Industrial Development

1. Industrial Development Which American industries do you think make the most money? Why?

2. Industrial World Leader -by 1880, U.S. is world’s leading producer of goods -reasons why???? unlimited labor force abundant coal supply iron mining discovery of oil in US– Drake railroad development The United States, nearing the turn of the century in the 1880s and 1890s, teemed with immigration from many European nations, as well as many Chinese immigrants. These immigrants provided a steady work force, as well as a cheap work force, as employers could get away with paying them less per hour.

3. Public Support -laissez-faire government policies government allows business to do whatever it wants -unlimited immigration supplied labor -high tariffs protected American business -public financing of railroads for shipping goods

4. Entrepreneurs and Innovations -late 1800’s saw an explosion of innovation and invention -telephone Alexander Graham Bell -light bulb Thomas Edison -electric power -Nikola Tesla—AC Power -Bessemer Process makes mass production of steel possible (skyscrapers) -typewriter paves the way for new jobs for women

5. Entrepreneurs and Innovations -photography -phonograph -motion pictures silent film -radio—Nikola Tesla unites the nation -retail stores mail order catalogs -canned foods

6. Entrepreneurs and Innovations -John D. Rockefeller Standard Oil -Andrew Carnegie US Steel -J.P. Morgan bankers banker -Cornelius Vanderbilt railroads -Dupont Family steel industry -James B. Duke tobacco industry -George Westinghouse power and electronics

7. Railroads lead the Way -”iron horse” -Leading consumer of goods -better transportation leads to growth -transcontinental, 1869 -standardization of time create time zones to regulate time Each community still operated on its own time, with noon when the sun was directly overhead. Travelers riding from Maine to California might reset their watches 20 times. On November 18, 1883, railroad crews and towns across the country synchronized their watches. In 1884, an international conference set worldwide time zones that incorporated railroad time. The U.S. Congress, however, didn’t adopt railroad time as the standard until 1918.

8. Goal 5 Growth of Big Business

9. Captains of Industry vs. Robber Barons “The man who dies leaving behind him millions of available wealth, which was his to administer during life, will pass away “unwept, unhonored, and unsung’…of such as these the public verdict will then be: ‘the man who dies thus rich dies disgraced.” Andrew Carnegie “Charity is injurious unless it helps the recipient to become independent of it.” John D. Rockefeller “Next to doing the right thing, the most important thing is to let people know you are doing the right thing.” John D. Rockefeller “There is no class so pitiably wretched as that which possesses money and nothing else.” Andrew Carnegie

10. Advantages of Corporations • -greater efficiency • Electricity and innovations make production quick/cheap • -economy of scale • The more you produce, the easier and cheaper it is • -manager system • Owners can have multiple companies across the nation • Appoint qualified employees to oversee production Andrew Carnegie perfects production and company organization to make major profits in his steel company.

11. Advantages • -productivity studies • Taylor • To increase efficiency • Studied time and motion • limit excess movement and make production more efficient To increase productivity in factories, many mangers used Taylor’s productivity studies, which monitored every motion of an employee so that little to no production time was wasted.

12. Disadvantages of Corporations • -unfair competition practices • Difficult for small businesses to compete • -corruptionand bribery • No unemployment or welfare • Citizens needed jobs • Could fire them easily • -destroyed labor union movements Many Americans began to distrust the big businessmen and the trusts they set up, claiming that they limited competition and held control over government officials and Congressmen. How is this represented in the cartoon presented above?

13. Public Reactions • -mixed public feelings • Some unhappy with rich getting richer and poor getting poorer • -Social Darwinism • -based on Darwin’s theory of evolution • -survival of the fittest • -also applies to the business world (supports laissez-faire) • -the best businesses survive • Those with the best resources and ideas win • -justified their wealth • -Gospel of Wealth (Carnegie) • Donate money to society And while the law of competition may be sometimes hard for the individual, it is best for the race, because it ensures the survival of the fittest in every department. ~Andrew Carnegie

14. Some big businessmen, like Andrew Carnegie, believed in the “Gospel of Wealth,” in which they donated their money back to society. Carnegie was the most generous of these, donating 90% of his profits back to society by building centers for the arts across the country, like Carnegie Hall, pictured above in NYC. “There is no class so pitiably wretched as that which possesses money and nothing else.” “Surplus wealth is a sacred trust which its possessor is bound to administer in his lifetime for the good of the community.” ~ Andrew Carnegie

15. Public Reactions • -rags to riches • “American Dream” • wealth and success in America • Horatio Alger dime novels • Famous rags-to-riches stories

16. Types of Big Businesses • -monopoly • Company controls all production and sales (high prices) • -trust (Rockefeller) • Corporations unite to reduce competition • -merger • Joining together two companies • -holding company (Morgan) • A company that buys out the stock of other companies J.P. Morgan made his fortune by purchasing and maintaining holding companies, gaining interest from stock dividends. He would own the stock of other companies, and he would make money from their profits.

