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AP U.S. History
Unit 9.1

Industrialism in the Gilded
Age: 1865-1900

Transcontinental
Railroad Completed

1869

Edison Develops the
Light Bulb

1870

Standard Oil Trust
Formed

1879

1889

Carnegie publishes
“Gospel of Wealth”

Pullman Strike

1894

1901

U.S. Steel
Corporation formed
Theme #1: 

A

merica’s “Second Industrial
Revolution” in the Gilded Age (18651900) was spurred initially by the
transcontinental rail network, and saw
large businesses consolidate into giant
corporate trusts, as epitomized by the oil
and steel industries.
* Key to Remembering the 1st Industrial
Revolution:

T extiles
R ailroads
I ron
C oal
* Key to Remembering the 2nd Industrial
Revolution (after the Civil War):

R ailroads (transcontinental)
O

il

S teel
E lectricity
Relative Shares of World Manufacturing Output,
1750-1900
“The Whittler for the World,” 1899
LOAPUSH 23
Ste

el

Railroads
y
icit
ctr
Ele

Labor

king
Ban

Oil

Mec
of A haniza
gric tion
ultu
re
Ste

Labor
el

Railroads
y
icit
ctr
Ele

Reconstruction
Political Machines
Money Issue: 70s & 90s
Tariffs: 1880s
Populism
Progressivism

king
Ban

Oil

Mec
of A haniza
gric tion
ultu
re

“New Immigrants”
Job opportunities
Social stratification
Poverty and Crime
Social Gospel
Progressivism
I. Major ideas
A. By 1900, U.S. was most powerful
economy in the world
1. U.S. was still a debtor
2. Technological innovations
a. Steel
b. Oil
c. Electricity
d. Business technology:
telephone, typewriter, cash
register, adding machine
3. In 1880, 50% of Americans
worked in agriculture; 25% by
1920
4. Class divisions became most
pronounced in U.S. history
5. Farmers lost ground
a. 1880, 25% of farmers did not
own land
b. 90% of blacks in the South;
75% were sharecroppers
6. Depressions led to unrest: 1873
& 1893
II. Impact of the Civil War on the
Economic Expansion
A. Republican legislation
1. Pacific Railway Act (1862)
2. National Banking Act (1863)
3. Morrill Tariff (1862)
4. Homestead Act (1862)
5. Morrill Land Grant Act (1862)
B. Civil War economy
1. Mass production (e.g. muskets)
2. Capital invested after the war to
drive industrial growth
Memory Device: Republican
Civil War Economic Policies

A

Abolition of slavery

P
H istory
M akes
Me
Nauseous

Pacific Railway Act
Homestead Act
Morrill Tariff
Morrill Land Grant Act
National Banking Act
III. Railroad building
A. By 1900, U.S. had more railroad
mileage than all of Europe
combined
1. Gov’t subsidies
2. New cities
3. Growth of railroads sparked the
“2nd Industrial Revolution”
B. Pacific Railway Act, 1862
Act
1. Union Pacific Railroad
a. Land grants for each mile
of track constructed
b. Federal loans for each mile
of track laid
c. Irish workers (“paddies”)
d. Credit Mobilier
Railroad Land Grants
3. Central Pacific Railroad
a. Leland Stanford
b. Chinese workers, “coolies”
The First Continental Railroad

