Industrial EmpiresIndustrial Empires

Steel and Oil IndustrySteel and Oil Industry

The Steel IndustryThe Steel Industry

Technological breakthroughTechnological breakthrough– Discovery of the new process for making large Discovery of the new process for making large

quantities of steelquantities of steel– Bessemer Process – blasting air through molten Bessemer Process – blasting air through molten

iron produced high quality steel.iron produced high quality steel.– Great Lakes Region emerged as the leading Great Lakes Region emerged as the leading

steel producer because of abundance of coal steel producer because of abundance of coal and access to iron ore of Minnesota’s Mesabir and access to iron ore of Minnesota’s Mesabir RangeRange

Andrew CarnegieAndrew Carnegie

Worked his way up from a Worked his way up from a poor Scottish immigrantpoor Scottish immigrant

Started steel manufacturing Started steel manufacturing in Pittsburgh and through in Pittsburgh and through the use of the latest the use of the latest technology he surpassed technology he surpassed competitorscompetitors

Business strategy – Vertical Business strategy – Vertical IntegrationIntegration– Control every stage of the Control every stage of the

industrial process from industrial process from mining the raw materials to mining the raw materials to transporting the finished transporting the finished productproduct

                           

Scientific Management - Scientific Management - TaylorismTaylorism

Frederick Winslow Taylor Frederick Winslow Taylor formulated efficiency formulated efficiency – Insisted that managers Insisted that managers

investigate and observe investigate and observe with a stopwatch in hand with a stopwatch in hand every aspect of a workers every aspect of a workers performanceperformance

– Analyze the motionsAnalyze the motions

– Eliminate false movements Eliminate false movements or slow movementsor slow movements

– Collect the best and Collect the best and quickest movements and quickest movements and create new methodcreate new method

U.S. Steel CorporationU.S. Steel Corporation

Out produced all the steel mills combined in Out produced all the steel mills combined in BritainBritain

Sold to J.P. Morgan for $400 million Sold to J.P. Morgan for $400 million – Carnegie devoted himself to philanthropyCarnegie devoted himself to philanthropy

» Giving his money to organization that would benefit Giving his money to organization that would benefit society – established museums and librariessociety – established museums and libraries

The Oil IndustryThe Oil Industry

First oil well drilled by Edwin Drake in First oil well drilled by Edwin Drake in 1859 in Pennsylvania 1859 in Pennsylvania

Four years later John D. Rockefeller Four years later John D. Rockefeller founded a company that would control most founded a company that would control most of the nation’s oil refineries by eliminating of the nation’s oil refineries by eliminating it competitionit competition

John D. RockefellerJohn D. Rockefeller

Built his first refinery Built his first refinery outside of Cleveland outside of Cleveland OhioOhio

Used the latest Used the latest technology and technology and efficient practicesefficient practices

He forced rival He forced rival companies to sell by companies to sell by offering lower pricesoffering lower prices

Standard OilStandard Oil

By 1881 controlled 90% of oil refinery businessBy 1881 controlled 90% of oil refinery business Horizontal Integration –Horizontal Integration –

– Technique used by RockefellerTechnique used by Rockefeller

– An act of joining or consolidating with one competitors An act of joining or consolidating with one competitors to create a monopoly- responsible for all his wealthto create a monopoly- responsible for all his wealth

Created Standard Oil Trust in 1881Created Standard Oil Trust in 1881– Purpose of the a trust to eliminate competition –One Purpose of the a trust to eliminate competition –One

powerful company would have control of the stocks of powerful company would have control of the stocks of many smaller companies in the same line of business, many smaller companies in the same line of business, creating a monopolycreating a monopoly

Captains of Industry or Robber Captains of Industry or Robber Barons?Barons?

Were Rockefeller and Carnegie ingenious Were Rockefeller and Carnegie ingenious and industrious leaders who transformed the and industrious leaders who transformed the American economy with their business American economy with their business skills?skills?

Or were they cruel and ruthless Or were they cruel and ruthless businessmen who would stop at nothing to businessmen who would stop at nothing to achieve great wealth?achieve great wealth?