17. Types of Big Businesses • -horizontal integration • Buy out similar competing producers to control industry • -vertical integration • Earn more money by buying out your suppliers • Own all phases of production from start to finish Horizontal and Vertical Integration allowed big businessmen to increase their profits even more by limiting the amount of competition available.

18. Robber Barons • -extreme profits made by business owners • -Philanthropy??? • Donate money to charities and back to society • -big business practices exposed • Ida Tarbell – Standard Oil • -public calls for regulation “The man who dies leaving behind him millions of available wealth, which was his to administer during life, will pass away “unwept, unhonored, and unsung’…Of such as these the public verdict will then be: ’The man who dies thus rich dies disgraced.” ~Andrew Carnegie, 1889 Some saw the big businessmen as Robber Barons, who stole from society and took advantage of workers at their own benefit. Others, however, saw them as philanthropic “Captains of Industry.” What do you think?

19. Robber Barons The Standard Oil Company took a different approach to mergers: they joined with competing companies in trust agreements. Trusts turned their stock over to a group of trustees—people who ran the separate companies as one large corporation. In return, the companies gained large dividends on profits. Trusts were not legal because they limited competition and free trade. • -Sherman Anti-trust Act,1890 • Illegal to form a trust that interferes with free trade • -weak law but set a precedent for future regulation • Never really broke up trusts “Competition is a sin.” ~John D. Rockefeller “What a funny little government!”

20. Workers Unite NCSCOS Goal 5

21. Most industrial workers worked six days a week for more than 12 hours a day. Employees were not entitled to vacation, sick leave, unemployment compensation, or reimbursement for injuries suffered on the job. Yet injuries were common. In dirty, poorly-ventilated factories, workers had to perform repetitive, mind-dulling tasks, sometimes with dangerous or faulty equipment. In 1882, an average of 675 laborers were killed in work-related accidents each week. In addition, wages were so low that most families could not survive unless everyone held a job. Therefore, with little time or energy left for school, child laborers forfeited their futures to help their families make ends meet.

22. URBAN LABOR • -increased 400% by 1890 • More industry = more labor • -mostly unskilled labor • Machines doing labor • -assembly line work • Making one part of a product, move along to another station “When I was younger, girls learned full trades, now they do not—one stitches seams, another makes buttonholes, and another sews on the buttons. Once girls learned to do all these things…Now you see then in those shops, seated in long rows, crowded together in a hot, close atmosphere… working at 20 and 25 cents a day.” ~Aurora Phelps

23. WORKING CONDITIONS • -sweatshops • Harsh workshops in tenements rather than factories • -low wages • Everyone paid low so owners can make large profits • -long hours • 14-hour days, 6-7 days a week • -dangerous conditions • Hot, poorly-ventilated, dangerous jobs • -company towns • -child labor • 20% of boys and 10% of girls under 15 had jobs to support the family “The bulk of the sweater’s work is done in the tenements, which the law that regulates factory labor does not reach…In [them] the child works unchallenged from the day he is old enough to pull a thread. There is no such thing as a dinner hour; men and women eat while they work, and the ‘day’ is lengthened at both ends far into the night.” ~Jacob Riis How the Other Half Lives

24. LABOR UNIONS -tried to improve conditions of workers used strikes (refuse to work) Collective bargaining (negotiations) Arbitration (3rd party makes decisions for both groups) -owners countered blacklists (do not hire) lockouts (keep employees out) scabs (strike breakers who will work for the employers) injunctions (court order to stop something, strikes) “…I can never get a day’s work under that company or any other around here, for…I’ll be blacklisted. Then what will my wife and my babies do?” ~American Worker

25. GOV’T INTERVENTION • -RR strike of 1877 • Cut wages, railroad workers strike until wages raised • -violent protests • Freight and passenger traffic stopped on railroads • Strikers tearing up railroads • -Federal troops sent to restore order by President Hayes Damage done by railroad strikers in the 1877 railroad strike

26. HAYMARKET SQUARE • -Chicago strike of 1886 • Protesting police brutality used at another strike • -bomb thrown at protest • Police fire back at crowd • -several people killed • Strikers blamed, four executed • -union activity was blamed for the violence • Public turns against labor unions “They have grown rich and powerful on your labor. They amass stupendous fortunes, while you, who bring them into existence, are suffering from want. In answer to your pleadings they ask for the bodies of your little children, to utilize them in their gold mints, to make dollars out of them!” ~August Spies, Haymarket Square

