Transcript Rise of Industry - Mission High School

Rise of Industry
(1865 – 1900)
Topics
• Immigration
• Leading industrialists:
- “Captains of Industry” or “Robber Baron”
• Working conditions and life for individual
workers
• By 1900 the United States was a major
industrial world power, but at what cost?
• Was it worth it?
Immigration Patterns
• 1840 – 1860: 4 million entered the United
States
• 1860 – 1890: 10 million entered the United
States
• 1890 – 1920: 18 million entered the United
States
“New Immigrants” from Eastern Southern
Europe and South East Asia
Immigrations Patterns
(1861 – 1890)
Growth of Cities
(1870 – 1900)
•
•
•
•
•
Boston: 123.88% increase
Chicago: 468.12% increase
Seattle: 21,326.73% increase
New Orleans: 49.98% increase
New York: 132.54% increase
Living Conditions
• Majority of immigrants lived in Tenement
housing near large factories
• Families lived under cramped conditions and
even strung clotheslines between buildings
• VERY little space between buildings
Tenement Housing
The Centennial Exhibition of 1876
(Philadelphia)
•
-
Inventions
Corliss Steam Engine
The Telephone
Portable Bathtub
Mechanical Calculator
- weighed 2,000 pounds
Root Beer
Bananas
Popcorn
Lady Liberty’s Arm and Torch
The Forgotten Presidents
•
•
•
•
•
Rutherford B. Hayes
James A. Garfield
Grover Cleveland
Benjamin Harrison
William McKinley
Election of 1880
• Winner: James Garfield
• Ohio Republican
• Could right Latin with one hand and Greek with the
other simultaneously
• Believed strongly that the North and South must tie
loose ends and become one again; not just in name
• 200 days into his term he is shot by Charles Guiteau.
• Guiteau believed he should be the King of England
• Garfield will die months later due to Gangrene
• Vice President Chester Arthur new President of the
United States
Chester Arthur
•
•
•
•
•
•
•
•
Not been a congressman
Not been a senator
Very poor resume
The American people believed he would either be a very corrupt,
easily manipulated president, or simply an ineffective one.
Arthur wanted to destroy the White House and build a new one;
Congress denied plan
However:
New plumbing
1st elevator
Brought in Louis Comfort Tiffany to give White House “style”
ALL Arthur wanted to do during his term was hunt, fish, and eat at
fancy dinners
Andrew Carnegie
(1835 – 1919)
• Rags to riches
• Emigrated to the United States from Scotland
at age 12
• Started as “bobbin boy” in textile mill for
$1.20 per week; Pennsylvania Railroad
• In 1853 Tom Scott, offered Carnegie a job as
his secretary and personal telegrapher at the
age of 17.
Andrew Carnegie
(1835 – 1919)
• In 1859, Carnegie became superintendent of the western division of Penn RR.
• Carnegie would work with the Pennsylvania RR for 12 years.
- Left company in 1865
• Reorganized two iron companies into the Union Iron Mills, and organized the
Keystone Bridge Co.
• In 1867, Carnegie merged the Pacific & Atlantic Telegraph Co.
- also went into the telegraph line construction business, and eventually sold his
telegraph holding to Western Union
• gained a monopoly of the telegraph industry.
• Invested and helped construct Eads Bridge
- 1st steel arch bridge over the Mississippi River
- It was Capt. James Eads, engineer, idea to use steel in certain high-stress elements
of the superstructure.
- completed in 1874.