Laissez-Faire CapitalismLaissez-Faire Capitalism

Adam SmithAdam Smith

Economist – Author of “Wealth of Nations”Economist – Author of “Wealth of Nations” Argued that business should be regulated, Argued that business should be regulated,

not by government, but the law of supply not by government, but the law of supply and demandand demand

1919thth Century Business Century Business

American Industrialists used laissez faire to American Industrialists used laissez faire to justify their methods of doing businessjustify their methods of doing business

Rise of monopolistic trusts in the 1880s Rise of monopolistic trusts in the 1880s undercut the competition for natural undercut the competition for natural regulationregulation

Social DarwinismSocial Darwinism

Charles Darwin’s theory of natural selection Charles Darwin’s theory of natural selection in biology applied to the economistsin biology applied to the economists

Herbert Spencer brought the theory to the Herbert Spencer brought the theory to the market place and stated that the market place and stated that the concentration of wealth in the hands of the concentration of wealth in the hands of the “fit” was a benefit to the future of the “fit” was a benefit to the future of the human racehuman race

Gospel of WealthGospel of Wealth

Religion justified the successful industrialistsReligion justified the successful industrialists Applied the Protestant work ethic (hard work and Applied the Protestant work ethic (hard work and

material success are signs of God’s favor)material success are signs of God’s favor) Andrew Carnegie argued in “Wealth” that the Andrew Carnegie argued in “Wealth” that the

wealthy had a God given responsibility to carry wealthy had a God given responsibility to carry out philanthropyout philanthropy– Carnegie distributed over $350 million to support the Carnegie distributed over $350 million to support the

buildings of libraries, museums, and various public buildings of libraries, museums, and various public institutionsinstitutions

Technology and InventionsTechnology and Inventions

InventionsInventions– Telegraph – Samuel Morse – electronic communicationTelegraph – Samuel Morse – electronic communication– Transatlantic cable – Cyrus W. Field- possible to send Transatlantic cable – Cyrus W. Field- possible to send

messages across the seamessages across the sea– Telephone- Alexander Graham Bell – communication Telephone- Alexander Graham Bell – communication

among householdsamong households– Typewriter, cash register, calculating machine – Typewriter, cash register, calculating machine –

benefited businessbenefited business– Consumer Goods – Kodak camera – George Eastman; Consumer Goods – Kodak camera – George Eastman;

fountain pen – Lewis Waterman; Gillette’s razor and fountain pen – Lewis Waterman; Gillette’s razor and bladeblade

Thomas Edison Thomas Edison

Edison – established Edison – established the world’s first the world’s first research laboratoryresearch laboratory– Introduced the concept Introduced the concept

of mechanics and of mechanics and engineers working as a engineers working as a team on a projectteam on a project

– Thousands of patentsThousands of patents» Phonograph, electric Phonograph, electric

light bulb, generator, light bulb, generator, mimeograph machine, mimeograph machine, motion picture cameramotion picture camera

George WestinghouseGeorge Westinghouse

held more than 400 held more than 400 patentspatents

Developed an air brake for Developed an air brake for railroads – improved railroads – improved safetysafety

Transformer for producing Transformer for producing high voltage alternating high voltage alternating current- made it possible current- made it possible for lighting of cities and for lighting of cities and operation of electric operation of electric streetcars, subways, and streetcars, subways, and electric machineryelectric machinery

Marketing Consumer GoodsMarketing Consumer Goods Advertising and Marketing promoted a consumer Advertising and Marketing promoted a consumer

economy and a consumer culture – “going economy and a consumer culture – “going shopping” became a favorite pass timeshopping” became a favorite pass time

Packaged Foods – Kellogg and Post became a Packaged Foods – Kellogg and Post became a common item in Kitchen pantries in American common item in Kitchen pantries in American homeshomes

Department StoresDepartment Stores– Macy’s and Marshall Fields upscale department storeMacy’s and Marshall Fields upscale department store

– Woolworth’s Five and Dime “chain store” nation wideWoolworth’s Five and Dime “chain store” nation wide

– Mail order companies: Sears and Montgomery Wards – Mail order companies: Sears and Montgomery Wards – shipped products to rural customersshipped products to rural customers

» Catalogs were known as wish booksCatalogs were known as wish books

Impact of IndustrializationImpact of Industrialization

Concentration of WealthConcentration of Wealth

By 1890’s the richest 10% of the population By 1890’s the richest 10% of the population controlled 9/10’s of the nation’s wealthcontrolled 9/10’s of the nation’s wealth

