THE RISE & DEVELOPMENT OF THE RISE & DEVELOPMENT OF AMERICAN INDUSTRY IN THE LATE 19AMERICAN INDUSTRY IN THE LATE 19THTH

CENTURYCENTURY

OBJECTIVE: WHAT FACTORS LED TO THE GROWTH OBJECTIVE: WHAT FACTORS LED TO THE GROWTH OF AMERICAN INDUSTRY & HOW DID GOVERNMENT OF AMERICAN INDUSTRY & HOW DID GOVERNMENT

& WORKERS RESPOND TO THIS GROWTH?& WORKERS RESPOND TO THIS GROWTH?

BIG BUSINESSBIG BUSINESS 1876 CENTENNIAL

EXHIBITION RISK TAKING & INNOVATION RESOURCES, TECHNOLOGY,

LABOR, COMPETITION, PRICE RAILROAD MOST SIGNIFICANT

TECHNOLOGICAL ADVANCE VANDERBILT, GOULD, HILL CONSOLIDATION & MODEL

FOR OTHER BUSINESSES AIR-BRAKE, REFRIGERATION COMPETITION MORGANIZATION

STEEL & ANDREW STEEL & ANDREW CARNEGIECARNEGIE

RR SPURS NEED FOR STEEL ARRIVED 1848 POOR SELLS

COMPANY FOR ½ BILLION 1890

VERTICAL INTEGRATION GOSPEL OF WEALTH –

WEALTHY ARE RESPONSIBLE TO SOCIETY – PROVIDE OPPORTUNITIES FOR OTHERS

SELLS TO J.P. MORGAN, TURNS IT INTO U.S. STEEL – 1ST BILLION DOLLAR CORPORATION

1888 PROFIT 2MILL – 1900 40 MILL PRIOR TO SALE

BLACK GOLD 1859 BLACK GOLD 1859 PENNSYLVANIAPENNSYLVANIA

JOHN D. ROCKEFELLERJOHN D. ROCKEFELLER COMPETITION WASTEFUL COMPETITION WASTEFUL

CONSOLIDATION NECESSARYCONSOLIDATION NECESSARY ENTERS INDUSTRY 1863ENTERS INDUSTRY 1863 1873 PRESIDENT STANDARD OIL 1873 PRESIDENT STANDARD OIL

(EXXON)(EXXON) HORIZONTAL INTEGRATION DUE HORIZONTAL INTEGRATION DUE

TO COMPETITIONTO COMPETITION CONTROLS 90% OF OIL CONTROLS 90% OF OIL

REFINERIES BY 1879REFINERIES BY 1879 CREATED TRUST 1879 – DUE TO CREATED TRUST 1879 – DUE TO

INTENSE COMPETITION B/W INTENSE COMPETITION B/W PRODUCERS OF GOODS & PRODUCERS OF GOODS & SERVICESSERVICES

BY 1882 VIRTUALLY ELIMINATES BY 1882 VIRTUALLY ELIMINATES COMPETITIONCOMPETITION

1900 1% OF US COMPANIES 1900 1% OF US COMPANIES OWNED MORE THAN 1/3 OF OWNED MORE THAN 1/3 OF INDUSTRIAL PRODUCTIONINDUSTRIAL PRODUCTION

REACTIONS & REFORMERS – FEW QUESTION REACTIONS & REFORMERS – FEW QUESTION UNDERLYING VALUES OF THE MIDDLE CLASSUNDERLYING VALUES OF THE MIDDLE CLASS

1891 WALT WHITMAN1891 WALT WHITMAN 1879 1879 PROGRESS & POVERTYPROGRESS & POVERTY HENRY GEORGE HENRY GEORGE 1888 1888 LOOKING BACKWARDLOOKING BACKWARD EDWARD BELLAMY EDWARD BELLAMY 1889 1889 GOSPEL OF WEALTH GOSPEL OF WEALTH ANDREW CARNEGIEANDREW CARNEGIE 1894 1894 WEALTH AGAINST COMMONWEALTHWEALTH AGAINST COMMONWEALTH HENRY D. LLOYD HENRY D. LLOYD

WERE GOVERNMENT ATTEMPTS AT WERE GOVERNMENT ATTEMPTS AT REGULATIONREGULATION

CONTRADICTORY OR SUPPORTIVE OF CONTRADICTORY OR SUPPORTIVE OF GOVERNMENT CLAIMS OF LAISSEZ FAIREGOVERNMENT CLAIMS OF LAISSEZ FAIRE??

AS CORPORATIONS RISE CALLS FOR REFORM & REGULATIONAS CORPORATIONS RISE CALLS FOR REFORM & REGULATION FEDERAL, STATE & LOCAL GOVERNMENTS STEP INFEDERAL, STATE & LOCAL GOVERNMENTS STEP IN TOP 10% OWNED 73% OF THE WEALTH IN 1890TOP 10% OWNED 73% OF THE WEALTH IN 1890 LESS THAN ½ OF THE INDUSTRIAL WORKFORCE EARNED MORE LESS THAN ½ OF THE INDUSTRIAL WORKFORCE EARNED MORE

THAN $500THAN $500 SMALL, SPECIALTY MANUFACTURING: KODAK, SINGER, EDISONSMALL, SPECIALTY MANUFACTURING: KODAK, SINGER, EDISON OVERALL STANDARD OF LIVING INCREASING FOR MOST IN U.S. OVERALL STANDARD OF LIVING INCREASING FOR MOST IN U.S.