Andrew Carnegie
(1835 – 1919)
• Made millions in steel
• He knew that the common denominator for much of the Industrial
expansion in America was steel
- Skyscrapers, Factories, Railroad
• In 1889 Carnegie wrote, “The Gospel of Wealth”
- explains that it is the duty of the rich to use their resources to benefit
society
• Carnegie Hall (1892)
• Carnegie Institution (1902) – for research into American colleges and
universities
• Carnegie Hero Fund Commission (1904)
• Carnegie Endowment for the Advancement of Teaching (1905)
Steel Industry
(Meadville, Pennsylvania)
Steel Industry
(Donora, Pennsylvania)
Andrew Carnegie
(Philosophy)
• “Watch the costs and the profits will take care
of themselves”
• Vertical Integration:
- control all portions of manufacturing process
from raw materials to distribution
• Known for philanthropy
- Gave away 90% of his fortune
John D. Rockefeller
( 1839 – 1937)
• Completed high school; quickly started as a bookkeeper at the age
of 16
• At the age of 18 he purchases a small partnership with Maurice
Clark; another young merchant
• Both are visited by Sam Andrews
- Tells both men to go into the oil business
- Both put in an investment of $4,000
• Andrews quickly puts Rockefeller in charge of business
• Clark’s family becomes envious and attempts to take over the
company
• Rockefeller buys them out for $72,000
- At the end of the year their business, Excelsior Oil, profits $1.2
million
John D. Rockefeller
• 1856 – Rockefeller buys out his partners and creates
Rockefeller & Andrews; Cleveland's largest oil refinery
• Formed Standard Oil in 1870; also cut costs
• Scandal and rumor of collusion amongst business owners
are everywhere; Rockefeller uses this to tell owners of
Cleveland to sell to him
- effect: He now owns all refineries in Cleveland
• Stock Market Crash of 1873
- Rockefeller uses the depression to his advantage to buy out
refineries in Pittsburg, Philadelphia, and New York
1877: Now owns 90% of oil in U.S.
John D. Rockefeller
• 1882: Standard Oil Trust is formed
- allowed Standard Oil to control refining, distribution, and marketing
for oil.
- Now with the trust, Rockefeller fully controls the entire process;
especially prices
• By 1896, electricity is beginning to replace kerosene as the source
of light
- Rockefeller will then turn to Henry Ford
• Success:
- Vertical Integration: Controlled production and transportation of oil
to markets
- Horizontal Integration: Controlled about 90% of U.S. oil refining
capacity by 1879
Thomas Edison
(1847 – 1931)
• Invented phonograph,
motion picture camera;
perfected the light bulb
• Had patens to 100 of
inventions
• Established “invention
factory” at Menlo Park,
New Jersey
- Became leading research
facility for the nation
Thomas Edison
(1847 – 1931)
• Came to symbolize inventive impulse of
Americans
• Lock yourself in a room, research, and find a
solution
J.P. Morgan
• Business man, banker
• Unlike the other industrial superpowers of the
Gilded Age, Morgan was born wealthy and
worked well with all the big Captains of
Industry
• At a young age Morgan was sent away to a
Swiss boarding school
• Later sent by his father to New York to work
with Duncan, Sherman & Company
J.P. Morgan
• Morgan’s 1st deal
- without consent from anyone Morgan buys
stock and invests in coffee beans while on a trip
to New Orleans
• Makes double the profit
• At 24, he founded his own firm; however in
1864 J.S. Morgan founds J.S. Morgan & Co.
• J.P. Morgan dissolves his firm and went to
work for his father
Costs of Industrialization
• United States became a major industrial
power by 1900
• Environmental degradation
- Earth was ripped open to mine coal, iron, etc..
• Factory life wasn’t always an improvement
over life on a farm
Management and Labor
• The majority of the times management and labors did
not get along
• “Old vs. “New” perspective
- Old: Laborers worked in small shops, took pride in their
work and worked at their own pace
- New: Large factories were the norm; tasks were
repetitive and pace was set by the “clock and whistle”
• Average work week: 55 – 66 hours
• Dangerous Conditions
- in 1889 over 2,000 railroad workers died and 20,000
were injured on the job
Skilled vs. Unskilled Wages
(mid to late 1870s)
• Bricklayer (Skilled):
- $3.00/day
• General Laborer (Unskilled):
- $1.30/day
• Southern Mill Worker (Unskilled):
- $0.84/day
Steel Workers
(Example of Difficult Working Conditions)
• Shifts: 7 days/week; 12 hours/day
• Furnaces had to be kept running
• Shift change: one day off per month
• 2 working groups
- Day and Night
• Every two weeks they would shift
U.S. Labor Force
• Child Laborers
- 1900: almost 2 million children worked for
wages
- Easy to fit into small spaces at a factory that a
normal size adult could not
- Could pay them very low wages
• Very little supervision which led to accidents
