1 A New Industrial Age The Expansion of Industry At the end of the 19 th century, natural resources,...

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A New Industrial AgeThe Expansion of Industry

At the end of the 19th century, naturalresources , creative ideas, and growing marketsfueled an industrial boom.

Section 1 Goals and Objectives

• Upon completion, students should be able to:

1. Explain how the abundance of natural resources, new recovery and refining methods and new used led to extensive industrialization.

2. Identify new inventions at the end of the 19th century as well as their impact on American life.

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INDUSTRIALIZATION

The aggregate (sum) of manufacturing or technically productive enterprise in a particular field.

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Entrepreneur

A person who organizes, operates, and assumes the risk of a business adventure.

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Industrialization Factors

• Unskilled and semi-skilled labor in abundance

• New, talented entrepreneurs

• Oil, Steel, Coal

• Inventions– New technology that allows mass production

• Railroads

• Changes in business strategy – Vertical Integration & Horizontal Consolidation– Social Darwinism

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Edwin L. Drake

> In 1859, he successfully used a steam engine to drill for oil from beneath the earth’s surface.

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The Bessemer Process

Henry Bessemer was a British manufacturer

This technique injected air into molten iron to remove the carbon and other impurities. Circa (approximately) 1850

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Thomas Edison

1876, Inventor who pioneered the first research laboratory in New Jersey. He perfected the first incandescent (giving off visible light as a result of being heated) and later invented the entire system of producing and distributing electricity.

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Christopher Sholes

Invented the typewriter in 1867 and forever changed the world of work

Provided more jobs for women

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Alexander Graham Bell

Invented the telephone that opened communications worldwide.

The telephones in offices created new jobs for women

Office jobs for women went from 5% in 1870 to 40% by 1910

Section 2 Goals and Objectives:

• Upon completion, students should be able to:

1. Identify the role of the railroads in unifying the country.

2. List positive and negative effects of railroads on the nation’s economy.

3. Summarize reasons for and outcomes of the demand for railroad reform.

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Transcontinental Railroad

Means passing or extending across a continent.

TRANSCONTINENTAL RAILROAD 1869 the Central Pacific and Union

Pacific Railroads met at Promontory, Utah

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Building the 1st Transcontinental Railroad

• Pacific Railway Act of 1862 – U.S. Government hired Union Pacific and Central Pacific Railway Company to extend railways across the United States.

• Central Pacific – Started in Sacramento, CA

• Union Pacific – Started in Omaha, NE

• The 2 railroad companies met in Promontory, Utah to drive the “Golden Spike” on May 10, 1869

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Transcontinental Railroad Map

The Birth of the railroads

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How did the Railroad influence

life in American?Rapid growth of industry and businessesOnce isolated cities were not linked Rapid shipment of cattle, grains, and

other goods Rapid travel for passengers

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Who did the Railroad Impact Continued

• Native Americans (called it the Iron Horse) had land taken for the RR

• Helped Westward expansion

• Made trade much easier

• Hurt the farmers economically because of the higher costs for farmers

• They made deals with wealthy businessmen (became corrupt)

• Became crucial to the U.S. economy

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Who Built the Railroads?

The Central Pacific Railroad hired thousands of Chinese immigrants

The Union Pacific Railroad hired Irish immigrants and desperate, out of work Civil War veterans

All these workers faced disease, Indian attacks, harsh winters, accidents, and less pay than white workers

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Railroad Laborers

Chinese Immigrants Irish Immigrants

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C.F. Dowd

He proposed a remedy for the time zone problems. Based on the fact that the earth was divided into 24 time zones, one for each hour of the day, the U.S. would contain 4 time zones:

Eastern, Central, Mountain, Pacific 10:00 9:00 8:00 7:00

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George Pullman:Sleeper Railroad Cars

Pullman TownComfort for his travelers and control for

his employees

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Pullman CarsPullman Cars

A Pullman porterA Pullman porter

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A “CompanyTown”:

Pullman, IL

A “CompanyTown”:

Pullman, IL

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New Uses For SteelFrom Inventors

RailroadsBarbed Wire Deere Farm Machines Bridges Skyscrapers

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Credit Mobilier

A corrupt construction company formed by Union Pacific Railroad stockholders.

RESULTS: Gave their own company contracts to lay

track for 2-3 times the actual cost Pocketed the profits. Over $23 million

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The Grangea.k.a. The Patrons of Husbandry Grangers (social and educational organization),

were farmers who faced low crop prices, high cost loans, and high RR shipping charges. Founded in 1867

Purpose: To stop railroad corruption Misuse of government land grants which RR

workers sold to other businesses rather than to settlers

Stop fixed prices that kept farmers in debt Non-consistent pricing for hauling

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The Grange

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Grangers Demand Reform

1871, Illinois legislators established maximum freight and passenger rates and prohibited discrimination

The Railroad fought back. In the case to MUNN V. ILLINOIS, the Supreme Court upheld the Granger Laws

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Interstate Commerceand the

Interstate Commerce Commission Act passed by Congress in 1886 to stop the

railroads from setting their own rates for interstate travel

The Federal government can now supervise railroad activities

Interstate Commerce Commission was lead by a five member team who had trouble regulating due to long legal process from railroad resistance

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Expansion of Industry Resulted in

Big Business and LaborAndrew Carnegie – steel industry John D. Rockefeller – oil industry J. P. Morgan - banker

Were they Robber Barons

Or

Captains of Industry

Section 3 Goals and Objectives:

• Upon completion, students should be able to:

1. Identify management and business strategies that contributed to the success of business tycoons such as Andrew Carnegie

2. Explain Social Darwinism and its effects on society.

3. Summarize the emergence and growth of labor unions

4. Explain the reactions by American society to labor unions.

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The “Robber Barons”

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Big Business Strategies

VERTICAL INTEGRATIONA process in which one person buys out

all his suppliers: mines, freighters, railroad lines. This process controls all materials and transportation systems.

