AP US HistoryJanuary 16-20-2017 (short week)

MONDAY (No School)

TUESDAY (turn in the Western Project and DBQ) Examine the rise of modern day corporations by examining the development in the steel and oil industries

during the Gilded Age Period (WXT-3) (WXT-7)

Materials Strategy/Formatppt Lecture-discussion

Student skillsChronological Reasoning (1,2,3)Comparison/Context (4,5)Crafting Arguments/Evidence (7)

Introduction

The late 19th century is one of the most rich periods in U.S. history and we will be examining it in great detail over the next couple of weeks. Between 1869 and 1910, the value of American manufacturing rose from $3 billion to $13 billion. The steel industry produced just 68,000 tons in 1870, but 4.2 million tons in 1890. The central vehicle of this surge in economic productivity was the modern corporation (digitalhistory.com). You got the section started last night by looking at some information about the all important railroad industry. The development of railroads was really the key to nearly every economic advancement (and a few crises) in this period. It spawned the stock market, foreign and state investments, and a wave of new technologies that fed into the railroad industry. The railroad business was unlike anything that the world had seen and there were vast fortunes won and lost in its development. The competition was cut-throat and eventually the normally laissez-faire ideas of the Republicans and most Democrats were forced to change and initiate a wave of corporate regulation in this period. The Sherman Anti-Trust Act was passed in 1890 to regulate trusts and monopolies. The Interstate Commerce Act 1887 was designed to regulate railroads in particular (which it still does today).

Today we are going to examine the growth of the corporation in what was sometimes called the "new economy" by using two of the most famous corporate giants of the period: Andrew Carnegie and John D. Rockefeller as our examples. Both men embody the period in multiple ways. John D. Rockefeller's Standard Oil Company was worth $600 million and when Carnegie sold his steel empire to J.P. Morgan and his investors the result, Unites States Steel, was the first $1 billion corporation. In both cases, the rail industry was a major buyer and a vital supplier. We will also look at how they built their empires using new innovations and practices that were sometimes questionable. Both are remembered today but for sometimes different reasons.

Andrew Carnegie and the Steel Industry He was a compelling figure that embodied the "Horatio Alger" stories about people who rose from "rags to

riches." Coming to America as an immigrant from Scotland where the family business ironically was destroyed by the new factory system, he enrolled in night classes and worked long arduous hours. he studied a new discipline, accounting and learned the techniques of "cost-benefit "analysis. Carnegie also served as a messenger boy met at the telegraph office was Thomas A. Scott, then superintendent at Pennsylvania Railroad. Scott was quite taken by the young worker hiring him as his private secretary and personal telegrapher at $35 a month. Carnegie worked his way up the ladder in Pennsylvania Railroad and succeeded Scott as superintendent of the Pittsburgh Division. At the outbreak of the Civil War, Scott was hired to supervise military transportation for the North and Carnegie worked as his right hand man. It was here that Carnegie first realized the connection between steel and the rail business.

One of the keys to Carnegie's success was his interest in innovation. He used this when he build his first steel mills. Carnegie would embrace a new steel refining process being used by Englishman Henry Bessemer to convert huge batches of iron into steel, which was much more flexible than brittle iron. Carnegie threw his own money into the process and even borrowed heavily to build a new steel plant near Pittsburgh. Carnegie was ruthless in keeping down costs and managed by the motto "watch costs and the profits take care of themselves."

Vertical integration and horizontal integration were two key business practices that would Carnegie's steel juggernaut was unstoppable, By 1900 Carnegie Steel produced more of the metal than all of Great Britain, then the second largest steel producer. Here's how these practices worked: Horizontal integration is the process of merging similar industries, industries that produce similar products. Horizontal integration would include tactics like buying competing companies that produce the same goods as you do. Vertical integration is the process of buying out suppliers of that particular industry. For example, a steel company would have an advantage over competitors by vertical integration if that company bought out places like coal fields or iron mines, places that competing steel companies rely on to make their steel. This would let you control the raw materials and transportation systems. The principle difference is that horizontal integration buys the competing companies while vertical integration aims at the raw material sources necessary to produce that product.

Carnegie and Labor There was no doubt that on some level Carnegie appreciated the plight of the working class. Carnegie was

unusual among the industrial captains of his day because he preached for the rights of laborers to unionize and to protect their jobs. He even pioneered the concept of profit sharing with his workers. However, Carnegie's actions did not always match his rhetoric. Carnegie's steel workers were often pushed to long

hours and low wages. In the Homestead Strike of 1892, Carnegie threw his support behind plant manager Henry Frick, who locked out workers and hired Pinkerton strike breakers to intimidate strikers. Many were killed in the conflict, and it was an episode that would forever hurt Carnegie's reputation and haunt the man.

