THE SECOND INDUSTRIAL REVOLUTION AND THE RISE OF

THE SECOND INDUSTRIAL REVOLUTION AND THE RISE OF BIG BUSINESS Railroads, oil, steel and electricity have all been harnessed in less than 50 years, but the face of America is changing and the world will never be the same. http: //www. youtube. com/watch? v=Rk 5 h 3_l 4 h_Q

Cornelius Vanderbilt • The first millionaire • Cornelius Vanderbilt • • Immigrant Self made man from working on the docks to richest man in America at one time. Age 16 Borrows $100 from his mother to buy a ferry. (NY area) By age 35 he is a very wealthy man and owner of a major shipping company. Known as the “Commodore”

Vanderbilt becomes a the 1 st Millionaire • Buys 1 st Railroad company just before Civil War. • Economic Panic after the war drives RR stock down. He buys everything • He controls 90% of the eastern RRs • Becomes a millionaire • Gives $1 Mill to open Vanderbilt Univ. Largest donation in history at that time. • What is Vanderbilt University’s Mascot? • http: //www. youtube. com/w atch? v=H 9 Gq-e. KO 6 SQ

Industrial Innovations • The Second Industrial Revolution (1865 -1900) was ignited through numerous discoveries and inventions. The original industrial revolution was ignited by the discovery of coal and steam. Coal-feed steam engines powered factories and the factories produced the goods that generated economic growth.

The 1 st Monopoly – Standard Oil • John D. Rockefeller • Refining of oil improves – Kerosene becomes the way all buildings in the US are lighted by kerosene. • JDR – owns a small refining co. but Vanderbilt invests in his company, gives him good shipping rates • JDR is then able to undersell his kerosene and drive others out of business or buy them out • Standard Oil will supply most of the kerosene for the US • JDR becomes the richest man in the world

Carnegie Steel Company • Originally converting iron ore into steel was too expensive to be used until Henry Bessemer • {Bessemer Process- burned all the impurities in molten iron with hot air} • The method produced more steel in one day than the old method did in one week • Andrew Carnegie brings the process to America • Opens steel plants in towns like Cleveland Pittsburg making them major cities

Steel was used for… • Railroad tracks • Bridges • Building frames • Machinery • ( the more steel was produced the cheaper it was to buy)

This led to… • Stronger lasting rails • Stronger bridges • Taller multi-story buildings • More Jobs • people moving into cities

J. P. Morgan • Banker from a rich family • Wants to build an industry • Invests in Edison’s light bulb • Wants to light America with electricity • Buys out Westinghouse and forms General Electric • JP Morgan becomes super rich

J. P. Morgan and US Steel • J. P. Morgan now looks to expand his empire. • Offers to buy Carnegie Steel. • Carnegie Sells for $480 Million • He becomes the richest man in the world and second richest in history • The company becomes US Steel • Rockefeller is no longer the richest man in the world

Henry Ford and Ford Motor Co. • To this point the automobile is only for the rich • By using the assembly line Ford makes the Model T • Makes cars affordable for the average person • http: //www. youtube. com/watch? v=SOs. P 9 m 5 -6 Uo

John D. Rockefeller is back on top • Standard oil figures out how to use gasoline as a fuel for cars • For years gasoline was seen as unusable and dumped into streams • Supplies gas for most of the country • Later Anti-Trust laws would break up Standard Oil • J. D. Rockefeller would become the richest man in history

Companies made from Standard Oil (just a few)

ROBBER BARONS AND REBELS The Rise of Labor.

Pyramid of Wealth • Few very rich at the top • Some middle class managers • All these at the expense of the poor black, white, Chinese and European immigrant, female and child labor. • Why were wages for the bottom of the Pyramid low?

Pyramid of Wealth

The worker • 12 hrs a day, 6 days a week • No safety features in the workplace • Because of low wages entire families had to work. (men, women, children)

The Company Town • Communities owned by the company and rented to the workers • Company store – store in the co. town owned by the comp. • How could this lead to a form of slavery?

Impact of Industrial Growth • Laissez-faire approach to business by govt. • Industry owners concerned only about profits mistreat and underpay their employees • Karl Marx’s Communist Manifesto becomes the guide for many • Workers began to organize

Marxism • MARXISM –the working class should rise up and take over the means of production and all individuals as a collective would have control of the company. • This would grow into socialism • Socialism – the govt. owns the means of production • Socialism is often confused with Communism. • True communism never existed • Communism is like Marxism – all individuals own everything. A classless society

Labor Unites • Knight of Labor – 1 st labor union • Open to all • Focused on big social problems • Had socialist views • Later these views would be used against labor unions “Workers of all lands, unite! You have nothing to lose but your chains; you have a world to win!” Karl Marx Communist Manifesto

American Federation of Labor • Craft union • Union dues to support strikes • Focused on wages, working hrs, and work conditions

Haymarket Square • Strike for the 8 hr. work day • Police come to break it up • Bomb explodes. Killing 7 police wounding 66 • Police fire into crowd killing several and wounding 200 • International protests • Trial – people arrested never proven guilty but hung • This incident would fuel the anger of communists, anarchists and laborers

Homestead Strike • Carnegie Steel plant • Wages were cut • Union strike • Pinkerton’s brought in and killed many • Retaliation - assassination attempt of Carnegie’s partner • Public opinion goes against unions • Socialist revolutions are sited and creates fear

Pullman Strikes • Wage cuts w/o cut cost of living change • Brought passenger trains to a complete halt • President Cleveland claims it is illegal because it disrupts the mail and brings in troops. • Order was given to fire “the command to charge was given… From that moment on only bayonets were used… A dozen men in the front line of rioters received bayonet wounds… the ground over which the fight had occurred was like a battlefield. The men shot by the troops and police lay about like logs…” Chicago Times Who’s side is government on?

Hero’s or Villains? • Carnegie - During his lifetime, Carnegie gave away over $350 million. Mostly to education • John D. Rockefeller's charity proved considerable. In total he gave away more than $530 million to various causes. His money helped pay for the creation of the University of Chicago as well as the Rockefeller Institute for Medical Research (later named Rockefeller University) in New York, as well as the Rockefeller Foundation • http: //www. youtube. com/watch? v=g. R 7 o. Hh-f. XUw • http: //www. youtube. com/watch? v=yb 5 CVJYJ 1 ZQ