The Rise of Industrial America
(1865 – 1900)
“As we view the achievements of aggregated capital, we discover
the existence of trusts, combinations and monopolies, while the
citizen is struggling far in the rear or is trampled to death beneath
an iron heel. Corporations which should be the carefully
restrained creatures of the law and servants of the people, are fast
becoming the masters of the people.”
President Grover Cleveland, 1888
What is the “American Dream”?
• James Truslow Adams, in his book The Epic of
America, which was written in 1931, stated that the
American Dream is "that dream of a land in which life
should be better and richer and fuller for everyone,
with opportunity for each according to ability or
achievement.
• Arnold Swarzenegger - To think that a once scrawny
boy from Austria could grow up to become Governor
of the State of California and stand here in Madison
Square Garden to speak on behalf of the President of
the United States that is an immigrant's dream. It is
the American dream…
• Paula Dean - I am living proof that the American
Dream still exists. It is still alive and well. There is only
one trick, you have to be willing to roll up your sleeves
and work very, very hard.
• Martin Luther King - I say to you today, my friends,
so even though we face the difficulties of today and
tomorrow, I still have a dream. It is a dream deeply
rooted in the American dream. I have a dream that
one day this nation will rise up and live out the true
meaning of its creed: "We hold these truths to be selfevident: that all men are created equal."
“Give me your tired,
your poor, Your
huddled masses
yearning to breathe
free, The wretched
refuse of your
teaming shore, Send
these, the homeless,
the tempest-tossed, to
me; I lift my lamp
beside the golden
door.”
Emma Lazarus, 1883
“From Rags to Riches”
“In this model republic, this land of the free – so
our orators call it, and why should not we? ‘Tis
refreshing to know that without pedigree A man
may still climb to the top of the tree.”
Horatio Alger
The Pursuit of
Happyness
Protect Your
Dreams
Gilded Age Mansions
Andrew Carnegie
Henry Frick
“The Biltmore Estate”, Asheville, N.C.
William Vanderbilt
Caroline Astor
“The Breakers” - Newport, Rhode Island
The “Gilded Age”
• Gilded – adj. – to be covered with a thin
layer of gold; to falsely make something
cheap and inexpensive look pretty and
valuable.
• American society was covered with a thin
layer of ultra-wealthy people who showed
off their wealth (ostentatious), but most
people struggled and suffered to survive in
very unpleasant conditions.
Following the devastation of the Civil War and the
turmoil of Reconstruction, Americans began to
DREAM of happier times. In pursuit of their
dreams, “The American Dream”, millions of people
immigrated to America and migrated westward in
search of financial success, political and religious
freedom, and the hope of a better life. Though
some people saw their dreams come true as the
United States grew into a political, industrial, and
economic giant, millions of Americans saw their
dreams shattered as they suffered at the expense
o f a few powerful people. For most, the
“American Dream” became a “Nightmare”.
Industrialization
Explain how business and industrial leaders accumulated
wealth and wielded political and economic power.
1. On what inventions did the industrial growth of
America depend?
Invention
Inventor
Importance
Bessemer Process
Henry Bessemer
Cheap method of mass
producing steel
________
Oil Drake
Edwin Drake
Steam engine to drill and pump
oil from deep in ground
Incandescent light
bulb
Thomas Edison
Replace kerosene as source of
light
Telephone
Alexander Graham
Bell
Replaced telegraph
andopened
opened
_______ and
worldwide communications
network
Skyscraper
Louis Sullivan (p.483)
Cities grew UP and OUT
Thomas Edison was the most important inventor of the Industrial Age because
he established Menlo Park where thousands of inventions were born.
Objective 5.2 – Explain how business and
industrial leaders accumulated wealth and wielded
political and economic power.
2. Who were the most prominent “Captains of
Industry” and with what industries were they
associated?
“Captain of Industry”
•John D. Rockefeller
•Andrew Carnegie
•William & Cornelius
Vanderbilt
•J.P. Morgan
Industry
Oil Refinery
Steel
Railroad
Finance / Banking
“Captains of Industry”
J.P. Morgan - Banking
Andrew Carnegie - Steel
John D. Rockefeller - Oil
Cornelius Vanderbilt - Railroad
William Vanderbilt –
Railroad
3. What methods did the “Captains of Industry” use to create
their business empires and accumulate massive wealth?
