menlo Park, NJ • Believed in working with other inventors http://www.youtube.com/watch?v=oGE--9Cp4tU

32. “Wizard of Menlo Park”- famous nickname • Over ___________________________________

33. Other notable inventions… • Refrigerated Railcar- greatly helped the meatpacking industry • Christopher Sholes- typewriter • George Eastman- Kodak camera • Elijah McCoy- device that automatically oiled engines

34. Henry Ford • Rolled out the first _______________________ • Model T was the first affordable car for the American public • Made famous the _______________________ which allows for much quicker mass production

35. Automobiles • In 1900, only 8,000 Americans owned cars. • By 1917, more than 4.5 million • Cars went from being an unnecessary luxury, to an affordable and practical machine

36. First Flight • Orville and Wilbur Wright developed one of the first working airplanes. • ____________________________ • 12 seconds in the air • 120 feet in distance • Many people thought this was a useless invention at the time!

37. Labor Unions & Strikes United States History

38. What is Social Darwinism? An economic belief –supposedly based on Charles Darwin’s theory of evolution by natural selection –_______________________________________________ WE LOVE THIS IDEA!!!!! Rockefeller Carnegie Vanderbilt

39. Working Class The industrialization of America created a huge demand for labor Many positions were filled by immigrants looking to build a better life I hear there are a lot of jobs here in America!!!! • Other positions were filled by Southern African Americans, women, and children • -In the late 1800’s, 20% of American children between ages 10 – 15 worked for wages

40. Working Conditions Working Conditions HORRIBLE!!!!! ___________________________________________________________________________ _____________________________________________________________________________________________________. In 1881, approximately 30,000 railroad workers were killed or injured.

41. Company Towns In these towns the company controlled the housing and the retail businesses workers used. Employers sometimes set up company towns in order to gain more control over workers. __________________________________________________________________________________________

42. Laissez-Faire HANDS OFF (THE GOVERNMENT,DESPITE THE PASSAGE OF THE SHERMAN ANTITRUST ACT, WAS DOING LITTLE TO STOP THE MISTREATMENT OF WORKERS) POOR WEALTHY ____________________________________________________________________________________ By 1890, 10% of the population controlled 75% of the nation’s wealth

43. Three Choices for Workers… • Continue in misery • Join a Union and possibly get fired or even killed • Become a communist and start a revolution

44. Socialism • Public control of property & income • ______________________________ • ______________________________ • Karl Marx & Frederick Engels • How to get this done? ______________________________

45. Could This Happen In America? • How could this help workers? • Who would be against Socialism/Communism in America? • This is radical—is there something less radical that would help workers?

46. Less Radical—Labor Unions • Unions: improve working conditions (not overthrow the system) • Collective Bargaining • Strikes (last resort) • Best—national strike • Why was this appealing to workers?

47. Knights of Labor • ______________________________________ • Wanted to organize ALL workers: skilled, unskilled and of all backgrounds ______________________ • Set the example: negotiate, then strike if needed • Goals: __________________ • Lost influence after violent strikes

48. Other Unions • American Federation of Labor (AFL): • Smaller local unions with a national organization • ____________________ • Strikes, collective bargaining • ____________________ • Industrial Workers of the World (IWW) • Wobblies • ____________________

49. Employers’ Reaction • No Union Meetings • Union organizers fired • Blacklisting • Yellow Dog contracts • Would not bargain collectively • Strikes met with violence

50. The Great Strikes • Haymarket Riot (1896)—8 hour workday (national strike); scabs hired in Chicago (fights); rally—bombing & gunfight btw. Police & strikers; Ill. Law: help with murder, then you are a murderer: 4 anarchists hanged for murder (one blew himself up in prison). Never determined who threw the bomb. • Homestead Strike (1892)—Carnegie Steelworkers called a strike (factory cut their wages) & were fired; management sent in “private” police force (fight with deaths); strike called off • Pullman Strike (1894): Company town; wages cut 25% (Panic of 1893); food prices in town NOT cut; Pullman fired three negotiators; strike; al RR traffic halted; strike ordered illegal because mail couldn’t get through