Child Labor
Child Labor
Child Labor
U.S. Labor Force
• Business owners believed that they could pay
females less than their male counterpart
• By 1890s with the invention of the telephone
and typewriter women with a high school
education could work in safer conditions
• By 1900: 17% of workforce was female
Knights of Labor
• Founded in 1869; expanded under Terrence
Powderly
• Open to ALL laborers; by 1880s over 700,000
• Goals
- Equal pay for women; end child labor, limit
Chinese immigration
• Could not be a member if labor was Chinese
• KoL saw Chinese laborers as competitors
• 8 hour work day
• Graduated Income Tax
Chinese Discrimination
Chinese Discrimination
Knights of Labor
• Lost support when the union associated
themselves with violence
• Haymarket Square Riot (May 4, 1886):
- Background: Laborers in Chicago held a General
Strike in support of an 8 hour day and strikers
fought with police
- Strike sympathizers held a rally near Chicago at
Haymarket Square
- A bomb exploded; 7 police officers were killed; 4
demonstrators were killed
America Federation of Labor
(AFL)
• Formed in 1884; Samuel Gompers was its
head
• Union of skilled (not unskilled) workers
• Goals
• 8 hour day
• Employer liability for injuries on the job
• 1.6 million members by 1904
Labor: Overall
• Origins of modern unions are set in late 1800s
• However, only about 5% of all workforce was
unionized by late 1800s
• Many employers, like Carnegie, fought to
break unions
Advertising
•
•
•
•
Advertising – New Industry
Encouraged people to buy their products
Quaker Oats; Ivory Soap got their start
Kodak: “You press the button, we do the rest”
Advertising
Advertising
Coxey’s Army
• Jacob Coxey demanded a system of
government sponsored public works to help
with unemployment
• Marched to Washington D.C.
• He and others would soon be arrested
• Worst economic depression until 1930s
• Policies needed to be CHANGED
President Grover Cleveland
• Many Americans (newspapers) targeted their
anger at President Cleveland who took a “laissezfare” or hands-off approach to resolving the
depression
• Cleveland HATED the press; considered them
lowlifes
• Laissez-fare economics: a policy or attitude of
letting things take their own course, without
interfering.
• No government control of the economy
President Grover Cleveland
• President Cleveland was the 1st Democrat to be
elected since the Civil War
• His own party controlled Congress
• Still did NOTHING
• Did not like spending money
• Vetoed pension bills, vetoed high spending bills
to provide seed for farmers in the west
• His wife, Francis Cleveland, gave birth to Ruth
Cleveland.
• “Baby Ruth” candy bar.
Election of 1888
• Grover Cleveland (Republican)
• Benjamin Harrison (Democrat)
- grandson of former President William Henry
Harrison
• Harrison won the election, but Cleveland will
win the next election
• Harrison would clock out at around noon,
sneak out, and go hunting in the backwoods
Sherman Antitrust Act
• Passed in 1890
• Named after John Sherman Senator of Ohio
"Every contract, combination in the form of trust or
otherwise, or conspiracy, in restraint of trade or
commerce among the several States, or with foreign
nations, is declared to be illegal". The Act also provides:
"Every person who shall monopolize, or attempt to
monopolize, or combine or conspire with any other
person or persons, to monopolize any part of the trade or
commerce among the several States, or with foreign
nations, shall be deemed guilty of a felony. ”
Economics: Panic of 1893
• Up to 1890s railroad industry had grown
tremendously; railroad growth then slowed
• By end of 1893: 74 railroads, 600 banks and
15,000 businesses had failed
• Unemployment was between 20 – 25%
• Cleveland has no response to the depression.
• He does not believe in government assistance
At the End of the Day
• In 1901, J.P. Morgan purchases Carnegie Steel for $480
million.
- founds U.S. Steel
• 1907-U.S. Government beings to sue Standard Oil
- direct violation of Sherman Antitrust Act
- the company restrained trade through its deals with
railroads, its control of pipelines, and by engaging in
unfair practices like price-cutting to drive smaller
competitors out of business then buying them out.
• In 1911: U.S. Supreme Court rules to dismantle Standard Oil
- split into 34 independent companies; many no longer exist
- companies today: ExxonMobil, Chevron, ConocoPhillips
At the End of the Day
• Bill Gates - $136 billion
• Warren Buffet - $63 billion
• Sam Walton - $65 billion
• Andrew Carnegie - $309 billion
• John Rockefeller - $336 billion
Conclusion
• US became an industrial power and was led by
people like Carnegie, Rockefeller and Edison
• However, it was often on the backs of
individual laborers who worked under difficult
conditions
• The nation industrialized very quickly, but was
it worth the cost?