–
–
–
–
–
–
Corporations – capital intensive businesses require large sums of
$$$; stockholders pool $ together; “economies of scale”: higher
profits from mass production, lower costs, less competition
Combination / Consolidation / Integration – the combination of
smaller businesses into larger ones to reduce competition; mergers
and buy-outs
Horizontal consolidation – effort to eliminate competition by merging
companies that produce similar products; Monopolies (John D.
Rockefeller) Slide 27
Vertical consolidation – effort to cut costs by owning mines, farms,
oil wells and railroads – control raw materials and transportation
(Andrew Carnegie)
Trusts – competing companies that agree not to compete; turn stock
over to Board of Trustees who run separate companies as one
corporation
Holding Companies – Corporation that buys up stock of competing
companies until it owns majority share of all companies (J.P. Morgan
and US Steel bought out Carnegie Steel)
Horizontal and Vertical Consolidation
John D. Rockefeller monopolized
over 90% of oil refinery industry
Andrew Carnegie built a company that
was worth over $350 million when he
sold it in 1901.
Horizontal and Vertical Consolidation
4. Why did some people call big business owners “Robber Barons”?
Business owners took home huge profits while paying
their workers low wages.
Bosses of the Senate
5. How did big business owners justify their wealth?
–
–
–
Social Darwinism – extension of Charles Darwin’s
“survival of the fittest” theory of evolution; if left alone by
govt. the best businesses will survive (natural selection);
justification for laissez-faire economy.
“Gospel of Wealth” – Wealth was a sign of God’s favor,
those who had it had a Christian duty to share it; give back
to society; charity.
Philanthropy –
•
•
•
–
Andrew Carnegie gave away $350,000,000 to est. Carnegie
Foundation, libraries, colleges and universities
John D. Rockefeller gave away $500,000,000 to est. Rockefeller
Foundation, University of Chicago, medical institute
Bill Gates – Gates Foundation promotes world health research and
education
Why do they do it?
• This, then, is held to be the duty of the man of Wealth:
First, to set an example of modest, unostentatious
living, shunning display or extravagance; to provide
moderately for the legitimate wants of those
dependent upon him; and after doing so to consider all
surplus revenues which come to him simply as trust
funds, which he is called upon to administer, and
strictly bound as a matter of duty to administer in the
manner which, in his Judgment, Is best calculated to
produce the most beneficial results for the
community—the man of wealth thus becoming the
mere agent and trustee for his poorer brethren,
bringing to their service his superior wisdom,
experience, and ability to administer, doing for them
better than they would or could do for themselves. . . .
– Andrew Carnegie. "Wealth," North American Review,
CXLVIII (June. 1889). 661-662.
Slide 21
The Bessemer Process
The Wizard of Menlo Park
The Railroad Industry drives economic growth
Carnegie’s Steel Empire
Rockefeller’s Standard Oil
Carnegie Sells his Empire
Oil Drake
back
Home Insurance Building – 1885
Chicago – Louis Sullivan
back
back
Biggest Mergers in US History
GTE & Bell Atlantic
Bank of America &
NationsBank
JP Morgan Chase & Bank One
AOL & Time Warner
Proctor & Gamble and Gillette
AT&T Broadband / Comcast
• “What is the chief end (goal) of man? – to get rich! In
what way? – dishonestly if we can; honestly if we
must.”
Mark Twain, 1871
• “my country, ‘is of thee, Once land of liberty, Of thee I
sing. Land of the millionaire; Farmers with pockets
bare; Caused by the cursed snare – The Money Ring.”
Alliance Songster, 1890
• “There are many humorous things in the world, among
them the white man’s notion that he is less savage
than the other savages.”
Mark Twain
It’s all a matter of perspective!!!
5. How did big business owners justify their wealth?
–
–
–
Social Darwinism – extension of Charles Darwin’s
“survival of the fittest” theory of evolution; if left alone by
govt. the best businesses will survive (natural selection);
justification for laissez-faire economy.
“Gospel of Wealth” – Wealth was a sign of God’s favor,
those who had it had a Christian duty to share it; give back
to society; charity.