"The Gospels of Wealth"Carnegie once said, "The man who dies thus rich dies disgraced." Carnegie believed that the wealthy should repay their debt to society. True to his beliefs, by his death in 1919 he had divested himself of more than 95 percent of his fortune. He built a library building for any town that would provide a site, stock the building with books, and guarantee maintenance expenses. He provided pensions for professors at universities that agreed to meet strict academic standards. In addition to funding music halls, outdoor swimming pools, and church organs, he also set up endowments to promote teaching and world peace. Of course the Carnegie Endowment exists to this very day. Because of these ideas men like Carnegie were sometimes referred to as being "captains of industry"

John D. Rockefeller and the Oil Business The modern impression of Rockefeller is somewhat different. Many have called his a "robber baron"

implying that he somehow used illegal means to build the oil business. Of course, that was true to some degree as it was even for Carnegie. Here's one of my favorite stories about him. At the urging of his mother, he loaned a local farmer $50 at 7% interest payable in one year. When the farmer paid him back with interest the next year Rockefeller was impressed and said of it in 1904: "The impression was gaining ground with me that it was a good thing to let the money be my servant and not make myself a slave to the money."

Unlike Carnegie who did odd jobs until he finally was fortunate enough to meet Thomas Scott, Rockefeller was a lower middle class young man who was fortunate to attend a private academy in New York. Rockefeller excelled at mental arithmetic and was able to solve difficult arithmetic problems in his head -- a talent that would be very useful to him throughout his business career. In other subjects Rockefeller was an average student but the quality of the education was very high. Then he attended what we would now call a business school in Cleveland where the family had moved. His first official job like Carnegie was bookkeeping.

At around age 20 Rockefeller went into business for himself, forming a partnership with a neighbor Clark & Rockefeller -- commission merchants in grain, hay, meats, and miscellaneous goods. At the end of the first year of business, they had grossed $450,000, making a profit of $4,400 in 1860 and a profit of $17,000 in 1861. The commission merchant business was very competitive and Clark & Rockefeller's success was due in large part to Rockefeller's natural business abilities.

Like many northern businesses theirs expanded rapidly during the Civil War. Grain prices went up and so did their commissions. Most of their selling was done on commission, so Clark & Rockefeller took no risks from price fluctuations. Rockefeller's style was very precise and calculated. He was not a gambler but a planner. He avoided speculation and refused to make advances or loan. But despite the success he was not content and believed the future lay in development of raw materials and that's how he came to be in the oil game.

In 1859 the oil business had its first great innovation when Edwin Drake struck oil near Titusville, Pennsylvania, setting off a frenzied oil boom in what soon became known as the "oil regions" of northwestern Pennsylvania. A sample of the Pennsylvania oil was sent to a Yale University chemist analyze it. The chemist determined that the Pennsylvania oil was of very high quality and could be refined into a variety of useful products. The technology used by Drake was not new. What was new was the idea of drilling for oil -- the idea that you could pump oil out of the ground like you could pump water. The Pennsylvania oil was of high quality. One barrel yielded 60-65% illuminating oil, 10% gasoline, 5-10% naphtha (a volatile inflammable liquid used as a solvent in dry cleaning, varnish making, etc.), with the remainder tar and wastes. All of these were valuable but Rockefeller hated to waste anything and wanted to perfect a new process.

The next step in the process was vertical integration where bought his own pipe making and barrel making operation. He did not have to initially buy transportation because his product was valuable enough that dealt with railroads to get rebates on shipping. He was eventually served by two railroads and by 1869 was the largest refiner in the world. Imagine how wealthy he'd be if the gasoline engine had been yet perfected!

His technique was always the same. The merger would be effected by an increase in the capitalization of The Standard Oil. The rival refinery would be appraised and the owners would be given Standard Oil stock in proportion to the value of their property and good will and they would be made partners in Standard Oil. The more talented owners would also be brought into the Standard Oil management. If they insisted upon cash they received it.

Later some owners who had been bought out complained to the press that they had been treated unfairly. The evidence is overwhelming that the Standard’s rivals were paid fair -- even generous -- prices for their property, and if they had the wisdom to take Standard Oil stock, they ended up very rich indeed.

By 1872, Rockefeller had bought up and/or merged with almost all the refineries in Cleveland. The inefficient and poorly constructed refineries were dismantled. Eventually Rockefeller controlled 90% of the oil market.

