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