Philanthropy –
•
•
•
–
Andrew Carnegie gave away $350,000,000 to est. Carnegie
Foundation, libraries, colleges and universities
John D. Rockefeller gave away $500,000,000 to est. Rockefeller
Foundation, University of Chicago, medical institute
Bill Gates – Gates Foundation promotes world health research and
education
Why do they do it?
“This, then, is held to be the duty of the man of Wealth:
First, to set an example of modest, unostentatious
living, shunning display or extravagance; to provide
moderately for the legitimate wants of those
dependent upon him; and after doing so to consider all
surplus revenues which come to him simply as trust
funds, which he is called upon to administer, and
strictly bound as a matter of duty to administer in the
manner which, in his Judgment, is best calculated to
produce the most beneficial results for the
community—the man of wealth thus becoming the
mere agent and trustee for his poorer brethren,
bringing to their service his superior wisdom,
experience, and ability to administer, doing for them
better than they would or could do for themselves. . . .”
– Andrew Carnegie. "Wealth," North American Review,
CXLVIII (June. 1889). 661-662.
1. According to Carnegie, what is the duty of wealthy
people?
“to produce the most beneficial results for the community”
2. What is this called?
3. Who are the “poorer brethren” to whom Carnegie
refers?
4. Who might disagree with Carnegie’s philosophy?
5. What if not enough people accept Carnegie’s
philosophy?
• Factory workers, immigrants, farmers, African
Americans, women, children had to:
• Stand up for themselves…
or
• Get help from other people…
or
• get help from the government!
• PROGRESSIVES!
Assess the impact of labor
unions on industry and the lives
of workers
Essential Question – How can
people without power protect
themselves?
The Labor Movement
1. What is a labor union?
• An organization of wage earners formed to
represent the interests of its members against the
interests of business owners.
2. Why did workers begin to unionize in the 1800s?
• Skilled workers and craftsmen were replaced by
machines and unskilled workers (mechanization
and specialization)
• Most common demands: higher wages, shorter
work hours, better working conditions
• National Trades Union (1834 -1837)
3. What strategies were incorporated by labor
unions to get their demands met? What was
the most effective tactic?
– Collective bargaining – legal negotiation
between labor and management
•
•
•
Mediation – Mediator recommends solution
Arbitration – arbitrator mandates settlement (usually
favored management)
Usually ended badly for workers because mediators
and arbitrators were “influenced” by business owners
– Strike – work stoppage intended to force
employers to meet demands (most effective tactic)
4. What would business owners do to prevent or stop
strikes?
– employers often preempted strikes with Lockouts – wouldn’t
let workers return until they gave in
– Blacklists – employers shared names of pro-union workers
and refused to hire anyone on the list
– Yellow-dog contracts – workers had to agree NOT to join a
union before they got hired
– Private guards / Pinkertons were used to spy on workers
and break up union activities/meetings
– Courts almost always sided with big businesses – issued
court injunctions to end strikes order workers back to work
5.
Name the 5 most significant labor unions of the labor
movement.
–
–
–
–
–
6.
Knights of Labor – 1869 – open to all; “equal pay for equal work”
American Federation of Labor (AFL) – 1886 joined many craft unions
together; only for skilled workers; successful strikes for higher wages
and shorter workweek
Industrial Workers of the World (IWW) “Wobblies” – 1905 – unskilled
workers advocated socialism and radical tactics
American Railway Union (ARU) – 1894 – skilled AND unskilled
workers; successful strike for higher wages
International Ladies Garment Workers – 1909 – Triangle Shirtwaist
Factory fire; improved workers conditions
Who were the three leading figures in the American labor
movement of the late 19th century, and with what organization
was each associated?
–
–
–
Terence Powderly & Uriah Stephens – Knights of Labor
Samuel Gompers – AFL – led several successful strikes
Eugene V. Debs – ARU – strong supporter of Socialism; most famous
labor leader; ran for president multiple times
7. Why did most Americans fear the Socialist
views of Eugene V. Debs and the Wobblies?