The Standard Oil Trust: Rise and Fall By 1890, The Standard had set up an elaborate nationwide distribution system that reached nearly every

American town. By 1904, 80% of American towns were served by Standard Oil carts that delivered the various products directly to businesses and homes. Standard Oil’s campaign to dominate even the smallest of the retail markets is probably the single most important reason that company became so disliked by the American public. The Standard was aggressive in its marketing practices and tried to force all grocery and hardware stores that sold kerosene and lubricants to sell only Standard products. This policy -- though successful in the short run -- made the Standard widely unpopular and simply increased its vulnerability to political attack….. I call that the "Walmart Effect"

In 1892 the Trust was formally dissolved. The Attorney General of Ohio had brought suit against the Trust in 1890 and it lost in 1892. Each trust certificate was to be exchanged for the proportioned share of stock in the 20 component companies of the Standard. The irony is that this had no practical effect on the Combination. The same men were still in charge, only now they were simply the majority shareholders of all the component companies.

The irony is that because of his practice and the anti-trust case Rockefeller is somehow seen as a villain. From the mid-1890s until his death in 1937, Rockefeller’s activities were philanthropic. Rockefeller's fortune peaked in 1912 at almost $900,000,000, but by that time he had already given away hundreds of millions of dollars. The University of Chicago alone received $75 million by 1932! The list of recipients is really too long to recount but like Carnegie, his money is still around as part of the Rockefeller Foundation

Homework Tomorrow in class we will complete the timed LEQ part of the testStudy for potential essays on the following topics. You will choose ONE of the prompts tomorrow in class from a List of FOUR potential topicsYou will NOT be allowed to use notes

The Rise and Fall of Populism (be certain to know key beliefs) The problems of organized labor in America (Be sure to know terms and a few example strikes) The New Immigration (be sure to know groups and why they came, also comparisons with

antebellum immigration) The explosion of big business in America (be sure to know key business leaders and innovations,

also factors why corporations developed)

WEDNESDAY Timed LEQ writing assignments based upon the Gilded Age

Materials Strategy/FormatEssay Prompts/Rubrics Guided Writing W.CCR.4

Instructions As you know timed writing is critical for success on the AP exam. On that day you will have 2 essays, a

DBQ and an LEQ 9There will be 2 and you will choose one). The DBQ =55 mins writing time and is 25% of the total test score. The LEQ = 35 and is 15% of the exam total

You will write one of the presented essays and have the rubric to view as you write (but not on the AP exam). It will be due today.

HomeworkComplete the take home version of the unit test (posted on the class website)The take home test is due in class on Friday

FRIDAY (Begin New Unit and Chapter 18 in the text)

Examine the growth of leisure time activities during the Gilded Age Period (CUL-7)

(CUL- 3,5) Discuss how these activities reflected social

class distinctions (CUL-7)

Materials Formatweb notes and video Lecture-discussion

Student SkillsChronological Reasoning (1,2)Comp/Context (4,5)Historical Interpretation (8)

Introduction This period of time in America (and England) is often called the Victorian Era. It has come to imply the

new set of values and ideas that stemmed largely from the growth of the middle class. The Victorian ideals came to express a set of middle class values that were often very moralistic. In other words, these expressed the “proper way” of doing things. Of course who decided the “proper way?” Well not surprisingly they did.Also equally unsurprising, there arose challenges to this value set. In many ways this is simply a continuation of what we have seen in the antebellum years when the Whig Party became focused on social issues. This idea spread when the Republican Party began to dominate the post-Civil War period. However, by the late 19th century the value set was more equated to economics and class and less to political party. One important component of this growth was the development of a more urban based America where the middle class dominated. Another impulse to push a set of values had to do with the “new immigration.”

Last week we saw the explosive growth and development of urban areas. This was due to the New immigration” and also from a shift of population within the U.S. Cities grew in size owing in large part to the development of transportation within the cities. This helped to create the earliest concepts of suburbia. A key link in this development was a new awareness of class structure. We first discussed this in terms of architecture and living spaces. We also cited the growth of not only a new middle class culture but also of a growing awareness of the economic importance of the so-called "Gibson Girl" (Of or relating to a clothing style marked by a high neck, puffed sleeves, and a tightly fitted waistline). More on this later.

Another important change that was certainly becoming evident by the 1890s-1900 was the growth of leisure time activities. This was reflected in the new middle class culture but can also be seen in clothing styles and even music. Eventually a middle class mentality also grew and was even criticized by member of the middle class itself.

