Industrialization
1865-1901
Events of the Indian Wars
Sand Creek Massacre
•
1864: The Army
persuaded a group of
Cheyenne to stop
raiding farms and
return to their
Colorado reservation.
•
Then army troops
attacked, killing
about 150 people,
and burned the
camp.
•
Congress condemned
the actions but did
not punish the
commander.
Battle of the Little
Bighorn
• The Sioux
responded to
government
relocation by
joining other
tribes near the
Little Bighorn
River.
• Led by Sitting
Bull, they
slaughtered
General
Armstrong
Custer’s smaller
U.S. force.
Wounded Knee
Massacre
• Army troops
captured Sitting
Bull’s followers and
took them to a
camp at Wounded
Knee Creek.
• Fighting began,
and the soldiers
slaughtered 300
Native American
men, women, and
children.
• The massacre
shocked Americans
and broke Native
American
resistance.
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Immigration: Why the United States?
 Promise of a better life
 European immigrants came to America
because of rising population.
 Chinese and Japanese immigrants
came to America because of
transcontinental railroad in the West.
Where did immigrants travel from?
 China and Japan
 Europe
 1870-1920- Italian, Irish, German
Transcontinental Railroad
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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
Promontory, Utah May 10, 1869
Who did the Railroad Impact?
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Native Americans (called it the Iron Horse)
Helped Westward expansion
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Solve problems of over population
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
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Mass transportation of goods
Dealing With Corruption
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Interstate Commerce Act of 1887 – put in
place for Govt. to supervise railroad activities
Led to more financial problems
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Railroads were forced out of business
Led to the Panic of 1893: caused by railroad
overbuilding and shaky railroad financing which set
off a series of bank failures.
 U.S. goes through a serious depression
This caused the Large Firms to start buying up
the railways, which paved the way for Big
Businesses
Essential Questions
1.
2.
3.
4.
5.
Why did many immigrants come to the U.S.?
Explain the events of the Panic of 1893.
Discuss 3 groups of people that were directly
impacted by the railroads.
Describe the Pacific Railway Act. What were
the two companies trying to construct? From
where did each company start?
Describe the Interstate Commerce Act. What
did this cause large firms to do? Why?
Industrialization Factors
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Unskilled and semi-skilled labor in abundance
New, talented entrepreneurs
Oil Wealth
Inventions
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New technology that allows mass production
Bessemer Process
Railroads
Changes in business strategy
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Vertical Integration & Horizontal Consolidation
Social Darwinism
The Power of Steel
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Bessemer Process: made it easier and
cheaper to produce steel
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Contributed most to the growth of American
industry
Improved railroad industry and led to development
of skyscrapers
Railroads: after the Civil War, many
consolidated, or merged together
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standard gauge – all the same size tracks
Steel rails would replace iron rails
New signals prevented accidents
Twin tracks allowed for simultaneous opposite
direction travel
A Problem With Time
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Different times in different places caused
problems
Towns set time according to the sun
1883, the govt. established a system of
standard time: Divided the country into four
time zones
Railroads increased western settlement
Stimulated urban growth and growth of other
industries
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Led to increased urbanization: mass movement to
the cities
Communications
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Telegraph invented by Samuel Morse (1844)
 Replaced the Pony Express
 Grew along with railroads
Telephone invented by Alexander Graham
Bell (1876)
 By 1880’s over 300,000 telephones were
used in business
 Would be early 1900’s before homes had
them (too expensive)
Essential Questions #2
1.
2.
3.
4.
5.
6.
Define Bessemer Process, laissez-faire, Social
Darwinsim, John D. Rockefeller, Andrew
Carnegie, Cornelius Vanderbilt
Describe 4 effects that steel had on railroads.
Who invented the telegraph? Explain its
significance.
Who invented the telephone? Explain its
impact on businesses and homes.
Why did railroads have a problem with time?
What did they do to solve this problem?
Define urbanization. How did the railroads
impact urbanization? Explain.
Other Inventions
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Other inventions affected other industries
Refrigerated car = meatpacking industry
Pullman Car (sleeping, dining, and passenger
railroad cars)
Westinghouse Air Brake = safer trains
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Increased passenger safety/comfort
Allowed faster and longer trains
Edison light bulb (1879) = electrical
transformers changed the lay out of cities
other inventions of the mid-1800s to 1900
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elevator, typewriter, and electric streetcars
Pullman Cars
A Pullman porter
A “Company
Town”:
Pullman, IL
Mass Marketing
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Newspapers were cheap to produce (penny press)
Advertising increased because it reached more
people
 Brand names and packaging labels promoted goods
 Occurred in magazines, newspapers, and on
billboards
 Special catalogs were distributed to rural areas
Department stores gave people choice from a
variety of items
 Offered credit, free delivery, and a marked fixed
price
 Items could be bought in bulk and inexpensive
items tempted customers to buy things they didn’t
really need.
Rise of Big Business
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Many became wealthy because of American industry
Business leaders supported laissez-faire capitalism
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No government intervention in the economy
Ideas of good work ethic, individualism and self-reliance
Led to belief economy would prosper best under competition
allowed in a free market/enterprise
Entrepreneurs believed govt regulation would reduce
individuals’ prosperity and self-reliance
Critics countered with proposals of socialism and
communism:
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Believed people who own means of production take
advantage of workers
Called for everyone in community to own property and
means of production
The Corporations
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After Civil War, business expanded and
consolidated
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Formed corporations –
Industries found sources of capital to help them
expand- 1) Banks 2) Selling stock to the people
Corporations sought ways to get ahead of
competitors
Some formed trusts: group of companies
merge their stock together to a common board
of trustees
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Trusts limit overproduction by reducing competition
which leads to monopolies: gain control of the
market for a product.
