The Rise of the Industry's

By Kalandria Gustafson-Schwartz

The Industrial age

This, then, is held to be the duty of the man of wealth: First, to set an example of modest, unostentatious living, shunning display or extravagance; … and, after doing so, to consider all surplus revenues which come to him simply as trust funds, which he is called upon to administer… to produce the most beneficial results for the community—the man of wealth thus becoming the mere trustee and agent for his poorer brethren, bringing to their service his superior wisdom, experience and ability to administer, doing for them better than they would or could do for themselves."

—From "Wealth," by Andrew Carnegie, North American Review(1889)


"Law? Who cares about the law. Hain't I got the power?"

—Comment by Cornelius Vanderbilt, when warned that he might be violating the law


English merchants were leaders in developing a commerce which increased the demand for more goods. The expansion in trade had made it possible to accumulate capital to use in industry. A cheaper system of production had grown up which was free from regulation.


Only Great Britain, the United States, Germany, France, and some parts of the Scandinavian countries had successfully completed an industrial revolution. Most of the world's population still worked in primitive agricultural economies. China, India, and Spain did not begin to industrialize until well into the 20th century.

Trusts

Trusts in the 1800's were companies that entered into agreements with competitors to set prices and labor costs, they were later deemed illegal. A trust is a legal entity which holds the property of another as a trustee. The trustee does not actually own the property but is retained to direct and control the property to the benefit of the owner. In the context of corporate finance, a trust was similar to a holding company -- it held the stock of several companies and ran all of them to obtain the greatest profit for each. This was accomplished via the interlocking directorate made illegal by the Clayton Anti-trust Act

trust Definition: An organizational structure that gives control over several business firms, usually in the same industry, to a single board of trustees with the purpose of monopolizing a market. This type of trust was outlawed by antitrust laws, especially the Sherman Act, passed in the late 1800s and early 1900s. The Standard Oil Trust, controlled by J. D. Rockefeller and dismantled through the Sherman Act, is perhaps the most famous monopoly trust. The use of a trust to establish a monopoly is really just an extension of the common, and legal, notion of trust, in which one person controls the assets legally owned by another. Legal trusts are frequently established for the assets or wealth owned by children. Parents then control this wealth until the children reach a give age.

Henry Bessemer - The Steel Man

Born in Hertfordshire, England, Bessemer received 110 patents throughout his life. His inventions included a solar furnace, a way to make graphite for pencils, an astronomical telescope, and a diamond-polishing machine. He eventually became a millionaire from his many patented works.Bessemer’s interest in steel came from an idea he had during the Crimean War to make a new type of artillery. Existing cannons were not strong enough, so he thought to improve the cannons by strengthening the steel. In doing so, he created the idea for the Bessemer converter, which allowed unskilled workers to make vast quantities of quality steel cheaply. An egg-shaped vat held molten iron, and cold air was blown into perforations in the bottom to remove the carbon and other impurities in the iron. The process only took 20 minutes and raised annual steel production enormously while reducing cost dramatically. Vital in propelling the Industrial Revolution, the Bessemer converter ceased being used in the mid-1900s. He was born Jan 19 1813 - Died Mar 15 1898

Sweatshops

People that work in sweatshops are in a terrible situation. They most likely are not educated, they come from a poor family in a poor nation, and they have few skills that can help them provide for a family. They most likely have poor sanitation and health standards. If they have employment options, none of them are good; however, if they are choosing to work at a sweatshop, then we know that it is their best option, given their circumstances. Notice I said "best" option and not "good" option. If someone works at a sweatshop then we know that it is the best way they have to provide for their family. If the sweatshop they work at is closed down, then they will be forced to choose a worse place of employment. This means that boycotting a sweatshop will harm its workers.275 girls started to collect their belongings as they were leaving work at 4:45 PM on Saturday. Within twenty minutes some of girls' charred bodies were lined up along the East Side of Greene Street. Those girls who flung themselves from the ninth floor were merely covered with tarpaulins where they hit the concrete. The Bellevue morgue was overrun with bodies and a makeshift morgue was set up on the adjoining pier on the East River. Hundred's of parents and family members came to identify their lost loved ones. 146 employees of the Triangle Shirtwaist Company were dead the night of March 25, 1911. The horror of their deaths led to numerous changes in occupational safety standards that currently ensure the safety of workers today.

CENTRAL PACIFIC

American railroad company founded in 1861 by a group of California merchants known later as the “Big Four” (Collis P. Huntington, Leland Stanford, Mark Hopkins, and Charles Crocker); they are best remembered for having built part of the first American transcontinental rail line. The line was first conceived and surveyed by an engineer, Theodore Dehone Judah, who obtained the financial backing of the California group and won federal support in the form of the Pacific Railway Act (1862), which provided land grants and subsidies to the Central Pacific and Union Pacific. Each company was granted financial support from government bonds and awarded sizable parcels of land along the entire length of their route as an added incentive.

Trusts