Central Pacific Railway
Union Pacific Railway
4. Promontory Point, Utah,
May 10, 1869
LOAPUSH 23
"The Last Spike" by Thomas Hill (1881)
LOAPUSH 23
A political
poster
criticizing
the extent
of railroad
ownership
of
California
land
5. Significance
a. Linked the entire continent via
railroad and by telegraph
       b. Paved the way for incredible
growth of the Great West.
      c. Facilitated a burgeoning trade
with the Orient
      d. Seen by Americans at the time
as a monumental achievement
along with the Declaration of
Independence and the freeing
of the slaves.
6. Other transcontinental lines
-- Great Northern Railroad:
James G. Hill
C. Railroad consolidation and
mechanization
1. Cornelius Vanderbilt
a. Steel rails
b. Near monopoly of eastern rail
traffic
c. “robber baron”
D. Significance of America’s railroad
network
1. Spurred post-Civil War
industrialization (steel)
2. Continent became connected
3. Created huge domestic market
for U.S. raw materials and
manufactured goods.
4. Creation of 3 frontiers in the
West: farming, mining, ranching
5. Movement toward cities
6. Facilitated influx of immigrants
7. Spurred investment from abroad
8. Creation of “time zones”
9. Emergence of a railroad
aristocracy
10. Indians subdued and put on
reservations
LOAPUSH 23
LOAPUSH 23
E. “Robber Barons” and railroad
corruption
1. Jay Gould
2. stock watering
3. Railroad tycoons became the most
powerful men in America
4. corrupt practices
a. pools, rebates
b. short haul, long haul
5. Cornelius Vanderbilt
Cornelius
Vanderbilt as the
Modern Colossus of
the Railroad
The sign on the right
reads: “All Freight
Moving Sea Bound
MUST Pass Here and
Pay Any Tolls WE
Demand.”
“The Senatorial
Roundhouse”
Thomas Nast
Harper’s
Weekly
1886
LOAPUSH 23
IV. Attempts to regulate railroads
A. Initially, Americans were slow to
react to the excesses of the
railroad oligarchy
1. Leery of gov’t intrusion in
business
2. Americans free enterprise
B. Supreme Court decisions
1. Depression of 1870s led
farmers to demand state laws to
regulate the railroads
2. Slaughterhouse Cases, 1873
a. Protection of labor under the
14th Amendment was a state
responsibility, not federal
b. Protected businesses from
federal regulation if they
engaged only in intrastate
commerce
3. Munn v. Illinois, 1877
a. Upheld one of the “granger
laws”
b. Declared the public has the
power to regulate business
operations in which the
public has an interest
4. Wabash case, 1886
a. Court ruled states had no
power to regulate interstate
commerce
b. In effect, overturned Munn v.
Illinois decision
-- Stimulated public demand
for Congress to regulate the
railroads
5. 1886, Court ruled that a
corporation was a “person”
under the 14th Amendment
a. It became difficult for the
federal gov’t to regulate
railroads
b. Railroad companies hid
behind the decision
C. Interstate Commerce Act (1887)
1. First large-scale legislation to
regulate corporations in the
public interest
2. Interstate Commerce
Commission (ICC)
3. Prohibited rebates and pools
and required published rates
4. Restricted short haul; long haul
5. Without strict enforcement
mechanisms, the ICC was largely
symbolic
V. Industrialism and mechanization
A. Civil war created a class of
millionaires who invested in
industrialism
B. Natural resources fed industrialism
C. New technologies
1. Patents increased significantly
2. Eli Whitney’s interchangeable
parts concept perfected
3. Typewriter, cash registers, and
stock tickers facilitated business
operations
Prototype of the
Sholes and
Glidden
typewriter, 1873,
the first
commercially
successful
typewriter, and
the first with a
QWERTY
keyboard.
4. Urbanization spurred by the
electric streetcar, electric
dynamo, and refrigerated
railroad car
5. Alexander Graham Bell:
telephone (1876)
a. Nationwide network created
within a few years
b. Job opportunity for young
(middle class) women
6. Thomas A. Edison
a. Incandescent light bulb,
phonograph, moving pictures
b. Electricity became another
cornerstone of the second
industrial revolution
• Edison Electric
Company
• Cities became lit;
electric streetcars
VI. Trusts emerge
A. Vertical integration: Andrew
Carnegie
B. Horizontal integration: John
D. Rockefeller
Vertical Integration
Horizontal Integration
C. Interlocking directorates:
J.P.
Morgan
D. 14th Amendment protection
E. Holding companies
VII. Steel industry emerges
A. Cornerstone of the 2nd Industrial
Revolution
1. Skyscrapers, railroads
2. Typified heavy industry
3. By 1900, U.S. produced more
steel than Britain and Germany
combined
B. Andrew Carnegie
1. “rags to riches” story
2. Bessemer process
3. Ultimately, produced
25% of U.S. steel
4. 1901, sold company
to J. P. Morgan for $400 million
 