Industrialization created a new class of Industrialization created a new class of millionaires who flaunted their wealthmillionaires who flaunted their wealth

Horatio Alger mythHoratio Alger myth– Writer of novels about young men who became Writer of novels about young men who became

rich and successful by hard work and little luckrich and successful by hard work and little luck– Reality- rags to riches like Carnegie were Reality- rags to riches like Carnegie were

unusualunusual

Expanding Middle ClassExpanding Middle Class

Industrialization expanded the middle class Industrialization expanded the middle class by creating white collar jobs – managementby creating white collar jobs – management

Middle class employees increased the Middle class employees increased the demand for services from other middle demand for services from other middle class workers: doctors, lawyers, and class workers: doctors, lawyers, and storekeepers.storekeepers.

Wage EarnerWage Earner By 1900 2/3 of Americans worked for By 1900 2/3 of Americans worked for

wages that required 10 hour days and six wages that required 10 hour days and six days a weekdays a week

Wages were determined by supply and Wages were determined by supply and demanddemand

Most wage earners could not support a Most wage earners could not support a family on one incomefamily on one income

In 1890, 11 million of the 12.5 million In 1890, 11 million of the 12.5 million families averaged less than $380 a year of families averaged less than $380 a year of incomeincome

Working WomenWorking Women

Factory work for women was often Factory work for women was often restricted to what was considered extension restricted to what was considered extension of the home: garment and food processing of the home: garment and food processing industriesindustries

As demand for clerical workers increased As demand for clerical workers increased women moved into those jobs which women moved into those jobs which become “feminized”– lost status and become “feminized”– lost status and received lower wagesreceived lower wages

Labor DiscontentLabor Discontent

Before the Civil War workers enjoyed a personal Before the Civil War workers enjoyed a personal relaxed workplace that valued and artisan’s skillsrelaxed workplace that valued and artisan’s skills

Factory work was radically different – repetitive Factory work was radically different – repetitive and monotonous; had to learn to work under the and monotonous; had to learn to work under the tyranny of the clocktyranny of the clock

Many jobs were dangerous and workers were Many jobs were dangerous and workers were exposed to chemicals and pollutantsexposed to chemicals and pollutants

Absenteeism and quitting was the common form Absenteeism and quitting was the common form of protestof protest

Eugene V. DebsEugene V. Debs

Debs believed in a more Debs believed in a more confrontational approach.confrontational approach.

He organized, in 1893, He organized, in 1893, one of the first industrial one of the first industrial unions – American unions – American Railway UnionRailway Union

The Union successfully The Union successfully struck the 1894, winning struck the 1894, winning most of its demands most of its demands

1895 he is jailed for his 1895 he is jailed for his role in the Pullman Strikerole in the Pullman Strike

Struggle of Organized LaborStruggle of Organized Labor

Violent labor conflictsViolent labor conflicts Great Railroad Strike Great Railroad Strike

of 1877of 1877 Haymarket BombingHaymarket Bombing Homestead strikeHomestead strike Pullman StrikePullman Strike

Labor UnionsLabor Unions National Labor UnionNational Labor Union

– First attempt to organize all First attempt to organize all workers skilled and unskilledworkers skilled and unskilled

– Chief victory won 8 hour Chief victory won 8 hour work day for government work day for government workersworkers

Knights of LaborKnights of Labor– Favored settling disputes by Favored settling disputes by

arbitration rather than strikesarbitration rather than strikes American Federation of American Federation of

LaborLabor– Went after higher wages and Went after higher wages and

improved working conditions improved working conditions led by Samuel Gompersled by Samuel Gompers

Samuel Gompers

Growth of Cities and American Growth of Cities and American CultureCulture

““New” ImmigrantsNew” Immigrants

Eastern and Southern Eastern and Southern EuropeEurope– Italians, Slavs, Greeks, Italians, Slavs, Greeks,

Poles and RussiansPoles and Russians

Pull FactorsPull Factors– Political and religious Political and religious

freedomfreedom

– Economic opportunitiesEconomic opportunities

Push FactorsPush Factors– Joblessness, religious Joblessness, religious

persecutionpersecution

Italian Immigrant

Russian Jewish Family

UrbanizationUrbanization

Urbanization and Urbanization and Industrialization Industrialization developed developed simultaneouslysimultaneously

Cities provided a labor Cities provided a labor force and a market force and a market place of goodsplace of goods

