Chapter 13: The Rise of Industry & Labor

(1850 – 1900)

I. Foundations for Industrial Growth

A. A Technological Revolution: Sheet & ChartsB. Railroads: Effects

1. Faster Means of Transporting Goods2. Lower Costs of Production3. Creation of National Markets4. A Model for Big Business5. Stimulation of Other Industries6. Settled the Frontier7. Standard Time System

I. Foundations… (cont)

C. The Growth of Corporations1. Definition

* Capital… Dividend… Limited Liability… economies of scale (HW)

* Disconnect… Division of Labor (HW)

2. Eliminating the Competition* Monopoly… Pool… Trust…

I. Foundations… (cont)D. Philosophy of the Era

1. Laissez-Faire2. Social Darwinism

* Darwin… Spencer… “Survival of the Fittest”

II. Foundations (cont)

E. Resources1. Vast natural resources: timber, coal, oil, copper2. Companies could obtain cheap and not import resources3. Petroleum

* American oil industry built on demand for kerosene

*1859: first oil field in PA*1900: Spread from PA to TX

4. Population growth: family size and immigrants

II. The Great Entrepreneurs: Robber Barons or Captains of Industry?

A. Definition: org f of p; risks v. profitsB. Entrepreneurs of the Period

1. Andrew Carnegie: Steel; Bess P; “VI”; G of W2. John D. Rockefeller: Standard Oil; “HI” (trusts) 3. J.Pierpont Morgan: Bank: US Steel

II. The Great Entrepreneurs

B. Entrepreneurs (cont)4. Henry Ford: Cars; assembly line; wages5. Philip Armour: meat 6. Cornelius Vanderbilt: railroads

II. The Great Entrepreneurs (cont)C. Robber Barons or Captains of Industry?

1. Robber Barons* Elimination of Competition: Price Wars* Power Over the Consumer: Price, Quality* Exploitation of Workers: Wages,

Conditions* Influence over the Government: Bribery* “Conspicuous

Consumption”

II. The Great Entrepreneurs (cont)

C. Robber Barons or Captains of Industry?2. Captains of Industry

* Mass Production: assembly line, standardization of parts, division of labor, inventions… lower prices, quantity

* Wide Distribution: RR, Dept, Catalogs: nationwide; improve quality of life

* Efficient Manage’t: research, develop’t

* Philanthropy

III. Government Policies Toward Business*** See Sheet

A. Steps Towards Regulation: Why?1. Downturns in the Economy2. Growing Criticisms of Big Business3. Increasing grassroots pressure: Populist

III. Government Policies (cont)

B. Supreme Court Decisions1. Issues: RR, rebates, “Granger Laws”2.Munn v. Illinois (1877): upheld Police Power

3.Wabash v. Illinois (1886): Interstate C4. The 14th Amendment

*Limited interpretation: ag fed/state*Corporations: “people”* Can’t deprive of property w/o “due process”

III. Government Policies (cont)

C. Interstate Commerce Act/ Commission (1887)

Regulations1. Post RR rates publicly2. Rates are to be “just”3. Outlaw pools and rebates4. Prohibit charging more for “short hauls”

than for “long hauls”** 1st attempt to regulate

business...precedent

III. Government Policies (cont)D. Sherman Antitrust Act (1890)

* Any combination “in restraint of trade or commerce…”

* Rarely enforced* Big Business: use against labor* Precedent: more important than

act itself* Later: “Trustbuster” Teddy

Roosevelt

IV. The Rise of Organized Labor

A. The Growth of Unions1.Problems and Goals2. Tactics

* strikes, closed shops, injunctions3. Business Strikes Back!

* Strike breakers, yellow dog contract, blacklisting, court injunctions, company unions

IV. The Rise of Organized Labor (cont)

B. Workers Seek a National Voice1. Knights of Labor2. American Federation of Labor3. Int’l Ladies Garment../ Triangle

Shirtwaist Factory Fire4. Industrial Workers… “Wobbies”/

Lawrence Textile Strike

IV. The Rise of Organized Labor: Labor Conflicts

Great Railway Strike Haymarket Riot

IV. Organized Labor… Labor Conflicts

Homestead Strike Pullman Strike