The  Incorporation of America
U. S. Patents Granted 1790s    276 patents issued. 1990s    1,119,220 patents issued.
The Light Bulb
Thomas Alva Edison <ul><li>“ Wizard of Menlo Park”  </li></ul>
The Phonograph (1877)
The Ediphone or Dictaphone
The Motion Picture Camera
Alexander Graham Bell Telephone (1876)
Model T Automobile Henry Ford I want to pay my workers so that they can afford my product!
“ Model T” Prices & Sales
Essential Question <ul><li>Industrialization increased the standard of living and the opportunities of most Americans,  bu...
Causes of Rapid Industrialization <ul><li>Steam Revolution of the 1830s-1850s. </li></ul><ul><li>The Railroad fueled the g...
Causes of Rapid Industrialization <ul><li>Technological innovations. </li></ul><ul><ul><ul><li>Bessemer and open hearth pr...
Causes of Rapid  Industrialization <ul><li>Unskilled & semi-skilled  labor in abundance. </li></ul><ul><li>Abundant capita...
Growth of Railroads <ul><li>Government justified giving Railroads land grants and loans for military and postal service pu...
Revolution by Railways <ul><li>Transcontinental RR created domestic market for raw materials and manufactured goods. </li>...
New Business Culture <ul><li>Laissez Faire      the ideology of the    Industrial Age. </li></ul><ul><li>Individual as a ...
New Type of Business Entities <ul><li>Pool   1887    Interstate Commerce Act      Interstate Commerce    Commission  cre...
New Type of Business Entities <ul><li>Trust : </li></ul><ul><ul><ul><li>Horizontal Integration     John D.   Rockefeller ...
Standard Oil Co.
Iron & Steel Production
New Type of Business Entities
U. S. Corporate Mergers
New Financial Businessman <ul><li>The Broker: </li></ul><ul><ul><li>J. Pierpont Morgan – “Stock Watering” </li></ul></ul><...
Wall Street – 1867 & 1900
The Reorganization of Work The Assembly Line
% of Billionaires in 1900
% of Billionaires in 1918
The Protectors of Our Industries
The ‘Bosses’ of the Senate
The Gospel of Wealth: Religion in the Era of Industrialization Russell H. Conwell <ul><li>Wealth no longer looked upon as ...
“ On Wealth” Andrew Carnegie <ul><li>The Anglo-Saxon race is superior. </li></ul><ul><li>“ Gospel of Wealth ” (1901). </li...
Impact of Industrial Revolution <ul><li>Public no longer lived by the clock of nature. </li></ul><ul><li>Women entered the...
Actions Against Labor Unions <ul><li>Injunctions  – court order ordering strikers to return to work. </li></ul><ul><li>Loc...
Regulating the Trusts <ul><li>1886     Wabash, St. Louis & Pacific    Railroad Company v. IL </li></ul><ul><li>The court ...
Interstate Commerce Commission <ul><li>Provided a forum where competing businesses could resolve conflicts. </li></ul><ul>...
Sherman Antitrust Act <ul><li>Declared illegal every contract, combination (in the form of trust or otherwise), or conspir...
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Rise Of Big Business