27. AFL • American Federation of Labor • -Samuel Gompers • -only allowed skilled labor to join • Only allowed white males • -made strikes a legitimate weapon for union • Successful strikers • Also used collective bargaining “Show me the country in which there is no strikes, and I will show you the country in which there is no liberty.” ~Samuel Gompers

28. INDUSTRIAL UNIONS • -union combining all workers of an industry • Skilled and unskilled • Ex: railroads • -Eugene V. Debs • -United RR workers • All railroad workers in one union • -Pullman Coach strike, 1894 • Turns violent • -Government steps in • –Debs is jailed • Railroad union failed

29. Women Workers • -worked for better conditions for miners • Most young children work in mills and mines - dangerous • -used women and children in the strike process • Mary Harris “Mother” Jones • -advocated against child labor • Very young children working in harsh conditions and being paid very little “The militant, not the meek, shall inherit the earth.” ~Mother Jones

30. Pressure on Gov’t • -public supports the plight of workers but likes cheap products • Do not fight for reform at first • -Triangle Fire • Public can no longer ignore working conditions • -gov’t regulations on working conditions and child labor • -Homestead Strike, 1892 • Carnegie Steel workers • -violent strike between workers and management • Strikers force out Pinkertons but Union finally gives up

31. The Gilded Age NCSCOS Goal 5 A glittering exterior turns out to be a corrupt political core with a wide gap between the rich and poor “All that glitters is not gold…”

32. CORRUPT GOVERNMENT • -many people saw gov’t job as means of wealth • Spoils system (Grant) • -graft • Illegal use of political influence for personal gain • -kickbacks • Taking illegal payments for services • -fraud • Using fake names and the votes of the dead The construction of the New York County Courthouse involved extravagant graft and kickbacks. The project cost taxpayers $13 million, while the actual construction cost was only $3 million. The difference went into the pockets of a political boss and his followers.

33. POLITICAL MACHINES • -party dominates an area • Gained control by offering services in exchange for political/financial support • -patronage, loyalty, graft • Get their people elected, then appoint others with patronage • -why did the public allow this system??? • Government not helping the poor, city bosses will • -boss controlled many jobs, services • Jobs, Police, business licenses, courts, etc. “I’ve been called a boss. All there is to it is having friends, doing things for people, and then later on they’ll do things for you…You can’t coerce people into doing things for you—you can’t make them vote for you. I never coerced anybody in my life. Where you see a man bulldozing anybody he don’t last long.” ~”Big Jim” Pendergrass, Kansas City “Boss”

34. WHY CORRUPTION IS ALLOWED? • -most cities lacked services • Government will not or cannot provide services • -political machines helped those on bottom to gain their voting loyalty • Helped immigrants/poor with naturalization, housing, and jobs in return for their votes

35. TWEED RING • William “Boss” Tweed • -controlled NYC • Democrats, 1868-1871 • -Tammany Hall ring • lots of graft and corruption • Stealing money, corrupt police • Notorious • -exposed by political cartoonist Thomas Nast • Exposed the Tweed Ring corruption through a series of cartoons • Broken in 1871, Tweed put in jail for fraud and extortion “I don’t care so much what the papers write about me—my constituents can’t read; but…they can see pictures!” ~”Boss” Tweed on Thomas Nast’s cartoons depicting his Tweed Ring corruption

36. OTHER SCANDALS • -Credit Mobilier • RR scandal • President Grant’s Cabinet scandal with railroads • -lobbyists held great influence over Congress for the large trusts • Money begins to control Congressmen; big business controls lawmakers Many Americans begin to question the governmental ethics as big businessmen gain more control over Congressmen

37. CIVIL SERVICE REFORM • -patronage system puts unqualified people in positions • Leads to graft and corruption • -Rutherford Hayes campaigns for political reform • Wants to end patronage • Wants only qualified government employees • -urges the elimination of patronage system and establishment of merit system • People should be qualified to hold government offices President Hayes wants to end the corruption seen during the Grant presidency by eliminating the use of the patronage system. Why would some people be against this?

38. PRESIDENTS AND POLITICS • -Hayes leads reform efforts • Does not seek reelection • -James Garfield continues reforms • -Garfield assassinated by job seeker • Would not give him a job under the patronage system • Angry Charles Guiteau shoots President Garfield • Chester Arthur becomes President • Must do something to help • -Pendelton Act passes • Civil service jobs tested Garfield would not give jobs under the patronage system, which angered members of his political party. Only July 2, 1881, as the President was walking through the D.C. train station, he was shot two times by a mentally unbalanced lawyer named Charles Guiteau, whom Garfield had turned down for a job. Now America will seek changes in the patronage system.

