Post Civil War Post Civil War IndustrializationIndustrialization

The greatest historical event in transportation occurred at Promontory, Utah, on May 10, 1869, as the Union Pacific tracksjoined those of the Central Pacific Railroad

I. US shifts from Rural to Industrial NationI. US shifts from Rural to Industrial Nation

A. Uneven by RegionA. Uneven by Region

1. South remains rural1. South remains rural

2. Northeast, Great Lakes 2. Northeast, Great Lakes region is region is

center of industrycenter of industry

B. Uneven distribution of wealthB. Uneven distribution of wealth

Brooklyn Bridge, 1883Brooklyn Bridge, 1883Symbol of America’s transition from a Symbol of America’s transition from a

rural to industrial nationrural to industrial nation

II. The Heavy IndustriesII. The Heavy Industries

A. SteelA. Steel

1. Bessemer Converter 1. Bessemer Converter revolutionizes productionrevolutionizes production

2. Stimulates other industries2. Stimulates other industries

3. Andrew Carnegie 3. Andrew Carnegie dominates dominates steel industrysteel industry

a. Scottish immigranta. Scottish immigrant

b. Vertical integrationb. Vertical integration

c. Philanthropist – c. Philanthropist – donatesdonates

$350 million to charities$350 million to charities

B.B.VVEERRTTIICCAALL

IINNTTEEGGRRAATTIIOONN

Selling PointSelling Point

Oil Trucks for Oil Trucks for DistributionDistribution

Temporary Oil Temporary Oil Storage/RefineryStorage/Refinery

Oil ships for Product Oil ships for Product DistributionDistribution

Oil WellOil Well

1. Control 1. Control of all the of all the means of means of production production from raw from raw material material to to refined/finrefined/final productal product

C. Oil 1. John D. Rockefeller dominates oil refining industry

a. Horizontal/Vertical Integrationb. Standard Oil Trust is established

Oil Field in PAOil Field in PA

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D. Horizontal Integration – Control of all Control of all products of the same typeproducts of the same type

All railroad companiesAll railroad companiesAll airlinesAll airlinesAll Oil refineries (John D. Rockefeller)All Oil refineries (John D. Rockefeller)

E. RailroadE. Railroad

1. Transportation is key element in 1. Transportation is key element in industrial productionindustrial production

2. Smaller RR companies merge into larger 2. Smaller RR companies merge into larger onesones

a. Standard gauge established (4ft 8 a. Standard gauge established (4ft 8 ½ in. ½ in. between railsbetween rails

3. Transcontinental RR completed in 18693. Transcontinental RR completed in 1869

4. Cornelius Vanderbilt dominates RR 4. Cornelius Vanderbilt dominates RR industryindustry

Transcontinental RRTranscontinental RR

III. Banking and Financial Institutions ExpandIII. Banking and Financial Institutions Expand

A. Money provided to finance massive A. Money provided to finance massive growthgrowth

B. Money also used by industrialists to B. Money also used by industrialists to influence politicians (corruption, bribes)influence politicians (corruption, bribes)

IV. Important beliefs (philosophies) of the IV. Important beliefs (philosophies) of the IndustrialistsIndustrialists

A. A. Laissez-FaireLaissez-Faire – Govt. should stay out – Govt. should stay out of business affairs & let them make of business affairs & let them make moneymoney

B. B. Social Darwinism Social Darwinism – Individuals or – Individuals or groups achieve advantage over others groups achieve advantage over others as the result of genetic or biological as the result of genetic or biological superiority.superiority.

C. C. Gospel of Wealth Gospel of Wealth – Give away much – Give away much of your wealth to worthy causesof your wealth to worthy causes

B. Holding CompaniesB. Holding CompaniesControl voting stock Control voting stock of many corporationsof many corporations

control patents of control patents of many industriesmany industries

purchasing property purchasing property of competitionof competition

standard oil most standard oil most powerful of all powerful of all corporationscorporations

C. No Government C. No Government ControlControlno laws against no laws against monopoliesmonopolies

no control of money in no control of money in circulationcirculation

no control of interest no control of interest ratesrates

II. The Growth of II. The Growth of Key IndustriesKey Industries

A. PetroleumA. PetroleumFirst well drilled in First well drilled in Titusville Titusville PennsylvaniaPennsylvania

1870 Rockefeller 1870 Rockefeller forms Standard Oilforms Standard Oil

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He undersold his He undersold his competitorscompetitors

Forced them out, then Forced them out, then raised pricesraised prices

Built horizontal & Built horizontal & vertical trustsvertical trusts

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CCAARRNNEEGGIIEE

Andrew CarnegieAndrew Carnegie

Andrew Carnegie was born in Andrew Carnegie was born in Scotland in 1835. When he was 1 Scotland in 1835. When he was 1 3 his family moved to the U.S. 3 his family moved to the U.S. and settled in Pittsburg. Carnegie and settled in Pittsburg. Carnegie learned the telegrapher’s trade learned the telegrapher’s trade and helped build railroads during and helped build railroads during the Civil War. After the war he the Civil War. After the war he built a railroad sleeping car built a railroad sleeping car business and began his business and began his phenomenal rise to power. phenomenal rise to power.

Andrew Carnegie Cont’d.Andrew Carnegie Cont’d.

