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Consolidation in Steel
• What kind of a
corporation was
United States Steel?
– Was founded in 1901
– Created because of
competitive situation in
steel industry
– The need for a greater
concentration of
capital to meet new
demands
– Carnegie, Frick,
Schwab, and Phipps
fought for all aspects
of industry.
Consolidation in Steel
• What kind of man was
Judge Elbert H. Gary?
– Gary’s boyhood was
spent in Wheaton, IL.
– “The product of
conditions rather men”
– Gary’s policies were
new
– Fought to consolidate
steel industry for fear of
competitive
insolvencies.
– Carnegie, Frick,
Schwab, and Phipps
Consolidation in Steel
• How did his policies
operate in both the
corporation he
directed and the city
of Gary, Indiana?
– Created the Industrial
Empire
– Consolidation helped
steel influence all
aspects of production
from transportation, to
water, and land.
– Without the
competition of other
steel industries
New Factory in the West
• New Site Location?
– Because the steel
industry was becoming
a giant some felt
expansion was the
next big step
– Problem! Area could
not be found in
Chicago
• Laws of use and Lake
• Chicago already had 5
existing factories
– New Site had to be
established
New Factory in the West
• Selecting the site
– Located in the
northern interior (mid-
west)
• Raw materials could be
easily assembled
• Market was at hand and
existed
– Moderately priced,
compact area of land
flat or capable of being
flattened
• Located for efficient
production
New Factory in the West
• Adequate
transportation facilities,
including a lake harbor
– Large vessels
– Fleet and railways
connecting to coal fields
and markets
• Large supply of clean,
soft water
– Steam, cooling, gas
washing
• Adequate labor could
be secured or attracted
New Factory in the West
• Site on the Calumet
– Region fulfilled all
criteria set for a ideal
site
• Calumet River
• Existing railways
connecting to Chicago
• Cheap Price
• Purchasing the Land
– July, 1905 Knotts quietly
began purchasing land
in the Tolleston area
• New Factory, New City
– A town of free men
– Pullman error
The Mill and the Town
• Construction Begins
– Selection was first step
– Building the physical
plant so production can
begin was next
• Surveyors where sent to
survey site
– Dunes with oaks and
cedars, fruits and
shrubbery, marshy
• Developers began to
level sand dunes, cut
trees and bushes and
prepared land for
foundation of factory
– Checker-board plan
• Two main streets
The Mill and the Town
• The Town Takes Form
– While streets where still
being laid out
permanent settlers
where arriving
• Thomas Knotts, his wife,
and five children from
Hammond
• Tents where being
occupied
– Boarding houses and
several restaurants
began catering the
workers
The Mill and the Town
• Establishing a
Government
– Town clerk, treasurer,
trustees
– Conflict between mill
and town arrised
• Mill wanted to have
power over town
• Voters asserted there
independence from the
mill and won
• The First Subdivision
– Housing for workers
• Immediately south of
mill site
• Utilities plotted
Town and New Frontier
• From East to West
– Early Gary reproduced
many elements of frontier
society
– Population divided from
workers developing site
and those who provided
services
• Professionals, business
services
– Saloons, Inn’s,
Restaurants
– Police had to be
established
– Word of Mouth and Media
helped bring new
Residents to this growing
city
Town and New Frontier
• Census 1908
– Total population 10,246
– Immigrants began to
come to find work
– New residents began to
show up
• Providing Social
Services
– Education
• October 1, 1906
• 35 students
– Jail
– Church
– Recreation opportunities
Gary becomes a City
• Making Steel
– 1909-1914 Gary Expanded in
population, and developed in
social complexity.
– Iron was made at Gary plant
on December 21, 1908
– Steel was made in February,
1909
• Marked the turning point in
the history of Gary
• Immigrants began to come
to Gary in the thousands
– Magnitude of plants, rapidity
of completion, and efficiency
in arrangement and
operations marveled
engineers and business men
Gary becomes a City
• Changes in Town
– Gary was rapidly growing
• New streets
• Schools
• Social gathering places
• Switch from town to city
government
• Crime and violence begins
to rise
• People of Gary, 1910
– Workers live south of mill
– Success full business men
and mill officials lived north
– Defacto Segregation
begins to take place
Majors Events influenced Gary
• The War Boom
– During the depression
Gary became very torn
as the rest of the
nation production was
low and workers were
laid off
– Because the US
entered the war the
steel industry boomed
once again
– More jobs were
available and more
immigrants began
migrating to Gary
Majors Events influenced Gary
• Strike Torn Gary
– September 20, 1919
– Production in steel
mills become ever
more predominant
– Workers working full
time cannot find the
means to pay for
necessities
– Formation of Unions
• Protected unfair
treatment
• Safety, benefits and
compensation
– Violence
Majors Events influenced Gary
• Augustan Age, Gary
– Depression and
Prosperity
• After torn by strike
• Workers voices were
muted for the city this
provided a bright future
for Gary
• Ten million dollar
addition to the sheet
and Tin plate Mills had
been completed
• The great boom of gary
lasted from 1923-1928
being the peak
Majors Events influenced Gary
• Melting Pot
– Churches began to
play a big part in Gary
• Immigrants had
different beliefs
– Crime was on the rise
• Because people came
and went (the steel
industries instability)
crime was more
prevalent
– Drunk armed men
– Strikes
– Segregation
– Depression
Majors Events influenced Gary
• Gary’s Culture
– Problems in the City
• Many problems came
from job situation in
Gary
– Immigrants
– Jobs/wages
– Segregation
• Economic problems
then and still today
– Gary was created as
a one-industry city,
dependent for
prosperity on the
success of the United
States Steel