39. Turn of the Century Life

40. Urban Technology • -skyscrapers(steel) • Louis Sullivan • Frank L. Wright • -elevators • -bridges(Brooklyn Bridge) • -electric transit systems • Streetcars, subways • -urban planning • Restore peace and serenity to urban areas • city parks • Frederick Olmstead • Headed urban planning • Central Park, NYC “The main object and justification of the park is simply to produce a certain influence in the minds of people and through this to make life in the city healthier and happier. The character of this influence…is to be produced by means of scenes, through observation of which the mind may be more or less lifted out of moods and habits.” ~Frederick Law Olmstead

41. Inventions • -first flight, 1903 • Wright Brothers • Kitty Hawk, NC • 120 feet, 12 seconds • -air mail • Established by 1920 • -printing revolutions • Cheap paper, better literacy • -photography • George Eastman • Kodak camera • Took photography to the masses • -radio • Nikola Tesla, Marconi On December 17, 1903, Orville Wright made the first successful flight of a powered aircraft in history. The public paid little attention. But within two years, the brothers were making 30-minute flights. By 1908, the pioneer aviators had signed a contract for production of the Wright Airplane with the U.S. Army.

42. In 1888, George Eastman introduced his Kodak camera. The purchase price of $25 included a 100-picture roll of film. After taking pictures, the photographer would send the camera back to Eastman’s Rochester, New York, factory. For $10, the pictures were developed and returned with the camera reloaded. Easily held and operated, the Kodak camera prompted millions of Americans to become amateur photographers. The camera also helped create the field of photojournalism.

43. Public Education • -growth of public education • Security, social status, assimilation, democracy • -most city children could attend school • Most states began requiring 12-16 weeks of school per year • -increase in high schools • Expanded curriculum to science, civics, social studies, and vocational classes • -few opportunities for minorities William Torey Harris, US commissioner of education, advised teachers to “lift” students by enforcing strict discipline. “The pupil must have lessons ready at the appointed time, must rise at the tap of the bell, move to the line, return; in short, go through all the evolutions with equal precisions.” According to Harris, this process would create responsible citizens.

44. “They hits ye if yer don’t learn, and they hits ye if ye whisper, and they hits ye if ye have string in yer pocket, and they hits ye if ye seat sqeaks, and they hits ye if ye don’t stan’ up in time, and they hits ye if ye late, and they hits ye if ye forget the page.” Young student in school in Chicago

45. Literature and Art • -realism • Portray life as it is really lived • Thomas Eakins (realist painter who started school) • Ashcan School • Painted urban poverty and working class people • -art galleries, public libraries • Creating American culture • -Samuel Clemens (Mark Twain) • -Stephen Crane • -Jack London • -Dime Novels • Add culture to America

46. Leisure Time “A fierce upward rush, a wild grip at a loosening hat, and an instant later the shock. We were on the loop.We were shooting upward as a billow that breaks against the cliff; we were curling over as the wave curls backward; we were darting down to inevitable annihilation.” • -Amusement Parks • Coney Island, NY • Built by trolley car companies to attract customers • “world’s largest playground” • -bicycle craze • Opens doors for women – clothes and freedom • -tennis • -Hershey bars • -Coca-Cola, Pepsi

47. “Inside the park was an enchanted, storybook land of trellises, columns, domes, minarets, lagoons, and lofty aerial flights. And everywhere was life – a pageant of happy people; and everywhere was color – a wide harmony of orange and white and gold…It was a world removed – shut away from the sordid clatter and turmoil of the street.” -- Bruce Blen on Coney Island

49. Sports/Entertainment • “Baseball has seized upon the American people, irrespective of age, sex or other condition.” • Harper’s Weekly- • __________________ • “Baseball is the very symbol…and visible expression of the drive and push and rush and struggle of the raging, tearing, booming nineteenth century.” • - Mark Twain - • Spectator sports enjoyed by millions • -baseball • First World Series 1903 • Segregated Leagues • -boxing • -vaudeville, circus • Traveling shows attracted many for cheap • Theatrical, music, dancing • -ragtimemusic • Blends African-Am spirituals and European music • Originated in saloons • Important for jazz • -motion pictures • The Great Train Robbery

50. “Vaudeville appeals to the businessmen, tired and worn, who drops in for half an hour on his way home; to the person who has an hour or two before a train goes, or before a business appointment; to the woman who is wearied of shopping; to the children who love animals and acrobats; to the man with his sweetheart or sister, to the individual who wants to be diverted but doesn’t want to think or feel; to the American of all grades and kinds who wants a great deal for his money.”