THE RISE & DEVELOPMENT OF AMERICAN
INDUSTRY IN THE LATE 19 TH CENTURY
OBJECTIVE: WHAT FACTORS LED TO THE GROWTH
OF AMERICAN INDUSTRY & HOW DID
GOVERNMENT & WORKERS RESPOND TO THIS
GROWTH?

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1876 CENTENNIAL
EXHIBITION
RISK TAKING &
INNOVATION
RESOURCES, TECHNOLOGY,
LABOR, COMPETITION,
PRICE
RAILROAD MOST
SIGNIFICANT
TECHNOLOGICAL ADVANCE
VANDERBILT, GOULD, HILL
CONSOLIDATION & MODEL
FOR OTHER BUSINESSES
AIR-BRAKE,
REFRIGERATION
COMPETITION
MORGANIZATION

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RR SPURS NEED FOR
STEEL
ARRIVED 1848 POOR
SELLS COMPANY FOR ½
BILLION 1890
VERTICAL INTEGRATION
GOSPEL OF WEALTH –
WEALTHY ARE
RESPONSIBLE TO
SOCIETY – PROVIDE
OPPORTUNITIES FOR
OTHERS
SELLS TO J.P. MORGAN,
TURNS IT INTO U.S. STEEL
– 1 ST BILLION DOLLAR
CORPORATION
1888 PROFIT 2MILL –
1900 40 MILL PRIOR TO
SALE

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JOHN D. ROCKEFELLER
COMPETITION WASTEFUL
CONSOLIDATION
NECESSARY
ENTERS INDUSTRY 1863
1873 PRESIDENT
STANDARD OIL (EXXON)
HORIZONTAL
INTEGRATION
CONTROLS 90% OF OIL
REFINERIES BY 1879
CREATED TRUST 1879
1882 VIRTUALLY
ELIMINATED
COMPETITION
1900 1% OF US
COMPANIES OWNED MORE
THAN 1/3 OF INDUSTRIAL
PRODUCTION

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REACTIONS & REFORMERS – FEW QUESTION
UNDERLYING VALUES OF THE MIDDLE CLASS
1879 WALT WHITMAN
1879 PROGRESS & POVERTY HENRY GEORGE
1888 LOOKING BACKWARD EDWARD BELLAMY
1889 GOSPEL OF WEALTH ANDREW CARNEGIE
1894 WEALTH AGAINST COMMONWEALTH HENRY D. LLOYD

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AS CORPORATIONS ROSE CALLS FOR REFORM & REGULATION
FEDERAL, STATE & LOCAL GOVERNMENTS STEP IN
TOP 10% OWNED 73% OF THE WEALTH IN 1890
>½ OF THE INDUSTRIAL WORKFORCE EARNED < $500
SMALL, SPECIALTY MANUFACTURING: KODAK, SINGER, EDISON
OVERALL STANDARD OF LIVING INCREASED FOR MOST IN U.S.
BUT GAP BETWEEN RICH & POOR EXPANDED
OLIGOPOLY –GOVERNMENT RUN BY SMALL GROUP OF
INDUSTRIALISTS
VERY FEW QUESTION THE PROCESS BY WHICH PEOPLE ‘MAKE
IT’ IN THE U.S. & AS A RESULT IN PRACTICE NOT MUCH WILL
CHANGE

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THE GRANGE AG-RICULTURAL
ORGANIZATION –OLIVER KELLEY
1867
MUNN V. ILLINOIS – 1877 STATE
HAS RIGHT TO REGULATE RR RATES
CIVIL RIGHTS CASES - 1883
WABASH V. ILLINOIS 1886
REVERSES MUNN – FEDS CONTROL
INTERSTATE COMMERCE
INTERSTATE COMMERCE ACT 1887
I.C.COMMISSION – 1 ST FEDERAL
REGULATORY BOARD
1890 SHERMAN ANTI-TRUST ACT :
RESTORE COMPETITION -
LOOPHOLES
US V EC KNIGHT 1895
EMASCULATES SHERMAN
14 TH AMEND CONTRIBUTED MOST
TO GROWTH OF BIG BUSINESS

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EARLY 19 TH C. UNIONS TOO
RADICAL/FOREIGN
AS BUSINESS GROWS
UNIONS MORE ACCEPTABLE
1866 NATIONAL LABOR
UNION
1869 KNIGHTS OF LABOR –
STEPHENS & POWDERLY
HARDEST TO ORGANIZE –
INDUSTRIES W/ FOREIGN
BORN WORKERS
1886 AMERICAN
FEDERATION OF LABOR:
SAM GOMPERS – SKILLED &
WHITE MEN ONLY,
CONCRETE ECONOMIC
GAINS MORE IMPT. THAN
POL & SOC ISSUES

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WILDCAT STRIKES
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GREAT RAILROAD STRIKE 1877 –
WILDCAT, NATIONAL, AMERICAN
RAILWAY UNION LEADER E. DEBS
PRES. HAYES SENDS IN TROOPS
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HAYMARKET STRIKE 1886 END OF
KNIGHTS OF LABOR
HOMESTEAD & COEUR d’ALENE
1892- STEEL MILLS, PINKERTON
GUARDS, NATIONAL GUARD
CALLED IN IDAHO
PULLMAN STRIKE 1894 MOST
SYSTEMATIC USE OF TROOPS
IN RE DEBS – UPHOLD USE OF
INJUNCTION
FEDERAL GOV’T INTERVENTION
BENEFITS EMPLOYERS NOT
WORKERS