World Class Education www.kean.edu 1

Topic 7

The New Industrial Order in The Post-Civil War Period 2

 Natural resources – iron and oil  Fifth and Fourteenth Amendments  Favorable state and federal Government policies  Immigration – influx of cheap labor  New sources of power – oil / electricity  American inventions and innovations  Improved transportation – regional and transcontinental railroads

Giant corporations drive industrialization after the Civil War 3

 New industrial products – factory-made goods  Improved standard of living begins  Urban development  Increased overseas trade / imperialism  Problems of unregulated capitalism – monopolies and ruthless competition  Great fortunes accumulated 4

 Big corporations begin to replace single-owner business / partnerships with limited capital  Unfettered Competition  Major investments in railroads, steel, oil, telegraph and telephone communications  Corporations chartered to act as an “artificial legal person”  Emergence of powerful corporate tycoons 5

 Railroad empire begins1869

 New York to Chicago

 “What do I care for the law? Haven’t I got the Power?” 6

 Oil empire

 Standard Oil Company of Ohio, 1870

 90% of nation’s oil refineries

 Supreme Court limits Rockefeller monopoly 7

 Steel empire

 Carnegie Steel Company 1900

 Iron ore deposits  Railroads  Steamships  Steel mills

 The Gospel of Wealth - the uses of wealth 8

 Finance – industrial consolidation

 US Steel Corporation  American Telephone and Telegraph  General Electric  Northern Pacific RR 9

 Gustavus Swift – meatpacking  Philip D. Armour – meatpacking  Charles A. Pillsbury – flour milling  James B. Duke – cigarette manufacturing  Andrew Mellon – aluminum 10

 Created new industries  Exploitation of workers  Efficiency  Corruption of  Order out of economic government chaos  Greed  Better services  Destruction of small  Improved quality of producers products  Restraint of competition  America becomes an - monopolies industrial giant  Abuse of consumers  Philanthropies –  Laissez faire economics endowment of museums, universities, libraries 11

 Haymarket Affair, 1886  Low pay  Homestead Steel Strike,  Long hours 1892  Unsafe working  Pullman Strike, 1894 conditions  Anthracite Coal Strike,  No minimum wage 1902  Employer lockouts  Knights of Labor  American Federation of Labor  The Industrial Workers of the World 12

 “Mark Twain called the late 19th century the "Gilded Age." In the popular view, the late 19th century was a period of greed and guile, when rapacious robber barons, unscrupulous speculators, and corporate buccaneers engaged in shady business practices and vulgar displays of wealth. It is easy to caricature the Gilded Age as an era of corruption, scandal- plagued politics, conspicuous consumption, and unfettered capitalism. But it is more useful to think of this period as modern America's formative era, when the rules of modern politics and business practice were just beginning to be written.”

from www.digitalhistory.uh.edu 13

 Charles R. Morris, The Tycoons: How Andrew Carnegie, John D. Rockefeller, Jay Gould, and J. P. Morgan Invented the American Supereconomy

 Matthew Josephson, The Robber Barons: The Great American Capitalists, 1861–1901

 Leon Litwack, The American Labor Movement