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Vertical Integration Example

What companies can you think of that have total control from the ground up.

Material Produce Distribute Ship Absorb all profits

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Big Business Strategies Continued

HORIZONTAL INTEGRATION A process when one person attempts to buy

out all competing producers of their product. This will give control over suppliers and limit competition.

Merge

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Horizontal Integration Example

What are some companies that have bought out or merged with competing companies to gain control?

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Charles Darwinand

Social DarwinismEnglish naturalist with a theory on

evolution which was “natural selection” ONLY THE STRONG SURVIVE: he

observed that some generations flourish and pass the traits down and some do not

Laissez Faire = French term meaning “allow to do”

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Monopoly

Horizontal Integration in the form of mergers

Mergers are when one company buys out the stock of another

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Philanthropist

A person who uses his wealth for the common good of other or “do gooders”

Examples: building libraries to promote education, donations to charities

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Sherman Antitrust Act

The Sherman Antitrust Act was an attempt by the government to stop the expanding corporations from stifling the free competition

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Labor UnionsWhat, Who, When, Where

WHAT: Organizations formed by laborers to improve wages and conditions

WHO: Skilled, unskilled, male, female, black, and white workers

WHEN: Union movements developed in the late 1800s

WHERE: Workers for Big Businesses

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WHAT Unions Did

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WHOwere part of the unions

>

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Child LaborChild Labor

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WHEN and WHERE

> They met at homes, barns, churches, or where ever they could gather

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WHY Long hours for little pay (12=14 hours each day, no

vacations or sick leave. Unsanitary conditions that promoted disease and

illness. Dangerous conditions. No payment for on the job

injuries that were frequent. Wages were so low everyone in the family worked,

including children.

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Samuel Gompersand the

American Federation of Labor Gompers: President of the AFL from 1850-

1924 Craft Union (skilled workers) Open to skilled, WHITE men only Advocated higher wages and shorter work

weeks. Focused on bargaining and negotiations Used strikes as major tactic

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Homestead Steel Strike (1892)

Steelworkers strike due to cut in wages by president, Clay Frick.

Frick hires guards to protect the plant so he could hire scabs continue operations.

Violence and deaths

Homestead Steel Strike (1892)

Steelworkers strike due to cut in wages by president, Clay Frick.

Frick hires guards to protect the plant so he could hire scabs continue operations.

Violence and deaths

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Haymarket Riot (1886)

3,000 gather at Chicago’s Haymarket Square to protest police brutality when a striker was killed and several wounded at the McCormick Harvester Plant.

Cause was a bomb

Radicals arrested

Eight Convicted

Haymarket Riot (1886)

3,000 gather at Chicago’s Haymarket Square to protest police brutality when a striker was killed and several wounded at the McCormick Harvester Plant.

Cause was a bomb

Radicals arrested

Eight Convicted

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Pullman Company Strike, 1894

Company laid off half of workers and lowers wages of remaining by 25-50% without lowering housing cost.

Eugene Debs calls for arbitration, boycotts follow

Pullman hires scabs, strike becomes violent, President Cleveland calls for federal troops.

Pullman fires strikers and “blacklist” many

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The Pullman Strike of 1894The Pullman Strike of 1894

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The Knights of Labor

Founded by Uriah Stephens. Members were a part of a secret society of tailors

Included all workers regardless of race, gender, or degree of skill.

Wanted better working conditions: eight hour work week, abolition of child labor

Equal pay for equal work for all Advocated Arbitration instead of strikes.

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Knights of LaborKnights of Labor

Terence V. PowderlyTerence V. Powderly

An injury to one is the concern of An injury to one is the concern of all!all!

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American Railway UnionEugene V. Debs

> Majority of members were unskilled but welcomed skilled workers as members EXCEPT African Americans

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The SocialistsThe Socialists

Eugene V. DebsEugene V. Debs

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Industrial Workers of the WorldAKA Wobblies, W. “ Big Bill: Haywood Unlike the ARU, they did welcome

African Americans as members Were radical and socialists

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The Great Strike of 1877

Baltimore and Ohio railroad worker went on strike after their 2nd wage cut with in two months

Affected railroad traffic covering 50,000 miles of tract

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Mother Jones: “The Miner’s Angel”

Mother Jones: “The Miner’s Angel”

Mary Harris.Mary Harris.

Organizer for theOrganizer for theUnited MineUnited MineWorkers.Workers.

Founded the Founded the SocialSocialDemocratic Party Democratic Party in 1898.in 1898.

One of the One of the founding founding members of the I. members of the I. W. W. in 1905.W. W. in 1905.

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Mary Harris Jones

United behind powerful leaders Demanded equal pay for equal work End child labor. Exposed the cruelties of

child labor when she led 80 children, many with hideous injuries, to the home of President Theodore Roosevelt