City population – City population – immigrants and ex-immigrants and ex-farmersfarmers

Chicago

Manhattan

Changes in the CityChanges in the City

Ethnic neighborhoodsEthnic neighborhoods– Chinatown, Little ItalyChinatown, Little Italy

» Maintain language, culture Maintain language, culture and religionand religion

Skyscrapers – expansion Skyscrapers – expansion upwardupward– Replaced the church spirals Replaced the church spirals

as dominant feature of as dominant feature of skylinesskylines

Streetcars-exodus of Streetcars-exodus of higher income workershigher income workers– Effect – segregation by Effect – segregation by

incomeincome

Private vs. Public CityPrivate vs. Public City

At first residents of cities did not expect At first residents of cities did not expect public services as a result cities did not deal public services as a result cities did not deal with build up waste, pollution, disease, and with build up waste, pollution, disease, and crimecrime

Advocates pushed for services: water Advocates pushed for services: water purification, sewage systems, street purification, sewage systems, street lighting, police departments, and waste lighting, police departments, and waste disposaldisposal

Factors Promoting Suburban Factors Promoting Suburban GrowthGrowth

Abundant land at low costAbundant land at low cost Inexpensive transportationInexpensive transportation Low cost construction homesLow cost construction homes Ethnic and racial prejudiceEthnic and racial prejudice American fondness for privacy and American fondness for privacy and

detached individual housesdetached individual houses

Boss and Machine PoliticsBoss and Machine Politics

Political parties in major Political parties in major cities came under control of cities came under control of organized groups of organized groups of politicians, known as politicians, known as political machinespolitical machines

Each machine had a “boss”- Each machine had a “boss”- top politician who gave top politician who gave orders to the rank and file orders to the rank and file and doled out government and doled out government jobs to supportersjobs to supporters

Political Machines could be Political Machines could be greedy as well generous – greedy as well generous – stole millions from the stole millions from the taxpayerstaxpayers Boss Tweed portrayed as

a vulture

Settlement HousesSettlement Houses

Concerned about the lives Concerned about the lives of the poor well education of the poor well education men and women opened men and women opened settlement housessettlement houses

They were also political They were also political activists who fought for activists who fought for child labor laws and child labor laws and housing reformshousing reforms

Most famous – Hull Most famous – Hull House opened by Jane House opened by Jane AddamsAddams

Jane Addams

Hull House

Social GospelSocial Gospel

Importance of applying Christian principles Importance of applying Christian principles to social principlesto social principles

individuals could not live sin free unless the individuals could not live sin free unless the social and economic situations that had social and economic situations that had driven them into sin in the first place was driven them into sin in the first place was removed removed

Encouraged middle-class Protestants to Encouraged middle-class Protestants to attack urban problemsattack urban problems

RealismRealism

Realist Author- Mark Realist Author- Mark Twain Twain The Adventures The Adventures of Huckleberry Finn- of Huckleberry Finn- revealed greed,revealed greed, violence and racial violence and racial prejudiceprejudice

James McNeill James McNeill Whistler – “Whistler’s Whistler – “Whistler’s Mother” influenced Mother” influenced the development of the development of modern artmodern art

Architecture and MusicArchitecture and Music

Frederick Law Olmsted Frederick Law Olmsted specialized in landscape specialized in landscape architecture – designed architecture – designed Central Park and the Central Park and the grounds of the U.S. grounds of the U.S. capitolcapitol

Jazz – Jelly Roll Morton Jazz – Jelly Roll Morton introduced Jazz to the introduced Jazz to the American public – American public – combined African combined African rhythms with western rhythms with western instrumentsinstruments

AmusementsAmusements

Circus, Theaters, Wild Circus, Theaters, Wild West ShowWest Show

Factors promoting the Factors promoting the growth of leisure time growth of leisure time activitiesactivities– Reduction in hours workedReduction in hours worked

– Improved transportationImproved transportation

– AdvertisingAdvertising

– Decline of Victorian values Decline of Victorian values that discouraged” wasting” that discouraged” wasting” time on playtime on play

Spectator SportsSpectator Sports

Baseball, football, Baseball, football, basketball, and boxingbasketball, and boxing

Played and attended Played and attended by menby men

John Sullivan, heavy weight boxer, most famous athlete of the era – drew large crowds from all social classes to cheer and wager