Pacific Railway Act of 1862 U.S. Government hired Union Pacific and Central

Pacific Railway Company to extend railways across the United States.

Central Pacific Started in Sacramento, CA

Union Pacific Started in Omaha, NE

The two railroad companies met in Promontory, Utah to drive the “Golden Spike” on May 10, 1869

Workers were mainly Chinese and Irish immigrants

Working conditions were poor Reasons:

Weather Rough terrain

Train problems: Dirty, noisy, uncomfortable

1869 George Westinghouse: Development of air brakes

1887 Granville Woods: Telegraph system for train communication

Scheduling was a major concern Set clocks according to solar time Time differences from town to town created

confusion.

1883: National System of Time Zones How many total time zones does the USA

have?

Name all 8 time zones.

Native Americans called it the Iron Horse

Helped Westward expansion Trade much easier Became crucial to the U.S. economy –

shipping costs dropped drastically. Hurt farmers economically Made deals with wealthy businessmen

Corruption

Interstate Commerce Act of 1887 – put in place for Govt to supervise railroad activities

Led to more financial problems (railroads were forced out of business, which led to the Panic of 1893)

This caused the Large Firms to start buying up the railways, which paved the way for Big Businesses

Unskilled and semi-skilled labor in abundance New, talented entrepreneurs Oil Inventions

New technology that allows mass production Bessemer Process

Railroads Changes in business strategy

Vertical Integration & Horizontal Consolidation Social Darwinism

Henry Bessemer English

businessman William Kelly

Kentucky businessman

Developed new way of making steel:Melt iron, add carbon,

remove impurities

Old way to Manhattan to Brooklyn was ferry Winter: ferry could not run because of ice

John Roebling German began building Dies in mid construction

Washington Roebling completes Son Disabled by accident during construction

Completed on May 24, 1883

Robber barons: business leaders who built fortune from stealing from the public.

Capitals of Industry: business leaders served their nation in a positive way.

Charles Darwin – survival of the fittest Social Darwin theory evolved: Society should do as little as possible to interfere

with peoples pursuit of success

AS A RESULT

Government did not TAX or REGULATE businesses!!!

How does the game work?

What is the goal of the game?

Monopoly to have complete

control of a product or service.

Cartel businesses who make

the same product – agree to limit supply to keep prices high.

Trust separate companies

placed under a single managing board – Board of trustees

Andrew CarnegieAndrew Carnegie

$ Scottish businessmanScottish businessman$ ““Gospel of WealthGospel of Wealth” ”

(1901).(1901).$ Inequality is inevitable Inequality is inevitable

and good.and good.

$ Vertical ConsolidationVertical Consolidation$ Wealthy should act as Wealthy should act as

“trustees” for their “trustees” for their “poorer brethren.”“poorer brethren.”$ 80% of fortune went 80% of fortune went

to education.to education.$ At time of death, he At time of death, he

had given away – 350 had given away – 350 million.million.

$ Scottish businessmanScottish businessman$ ““Gospel of WealthGospel of Wealth” ”

(1901).(1901).$ Inequality is inevitable Inequality is inevitable

and good.and good.

$ Vertical ConsolidationVertical Consolidation$ Wealthy should act as Wealthy should act as

“trustees” for their “trustees” for their “poorer brethren.”“poorer brethren.”$ 80% of fortune went 80% of fortune went

to education.to education.$ At time of death, he At time of death, he

had given away – 350 had given away – 350 million.million.

John D. RockefellerJohn D. Rockefeller

$ Standard Oil Co.Standard Oil Co.$ Eventually owned Eventually owned

all oil companies in all oil companies in US.US.$ Horizontal Horizontal

consolidationconsolidation$ 40 companies40 companies

$ Standard Oil Co.Standard Oil Co.$ Eventually owned Eventually owned

all oil companies in all oil companies in US.US.$ Horizontal Horizontal

consolidationconsolidation$ 40 companies40 companies

Frederick W. TaylorThe Principles of Scientific Management (1911)

Frederick W. TaylorThe Principles of Scientific Management (1911)

The Assembly LineThe Assembly Line

Mass productionMass production

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The Changing American

Labor Force

The Changing American

Labor Force

Child LaborChild Labor

Child LaborChild Labor

Long hours Less than $1.00 per week Difficult, dangerous and unhealthy work

Heavy machinery Could lose finger, arm or be scalped by

machinery Dusty, cold/hot respiratory conditions

Corporal punishment

Management vs. Labor

Management vs. Labor

““Tools” of Tools” of ManagementManagement

““Tools” of Tools” of LaborLabor

““scabs”scabs”

lockoutlockout

blacklistingblacklisting

collective collective BargainingBargaining

informational informational picketingpicketing

organized organized strikesstrikes

A Striker Confronts a SCAB!

A Striker Confronts a SCAB!

Knights of LaborKnights of Labor

Terence V. PowderlyTerence V. Powderly

An injury to one is the concern of An injury to one is the concern of all!all!

Goals of the Knights of Labor

Goals of the Knights of Labor

ù Eight-hour workday.Eight-hour workday.

ù Abolition of child and prison labor.Abolition of child and prison labor.

ù Equal pay for men and women.Equal pay for men and women.

ù Safety codes in the workplace.Safety codes in the workplace.

Labor Unrest: 1870-1900

Labor Unrest: 1870-1900

The Great Railroad Strike of 1877

The Great Railroad Strike of 1877

Haymarket Riot (1886)

Haymarket Riot (1886)

McCormick Harvesting Machine Co.McCormick Harvesting Machine Co.

Haymarket MartyrsHaymarket Martyrs

The American Federation

of Labor: 1886

The American Federation

of Labor: 1886

Samuel GompersSamuel Gompers

How the AF of L Would Help the

Workers

How the AF of L Would Help the

Workersù Catered to the skilled worker.Catered to the skilled worker.

ù Represented workers in matters of Represented workers in matters of national legislation.national legislation.

ù Maintained a national strike fund.Maintained a national strike fund.

ù Evangelized the cause of unionism.Evangelized the cause of unionism.

ù Prevented disputes among the many Prevented disputes among the many craft unions.craft unions.

ù Mediated disputes between Mediated disputes between management and labor.management and labor.

ù Pushed for Pushed for closed shopsclosed shops..

Homestead Steel Strike

(1892)

Homestead Steel Strike

(1892)

The Amalgamated The Amalgamated Association of Association of

Iron & Steel WorkersIron & Steel Workers

Homestead Steel Homestead Steel WorksWorks

A “CompanyTown”:

Pullman, IL

A “CompanyTown”:

Pullman, IL

Pullman CarsPullman Cars

A Pullman A Pullman porterporter

The Pullman Strike of 1894

The Pullman Strike of 1894

The Pullman Strike of 1894

The Pullman Strike of 1894

Government by injunction!Government by injunction!

The SocialistsThe Socialists

Eugene V. DebsEugene V. Debs

International Workers of the World (“Wobblies”)

International Workers of the World (“Wobblies”)

“Big Bill” Haywood of the

IWW

“Big Bill” Haywood of the

IWW

Violence was justified to Violence was justified to overthrow capitalism.overthrow capitalism.

I W WI W W

Labor Union MembershipLabor Union Membership

What were the cost and benefits of the industrial transformation of the Post- Civil War era?

Was the growing class division of the time a threat to American democracy? Why or why not?