He began to invest in steel and He began to invest in steel and became known as the “Steel became known as the “Steel King.” By 1901 he was one of the King.” By 1901 he was one of the richest men in America and sold richest men in America and sold his United States Steel for over his United States Steel for over 300 million dollars. Carnegie then 300 million dollars. Carnegie then began to give his money away. He began to give his money away. He est’d the Carnegie Institute in est’d the Carnegie Institute in Pittsburg and gave large sums of Pittsburg and gave large sums of money to establish free libraries money to establish free libraries in many cities of the U.S. and in many cities of the U.S. and other countries as wellother countries as well

B. SteelB. SteelGrew rapidly after Civil Grew rapidly after Civil WarWar

Bessemer Method Bessemer Method removes impuritiesremoves impurities

Hewitt invents Open Hewitt invents Open Hearth methodHearth method

Carnegie Carnegie monopolized industrymonopolized industry

Bessemer ConverterBessemer Converter

Got rebates and lower Got rebates and lower rates from Railroadsrates from Railroads

Was able to undersell Was able to undersell competitorscompetitors

Bought bankrupt Bought bankrupt competitorscompetitors

Carnegie sold US Steel Carnegie sold US Steel for $450 Millionfor $450 Million

Wealth Breakdown-in Wealth Breakdown-in billions of dollarsbillions of dollars

0 50 100 150 200Rock

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GatesM

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Mr. Mladinich

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Carnegie

Rockefeller

C. Meat PackingC. Meat PackingBusiness begins to Business begins to move to Midwestmove to Midwest

Railroads became Railroads became centered in Midwestcentered in Midwest

Armour develops first Armour develops first chill roomchill room

Swift invents Swift invents refrigerator carrefrigerator car

Prices of beef cut in Prices of beef cut in halfhalf

D. Growth Requires D. Growth Requires TechnologyTechnologyElectricity provides Electricity provides power and lightpower and light

Telephone provides Telephone provides communicationcommunication

The Labor The Labor MovementMovement

I. Working conditions I. Working conditions after the Civil Warafter the Civil Warworkers mostly workers mostly unskilledunskilled

low wages-$400/year low wages-$400/year ($600 needed to ($600 needed to survive)survive)

long hours-avg. work long hours-avg. work week 72 hoursweek 72 hours

poor working poor working conditions-high conditions-high accident rateaccident rate

competition-family competition-family man replaced by kidsman replaced by kids

II. Early Attempts to II. Early Attempts to Organize LaborOrganize Labor

A. National Labor Union A. National Labor Union 186618661. Association of Craft 1. Association of Craft Union’s 600,000 membersUnion’s 600,000 members

2. Sought reform laws but 2. Sought reform laws but failed in 1873failed in 1873

B. Knights of Labor 1869 B. Knights of Labor 1869 Terence V. PowderlyTerence V. Powderly1. Sought 8 hr day, 1. Sought 8 hr day, graduated income taxgraduated income tax

2. Blamed for violence 2. Blamed for violence by public and failedby public and failed

III. The Molly MaguiresIII. The Molly MaguiresA. Formed in coal A. Formed in coal mining regions of mining regions of PennsylvaniaPennsylvania

B. Secret fraternity of B. Secret fraternity of Irish immigrantsIrish immigrants

C. Used terror and C. Used terror and murder for economic murder for economic justicejustice

D. 1877 end came D. 1877 end came when leaders were when leaders were imprisoned imprisoned

IV. Railroad Strike of IV. Railroad Strike of 18771877A. Workers suffer pay A. Workers suffer pay cuts and blacklisting cuts and blacklisting

C. Widespread rioting-C. Widespread rioting-Federal troops called outFederal troops called out

D. 100’s die and public D. 100’s die and public sees unjust conditionssees unjust conditions

““Yellow Dog” contracts Yellow Dog” contracts forced on workersforced on workers

V. American Federation V. American Federation of Labor (AF of L)of Labor (AF of L)

A. Founded by Samuel A. Founded by Samuel Gompers in 1881Gompers in 1881

B. Objectives: 8 hr day, B. Objectives: 8 hr day, 6 day week, job tenure, 6 day week, job tenure, no child labor, collective no child labor, collective bargaining, closed shopbargaining, closed shop

C. Used strike and C. Used strike and boycott-most successful boycott-most successful unionunion

VII. The Homestead VII. The Homestead Strike 1892Strike 1892

A. Frick (Carnegie Steel) A. Frick (Carnegie Steel) vs Iron & Steel Workersvs Iron & Steel Workers

B. Workers hold out for 5 B. Workers hold out for 5 monthsmonths

C. Pinkerton detectives C. Pinkerton detectives hired to protect scabshired to protect scabs

Nat’l guard called out Nat’l guard called out when Frick is nearly when Frick is nearly assassinatedassassinated

VIII. Pullman Strike VIII. Pullman Strike 18941894

A. Workers strike when A. Workers strike when pay is drastically cutpay is drastically cut

B. Debs orders railroad B. Debs orders railroad unions to join strikeunions to join strike

C. RR’s shut down C. RR’s shut down from Chicago to from Chicago to Pacific CoastPacific Coast

D. Pres. Cleveland D. Pres. Cleveland orders Fed troops to orders Fed troops to scene.scene.

E. Debs sent to E. Debs sent to prison-American prison-American Railway union diesRailway union dies

IX. Federal Justice IX. Federal Justice Department used Department used against laboragainst labor

A. The injunction-Order A. The injunction-Order to Union Not to striketo Union Not to strike

B. Sherman Anti Trust Act B. Sherman Anti Trust Act 1890 - used against 1890 - used against unions found to be in unions found to be in restraint of traderestraint of trade

C. The Constitution-C. The Constitution-interstate commerce interstate commerce clause used to strike down clause used to strike down prohibition of child laborprohibition of child labor