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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