• Most workers and labor unions preferred
MODERATE methods and changes to
improve conditions
• Some Socialists promoted RADICAL changes
to capitalist economic system – government
control of businesses and equal distribution of
wealth
• Socialists and Wobblies (IWW) often
advocated violent takeovers of businesses –
intentionally turned strikes into riots
8. What event most caused the general public to
turn against the labor movement? Why?
– Haymarket Square Riot – Chicago May 4, 1886
•
•
•
Protest of police brutality at McCormick Harvester plant
Bomb killed 7 police; shots fired; chaos ensued
8 convicted of “inciting riot”; 4 hung to death
As more strikes ended in violence labor movement lost public sympathy
and were perceived as lawless barbarians
Bad Working Conditions
Triangle Shirt Waist Factory Fire
Goal 5.3 - Labor Unions
GROUP POSTER ACTIVITY
Group Tasks:
– Runner – get materials for group work (listed below), use tape to hang up poster
– Designer – draw poster layout and write information on poster
– Researcher – Use textbook to find necessary information for poster (pp.453-455)
– Artist – Produce illustration(s) that depicts significant events or aspects of the strike
Required Materials:
– 1 piece chart paper
– 2 or 3 Markers
– Ruler
– Text book
– Labor Movement Strikes Chart (handout)
INSTRUCTIONS:
1. Send runner to front table to get materials for poster.
2. Research necessary information for assigned Labor Strike, and write info. on chart.
3. Create poster following example on PowerPoint slide (below).
4. Produce picture in center of poster to illustrate events of the Strike.
5. Create a Picket Sign Slogan for the strike as part of center picture.
6. Hang poster on wall/front board for display and return to seats.
7. Starting at the poster your group produced, rotate with your group clockwise from poster to
poster to complete your chart with info from other posters.
Name of Strike
DATE
PARTICIPANTS
&
PLACE
Picture
of Strike
ISSUES /
DEMANDS
ENDING
&
RESULTS
Immigration?
How many of you moved to Charlotte from
another town, state, or country?
Why?
From Where?
•
2012 Election Results
From Where?
tarantella
Evaluate the influence of immigration and
rapid industrialization on urban life.
1. This immigrant family has just stepped off
the boat at Ellis Island in 1890. Where do
you think they came from, and why do you
think they came to the United States?
Italy (southern and eastern Europe)
push – poverty, political unrest, religious
persecution pull – “land of opportunity”
2. Why did they only bring a small bundle of
luggage and the clothes on their backs?
Poor, strict limits on cargo in steerage
3. Who can they turn to for help in New York
City?
Family members, fellow countrymen,
factories, political bosses (William “Boss”
Tweed) Slide 6
Evaluate the influence of immigration and
rapid industrialization on urban life.
4. What types of jobs will be available to
them?
lowest paying – factories, maid,
shoe-shine boy, paperboy, thief
5. Where would this family likely live in
NYC? Slide 7
ethnic enclaves, slums, “ghettos”,
Tenement Houses
6. How would these immigrants likely be
treated by most Americans?
Very badly, bad jobs, mistrusted,
mistreated
NATIVISM Nativism
•
The American Party (1854)
“The Know-Nothing” Party
•
Chinese Exclusion Act (1882) –
1st immigration restrictions
•
Gentlemen’s Agreement (1907) –
Japan agreed to limit emigration of
3. Who can they turn to
for help in New
York City?
–
Family
–
Fellow countrymen
–
Factory owners
–
Political Bosses
Slide 4
5. Where would this
family likely live in
NYC?
– Ethnic enclaves
(p.469)
– Slums
– “ghettos”
– Tenement Houses
– Dumbbell
Tenements
Slide 5
1st Class passengers – The Titanic
3rd Class passengers – “Steerage”
BACK
back
Evaluate the influence of immigration and rapid
industrialization on urban life.
Europeans comprised more than 90% of the immigrants to the U.S. during the 19th
century, and even as recently as early 1960s, still accounted for more than 50%. Latin
America and Asia are now the dominant sources of immigrants to the U.S.
Evaluate the influence of immigration and
rapid industrialization on urban life.
From 1890 to 1920 the “New Immigrants”
came from southern and eastern Europe:
Russia, Italy, Austria-Hungary, Germany
back
Old Immigrants
New Immigrants
Nativism
Slide 5
Ellis Island