The Bessemer Process
C. J. P. Morgan
1. Owned a major Wall Street
banking house
2. 1901, he reorganized the
United States Steel
Corporation
-- America’s first
billion dollar
corporation
D. Charles Schwab
VIII. Petroleum industry and other
Trusts
A. John D. Rockefeller
1. Erected his first well in PA in
1859 and launched the
petroleum industry
2. Refined petroleum: kerosene
B. Standard Oil Company, 1870
1. First trust in U.S.: Owned 95%
of U.S. oil refineries
2. Horizontal
integration
-- monopoly
LOAPUSH 23
Puck Magazine, 1904
“What a funny little government.”
1900
C. Gustavus F. Swift and Philip
Armour
-- Meat industry
D. James Buchanan Duke
1. First to utilize automated
cigarette-making machine
2. American Tobacco Co.
monopolized cigarette market
E. Andrew Mellon
1. Venture capitalist
2. Aluminum Co. of America
3. Oil and coal in early 20th century
IX. “nouveau riche” (new rich) and
the justification of wealth
A. A super rich “leisure class”
emerged during the second
industrial
revolution
B. Resented by traditional aristocracy
1. Patrician families losing ground
2. Economic liberty & community
involvement overshadowed by
monopoly and political machines
3. Some became anti-trust
crusaders
C. “Captains of Industry” provided
material progress
1. Overall standard of living in U.S.
continued to rise
2. Most goods were cheaper
3. Provided millions of jobs
D. Social Darwinism
1. Charles Darwin, Origin of the
Species (1859)
2. Herbert Spencer
a. Applied Darwin’s theory of
natural selection to human
society
b. “survival of the fittest”
3. William Graham Sumner:
“millionaires were a product of
natural selection”
E. Some argued God chose winners
and losers
1. John D. Rockefeller
2. Resembled “divine right of
kings”
3. Argued the existing hierarchy
was just and decreed by God
4. Those who stayed poor were
“lazy” or “lacked enterprise”
a. Some “new rich” had come
from modest beginnings
b. Rev. Russell Conwell: “Acres
of Diamonds” lectures
F. Andrew Carnegie: “The Gospel
of Wealth”
1. Synthesized prevailing ideas of
wealth and “survival of the
fittest”
2. Claimed the rich should donate
most of their wealth for the
public
good
a. Criticized “nouveau riche”
b. Traitor to his class?
c. Rockefeller
3. Argued against cash handouts
X. Government regulation of trusts
A. Sherman Anti-Trust Act (1890)
1. Public demand for regulation
2. Forbade combinations in
restraint of trade (monopoly)
3. Lacked enforcement mechanism
4. Ironically used by trusts
weaken labor unions
B. Interstate Commerce Act, 1887
(see above)
People’s 
Entrance
Closed

TE
 SENA
his is a
T
TS
POLIS
MONO
 
nd
of the
lists a
onopo
 M
by the
ISTS
OPOL
 MON
for the

“The Bosses of the Senate”, Joseph Keppler, Puck, Jan. 23, 1889
From right to left: Nail Trust, Steel Beam Trust, Copper Trust, Standard Oil Trust, Iron Trust, Sugar Trust, Tin Trust, Coal, 
Paper Bag Trust, Envelope Trust, Salt Trust
“The Rising of the
Usurpers”, Thomas
Nast, Harpers Weekly,
July 27, 1889
LOAPUSH 23
"Trusts--The Main
Issue"
Woman's headband
says "Liberty"
Tablet held by ape says
"Republicanism"
Arrow shot into ape
reads "Democracy" 

The Verdict, July 10, 
1899, cartoon by C. 
Gordon Moffat
XI. The “New South”
A. Changing South after the Civil War
1. Political
2. Social
3. “Redeemers”
B. Growth of southern industry
 
1. Henry Grady
2. Major challenges to southern
industrialization
3. Cotton industry further developed
a. Mill towns
b. Vertical integration
c. Gov’t incentives
4. Coal mining industry grew in
Appalachia
5. Tobacco trust
6. Iron and steel production:
Birmingham, Alabama
7. Thousands of miles of railroads built
C. Agriculture still dominant
 
1. Absentee land ownership
2. Crop-lien system/ sharecropping
D. Results of southern industrialization
1. By 1900, southern manufacturing
remained 10% of national total
-- Same as in 1860
2. Per capita income only 60% of
national average
3. Average income only 40% of average
income in the North
4. Sharecropping still dominated
southern agriculture (black and
white)
5. South still largely dependent on
North for banking resources and
manufactured goods
E. The “Lost Cause” and “Redemption”
1. Southerners remained proud of their
defiance in defense of states’ rights
during the Civil War (“War of
Northern Aggression”)
2. “Redemption” resulted in
Confederate memorials and
cemeteries commemorating the “Lost
Cause”
3. Joel Chandler Harris, Uncle Remus
(1880)
-- Nostalgic view of a glorious
antebellum South
XII. 2nd Industrial Revolution’s impact
A. Standard of living ultimately rose
B. Urbanization
C. American agriculture eclipsed by
industrialism
D. Monopolies/trusts emerged
E. Regimented impersonal work-place
F. Woman achieved more social and
economic independence
G. Social stratification
H. Foreign trade developed
I. Rise of the labor movement
Theme #2:
 

Industrialization dramatically changed

the condition of American working
people, but workers’ attempts to develop
effective labor organizations failed to
match the corporate forms of business
and their political allies.
LOAPUSH 23
THE SLAVE MARKET OF TO-DAY
"Going - going - lower - lower!"
Puck Magazine, January 2, 1882
  

 

                                                   

