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Essential Question
Industrialization increased the standard of living and the
opportunities of most Americans,
but at what cost?
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Causes of Rapid Industrialization
1. Steam Revolution of the 1830s-1850s.
2. The Railroad fueled the growing US economy:
§  First big business in the US.
§  A magnet for financial investment.
§  The key to opening the West.
§  Aided the development of other industries.
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Causes of Rapid Industrialization
3. Technological innovations.
§  Bessemer and open hearth process
§  Refrigerated cars
§  Edison
o “Wizard of Menlo Park”
o light bulb, phonograph, motion pictures.
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Thomas Alva Edison
“Wizard of Menlo Park”
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The Light Bulb
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The Phonograph (1877)
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The Ediphone or Dictaphone
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The Motion Picture Camera
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Alexander Graham Bell
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Alternate Current
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Alternate Current
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The Airplane
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Model T Automobile
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“Model T” Prices & Sales
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U. S. Patents Granted
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The Motion Picture Camera
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Alexander Graham Bell
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Alternate Current
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Alternate Current
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The Airplane
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Model T Automobile
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“Model T” Prices & Sales
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U. S. Patents Granted
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Causes of Rapid
Industrialization
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New Business Culture
1.  Laissez Faire à the ideology of the
Industrial Age.
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2. Social Darwinism
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2. Social Darwinism in America
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New Business Culture:
“The American Dream?”
3.  Protestant (Puritan) “Work Ethic”
§  Horatio Alger [100+ novels]
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New Type of Business Entities
1.  Pool
1887à Interstate Commerce Act
à Interstate Commerce
Commission created.
2.  Trust à John D.
Rockefeller
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Standard Oil Co.
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New Type of Business Entities
2.  Trust:
§  Horizontal Integration à John D.
Rockefeller
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Iron & Steel Production
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Horizontal v. Vertical Consolidation
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U. S. Corporate Mergers
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New Financial Businessman
The Broker:
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New Type of Business Entities
2.  Trust:
§  Horizontal Integration à John D.
Rockefeller
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Iron & Steel Production
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Horizontal v. Vertical Consolidation
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U. S. Corporate Mergers
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New Financial Businessman
The Broker:
§ J. Pierpont Morgan
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Wall Street – 1867 & 1900
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The Reorganization of Work
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The Reorganization of Work
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% of Billionaires in 1900
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% of Billionaires in 1918
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The Protectors of Our Industries
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The ‘Bosses’ of the Senate
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The ‘Robber Barons’ of the Past
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Cornelius [“Commodore”] Vanderbilt
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William Vanderbilt
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The Gospel of Wealth:
Religion in the Era of Industrialization
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“On Wealth”
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Regulating the Trusts
1877 à Munn. v. IL
1886 à Wabash, St. Louis & Pacific
Railroad Company v. IL
1890 à Sherman Antitrust Act
§ in “restraint of trade”
§ “rule of reason” loophole
1895 à US v. E. C. Knight Co.
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Relative Share of World Manufacturing
Modern ‘Robber Barons’??
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1886 à Wabash, St. Louis & Pacific
Railroad Company v. IL
1890 à Sherman Antitrust Act
§ in “restraint of trade”
§ “rule of reason” loophole
1895 à US v. E. C. Knight Co.
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Relative Share of World Manufacturing
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Modern ‘Robber Barons’??
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