IndustryComesofAge

18651900

IronColtBecomesanIronHorse
Howdoestheironcoltbecomeanironhorse?
1865only35,000milesofrailways
by1900192,556miles
landwasgrantedtotworailroadcompanies
frontiervillagesclosetorailroadsbecamelargecities
townsawayfromrailroadsbecameghosttowns
SpanningtheContinentwithRails
Howwasthecontinentspannedwithrails?
thetrackswentthroughthenorthsincethesouthsecededin1862
pushedforitbcitwouldhelptheUnionstayconnectedduringwar
UnionPacificRailroadcommissionedbyCongresstopressfromOmaha,
Nebraska
got20squaremilesoflandforeverymileoftrackandgenerousloans
layingofrailsreallybeganaftercivilwarin1865
CentralPacificRailroadfromCAtonortheast
4mainfinancialbackersweretheBig4andincludedLelandStanfordandCollis
P.Huntington
alsogivenlandandmoneyforwork
railroadcompletedin1869andopenedwesttoexpansion
BindingtheCountrywithRailroadTies
Howwasthecountryboundwithrailroadties?
NorthPacificRailroadlakesuperiortopugetsound
SouthPacificRailroadNewOrleanstoSF
railroadfinishedin1893
RailroadConsolidationandMechanization
Whatwasrailroadconsolidationandmechanization?
corneliusvanderbiltmademoneyoneasternrailroads
replacedtracksofNYCentralwithsteel
newrefinementsmadetorailroadstomakethembetter
RevolutionbyRailways
Whatwastherevolutionbyrailways?
becamenation'sbiggestbusinessandconnecteditphysically
stimulatedstreamofimmigrationwithjobs
nov18,1883majorraillinesdecidedcontinentwouldbebrokenupin4times
zones
WrongdoinginRailroading
Whatwasthewrongdoinginrailroading?
JayGouldalmost30yearshemadelotsofmoneyonrailroads

stockwateringinflatingclaimsaboutlinesassetstosellthemformorethan
theyreworth
railroadkingswereverypowerfulandmanipulating
GovernmentBridlestheIronHorse
Howdidthegovernmentbridletheironhorse?
americanpeopleslowtocombateconomicinjustice
organizedagrariangroupstriedtoregulatetherailroadmonopoly
Wabash,St.Louis&PacificRailroadCompanyv.Illinois
individualstateshasnopowertoregulateinterstatecommerce
congresspassedInterstateCommerceActin1887
prohibitedrebatesandpools
requiredrailroadstopublishratesopenly
forbadediscriminationagainstshippers
outlawedchargingmoreforshorthaulthanlongone
setupInterstateCommerceCommission(ICC)
MiraclesofMechanization
Whatwerethemiraclesofmechanization?
1860fourthinmanufacturingworldthenspikedtofirstin1894
civilwarcreatedimmenseprofits
innovationsintransportationfueledgrowth
innovatorsinventedmassproducingmethods
18601890440,000patentsissued
telephoneAlexanderGrahamBellin1876
ThomasAlvaEdisonlightbulbin1879
TrustTitanEmerges
Whatwasthetrusttitan?
verticalintegrationcombiningallphasesofmanufacturingintooneorganization
horizontalintegrationallyingwithcompetitorstomonopolizegivenmarket
Rockefellerinventedtrusts
interlockingdirectoratesplacingofficersofownbankingsyndicateonvarious
boardsofdirectors
SupremacyofSteel
Whywassteelsupreme?
steelwasscarceandhardtocomebyforrailwaysandotherthings
by1900Americawasproducingasmuchsteelasbritainandgermanycombined
Bessemerprocessinventionwhichmadesteelproductioncheaper
CarnegiesandOtherSultansofSteel
Whowerethesultansofsteel?
CarnegiebroughttoAmericain1848byparentsandgotajob
gotintosteelbusinessandbeganmakinglotsofmoney
J.PierpontMorganownedawallstreetbankinghouse
MorganboughtoutCarnegieforover$400million
Carnegiegaveawayaround$350millionbeforehisdeath

 UnitedStatesSteelCorporationfirstU.S.billiondollarcorporation
RockefellerGrowsanAmericanBeautyRose
HowdidRockefellergrowanAmericanbeautyrose?

1859firstoilwellinPN
kerosenebecameamerica'sfourthmostvaluableexport
lightbulbsmadekerosenelampsobsolete
useofautomobilespikedtheuseofoil
JohnD.Rockefellersuccesfulbusinessmanatage19
1870organizedtheStandardOilCompanyofOhio
1877Rockefellercontrolled95%ofoilrefineries
GospelofWealth
Whatwasthegospelofwealth?
socialdarwinistsmislabeledHerbertSpencerandWilliamGrahamSumner
individualswonstationsinlifebycompetingonbasisofnaturaltalents
greatindustrialistssoughttoincorporateineasystates
GovernmentTacklestheTrustEvil
Howdoesthegovernmenttacklethetrustevil?
ShermanAntiTrustActof1890finallysignedintolaw
forbadecombinationsinrestraintoftrade
provedineffective
notuntil1914didtheactactuallymakeadifference
SouthintheAgeofIndustry
WhatwastheSouthlikeintheageofindustry?
until1900southstillproducedsmallpercentageofnationsmanufacturedgoods
agrecievedboostin1880sthroughtobacco
JamesBuchananDukemassproducedcigarettes
southremainedveryagricultural
supplierofrawmaterialstothenorthernindustrialarea
1880northerncapitalistsbegantoerectcottonmillsinsouth
cheaplaborwasalargeattractionofsouth
ImpactoftheNewIndustrialRevolutiononAmerica
Whatwastheimpactifthenewindustrialrevolutiononamerica?
republicbecamemorewealthy
jeffersonianidealsandolderwaysoflifewastedaway
livesbecamerevolvedaroundfactories
womenprofoundlyaffected
1/10ofpeopleowned9/10ofnationswealth
internationaltradebecameevenfaster,cheaper,andeasier
InUnionsThereIsStrength
Whywastherestrengthinunions?
notmuchvalueonworkers
employedbycorporationswhichwereimpersonal
machinesdisplacedemployees

 employershadmanywaystogetemployeestodowhattheywanted
workerssankintodebt
LaborLimpsAlong
Whydoeslaborlimpalong?
laborunionsgivenboostbycivilwar
NationalLaborUnionorganized1866
lasted6yearsw/around600,000members
ColoredNationalLaborUnionwascreated
KnightsofLaborbeganassecretsociety
TerrenceV.Powderlyhelpedwin8hourworkday
UnhorsingtheKnightsofLabor
Howweretheknightsoflaborunhorsed?
involvedinmaydaystrikein1886
HaymarketSquaremay4,1886bombthrownthatkilledmanypeople
johnp.altgeldgovernorofillinois
knightsoflaborassociatedw/anarchistsbutwerentreally
AFofLtotheFore
WhatwastheAFofLtotheFore?
AmericanFederationofLabor1886
Samuelgomperspresidenteveryyearexceptonebetween18861924
noindividuallaborerscouldjoin
gompersshunnedpoliticsforeconomicstrategiesandgoals
wantedbetterages,hours,andconditions
weatheredpanicof1893
over23,000strikesby1900
LaborDaymadeholidaybycongressin1894