THE GALLEY
Dedicated to the States where Child Labor is Still Permitted.
Puck Magazine, August 4, 1909
Sign on wall reads, "Child-labor Investigators, Sentimentalists, Charity Organizations, and all 
Meddling Old Women Keep Out".
XIII. Rise of Labor
A. Working conditions for urban
industrial workers were tough
1. Low-skilled jobs made workers
expendable
2. Working conditions often dismal
3. Recourse for workers was
minimal due to the power of
industrialists
a. Strikes often broken by “scabs”
b. “yellow dog” contracts
c. Public grew tired of strikes
B. Civil War boosted labor unions
1. Drain of human resources put
more value on labor
2. Rising cost of living led to
formation of labor unions
3. Collective bargaining: workers
sought to vote for their own
representatives to negotiate on
their behalf with company
owners
C. National Labor Union (1866)
1. Sought to bring craft unions
together into one big union
2. Lasted 6 years; 600,000 workers
-- Led by William Sylvis
3. Focused on social reform, 8-hour
work day, and arbitration of labor
disputes
4. Colored National Labor Union
founded in 1869 as a branch of the
NLU
5. NLU killed by the Panic of 1873
D. Molly Maguires
1. Formed in 1875 by PA anthracite
coal workers
2. Violence
3. Owners called in Pinkertons
4. Mollies eventually destroyed
E. Great Railroad Strike (1877)
1. Railroads announced 10% pay
cut for 2nd time since 1873
2. First nation-wide strike resulted
3. President Hayes called in troops
4. Greenback Labor Party
F. Knights of Labor (1881)
1. Continued the work of the NLU
a. Led by Terence Powderly
b. Initially a secret society
2. “One big union” included skilled,
unskilled, female, &
black workers
3. Sought economic
and social reform
a. Replace the wage
system
b. 700,000 members
Top of Pole: “Tobacco, wine, 
higher wages, ham , bread”
Flags: “Knights of Labor, Pittsburgh 
Free Strikers”
Pole: “Greased”
Bucket: “Monopoly Grease”
Men sitting: Vanderbilt, Gould

Caption: First Annual Picnic of the
"Knights of Labor" - More Fun for
the Spectators than for the
Performers.

Puck Magazine, June 21, 1882
An American Autocrat.
He Ties Up Railroads
and Exposes the Public
to Inconvenience and
Danger Whenever He is
Obliged to Do
Something to Earn His
Salary.
Puck, August 20, 1890
4. Demise of Knights of Labor due
to the “Great Upheaval” and
Haymarket Square Riot (May
4, 1886)
a. Anarchists hanged or
imprisoned
b. Knights were unfairly seen as
associated with anarchy
c. Inclusion of both skilled and
unskilled workers proved fatal
Thomas Nast,
“Liberty is not
Anarchy”,
Harper’s Weekly,
Sept. 4, 1886
F. American Federation of Labor
(AFL)
1. Samuel Gompers
2. Organization
3. “Bread and butter”
issues
4. Closed shop
5. Walk out; boycott

“Eight hours for work,
eight hours for rest, eight
hours for what we will..”
AF of L
membership
between 1881 and
1911
G. Major Strikes
1. Homestead Strike, 1892
Strike
a. 20% pay cut enacted
b. Workers went on strike
and kept scabs out
c. Frick called in Pinkertons
d. Governor called in troops
e. Union and strike
were broken
f. Demonstrated a strong
employer could break a
union with gov’t support

This 1892 drawing from 
Illustrated Weekly depicts the 
labor troubles at Homestead, 
Pennsylvania, and the "Attack of 
the strikers and their 
sympathizers on the 
surrendered Pinkerton men" 
2. Pullman Strike, 1894
Strike
a. Company town in Chicago
b. Wages cut by 1/3
c. Eugene Debs, American
Railway Union
d. President Cleveland’s
response
-- Strike crushed; union broken
e. First time the federal gov’t used a
court injunctionto break a strike
Debs: 
American 
Railway 
Union

Highway of Trade

“King Debs”, 
Harper’s Weekly, 
1894
Memory Device for the Labor
Movement: 1865-1900
3 Big Unions

3 Big Strikes

National Labor Union
Knights of Labor
American Federation of Labor

Great Railroad Strike, 1877
Homestead Strike, 1892
Pullman Strike, 1894
H. By 1900 Unions had largely failed to
achieve their goals
1. Wages remained almost the same
compared to 1865
2. Work hours remained high in most
industries
3. Working conditions remained
oppressive
4. Most unions were either broken or
severely weakened by owner or
government actions (e.g. Knights
of Labor, American Railway Union)
5. American Federation of Labor was
among the few unions that
remained intact and saw modest
improvements for its workers
6. After 1900, the fortune for unions
improved