Social Darwinism
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Many business leader supported Social
Darwinism: applied “survival of the fittest” to
business
 Believed free market would determine who
would produce goods and services
 Also supported Laissez-faire economics
 Small businesses can not compete
 Would often be bought out by larger
businesses– This is how trusts and
monopolies would develop
 Eventually, a “trust buster” is needed
Essential Questions #3
1.
2.
3.
4.
5.
6.
Define Trusts and Monopolies. How can they
have a negative impact on economics?
Explain the concept of Social Darwinism.
What is laissez-faire economics? Explain the
concepts of socialism and communism.
List and Explain 3 key developments in mass
marketing.
List 4 key inventions that we discussed today,
and explain their impact on the world.
Explain how small businesses were effected
by the concept of Social Darwinism.
Industrial Giants
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Andrew Carnegie: invested money in steel
 Pioneered a new way of organization –
Vertical integration: provided the
materials and services required in his
enterprise
 All were separate industries each critical in
making steel
John D. Rockefeller: formed the Standard Oil
Company
 Believed competition was wasteful and
destructive
Andrew Carnegie
Standard Oil Co.
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Rockefeller pioneered a form of organization
called horizontal integration: purchased
other industries that all made the same type of
product… in this instance oil companies
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Allowed him to control production and prices of oil
Eventually he would turn to vertical integration as
well
By expanding vertically and horizontally,
Standard Oil gained a monopoly on the oil
industry
Vanderbilt, Westinghouse and Pullman
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All railroad giants
Gospel of Wealth
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Philanthropy: donate money for a cause.
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Carnegie believed in the Gospel of Wealth:
rich had right to earn wealth and the
responsibility to spend it properly.
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Many were philanthropists: not afraid to throw
their money around
Not everyone shared in his philosophy
Many took advantage of their wealth
J.P. Morgan: made his money in the banking
industry
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Responsible for creation of General Electric
“The Protectors of Our Industries”
Regulating the Trusts
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Sherman Anti-Trust Act: allows the
government to investigate and pursue trusts,
companies and organizations suspected of
corruption.
 First attempt to limit trusts
 Purpose is to protect competition and secure
a competitive free-market
 Serves as the basis for anti-trust legislation
today
 Named after Senator John Sherman of Ohio
The Changing American Labor Force
The Reorganization of
Work
Frederick W. Taylor
The Principles of Scientific Management (1911)
The Reorganization of
Work
The Assembly Line
Vertical and Horizontal
Integration
Standard Oil Co.
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.
“On Wealth”
$ The Anglo-Saxon race
Andrew Carnegie
is superior.
$ “Gospel of Wealth”
(1901).
$ Inequality is inevitable
and good.
$ Wealthy should act as
“trustees” for their
“poorer brethren.”
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??
The Protectors of Our
Industries
The Changing American
Labor Force
Child Labor
Child Labor
Management vs. Labor
“Tools” of
Management
 “scabs”
 Pinkertons
 lockout
 blacklisting
 yellow-dog contracts
“Tools” of
Labor
 Collective
Bargaining
 informational
picketing
 organized
strikes
A Striker Confronts a
SCAB!
Knights of Labor
Terence V. Powderly
An injury to one is the concern of all!
ù
Goals of the Knights of
Labor
Eight-hour workday.
ù Workers’ cooperatives.
ù Worker-owned factories.
ù Abolition of child and prison labor.
ù Increased circulation of greenbacks.
ù Equal pay for men and women.
ù Safety codes in the workplace.
ù Prohibition of contract foreign labor.
ù Abolition of the National Bank.
Labor Unrest: 1870-1900
The Great Railroad Strike
of 1877
Haymarket Riot (1886)
McCormick Harvesting Machine Co.
Haymarket Martyrs
The American Federation
of Labor: 1886
Samuel Gompers
How the AF of L
Would Help the Workers
ù
Catered to the skilled worker.
ù
Represented workers in matters of national
legislation.
ù
Maintained a national strike fund.
ù
Evangelized the cause of unionism.
ù
Prevented disputes among the many craft
unions.
ù
Mediated disputes between management
and labor.
ù
Pushed for closed shops.
Homestead Steel Strike
(1892)
Homestead Steel
Works
The Amalgamated
Association of
Iron & Steel Workers
A “Company
Town”:
Pullman, IL
Pullman Cars
A Pullman porter
The Pullman Strike of 1894
The Pullman Strike of 1894
Government by injunction!
The Socialists
Eugene V. Debs
International Workers of the
World (“Wobblies”)
“Big Bill” Haywood of the
IWW
 Violence was justified to
overthrow capitalism.
IWW
Mother Jones:
“The Miner’s Angel”
 Mary Harris.
 Organizer for the
United Mine
Workers.
 Founded the Social
Democratic Party
in 1898.
 One of the
founding members
of the I. W. W. in
1905.
The
“Formula”
unions + violence + strikes + socialists + immigrants =
anarchists
Labor Union Membership
The Rise & Decline of
Organized Labor
Discussion Questions
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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?