What do you know about Hanes?
-in general
-specifically related to Winston Salem
Textile Mills in NC
What about Duke?
What about Reynolds?
And Winston?
During the Gilded Age,
Large companies
railroad construction
bought small railroads,
boomed, led by tycoons standardized gauges and
like Cornelius Vanderbilt schedules, and pooled cars
Cornelius Vanderbilt (3.47)
Railroad expansion led to a boom in the economy
Railroads connected the East, South, and West and
allowed for national trade and regional specialization
The 1st transcontinental
Eastern railroads were railroad was finished in 1869
connected to the West Railroads stimulated demand
by 4 great trunk lines
for coal, oil, iron, and steel
• Essential Question:
–What factors led to the rise of the American
Industrial Revolution from 1870 to 1900?
Industrialization led to a demand for iron and steel
Steel led to skyscrapers, longer bridges,
stronger railroads, and heavier machinery
The iron and steel industries
were dominated by
Andrew Carnegie
Carnegie converted his mills
to the Bessemer process and
made the highest quality
steel at the lowest price
Carnegie Steel Company
produced more steel than
all the steel factories in
Great Britain combined
Carnegie best represented
the American dream by
rising from poor a immigrant
to richest man in the world
Carnegie did not pay his
employees very much
and did not allow
unions in his factories…
…but he was a
philanthropist who gave
money to New York City
libraries, colleges,
and performing arts
institutions
Andrew Carnegie (2.11)
Industrialization led
The oil industry during the
to a demand for oil
Gilded Age was dominated
for lubrication and
John D. Rockefeller’s
kerosene lighting
Standard Oil Company
Rockefeller used ruthless
tactics to buy out
competing companies
Standard Oil lowered costs
and improved the quality
of its oil products
By 1879, Standard Oil sold
90% of the oil in America
John D. Rockefeller (2.51)
Rockefeller took
advantage of his
workers & used his
fortune to influence
the national gov’t…
…but Rockefeller gave
away $500 million
to charities, created
the Rockefeller
Foundation, and
founded the
University of Chicago
Industrialization led to a demand for financing so
banking became a significant part of the Gilded Age
American finance was
dominated by JP Morgan
He was so influential that
he bailed out the railroad
industry when companies
were in trouble
He helped ease an
economic depression
during the Panic of 1907
JP Morgan (3.08)
Industrialists like Vanderbilt, Carnegie, Rockefeller
changed the way businesses were organized
Businesses hired professional managers to oversee
employees, improve efficiency, and manage finances
Corporations became a more
common business structure
Holding
Board of
Company
Trustees
Company
A
Company
Company
B
Manager
Company
C
Company
Company
Company Employees
Company
Employees Company
Employees
Employees
D
E
F
G
H
Corporations
used boards
of trustees
(“trusts”) to
manage the
company…
…and holding
companies to
manage other
subsidiary
companies
Corporations used mergers to increase profits
Companies like Standard Oil used horizontal integration
to buy similar companies to reduce competition
Companies like Carnegie Steel used vertical integration
to buy companies in order to gain materials
needed to make or deliver their products
Corporate mergers  giant Because most monopolies
companies called monopolies
were run by boards of
that controlled the majority
trustees, monopolies
of an industry…
became known as “trusts”
Monopolists justified their wealth in a variety of ways
The “Gospel of Wealth”
argued that it is God's will
for some men to gain
great wealth so they
could serve the public
Social Darwinism
taught that natural
competition weeds out
the weak and allows
the strong to survive
The government used
laissez faire policies
toward big business…
…the lack of regulation
allowed businesses to
become very powerful
and exploitive
Conclusions
• America was changed by the Industrial Revolution:
– The United States led the world in industry,
innovation, and wealth
– Laissez-faire gov’t policies &new business tactics
–> Monopolies
• Monopoly= the exclusive possession or control of the supply or
trade in a commodity or service.
– But the gap between the wealthy monopolists
and their poor immigrant workers grew wider
– Economy grew by more than 400% between 1860
and 1900
Were “Robber
the industrial
capitalists
the Gilded
Barons”
of the of
Gilded
Age Age
“robber barons” or “captains of industry”?
Weigh their positive and negative effects
The Impact of the
Industrial Revolution
Working Conditions and Wages
Working Conditions and Wages
• The factory system was a major change for
workers:
Factory work became less skilled
Factory conditions were dirty, dangerous, and
unhealthy
Workers worked long hours (12-16 hr day)
Factory workers were not paid well; Women &
children were paid less than men
Owners required workers “clock in” & limited
their breaks to increase production
Conditions in the Coal Mines
Conditions in Coal Mines
• The invention of the steam engine increased
demand for coal:
Coal production grew from 5 million tons
in 1750 to 23 million tons in 1830
Men, women, children were used in mines
Mines were unhealthy & dangerous: Lung
disease, poison gas, drowning, explosions caveins were common for workers
Child Labor
• The Industrial Revolution changed the lives
of many children:
Rather than working for their parents on family
farms, many children in the cities worked in
factories, brickyards, or mines
Living in cities was expensive so poor families
needed their kids to work
Child workers earned 10% of an adult wage,
worked long hours in dangerous conditions, were
often beaten
Changing Role of Women
Changing Role of Women
• The Industrial Revolution changed the lives
of many women:
Rather than working with their husbands on
family farms and taking care of children, poor
women in cities worked in factories
Some women worked as domestic servants
Factory jobs for women required long hours
away from their children and could leave women
crippled, sick, or deformed
Women were paid ½ or ⅓ of a man’s salary
Urbanization
Urbanization
• Urbanization increased dramatically:
The increase in population and enclosure of
farms forced people to move to cities
Poor families lived in poorly constructed
apartments built by factory owners called
tenements in neighborhoods called slums
Many families shared cramped apartments that
lacked running water or sanitation
Hard factory jobs and disease led to short life
expectancies for urban workers
Changing Class Structure
Changing Class Structure
• During the Industrial Revolution, the social
class system changed as ownership of land
stopped being the most important factor:
At the top were the industrial capitalists who
gained wealth by owning factories
The middle class grew as engineers, managers,
shopkeepers
The bottom class grew because of the size of the
urban poor who worked for low wages in
factories
Stereotype of the Factory
Owner
“Upstairs”/“Downstairs” Life