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LOAPUSH 23

  • 1. AP U.S. History Unit 9.1 Industrialism in the Gilded Age: 1865-1900 Transcontinental Railroad Completed 1869 Edison Develops the Light Bulb 1870 Standard Oil Trust Formed 1879 1889 Carnegie publishes “Gospel of Wealth” Pullman Strike 1894 1901 U.S. Steel Corporation formed
  • 2. Theme #1:  A merica’s “Second Industrial Revolution” in the Gilded Age (18651900) was spurred initially by the transcontinental rail network, and saw large businesses consolidate into giant corporate trusts, as epitomized by the oil and steel industries.
  • 3. * Key to Remembering the 1st Industrial Revolution: T extiles R ailroads I ron C oal
  • 4. * Key to Remembering the 2nd Industrial Revolution (after the Civil War): R ailroads (transcontinental) O il S teel E lectricity
  • 5. Relative Shares of World Manufacturing Output, 1750-1900
  • 6. “The Whittler for the World,” 1899
  • 9. Ste Labor el Railroads y icit ctr Ele Reconstruction Political Machines Money Issue: 70s & 90s Tariffs: 1880s Populism Progressivism king Ban Oil Mec of A haniza gric tion ultu re “New Immigrants” Job opportunities Social stratification Poverty and Crime Social Gospel Progressivism
  • 10. I. Major ideas A. By 1900, U.S. was most powerful economy in the world 1. U.S. was still a debtor 2. Technological innovations a. Steel b. Oil c. Electricity d. Business technology: telephone, typewriter, cash register, adding machine
  • 11. 3. In 1880, 50% of Americans worked in agriculture; 25% by 1920 4. Class divisions became most pronounced in U.S. history 5. Farmers lost ground a. 1880, 25% of farmers did not own land b. 90% of blacks in the South; 75% were sharecroppers 6. Depressions led to unrest: 1873 & 1893
  • 12. II. Impact of the Civil War on the Economic Expansion A. Republican legislation 1. Pacific Railway Act (1862) 2. National Banking Act (1863) 3. Morrill Tariff (1862) 4. Homestead Act (1862) 5. Morrill Land Grant Act (1862) B. Civil War economy 1. Mass production (e.g. muskets) 2. Capital invested after the war to drive industrial growth
  • 13. Memory Device: Republican Civil War Economic Policies A Abolition of slavery P H istory M akes Me Nauseous Pacific Railway Act Homestead Act Morrill Tariff Morrill Land Grant Act National Banking Act
  • 14. III. Railroad building A. By 1900, U.S. had more railroad mileage than all of Europe combined 1. Gov’t subsidies 2. New cities 3. Growth of railroads sparked the “2nd Industrial Revolution”
  • 15. B. Pacific Railway Act, 1862 Act 1. Union Pacific Railroad a. Land grants for each mile of track constructed b. Federal loans for each mile of track laid c. Irish workers (“paddies”) d. Credit Mobilier
  • 17. 3. Central Pacific Railroad a. Leland Stanford b. Chinese workers, “coolies”
  • 18. The First Continental Railroad Central Pacific Railway Union Pacific Railway
  • 19. 4. Promontory Point, Utah, May 10, 1869
  • 21. "The Last Spike" by Thomas Hill (1881)
  • 23. A political poster criticizing the extent of railroad ownership of California land
  • 24. 5. Significance a. Linked the entire continent via railroad and by telegraph        b. Paved the way for incredible growth of the Great West.       c. Facilitated a burgeoning trade with the Orient       d. Seen by Americans at the time as a monumental achievement along with the Declaration of Independence and the freeing of the slaves.
  • 25. 6. Other transcontinental lines -- Great Northern Railroad: James G. Hill
  • 26. C. Railroad consolidation and mechanization 1. Cornelius Vanderbilt a. Steel rails b. Near monopoly of eastern rail traffic c. “robber baron”
  • 27. D. Significance of America’s railroad network 1. Spurred post-Civil War industrialization (steel) 2. Continent became connected 3. Created huge domestic market for U.S. raw materials and manufactured goods. 4. Creation of 3 frontiers in the West: farming, mining, ranching 5. Movement toward cities
  • 28. 6. Facilitated influx of immigrants 7. Spurred investment from abroad 8. Creation of “time zones” 9. Emergence of a railroad aristocracy 10. Indians subdued and put on reservations
  • 31. E. “Robber Barons” and railroad corruption 1. Jay Gould 2. stock watering 3. Railroad tycoons became the most powerful men in America 4. corrupt practices a. pools, rebates b. short haul, long haul 5. Cornelius Vanderbilt
  • 32. Cornelius Vanderbilt as the Modern Colossus of the Railroad The sign on the right reads: “All Freight Moving Sea Bound MUST Pass Here and Pay Any Tolls WE Demand.”
  • 35. IV. Attempts to regulate railroads A. Initially, Americans were slow to react to the excesses of the railroad oligarchy 1. Leery of gov’t intrusion in business 2. Americans free enterprise B. Supreme Court decisions 1. Depression of 1870s led farmers to demand state laws to regulate the railroads
  • 36. 2. Slaughterhouse Cases, 1873 a. Protection of labor under the 14th Amendment was a state responsibility, not federal b. Protected businesses from federal regulation if they engaged only in intrastate commerce
  • 37. 3. Munn v. Illinois, 1877 a. Upheld one of the “granger laws” b. Declared the public has the power to regulate business operations in which the public has an interest
  • 38. 4. Wabash case, 1886 a. Court ruled states had no power to regulate interstate commerce b. In effect, overturned Munn v. Illinois decision -- Stimulated public demand for Congress to regulate the railroads
  • 39. 5. 1886, Court ruled that a corporation was a “person” under the 14th Amendment a. It became difficult for the federal gov’t to regulate railroads b. Railroad companies hid behind the decision
