Industrialization

1. Industrialization

2. 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

3. Promontory, Utah May 10, 1869

5. The Workers • Workers were mainly Chinese and Irish immigrants • Working conditions were poor • Reasons: • Weather • Rough terrain

6. Railroad Developments • Train problems: • Dirty, noisy, uncomfortable • 1869 George Westinghouse: • Development of air brakes • 1887 Granville Woods: • Telegraph system for train communication

7. 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?

8. USA Time Zones • Name all 8 time zones.

9. 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

10. 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

11. 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

12. How was steel produced in mass amount???

13. The Bessemer Process • Henry Bessemer • English businessman • William Kelly • Kentucky businessman • Developed new way of making steel: Melt iron, add carbon, remove impurities

14. 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

15. Growth of Big Business

16. Robber Barons or Capitals 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.

17. 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!!!

18. So what happens?

19. Monopoly • How does the game work? • What is the goal of the game?

20. 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

21. Vertical and Horizontal Integration

22. Who did this??

23. 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

24. John D. Rockefeller • Standard Oil Co. • Eventually owned all oil companies in US. • Horizontal consolidation • 40 companies John D. Rockefeller

25. Standard Oil Co.

26. The Reorganization of Work Frederick W. Taylor The Principles of Scientific Management (1911)

27. The Reorganization of Work The Assembly Line Mass production

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29. The Changing American Labor Force

30. Child Labor

31. Child Labor

32. “Galley Labor”

33. 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

34. Child Labor today?

35. Management vs. Labor “Tools” of Management “Tools” of Labor • “scabs” • lockout • blacklisting • collective Bargaining • informational picketing • organized strikes

36. A Striker Confronts a SCAB!

37. Knights of Labor Terence V. Powderly An injury to one is the concern of all!

38. 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.

39. Labor Unrest: 1870-1900

40. The Great Railroad Strike of 1877

41. Haymarket Riot (1886) McCormick Harvesting Machine Co.

42. Haymarket Martyrs

43. The American Federation of Labor: 1886 Samuel Gompers

44. 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.

45. Homestead Steel Strike (1892) Homestead Steel Works The Amalgamated Association of Iron & Steel Workers

46. A “CompanyTown”: Pullman, IL

47. Pullman Cars A Pullman porter

48. The Pullman Strike of 1894

49. The Pullman Strike of 1894 Government by injunction!

50. The Socialists Eugene V. Debs