Industry

1
Industry

• 1860 1910

2
Reasons for Growth

• Raw materials
• Growing labor supply
• New technologies
• Talented entrepreneurs
• Help of federal government
• Expanding domestic market

3
New Technologies

• 1787 1860 36,000 patents
• 1860 1890 440,000 patents
• Telegraph (Morse 1844, Field 1866)
• Telephone (Bell 1876, American Telephone
  Telegraph)
• Typewriter (Sholes 1868)
• Radio (Marconi 1890s)
• Airplane (Wright brothers 1903)
• Automobile (1895 4 in U.S., 1917 5 million)

4
New Industries

• Electricity
• Edison incandescent light bulb, central power
  station, phonograph, motion picture
• Westinghouse alternating current
• Steel
• Bessemer Process
• Oil
• Western Pennsylvania, Texas
• First as lubricant for steel industry, then as
  fuel

5
New Production and Transportation

• Production
• Division of labor
• Assembly line
• Research labs (Bell, Du Pont, G.E., Kodak)
• Transcontinental Railroads
• Faster transportation of goods
• Access to raw materials
• Access to new/growing markets

6
Business terms to know

• Corporation
• Stocks
• Monopolies
• Cartel (pools)
• Trusts
• Holding Company
• Horizontal Consolidation (integration)
• Vertical Consolidation (integration)

7
The Industrialists

• Andrew Carnegie
• Steel
• John D. Rockefeller
• Oil
• J.P. Morgan
• Banking
• Cornelius Commodore Vanderbilt
• Railroads and Shipping

8
Support of Industrialists

• The self-made man
• Social Darwinism
• Laissez-faire
• The Gospel of Wealth Carnegie 1901
• Philanthropy
• Horatio Alger

9
Argument against Industrialists

• Lester Frank Ward (Dynamic Sociology) govt
  could adjust businesses to the need of society
• Socialism
• Karl Marx
• Socialist Labor Party De Leon
• American Socialist Party Eugene V. Debs
• Henry George (Progress and Poverty) poverty
  based on land, single tax
• Edward Bellamy (Looking Backward) nationalism
  of business
• Monopolies vs. Capitalism
• Stratification of Wealth

Eugene V. Debs
10
The Octopus
11
The Work Force

• Growth from 2 places
• Rural to urban life
• Immigration
• Immigrants
• Labor Contract Law (repealed in 1885)
• First wave English, Irish, German
• Second wave Italian, Polish, Russian, Greek,
  Slavic, Jewish, etc.
• West Mexican and Asian
• Low wages, competition

12
The Work Force

• Wages and Working Conditions
• 1900 average income in U.S. was 400 500 per
  year (600 considered poverty level)
• Agrarian/artisan to factory work
• 10 12 hour days, 6 days a week
• Unsafe, unhealthy conditions
• No control of workplace
• Women and Children
• Need for unskilled labor increased women and
  children
• Women mostly young, white worked for _at_ ½ of
  wages of men for same job
• Children 10 of girls 10 15 worked, 20 of
  boys child labor laws created but did little

13
Rise of Labor Unions

• The Knights of Labor
• First Labor Union in U.S.
• Skilled and unskilled labor
• The American Federation of Labor (AFL)
• Led by Samuel Gompers
• Used strikes, boycotts, and collective bargaining
  to gain better conditions and wages
• Industrial Workers of the World (I.W.W.)
  Socialist labor union
• Reaction of Employers
• Attempted to resist influence of unions

14
Strikes (24,000 between 1881 and 1900)

• The Railroad Strike of 1877
• First nationwide strike
• Began with B O
• Riots occurred, federal troops sent in
• Haymarket (1886)
• Scabs workers to replace strikers
• Anarchists dislike all forms of government,
  joined strike
• Violent Riots

15
Strikes

• Homestead (1892)
• Henry Frick
• Pinkertons
• Attempt to assassinate Frick
• Pullman Railcar (1894)
• Panic of 1893, cut wages and laid off workers
• Eugene V. Debs leads boycott and strikes spread
  throughout the country
• Federal government stepped in to stop, set
  precedent of govt involvement

16
Sherman Antitrust Act (1890)

• "Every contract, combination in the form of trust
  or otherwise, or conspiracy, in restraint of
  trade or commerce among the several States, or
  with foreign nations, is declared to be illegal
• "Every person who shall monopolize, or attempt to
  monopolize, or combine or conspire with any other
  person or persons, to monopolize any part of the
  trade or commerce among the several States, or
  with foreign nations, shall be deemed guilty of a
  felony."
• Created to break-up the Standard Oil Trust
• Not used until Roosevelt (Northern Securities
  Trust)
• Could be used against trusts until the Clayton
  Antitrust Act
• Not meant to prevent someone from having control
  of an industry if they did it best

17
Robber Barons?
18
Captains of Industry?
19
Good ole J.P., such a nice rich man
20
Results of Industry

• Industrialization of America during the 2nd half
  of the 19th century
• What are 5 good things?
• What are 5 negative things?