  • 40. C. Interstate Commerce Act (1887) 1. First large-scale legislation to regulate corporations in the public interest 2. Interstate Commerce Commission (ICC) 3. Prohibited rebates and pools and required published rates 4. Restricted short haul; long haul 5. Without strict enforcement mechanisms, the ICC was largely symbolic
  • 41. V. Industrialism and mechanization A. Civil war created a class of millionaires who invested in industrialism B. Natural resources fed industrialism C. New technologies 1. Patents increased significantly 2. Eli Whitney’s interchangeable parts concept perfected 3. Typewriter, cash registers, and stock tickers facilitated business operations
  • 42. Prototype of the Sholes and Glidden typewriter, 1873, the first commercially successful typewriter, and the first with a QWERTY keyboard.
  • 43. 4. Urbanization spurred by the electric streetcar, electric dynamo, and refrigerated railroad car 5. Alexander Graham Bell: telephone (1876) a. Nationwide network created within a few years b. Job opportunity for young (middle class) women
  • 44. 6. Thomas A. Edison a. Incandescent light bulb, phonograph, moving pictures b. Electricity became another cornerstone of the second industrial revolution • Edison Electric Company • Cities became lit; electric streetcars
  • 45. VI. Trusts emerge A. Vertical integration: Andrew Carnegie B. Horizontal integration: John D. Rockefeller
  • 48. D. 14th Amendment protection E. Holding companies
  • 49. VII. Steel industry emerges A. Cornerstone of the 2nd Industrial Revolution 1. Skyscrapers, railroads 2. Typified heavy industry 3. By 1900, U.S. produced more steel than Britain and Germany combined
  • 50. B. Andrew Carnegie 1. “rags to riches” story 2. Bessemer process 3. Ultimately, produced 25% of U.S. steel 4. 1901, sold company to J. P. Morgan for $400 million  
  • 52. C. J. P. Morgan 1. Owned a major Wall Street banking house 2. 1901, he reorganized the United States Steel Corporation -- America’s first billion dollar corporation D. Charles Schwab
  • 53. VIII. Petroleum industry and other Trusts A. John D. Rockefeller 1. Erected his first well in PA in 1859 and launched the petroleum industry 2. Refined petroleum: kerosene B. Standard Oil Company, 1870 1. First trust in U.S.: Owned 95% of U.S. oil refineries 2. Horizontal integration -- monopoly
  • 56. “What a funny little government.” 1900
  • 57. C. Gustavus F. Swift and Philip Armour -- Meat industry D. James Buchanan Duke 1. First to utilize automated cigarette-making machine 2. American Tobacco Co. monopolized cigarette market E. Andrew Mellon 1. Venture capitalist 2. Aluminum Co. of America 3. Oil and coal in early 20th century
  • 58. IX. “nouveau riche” (new rich) and the justification of wealth A. A super rich “leisure class” emerged during the second industrial revolution B. Resented by traditional aristocracy 1. Patrician families losing ground 2. Economic liberty & community involvement overshadowed by monopoly and political machines 3. Some became anti-trust crusaders
  • 59. C. “Captains of Industry” provided material progress 1. Overall standard of living in U.S. continued to rise 2. Most goods were cheaper 3. Provided millions of jobs
  • 60. D. Social Darwinism 1. Charles Darwin, Origin of the Species (1859) 2. Herbert Spencer a. Applied Darwin’s theory of natural selection to human society b. “survival of the fittest” 3. William Graham Sumner: “millionaires were a product of natural selection”
  • 61. E. Some argued God chose winners and losers 1. John D. Rockefeller 2. Resembled “divine right of kings” 3. Argued the existing hierarchy was just and decreed by God 4. Those who stayed poor were “lazy” or “lacked enterprise” a. Some “new rich” had come from modest beginnings b. Rev. Russell Conwell: “Acres of Diamonds” lectures
  • 62. F. Andrew Carnegie: “The Gospel of Wealth” 1. Synthesized prevailing ideas of wealth and “survival of the fittest” 2. Claimed the rich should donate most of their wealth for the public good a. Criticized “nouveau riche” b. Traitor to his class? c. Rockefeller 3. Argued against cash handouts
  • 63. X. Government regulation of trusts A. Sherman Anti-Trust Act (1890) 1. Public demand for regulation 2. Forbade combinations in restraint of trade (monopoly) 3. Lacked enforcement mechanism 4. Ironically used by trusts weaken labor unions B. Interstate Commerce Act, 1887 (see above)
  • 64. People’s  Entrance Closed TE  SENA his is a T TS POLIS MONO   nd of the lists a onopo  M by the ISTS OPOL  MON for the “The Bosses of the Senate”, Joseph Keppler, Puck, Jan. 23, 1889 From right to left: Nail Trust, Steel Beam Trust, Copper Trust, Standard Oil Trust, Iron Trust, Sugar Trust, Tin Trust, Coal,  Paper Bag Trust, Envelope Trust, Salt Trust
  • 65. “The Rising of the Usurpers”, Thomas Nast, Harpers Weekly, July 27, 1889
  • 67. "Trusts--The Main Issue" Woman's headband says "Liberty" Tablet held by ape says "Republicanism" Arrow shot into ape reads "Democracy"  The Verdict, July 10,  1899, cartoon by C.  Gordon Moffat
  • 68. XI. The “New South” A. Changing South after the Civil War 1. Political 2. Social 3. “Redeemers” B. Growth of southern industry   1. Henry Grady 2. Major challenges to southern industrialization 3. Cotton industry further developed a. Mill towns b. Vertical integration c. Gov’t incentives
  • 69. 4. Coal mining industry grew in Appalachia 5. Tobacco trust 6. Iron and steel production: Birmingham, Alabama 7. Thousands of miles of railroads built C. Agriculture still dominant   1. Absentee land ownership 2. Crop-lien system/ sharecropping
