1865 – 1905

Union Pacific Central Pacific
Transcontinental RR
“ Horseless Carriage ”
TRANSPORTATION
Charles & Frank
Duryea
Airplanes – Wright Bros.
Kitty Hawk
Changes in Daily Life
1865 – 1905

Westinghouse
Lightbulb
Thomas Edison
ELECTRICITY
Changes in Daily Life
1865 – 1905
General
Electric
“ GE ”
Central
Power
Stations

Changes in Daily Life
1865 – 1905
Bessemer Process – a process for purifying iron that results in stronger, but lightweight steel
Refined Oil
Fuel
INVENTIONS
Patent
Exclusive rights given by the govt to develop and sell an invention
Bessemer Process
Steel

Changes in Daily Life
1865 – 1905
Typewriter COMMUNICATION
Telegraph Telephone
Samuel Morse
Alexander G. Bell
Western Union

Immigrants Provided a huge workforce that worked for low wages

Oil Kerosene & gas became huge industries

Laissez-faire—
No gov’t rules for businesses

Steel—
Bridges aided with transportation and the skyscrapers gave the cities room to grow.

Electricity—
Electric products & machines

Entrepreneurs—
Invest in new inventions and build businesses

Time Zones—
Helped set train schedules

Mass Production—
Producing a large amount of product inexpensively

Railroads—
Helped obtain raw materials faster & ship finished goods.


The Gospel of Wealth
Andrew Carnegie:

Society needs wealthy
Steel people

The wealthy have an obligation to give

Social Darwinism—survival of the fittest in business

Built the Carnegie Steel
Company after the
Bessemer refined steel making process

Philanthropist— charitable giver


Built his vast wealth through Vertical
Integration
Sold Carnegie Steel in
1901 for $500 million

Carnegie Steel = $11.4 Billion
Today
 2 nd Richest Person in the History of the World

John D. Rockefeller: Oil
Richest Man in the History of the World

Standard Oil
Company

Acquired (bought) smaller companies to eliminate competition –
Monopoly

Expanded his business through Horizontal
Integration

By 1880, the Standard
Oil Company controlled 90% of all
US petroleum-refining capacity.

Also a Philanthropist –
Donated about $550 million to charity throughout his life
$13.8 Billion adjusted to today ’ s money

George Westinghouse: Train Brakes & Electricity

Trains could pull more cars & travel faster

Developed A/C
(Alternating Current) plugs

Westinghouse Air
Brake Company built the compressed-air brake

Safety feature that became standard on
ALL RR cars

Cornelius Vanderbilt: Railroad Tycoon

Controlled all RR travel from NY and Ohio

In 1877, he owned over
4,500 miles of RR track

Bought out smaller RR companies

He was approximately
$100 million
Donated $1 Million to
Central University in
Nashville, TN, which was later named after him.

George Pullman – RR Suppliers

Pullman RR Cars

Made long distance travel more comfortable

Sleeping Cars, Dining
Cars, Luxury Cars

Pullman, Illinois – site of his company town where the cars were made

Individuals—NOT the government—own most industries

Same as laissez-faire—
NO gov’t intervention in business.

Complete control of an industry

Investors or stockholders own a company

A board of trustees runs a group of companies. This reduces competition
& limits production.
Keeps costs high.

Coal Mines
Railroads
Buy the companies that you need to make your product.
CARNEGIE
Carnegie
Carnegie Steel
Steel
Company
Iron Mines
Steamship Lines

Balentine
Oil Co.
Kane Oil Co.
Tabor Oil
Watson
Petroleum
Similar to trusts and monopolies. B usinesses buy out other companies to exclude all competition. ROCKEFELLER

Very long hours, physically demanding, very low pay
FACTORY LABOR
CHILD LABOR
For many families, children had to work so their family could survive.
Worked at simple machines, no chance for advancement
WOMEN
Life for
Factory
Workers
SWEATSHOPS
Workers are overworked, underpaid, horrible conditions. Many died of malnutrition or disease.
Being paid by how much you can produce—NOT time. The faster you work—the more you get paid!
PIECEWORK
DIVISION OF LABOR
Performing the same task over and over and over…
Rarely see the finished product.