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Rise Of Big Business

  1. 1. The Incorporation of America
  2. 2. U. S. Patents Granted 1790s  276 patents issued. 1990s  1,119,220 patents issued.
  3. 3. The Light Bulb
  4. 4. Thomas Alva Edison <ul><li>“ Wizard of Menlo Park” </li></ul>
  5. 5. The Phonograph (1877)
  6. 6. The Ediphone or Dictaphone
  7. 7. The Motion Picture Camera
  8. 8. Alexander Graham Bell Telephone (1876)
  9. 9. Model T Automobile Henry Ford I want to pay my workers so that they can afford my product!
  10. 10. “ Model T” Prices & Sales
  11. 11. Essential Question <ul><li>Industrialization increased the standard of living and the opportunities of most Americans, but at what cost ? </li></ul>
  12. 12. Causes of Rapid Industrialization <ul><li>Steam Revolution of the 1830s-1850s. </li></ul><ul><li>The Railroad fueled the growing US economy: </li></ul><ul><ul><ul><li>First big business in the US. </li></ul></ul></ul><ul><ul><ul><li>A magnet for financial investment. </li></ul></ul></ul><ul><ul><ul><li>The key to opening the West. </li></ul></ul></ul><ul><ul><ul><li>Aided the development of other industries. </li></ul></ul></ul>
  13. 13. Causes of Rapid Industrialization <ul><li>Technological innovations. </li></ul><ul><ul><ul><li>Bessemer and open hearth process </li></ul></ul></ul><ul><ul><ul><li>Refrigerated cars </li></ul></ul></ul>
  14. 14. Causes of Rapid Industrialization <ul><li>Unskilled & semi-skilled labor in abundance. </li></ul><ul><li>Abundant capital. </li></ul><ul><li>New, talented group of businessmen [ entrepreneurs ] and advisors. </li></ul><ul><li>Market growing as US population increased. </li></ul><ul><li>Government willing to help at all levels to stimulate economic growth. </li></ul><ul><li>Abundant natural resources. </li></ul>
  15. 15. Growth of Railroads <ul><li>Government justified giving Railroads land grants and loans for military and postal service purposes. </li></ul><ul><li>Union Pacific Railroad extended railroad west from Omaha, NE. </li></ul><ul><li>Central Pacific Railroad completed the transcontinental rail line from Sacramento, CA to Sierra, NV </li></ul><ul><li>The two lines met near Ogden, UT </li></ul>
  16. 16. Revolution by Railways <ul><li>Transcontinental RR created domestic market for raw materials and manufactured goods. </li></ul><ul><li>Stimulated mining and agriculture by making the movement of goods to market faster and farther. </li></ul><ul><li>Creation of cities around RR </li></ul><ul><li>Advertising increased immigration from Europe to farm the west. </li></ul><ul><li>Introduction of time zones </li></ul><ul><li>Created new society of millionaires. </li></ul>
  17. 17. New Business Culture <ul><li>Laissez Faire  the ideology of the Industrial Age. </li></ul><ul><li>Individual as a moral and economic ideal. </li></ul><ul><li>Individuals should compete freely in the marketplace. </li></ul><ul><li>The market was not man-made or invented. </li></ul><ul><li>No room for government in the market! </li></ul>
  18. 18. New Type of Business Entities <ul><li>Pool 1887  Interstate Commerce Act  Interstate Commerce Commission created. </li></ul><ul><li>Trust  John D. Rockefeller </li></ul><ul><li>Standard Oil Co. </li></ul>
  19. 19. New Type of Business Entities <ul><li>Trust : </li></ul><ul><ul><ul><li>Horizontal Integration  John D. Rockefeller </li></ul></ul></ul><ul><ul><ul><li>Vertical Integration : </li></ul></ul></ul><ul><ul><ul><ul><li>Gustavus Swift  Meat-packing </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Andrew Carnegie  U. S. Steel </li></ul></ul></ul></ul>
  20. 20. Standard Oil Co.
  21. 21. Iron & Steel Production
  22. 22. New Type of Business Entities
  23. 23. U. S. Corporate Mergers
  24. 24. New Financial Businessman <ul><li>The Broker: </li></ul><ul><ul><li>J. Pierpont Morgan – “Stock Watering” </li></ul></ul><ul><ul><li>- “Interlocking Directorate” </li></ul></ul>
  25. 25. Wall Street – 1867 & 1900
  26. 26. The Reorganization of Work The Assembly Line
  27. 27. % of Billionaires in 1900
  28. 28. % of Billionaires in 1918
  29. 29. The Protectors of Our Industries
  30. 30. The ‘Bosses’ of the Senate
  31. 31. The Gospel of Wealth: Religion in the Era of Industrialization Russell H. Conwell <ul><li>Wealth no longer looked upon as bad. </li></ul><ul><li>Viewed as a sign of God’s approval. </li></ul><ul><li>Christian duty to accumulate wealth. </li></ul><ul><li>Should not help the poor. </li></ul>
  32. 32. “ On Wealth” Andrew Carnegie <ul><li>The Anglo-Saxon race is superior. </li></ul><ul><li>“ Gospel of Wealth ” (1901). </li></ul><ul><li>Inequality is inevitable and good. </li></ul><ul><li>Wealthy should act as “trustees” for their “poorer brethren.” </li></ul>
  33. 33. Impact of Industrial Revolution <ul><li>Public no longer lived by the clock of nature. </li></ul><ul><li>Women entered the work force with invention of typewriter and telephone. </li></ul><ul><li>1/10 of American people owned 90% of the nation’s wealth. </li></ul><ul><li>Hundreds of thousands immigrants entered the US created a large, cheap labor market </li></ul>
  34. 34. Actions Against Labor Unions <ul><li>Injunctions – court order ordering strikers to return to work. </li></ul><ul><li>Lockouts – employers would lock the doors to the factories and “starve them into submission” </li></ul><ul><li>Yellow-Dog Contracts – employees were forced to sign an agreement not to join a labor union. </li></ul><ul><li>Black List – Employers would put trouble makers on a list and circulate the list to other employers making it difficult to find work. </li></ul>
  35. 35. Regulating the Trusts <ul><li>1886  Wabash, St. Louis & Pacific Railroad Company v. IL </li></ul><ul><li>The court declared invalid an Illinois law prohibiting long- and short-haul clauses in transportation contracts. </li></ul><ul><li>Interstate Commerce Act 1887 </li></ul><ul><li>Prohibited rebates and pools and required RR to openly publish their rates and charging more for short hauls than for long ones on the same line. </li></ul>
  36. 36. Interstate Commerce Commission <ul><li>Provided a forum where competing businesses could resolve conflicts. </li></ul><ul><li>It prevented “rate wars” among RR lines. </li></ul><ul><li>Stabilized the existing business system. </li></ul><ul><li>1 st attempt by the Federal Government to regulate business in the best interest of society. </li></ul>
  37. 37. Sherman Antitrust Act <ul><li>Declared illegal every contract, combination (in the form of trust or otherwise), or conspiracy in restraint of interstate and foreign trade. </li></ul><ul><li>It did not distinguish between “good” trusts and “bad” trusts limiting actions of labor unions who were restraining trade. </li></ul><ul><li>The law proved ineffective because of the loop holes corporate lawyers found. </li></ul>

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