  • 70. D. Results of southern industrialization 1. By 1900, southern manufacturing remained 10% of national total -- Same as in 1860 2. Per capita income only 60% of national average 3. Average income only 40% of average income in the North 4. Sharecropping still dominated southern agriculture (black and white) 5. South still largely dependent on North for banking resources and manufactured goods
  • 71. E. The “Lost Cause” and “Redemption” 1. Southerners remained proud of their defiance in defense of states’ rights during the Civil War (“War of Northern Aggression”) 2. “Redemption” resulted in Confederate memorials and cemeteries commemorating the “Lost Cause” 3. Joel Chandler Harris, Uncle Remus (1880) -- Nostalgic view of a glorious antebellum South
  • 72. XII. 2nd Industrial Revolution’s impact A. Standard of living ultimately rose B. Urbanization C. American agriculture eclipsed by industrialism D. Monopolies/trusts emerged E. Regimented impersonal work-place F. Woman achieved more social and economic independence G. Social stratification H. Foreign trade developed I. Rise of the labor movement
  • 73. Theme #2:   Industrialization dramatically changed the condition of American working people, but workers’ attempts to develop effective labor organizations failed to match the corporate forms of business and their political allies.
  • 75. THE SLAVE MARKET OF TO-DAY "Going - going - lower - lower!" Puck Magazine, January 2, 1882
  • 76.                                                          THE GALLEY Dedicated to the States where Child Labor is Still Permitted. Puck Magazine, August 4, 1909 Sign on wall reads, "Child-labor Investigators, Sentimentalists, Charity Organizations, and all  Meddling Old Women Keep Out".
  • 77. XIII. Rise of Labor A. Working conditions for urban industrial workers were tough 1. Low-skilled jobs made workers expendable 2. Working conditions often dismal 3. Recourse for workers was minimal due to the power of industrialists a. Strikes often broken by “scabs” b. “yellow dog” contracts c. Public grew tired of strikes
  • 78. B. Civil War boosted labor unions 1. Drain of human resources put more value on labor 2. Rising cost of living led to formation of labor unions 3. Collective bargaining: workers sought to vote for their own representatives to negotiate on their behalf with company owners
  • 79. C. National Labor Union (1866) 1. Sought to bring craft unions together into one big union 2. Lasted 6 years; 600,000 workers -- Led by William Sylvis 3. Focused on social reform, 8-hour work day, and arbitration of labor disputes 4. Colored National Labor Union founded in 1869 as a branch of the NLU 5. NLU killed by the Panic of 1873
  • 80. D. Molly Maguires 1. Formed in 1875 by PA anthracite coal workers 2. Violence 3. Owners called in Pinkertons 4. Mollies eventually destroyed E. Great Railroad Strike (1877) 1. Railroads announced 10% pay cut for 2nd time since 1873 2. First nation-wide strike resulted 3. President Hayes called in troops 4. Greenback Labor Party
  • 81. F. Knights of Labor (1881) 1. Continued the work of the NLU a. Led by Terence Powderly b. Initially a secret society 2. “One big union” included skilled, unskilled, female, & black workers 3. Sought economic and social reform a. Replace the wage system b. 700,000 members
  • 83. An American Autocrat. He Ties Up Railroads and Exposes the Public to Inconvenience and Danger Whenever He is Obliged to Do Something to Earn His Salary. Puck, August 20, 1890
  • 84. 4. Demise of Knights of Labor due to the “Great Upheaval” and Haymarket Square Riot (May 4, 1886) a. Anarchists hanged or imprisoned b. Knights were unfairly seen as associated with anarchy c. Inclusion of both skilled and unskilled workers proved fatal
  • 85. Thomas Nast, “Liberty is not Anarchy”, Harper’s Weekly, Sept. 4, 1886
  • 86. F. American Federation of Labor (AFL) 1. Samuel Gompers 2. Organization 3. “Bread and butter” issues 4. Closed shop 5. Walk out; boycott “Eight hours for work, eight hours for rest, eight hours for what we will..”
  • 87. AF of L membership between 1881 and 1911
  • 88. G. Major Strikes 1. Homestead Strike, 1892 Strike a. 20% pay cut enacted b. Workers went on strike and kept scabs out c. Frick called in Pinkertons d. Governor called in troops e. Union and strike were broken f. Demonstrated a strong employer could break a union with gov’t support This 1892 drawing from  Illustrated Weekly depicts the  labor troubles at Homestead,  Pennsylvania, and the "Attack of  the strikers and their  sympathizers on the  surrendered Pinkerton men" 
  • 89. 2. Pullman Strike, 1894 Strike a. Company town in Chicago b. Wages cut by 1/3 c. Eugene Debs, American Railway Union d. President Cleveland’s response -- Strike crushed; union broken e. First time the federal gov’t used a court injunctionto break a strike
  • 91. Memory Device for the Labor Movement: 1865-1900 3 Big Unions 3 Big Strikes National Labor Union Knights of Labor American Federation of Labor Great Railroad Strike, 1877 Homestead Strike, 1892 Pullman Strike, 1894
  • 92. H. By 1900 Unions had largely failed to achieve their goals 1. Wages remained almost the same compared to 1865 2. Work hours remained high in most industries 3. Working conditions remained oppressive
  • 93. 4. Most unions were either broken or severely weakened by owner or government actions (e.g. Knights of Labor, American Railway Union) 5. American Federation of Labor was among the few unions that remained intact and saw modest improvements for its workers 6. After 1900, the fortune for unions improved

