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Industrialization. M. Siebert. Building the 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
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Industrialization M. Siebert
Building the 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 2 railroad companies met in Promontory, Utah to drive the “Golden Spike” on May 10, 1869
The Workers • Majority of workers were Chinese and Irish immigrants • The working conditions for all, was very poor and strenuous! • The working conditions were tough because of the difficult terrain and weather conditions
Who did the Railroad Impact? • Native Americans (called it the Iron Horse) • Helped Westward expansion • Made trade much easier • Hurt the farmers economically because of the higher costs for farmers • They made deals with wealthy businessmen (became corrupt) • Became crucial to the U.S. economy
Legislation • Interstate Commerce Act of 1887 – put in place for Govt to supervise railroad activities • Led to more financial problems (railroads were forced out of business, which led to the Panic of 1893) • This caused the Large Firms to start buying up the railways, which paved the way for Big Businesses
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 Reorganization of Work Frederick W. Taylor The Principles of Scientific Management (1911)
The Reorganization of Work The Assembly Line
Regulating the Trusts 1877 Munn. v. IL 1886 Wabash, St. Louis & Pacific Railroad Company v. IL 1890 Sherman Antitrust Act • in “restraint of trade” • “rule of reason” loophole 1895 US v. E. C. Knight Co.
The Gospel of Wealth:Religion in the Era of Industrialization • Wealth no longer looked upon as bad. • Viewed as a sign of God’s approval. • Christian duty to accumulate wealth. • Should not help the poor. Russell H. Conwell
“On Wealth” • The Anglo-Saxon race is superior. • “Gospel of Wealth” (1901). • Inequality is inevitable and good. • Wealthy should act as “trustees” for their “poorer brethren.” Andrew Carnegie
Cornelius [“Commodore”] Vanderbilt Can’t I do what I want with my money?
William Vanderbilt • The public be damned! • What do I care about the law? H’aint I got the power?
New Financial Businessman The Broker: • J. Pierpont Morgan
New Business Culture:“The American Dream?” Protestant (Puritan) “Work Ethic” • Horatio Alger [100+ novels] Is the idea of the “self-made man” a MYTH??
Management vs. Labor “Tools” of Management “Tools” of Labor • “scabs” • Pinkertons • lockout • blacklisting • yellow-dog contracts • 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. • Workers’ cooperatives. • Worker-owned factories. • Abolition of child and prison labor. • Increased circulation of greenbacks. • Equal pay for men and women. • Safety codes in the workplace. • Prohibition of contract foreign labor. • Abolition of the National Bank.
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.
Mother Jones: “The Miner’s Angel” • Mary Harris. • Organizer for theUnited MineWorkers. • Founded the SocialDemocratic Party in 1898. • One of the founding members of the I. W. W. in 1905.
The “Formula” unions + violence + strikes + socialists + immigrants = anarchists
Discussion Questions • What were the cost and benefits of the industrial transformation of the Post- Civil War era? • Was the growing class division of the time a threat to American democracy? Why or why not?