Today and tomorrow we are going to look at some of these leisure time activities and the development of music and clothing styles. A key development in this will be the growth of spectator sports. We will also break this up by social identity

The Middle-Upper ClassesIf one had money and an education, it was not surprising that your tastes would trend to more extravagant. However, as the name implies, the middle class sometimes identified more with lower class pastimes. So, this is a general

discussion for that class. The line was more distinct for the upper class. Also, as the Gilded Age moves into a later period called the Progressive Era (1900-1920) the line blurs even more.

MusicUpper-Middle Classes

Not surprisingly classical symphonic music and opera were the love of the upper classes. At parties a chamber orchestra was a key fixture. Also, traveling orchestras and opera companies from Europe were big events. Of course there were American opera companies and these were becoming more common but did not draw audiences like a European performer would. Most dances were waltzes and these were of course performed at larger gatherings.

Middle -Lower Classes In the late Gilded Age and into the Progressive Era a new wave of music gained large audiences.

Considered the first completely American music, ragtime was popular towards the end of the 19th century and into the first two decades of the 20th century, roughly 1893 to 1917. It is the style of music that preceded jazz but some classify it as part of that genre.

Ragtime developed in African American communities throughout the southern parts of the Midwest, particularly Missouri. Bands would combine the structure of marches with black songs and dances such as the cakewalk. The music, which predated the explosion of sound recordings, became widespread through the sale of published sheet music and piano rolls. In this way it contrasts sharply from early jazz, which was spread by recordings and live performances. While others would be more well-known later perhaps the most famous composer of ragtime music, Scott Joplin composed two highly popular pieces, “The Entertainer” and “Maple Leaf Rag." One of the reasons that ragtime became popular was because young people were attracted to the music and what I call "danceability" We will come back and discuss ragtime jazz more when we get to the "Jazz Age" of the 1920s.

For the lower classes ragtime jazz became synonymous with dance halls and since the upper class generally would not frequent these establishments, ragtime was seen as "black" music. Another growing area of music was gospel particularly in many Protestant Black Churches. Probably the most famous were the Fisk Jubilee Singers whose a Capella style and wide travels made them popular with some white audiences as well. Given the growing level of racism in America at the time, this was truly amazing.

Spectator SportsThe Upper Class-Middle Class

Once again money defined class and so it was true with some leisure activities more than others. One sport that should not surprise you was the one that was known as the "sport of kings" horse racing. Some might consider this more of a past time than an actual sport but certainly jockeys would disagree. What obviously makes this an upper class sport? The three races of the Triple Crown originated in England in the 1800s. The first Triple Crown winner was really just outside of the Gilded Age (1917).

Another sport whose origins were in Europe and among the upper classes was tennis. What do you think made this sport one for the upper classes at this point? The game itself in some form goes back to the 16th

century in France. In 1870 the Wimbledon district of London established All England Croquet Club. Tennis is still an indoor game played by royal and rich benefactors. The more familiar lawn tennis was named by Major Walter Wingfield invented a version of Real Tennis that can be played outdoors on a lawn. The game called ‘Sphairistike’ (Greek for "playing ball”) and first introduced it to Wales. Played on hour-glass courts on Manor House lawns by rich English people. Today's tennis developed by Wingfield deals Sphairistike in boxes that feature two net posts, a net, rackets, and India rubber balls, plus instructions about laying out the court and actually playing the game. Wingfield’s boxes kick started the modern form of tennis, though the one thing that doesn’t work is the name, and Wingfield soon realizes that his subtitle "lawn tennis" is much better than Greek word "Sphairistike

In 1874 Tennis came to America for the first time. The first U.S. Open Tennis Tournament was in 1881. In 1887 the first Women's Open was played with Lottie Dodd winning the title.

Golf was another upper class sport. It is believed by some that it was an acronym (Gentlemen Only, Ladies Forbidden) but that seems to not be true. Some version of the game goes back to ancient Greece. The St. Andrews Club in New York is probably the oldest club in America 1881. Why would golf be an upper class sport?

Bicycling This usually is considered a middle class past time at this point because it was common in urban areas.

Mass Production: The bicycle helped make the 1890s what they were. It was a practical investment for the working man as transportation, and gave him a much greater flexibility for leisure. Women would also start riding bicycles in much larger numbers.1894 Change In Social Order: Betty Bloomer's bloomers

become very popular. Ladies, heretofore consigned to riding the heavy adult size tricycles that were only practical for taking a turn around the park, now could ride a much more versatile machine and still keep their legs covered with long skirts. The bicycle craze killed the bustle and the corset, instituted "common-sense dressing" for women and increased their mobility considerably

Football (College here as the Profession version was a bit later) I classify this as a middle class sport simply because the first games were played by colleges and especially

the Ivy League schools. Football has been an intercollegiate sport for more than 130 years, but modern fans would scarcely recognize the game as played in the first contest on November 6, 1869, at New Brunswick, New Jersey. On that day Princeton and Rutgers, using a soccer-style round ball, played on a huge field (120 yards long and 75 yards wide) with 25 players on each side--and no officials. Rutgers scored 6 goals to the visitors' 4, after which the teams had dinner together. Princeton issued a challenge for a return match on its field and a week later (using Princeton's slightly different rules) got revenge by blanking Rutgers 8 goals to 0, then entertained the visitors with dinner accompanied by speeches and songs.

