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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

				
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