BUT GAP BETWEEN RICH & POOR EVER EXPANDINGBUT GAP BETWEEN RICH & POOR EVER EXPANDING OLIGOPOLY – SEEMS GOVERNMENT RUN BY SMALL GROUP OF OLIGOPOLY – SEEMS GOVERNMENT RUN BY SMALL GROUP OF

INDUSTRIALISTSINDUSTRIALISTS VERY FEW QUESTION THE PROCESS BY WHICH PEOPLE ‘MAKE VERY FEW QUESTION THE PROCESS BY WHICH PEOPLE ‘MAKE

IT’ IN THE U.S. & AS A RESULT IN PRACTICE NOT MUCH WILL IT’ IN THE U.S. & AS A RESULT IN PRACTICE NOT MUCH WILL CHANGECHANGE

RAILROAD CONTROL OF ECONOMY RAILROAD CONTROL OF ECONOMY FORCES CHANGESFORCES CHANGES

THE GRANGE – FARMER & AG-THE GRANGE – FARMER & AG-RICULTURAL ORGANIZATION –RICULTURAL ORGANIZATION –OLIVER KELLEY 1867OLIVER KELLEY 1867

MUNN V. ILLINOIS – 1877 STATE MUNN V. ILLINOIS – 1877 STATE HAS RIGHT TO REGULATE RR HAS RIGHT TO REGULATE RR RATESRATES

CIVIL RIGHTS CASES - 1883CIVIL RIGHTS CASES - 1883 WABASH V. ILLINOIS 1886 – WABASH V. ILLINOIS 1886 –

REVERSES MUNN – FEDS CONTROL REVERSES MUNN – FEDS CONTROL INTERSTATE COMMERCEINTERSTATE COMMERCE

INTERSTATE COMMERCE ACT 1887INTERSTATE COMMERCE ACT 1887 I.C.COMMISSION – 1I.C.COMMISSION – 1STST FEDERAL FEDERAL

REGULATORY BOARD REGULATORY BOARD 1890 SHERMAN ANTI-TRUST ACT : 1890 SHERMAN ANTI-TRUST ACT :

RESTORE COMPETITION - RESTORE COMPETITION - LOOPHOLESLOOPHOLES

US V EC KNIGHT 1895 US V EC KNIGHT 1895 EMASCULATES SHERMAN ANTI-EMASCULATES SHERMAN ANTI-TRUSTTRUST

1414THTH AMEND CONTRIBUTES MOST AMEND CONTRIBUTES MOST TO GROWTH OF BIG BUSINESSTO GROWTH OF BIG BUSINESS

WORKERS RESPOND WITH WORKERS RESPOND WITH LABOR UNIONSLABOR UNIONS

EARLY 19EARLY 19THTH CENTURY UNIONS CENTURY UNIONS TOO RADICAL/FOREIGNTOO RADICAL/FOREIGN

AS BUSINESS GROWS IDEA OF AS BUSINESS GROWS IDEA OF UNIONS MORE ACCEPTABLEUNIONS MORE ACCEPTABLE

1866 NATIONAL LABOR UNION1866 NATIONAL LABOR UNION 1869 KNIGHTS OF LABOR – 1869 KNIGHTS OF LABOR –

STEPHENS & POWDERLYSTEPHENS & POWDERLY 1886 AMERICAN FEDERATION 1886 AMERICAN FEDERATION

OF LABOR: SAM GOMPERS – OF LABOR: SAM GOMPERS – SKILLED & WHITE MEN ONLY, SKILLED & WHITE MEN ONLY, CONCRETE ECONOMIC GAINS: CONCRETE ECONOMIC GAINS: 1.6 MILL MEMBERS 19001.6 MILL MEMBERS 1900

HARDEST TO ORGANIZE WERE HARDEST TO ORGANIZE WERE INDUSTRIES W/ LARGE # OF INDUSTRIES W/ LARGE # OF FOREIGN BORN WORKERSFOREIGN BORN WORKERS

UNIONS FIGHT BACK - STRIKESUNIONS FIGHT BACK - STRIKES WILDCAT STRIKES NOT UNION WILDCAT STRIKES NOT UNION

SANCTIONEDSANCTIONED WORKERS WANT PROTECTIONS WORKERS WANT PROTECTIONS

& OWNERS WANT PROFITS& OWNERS WANT PROFITS GREAT RAILROAD STRIKE 1877 – GREAT RAILROAD STRIKE 1877 –

WILDCAT, NATIONAL, AMERICAN WILDCAT, NATIONAL, AMERICAN RAILWAY UNION LEADER E. RAILWAY UNION LEADER E. DEBS PRES. HAYES SENDS IN DEBS PRES. HAYES SENDS IN TROOPSTROOPS

HAYMARKET STRIKE 1886 END HAYMARKET STRIKE 1886 END OF KNIGHTS OF LABOROF KNIGHTS OF LABOR

HOMESTEAD & COEUR d’ALENE HOMESTEAD & COEUR d’ALENE 1892- STEEL MILLS, PINKERTON 1892- STEEL MILLS, PINKERTON GUARDS, NATIONAL GUARD GUARDS, NATIONAL GUARD CALLED IN IDAHOCALLED IN IDAHO

PULLMAN STRIKE 1894 MOST PULLMAN STRIKE 1894 MOST SYSTEMATIC USE OF TROOPS SYSTEMATIC USE OF TROOPS

IN RE DEBS – UPHOLD USE OF IN RE DEBS – UPHOLD USE OF INJUNCTIONINJUNCTION