The sport grew slowly at first with Columbia, Yale, Harvard, fielding teams by 1875. In that year an egg-shaped, leather-covered rugby ball was adopted for play and normal procedure was to have three officials on hand: a judge from each team plus a referee to settle disputes.

In 1876 a crossbar was added to the goal posts at a height of 10 feet (in effect to the present day), and the field was reduced to nearly modern dimensions. At the same time the number of players on each side was lowered to 15.

Still, the sport did not really begin to resemble the modern game until former Yale player Walter Camp revised the rules in the early 1880s. Camp's 1880 revisions limited players to 11 on a side and established a scrimmage system for putting the ball in play. Two years later he instituted a system of downs for advancing the ball, requiring a team to make 5 yards in 3 downs (the current system of 4 downs to make 10

yards was not adopted until 1912). The first-down rule of 1882 required the marking of yard lines on the field and led to the term gridiron. It also inspired the first planned play strategy and verbal signals. With these changes the game spread more rapidly, and some 250 colleges were participating by the beginning of the twentieth century. The NFL was not formed officially until 1922.

The Lower Classes Boxing, while the rules were codified by the Marquis of Queensbury and enjoyed by men of the upper class

really became synonymous with immigrant culture during this period. Boxers represented ethic groups and were cheered on by such. Blacks, Italians, Germans, and Irish all rooted for fighters of their groups. The term "prize fighter" related to tournaments and professional travelling boxers. The new rules introduced limited number of 3-minute rounds. It also banned gouging and wrestling during the match and made gloves compulsory. It took a while for bare-knuckled fights to completely go out of fashion, but there was considerable decrease after the rule was passed. In 1892, James Corbett set this rule straight by defeating the bare-fisted boxer John Sullivan with the new established rules. In 1892, in New Orleans, the title for the first heavyweight champion under the Queensberry Rules was spectacularly fought between John L. Sullivan (Boston Strong Boy) and James J. Corbett ("Gentleman Jim" Corbett). The result of the match saw James J. Corbett emerge as the victor. Also, Theodore Roosevelt advocated boxing to a large extent. While he himself was trained in boxing as a young man, he also promoted it as a manly sport

The Sport that Broke Down Class Barriers: Baseball One of the reasons that baseball became known as the American Past time was that it attached all ethnic

groups and classes. The history of baseball actually predates the Civil War. Interestingly, the first recorded evidence of baseball occurred when players from the Boston and Philadelphia clubs were on tour to England exhibiting the game to people at large. Based upon the basic rules of a game called ‘Rounders’ which was popularly played in England, the developed game of baseball slowly gained fame in early 19th century in the US. It was also known popularly as base and town ball game.

In 1888, the Chicago Baseball club introduced the game to Australia, New Zealand, Hawaii, North Africa and Egypt by playing the game for a large audience. Legendary, though not generally believed, date of the codification of the first rules of baseball by Abner Doubleday (1839) Alexander Cartwright is said to codify baseball rules with his New York Knickerbockers. A book called Baseball by Alexander and a documentary based upon it by filmmaker Ken Burns suggests that it was Alexander who first codified the game rules. Recorded in the world of baseball as significant events date back to 1869 when the Cincinnati Red Stockings (the first pro team) first appearance as the all-professional team. It defeated the Great Westerns in a game of 45-9.

The game grew spectacularly. In 1903 the first World Series was held. Boston Americans 5 Pittsburgh Pirates 3.

Vaudeville: The Forerunner of Broadway Another leisure time activity that had wide appeal was called Vaudeville. Vaudeville is a specific genre of

entertainment that was extremely popular from 1880 to 1930 in the United States and Canada. Vaudeville acts were basic variety shows, each one made up of a number of short, unrelated acts. These acts spread across the entire spectrum of entertainment at that time and included plays, short films, musical acts and dances. Many of the acts that made up vaudeville shows were borrowed from circus acts, freak shows or other similar types of entertainment.

HomeworkRead pp: 575 – 584 (top) and look over the Friday Notes and web-notes for a quiz on Monday January 23The quiz will include any of the above materials even if we run out of time for class discussion.