The

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The Incorporation of America
By Ms. Susan M. PojerHorace Greeley HS
Chappaqua, NY
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Causes of Rapid Industrialization

1. Steam Revolution of the 1830s-1850s.
2. The Railroad fueled the growing US economy
   First big business in the US. A magnet for
   financial investment. The key to opening the
   West. Aided the development of other
   industries.

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Causes of Rapid Industrialization

• Technological innovations. Bessemer and open
  hearth process
• Refrigerated cars
• Edison --gt Wizard of Menlo
  Park --gt light bulb,
  phonograph, motion pictures.

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Thomas Alva Edison

• Wizard of Menlo Park

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The Light Bulb
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The Phonograph (1877)
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The Ediphone or Dictaphone
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The Motion Picture Camera
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Alexander Graham Bell
Telephone (1876)
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Alternate Current
George Westinghouse
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Alternate Current
Westinghouse Lamp ad
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The Airplane
Wilbur Wright Orville Wright
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Model T Automobile
Henry Ford
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Model T Prices Sales
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U. S. Patents Granted
1790s ? 276 patents issued.
1990s ? 1,119,220 patents issued.
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Causes of Rapid Industrialization

1. Unskilled semi-skilled labor in abundance.
2. Abundant capital.
3. New, talented group of businessmen
   entrepreneurs and advisors.
4. Market growing as US population increased.
5. Government willing to help at all levels to
   stimulate economic growth.
6. Abundant natural resources.

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New Business Culture

1. Laissez Faire --gt the ideology of the Industrial
   Age.

Individual as a moral and economic
ideal. Individuals should compete
freely in the marketplace. The
market was not man-made or invented.
No room for government in the market
but..
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2. Social Darwinism

• Herbert Spencer
• British economist.
• Advocate of laissez-faire.
• Adapted Darwins ideas from the Origin of
  Species to humans.
• Notion of Survival of the Fittest.

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2. Social Darwinism
William Graham Sumner
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New Business Culture

1. Protestant (Puritan) Work Ethic Horatio
   Alger

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New Type of Business Entities

1. Pool railroads
2. Focus organizing integrated systems by building
   feeder lines to bring business to main line
3. Vanderbilt- NY Central, Jay Gould in SW, James J.
   Hill in W
4. Trunk lines interconnect- standardization
5. Cooperative agreements between companies on rates
6. Positive effects
7. Negative effects
8. Trust --gt John D. Rockefeller

Standard Oil Co.
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Standard Oil Co.
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New Type of Business Entities

1. Trust Horizontal Integration --gt John D.
   Rockefeller

Vertical Integration A. Gustavus
Swift--gt Meat-packing
B. Andrew Carnegie--gt U. S.
Steel
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Iron Steel Production
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New Type of Business Entities
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U. S. Corporate Mergers
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Industrial ConsolidationIron Steel Firms
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New Financial Businessman

• The Broker J. Pierpont Morgan

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Wall Street 1867 1900
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The Reorganization of Work
Frederick W. Taylor The Principles of Scientific
Management (1911)
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The Reorganization of Work
The Assembly Line
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Wealth Concentration Held by Top 1 of Households
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of Billionaires in 1900
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of Billionaires in 1918
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The Protectors of Our Industries
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The Bosses of the Senate
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The Robber Barons of the Past
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The Gospel of WealthReligion in the Era of
Industrialization

• Wealth no longer looked upon as bad.
• Viewed as a sign of Gods approval.
• Christian duty to accumulate wealth.
• Should not help the poor.

Russell H. Conwell
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On Wealth

• The Anglo-Saxon race is superior.
• Gospel of Wealth (1889).
• Inequality is inevitable and good.
• Wealthy should act as trustees for their
  poorer brethren.

Andrew Carnegie
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Worlds Industrial Output
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R/R hurt small western farmers

• The Grange (1887)- Oliver H. Kelley
• Social cultural function
• Political- state legislatures- Granger Laws
• Munn v. IL. (1887)
• Interstate Commerce Act (1887)
• Interstate Commerce Commission

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Americans reactSocial Labor Party

• Laurence Gronlund
• The Cooperative Commonwealth
• Daniel DeLeon
• The People newspaper

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Americans reactAuthors present radical new views

• Henry George
• Progress and Poverty
• Problems of the unequal distribution of wealth,
  advocated a single tax
• Edward Bellamy
• Looking Backward, 2000-1887
• utopia socialist America with planned economy
  
• Henry Damarest Lloyd
• Wealth Against Commonwealth
• Attacked Standard Oil, Social Darwinism,
  Laissez-Faire

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Regulating the Trusts

• 1877 --gt Munn. v. IL
• 1886 --gt Wabash, St. Louis Pacific RR
  Co. v. IL
• 1890 --gt Sherman Antitrust Act in restraint
  of trade rule of reason loophole
• 1895 --gt US v. E. C. Knight Co.