Chapter 9 Section 1

Chapter 9 Section 1I. The U.S. Industrializes

A. Work Force1. People left the farm and moved to the

cityB. By the 1900’s the U.S. was the world’s leading Industrial NationC. Abundant Resources

1.Water2. Timber3. Coal4. Iron5. Copper

D. Petroleum-Oil1. Edwin Drake

E. Between 1860-1910, the U.S. population tripled

Edwin Drake

II. Free EnterpriseA. Laissez-Faire

1. Govt. should not interfere with businessB. Entrepreneurs

1.Risked their capital to organize and run a business

2. Hundreds of factories were built.3. Thousands of miles of railroad tracks

were laid.C. Foreign Investment

III. Government’s Role in IndustryA. Laissez-Faire Attitude

1. Taxes and spending kept low2. No government regulation of industry.

B. Tariffs1. North wanted high tariffs2. South wanted low tariffs3. Morrill Tariff- Raised tariffs

C. High Tariffs hurt Americans1. Contradicted Laissez-Faire2. Other countries raised tariffs on us

D. American companies were strong, began to encourage free tradeIV. New Inventions

A. Increased productivity, wealth and opportunities

B. Alexander Graham Bell-Telephone 1876C. Thomas Alva Edison perfected-

1.Phonograph2. Light Bulb3. Electric Generator4. Dictaphone5. Mimeograph6. Motion Picture

Alexander Bell Thomas Edison

D. Clothing Industry1. Northop Automatic Loom2. Power Driven Sewing Machine3. Cloth Cutters

E. Shoe Industry1. Mass Production2. Produced much cheaper

Section 2I. Linking the Nation

A. Pacific Railway Act1. Transcontinental Railroad2. Union Pacific + Central Pacific

B. Union Pacific Workers1. Civil War Vets2. Irish Immigrants3. Farmers4. Miners5. Cooks6. Ex-Convicts

C. Central Pacific hired 10,000 workers from China

The Transcontinental Railroad

II. Railroads Spur GrowthA. Linked the nationB. Increased Market SizeC. Spent heavily

1. Steel2. Coal3. Timber

III. Railroad ConsolidationsA. Unconnected LinesB. 7 systems controlling all rail trafficC. Cornelius Vanderbilt

1. Merged 3 short NY railroads to form the New York Central in 1869

2. Offered direct service from NY to Chicago

D. Time Zones1. More reliable2. Safer

IV. Land GrantsA. Given by Federal GovernmentB. Covered building costs by selling land to

1. Settlers2. Real Estate Agencies3. Other Businesses

Section 3

I. The Rise of Big BusinessA. Corporations – Owned by many but treated as

though it was a single person.1. Stockholders-People who own the corporation2. Stock-ownership shares in a corporation3. Selling stock raises money but spreads out

the risk.B. Corporations invest in new technology to increase efficiencyC. Costs

1. Fixed Costs-Has to pay whether it is operating or not.

2. Operating Costs-Only occur when in operation

II. Consolidating of IndustryA. Competition caused lower prices

1. Corporations created pools to keep prices constant

2. Didn’t last longB. Andrew Carnegie

1. President of Pennsylvania Railroad2. Started his own steel company3. Bessemer Process

C. Vertical Integration- Owns all businesses it depends on for operation.

D. Horizontal Integration-Combines many of the came kinds of companies into one large Corporation

E. Monopolies-When one company gains control of an entire industry

F. Trusts-Allows a person to manage property of others

G. Holding Companies-Own the stock of other companies

1. do not produce anything themselves.

III. Selling the ProductA. Advertising

1. IllustrationsB. Department StoresC. Chain StoresD. Mail Order Catalogs

Section 4

I. Working in the U.S.A. Working Conditions

1. Monotonous2. Dangerous3. Uneven distribution of wealth

B. Deflation-A rise in the value of money1. Lower Prices 2. Lower Wages3. Time to Organize

II. Early UnionsA. Types of workers

1. Craft Workers2. Common Laborers

B. Trade Unions1. Craft Workers-People with specific skills

C. Industrial Unions1. Craft Workers and Common Laborers

D. Efforts to prevent unionization1. Oaths and contracts2. Detectives3. Organizers were fired and put on a

blacklistE. If Unions were formed

1. Lockouts2. Strikebreakers

F. Marxism1. Class struggle shapes society2. Workers would revolt3. Socialist society-evenly divided wealth4. Classes would no longer exist

G. Anarchism-Society did not need government

III. Struggles to OrganizeA. Attempts to organize often ended in violenceB. Great Railroad Strike of 1877

1. 80,000 railroad workers in 11 states went on strike

2. Violence erupted3. President Hayes sent in the Army to

break the strike4. 100 people died millions of dollars in

property were lostC. Better Organization

1. Knights of Labor2. Arbitration

D. The Haymarket Riot1. Bomb thrown during a strike2. 7 police and 4 workers died

E. Pullman Strike1. Boycott of Pullman cars2. Mail cars were attached to Pullman cars

IV. American Federation of LaborA. United over 20 Labor Unions: Pushed for

1. Recognition of Union2. Collective Bargaining3. Closed Shops4. 8 hour Workday

V. Working WomenA. Worked as domestic servants, teachers,

nurses, sales clerks, and secretariesB. Were paid less and excluded from unionsC. Women’s Trade Union League