Unions: organized to secure better pay and conditions for workers.
Collective bargaining: workers negotiate as a group.

Closed Shop: a work place where all employees must belong to a union.

Open Shop: a nonunion workplace.
(employees do not recognize a union)

Yellow dog contract: promise by employees not to join a union.


Strike: refuse to work until conditions change.


Terrence Powderly

Accepted skilled workers, unskilled workers, Af. Amer., and women.

Popular because of a successful railroad strike.

Became unpopular because of Haymarket
Riot


Samuel Gompers

ONLY accepted skilled, male workers.


1905 Union opposed to Capitalism

Socialists – believes that workers should own industries

Eugene Debs & Mary Harris Jones


Why?
Workers wanted an 8-hour workday.

What?
Police showed up at a rally
& a bomb went off killing 7 police & 1 civilian. Made people afraid of unions because they were so radical.


Why?
Wages were cut

What?
Fight broke out between workers & Pinkertons (a private police force hired by Carnegie Steel).
16 were killed.
Henry Frick, Pres. of
Homestead Steel, was shot & stabbed.

Would it seem restrictive to live in a city like this, built around the factory???

Pullman Strike (Pullman IL near Chicago)

Why?
Cut wages but did not lower rent nor prices in
“his” town

What?
Other RR workers supported the strike & refused to work. Gov’t stepped in to restore order & forced workers back to work b/c no RRs mean no mail service— strikers were breaking the law.
Eugene V. Debs , head of the
American Railway
Union, (ARU) led the workers on strike.

the year of labor unrest


Law passed in 1890 that prohibits monopolies & limits power of big business.
Is this laissez faire?

What ’ s the Difference Between
Capitalism – Socialism – Communism???

Socialism – Ownership of property and businesses is mixed between the govt and private individuals

Eugene V. Debs

The govt uses its power to attempt to manage the economy.

What ’ s the Difference Between
Capitalism – Socialism – Communism???

Communism – govt ownership of all property and businesses

Classless society— everybody is equal

Karl Marx, Friedrich
Engels, Vladimir Lenin
“ Workers of the World,
Unite! You have nothing to lose but your chains!
”

 “ Survival of the Fittest ” for businesses and people. Belief that some classes of people are superior and rule over the rest.

English Social Philosophy developed by Herbert
Spencer

Any attempts to help the poor or less capable actually slowed social progress

People who couldn
’ t survive the natural competition in society would not last, thereby making society stronger.

John D. Rockefeller - $336 Billion
You remember this list from Populism…these are the richest people in the world today.

Carlos Slim Helu, Mexico, - $69 Billion

Andrew Carnegie - $309 Billion
Bill Gates, USA - $61 Billion

Warren Buffett, USA, - $44 Billion

Bernard Arnault, France - $41 Billion

Cornelius Vanderbilt - $185 Billion
Amancio Ortega, Spain - $37.5 Billion
When you adjust the incomes into today ’ s dollars, our
Industrialists dwarf this list from last week.

“ Not evil, but good, has come to the race from the accumulation of wealth by those who have
the ability and energy that produces it.
”
Industrialist Andrew Carnegie used which one of the following terms to describe the economic philosophy in the quotation above?
A.
Socialism
B.
Bimetallism
C.
Gospel of Wealth
D.
Social Darwinism

Union Pacific
Transcontinental RR
Central Pacific
“ Horseless Carriage ”
Westinghouse
Lightbulb
Thomas Edison
General
Electric
“ GE ”
TRANSPORTATION
Airplanes – Wright Bros.
ELECTRICITY
Bessemer Process – a process for
Changes in Daily Life
Central
Power
Stations
Refined Oil
Typewriter COMMUNICATION
Telegraph Telephone
Samuel Morse
Alexander G. Bell
Western Union
Fuel
INVENTIONS
Patent
Exclusive rights given by the govt to develop and sell an invention
Bessemer Process
Steel