Industrialization

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Industrialization
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1st Transcontinental Railroad

• 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 two railroad companies met in Promontory,
  Utah to drive the Golden Spike on May 10, 1869

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Promontory, Utah May 10, 1869
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(No Transcript)
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The Workers

• Workers were mainly Chinese and Irish immigrants
• Working conditions were poor
• Reasons
• Weather
• Rough terrain

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Railroad Developments

• Train problems
• Dirty, noisy, uncomfortable
• 1869 George Westinghouse
• Development of air brakes
• 1887 Granville Woods
• Telegraph system for train communication

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Time Zones

• Scheduling was a major concern
• Set clocks according to solar time
• Time differences from town to town created
  confusion.
• 1883 National System of Time Zones
• How many total time zones does the USA have?

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USA Time Zones

• Name all 8 time zones.

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Who did the Railroad Impact?

• Native Americans
• called it the Iron Horse
• Helped Westward expansion
• Trade much easier
• Became crucial to the U.S. economy shipping
  costs dropped drastically.
• Hurt farmers economically
• Made deals with wealthy businessmen
• Corruption

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Legislation

• Interstate Commerce Act of 1887 put in place
  for Govt to supervise railroad activities
• Led to more financial problems (railroads were
  forced out of business, which led to the Panic of
  1893)
• This caused the Large Firms to start buying up
  the railways, which paved the way for Big
  Businesses

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Industrialization Factors

• Unskilled and semi-skilled labor in abundance
• New, talented entrepreneurs
• Oil
• Inventions
• New technology that allows mass production
• Bessemer Process
• Railroads
• Changes in business strategy
• Vertical Integration Horizontal Consolidation
• Social Darwinism

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How was steel produced in mass amount???
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The Bessemer Process

• Henry Bessemer
• English businessman
• William Kelly
• Kentucky businessman
• Developed new way of making steel

Melt iron, add carbon, remove impurities
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Brooklyn Bridge

• Old way to Manhattan to Brooklyn was ferry
• Winter ferry could not run because of ice
• John Roebling
• German began building
• Dies in mid construction
• Washington Roebling completes
• Son
• Disabled by accident during construction
• Completed on May 24, 1883

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Growth of Big Business
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Robber Barons or Capitals of Industry

• Robber barons business leaders who built
  fortune from stealing from the public.
• Capitals of Industry business leaders served
  their nation in a positive way.

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Social Darwinism

• Charles Darwin survival of the fittest
• Social Darwin theory evolved
• Society should do as little as possible to
  interfere with peoples pursuit of success
• AS A RESULT
• Government did not TAX or REGULATE businesses!!!

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So what happens?
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Monopoly

• How does the game work?
• What is the goal of the game?

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Big Business Emerges!

• Monopoly
• to have complete control of a product or service.
• Cartel
• businesses who make the same product agree to
  limit supply to keep prices high.
• Trust
• separate companies placed under a single managing
  board Board of trustees

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Vertical and Horizontal Integration
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Who did this??
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Andrew Carnegie

• Scottish businessman
• Gospel of Wealth (1901).
• Inequality is inevitable and good.
• Vertical Consolidation
• Wealthy should act as trustees for their
  poorer brethren.
• 80 of fortune went to education.
• At time of death, he had given away 350 million.

Andrew Carnegie
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John D. Rockefeller

• Standard Oil Co.
• Eventually owned all oil companies in US.
• Horizontal consolidation
• 40 companies

John D. Rockefeller
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Standard Oil Co.
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The Reorganization of Work
Frederick W. Taylor The Principles of Scientific
Management (1911)
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The Reorganization of Work
The Assembly Line
Mass production
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The Changing American Labor Force
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Child Labor
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Child Labor
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Conditions

• Long hours
• Less than 1.00 per week
• Difficult, dangerous and unhealthy work
• Heavy machinery
• Could lose finger, arm or be scalped by machinery
• Dusty, cold/hot respiratory conditions
• Corporal punishment

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Child Labor today?
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Management vs. Labor
Tools of Management
Tools of Labor

• scabs
• lockout
• blacklisting

• collective Bargaining
• informational picketing
• organized strikes

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Newsies
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A Striker Confronts a SCAB!
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Knights of Labor
Terence V. Powderly
An injury to one is the concern of all!
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Goals of the Knights of Labor

• Eight-hour workday.
• Abolition of child and prison labor.
• Equal pay for men and women.
• Safety codes in the workplace.

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Labor Unrest 1870-1900
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The Great Railroad Strike of 1877
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Haymarket Riot (1886)
McCormick Harvesting Machine Co.
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Haymarket Martyrs
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The American Federation of Labor 1886
Samuel Gompers
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How the AF of L Would Help the Workers

• Catered to the skilled worker.
• Represented workers in matters of national
  legislation.
• Maintained a national strike fund.
• Evangelized the cause of unionism.
• Prevented disputes among the many craft unions.
• Mediated disputes between management and labor.
• Pushed for closed shops.

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Homestead Steel Strike
(1892)
Homestead Steel Works
The Amalgamated Association of Iron Steel
Workers
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A CompanyTown Pullman, IL
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Pullman Cars
A Pullman porter
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The Pullman Strike of 1894
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The Pullman Strike of 1894
Government by injunction!
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The Socialists
Eugene V. Debs
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International Workers of the World (Wobblies)
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Big Bill Haywood of theIWW

• Violence was justified to overthrow capitalism.

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I W W
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Labor Union Membership
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Discussion Questions

• 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?