Notes de l'éditeur

  1. Encyclopedia Commons
  2. public domain
  3. Wikipedia Commons http://www.getty.edu/art/gettyguide/artObjectDetails?artobj=107728&handle=li
  4. From Wikipedia Commons
  5. Library of Congress
  6. National Archives
  7. Library of Congress
  8. Public domain
  9. public domain
  10. http://econ161.berkeley.edu/Econ_Articles/carnegie/delong_moscow_paper2.html
  11. Source: Puck Magazine, 1879, Joseph Keppler
  12. Public domain
  13. Library of Congress Cartoon by Bernhard Gilliam, 1883
  14. Wikipedia Commons
  15. Wikipedia Commons
  16. http://www.atrium-incorporators.com/uk-holding-companies/
  17. Wikipedia Commons
  18. Library of Congress Puck Magazine, 1904 Udo J. Keppler
  19. Courtesy of New York Public Library Originally in The Verdict, January 22, 1900
  20. public domain
  21. public domain
  22. public domain Puck Magazine, August 15, 1883 wwwlib.gsu.edu/spcoll/Collections/ AV/19cLabor/19clabor29.ht
  23. Library of Congress Puck Magazine Bernhard Gillam January 2, 1882 Illustration shows trade union laborers, some in chains labeled "High Tariff" and "Tariff", and one standing on a block labeled "Trade Unions", being auctioned by a man labeled "Protectionist Statesman" to capitalists and manufacturers, among them are Cyrus W. Field and William H. Vanderbilt; in the background is a row of factories. A sign states "Quotations. Average wage for skilled workman $7 a Week or $359 a Year".
  24. Library of Congress Puck Magazine August 4, 1909 Arthur Young
  25. Library of Congress
  26. Library of Congress wwwlib.gsu.edu/spcoll/Collections/ AV/19cLabor/19clabor29.ht
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  28. NOTE: ANIMATION COVERS SOME TEXT SEE THE SLIDE FIRST IN SLIDESHOW MODE BEFORE MAKING ANY CHANGES
  29. public domain
  30. NOTE: ANIMATION COVERS SOME TEXT SEE THE SLIDE FIRST IN SLIDESHOW MODE BEFORE MAKING ANY CHANGES Wikipedia Commons
  31. public domain