Chapter 6Chapter 61865 – 1905The Second Industrial Revolution

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6.1 Objectives:6.1 Objectives:How did the development of steel

and oil refining affect U.S. industry?What innovations were made in

transportation?How did innovations in

communications technology change business practices and daily life in the United States?

How did Thomas Edison’s research laboratory change American life?

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Steel refiningSteel refining

Resultsprovided a strong, cheap source of

building materialallowed expansion of the railroad

industryallowed construction of more

complex machines and taller buildings

FactsBessemer Process – Blast Furnace

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Oil refiningOil refiningResultsresulted in the production of

kerosene for fuel and lightallowed the manufacturing of

other petroleum productshelped machinery operateImportant FactsEdwin L. Drake – steam engine to

drillElijah McCoy – lubricating cup

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Transportation innovationsTransportation innovationsResultsRailroads promoted western

settlement, urban growth, and economic prosperity.

Automobiles became a substantial industry.

Airplanes introduced new possibilities.Important FactsHorseless CarriageTranscontinental RailroadGeorge Westinghouse – Air BrakeGeorge Pullman – Railroad Sleeping Car

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Communications Communications innovationsinnovationsResultsThe telegraph allowed businesses to

place long-distance orders quickly.The telephone brought both

businesses and individuals together.The typewriter allowed the quick

production of legible documents.FactsMorse – Morse codeBell – TelephoneChristopher Sholes - Typewriter

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Thomas Edison’s research Thomas Edison’s research laboratorylaboratoryResultsthe light bulbthe phonographearly motion-picture cameraFactsMenlo ParkHeld more that 1000 patientsElectric Power Plant in NYC

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6.2 Objectives:6.2 Objectives:What arguments did business leaders

and social critics make about the role of government in business?

How did business strategies change during the Second Industrial Revolution?

How did entrepreneurs take advantage of changes in business organization?

How did new methods of marketing products change American life?

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Concerning government’s role in Concerning government’s role in businessbusinessBusiness leaders:

◦Individuals should be self-reliant.◦Businesses prosper most without government

interference.◦Government interference reduces self-

reliance.

Capitalism – private business and competition determine costs

Laissez-faire – let the people doo as they choose, no government intervention

Free Enterprise – supply and demand determine prices

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Concerning government’s role in Concerning government’s role in businessbusinessSocial critics:

◦Factory life and poor working conditions harm workers.

◦All citizens should own all means of production.

◦Government assistance would prevent the best businesses from rising to the top.

Communism – no individual ownership of property, means of production should be owned by everyone

Social Darwinism – the fittest people or businesses would rise to the top

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New business strategiesNew business strategiesCorporation – sell a percentage, or

“Share” of a companyVertical integration – acquiring

companies that provide material and services that the primary company depends on

Horizontal integration – on companies control of other companies producing the same things

Technological innovation

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The CorporationThe CorporationTrust – a group of companies turn

control over to a board of trustees

Monopoly – when a trust gains exclusive control with little to no other competition left

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Entrepreneurs take Entrepreneurs take advantageadvantageCarnegie created corporations and used

vertical integration to dominate the steel industry.

Rockefeller created corporations and used horizontal integration to dominate the oil industry.

Vanderbilt bought and consolidated many railroad lines.

Westinghouse and Pullman introduced and controlled new railroad technologies.

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New marketing methodsNew marketing methodsuse of brand names and special

packagingadvertisingdepartment storescatalogschain stores

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6.3 Objectives:6.3 Objectives:Why did some Americans want trusts to be

banned, and how did the government respond?

What types of working conditions did laborers face in the new age of rapid industrialization?

How did the Knights of Labor attempt to address the needs of many workers?

How did businesses react to strikes in the late 1800s, and how did this affect unions?

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The banning of trustsThe banning of trustsdesired because of belief that

without competition, large monopolies would have no reason to maintain quality or keep prices low

not accomplished despite passage of the Sherman Antitrust Act

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Working conditionsWorking conditions

WorkersAfrican AmericansWomen and ChildrenWorking Conditionslow paylong hoursunsafe environmentspossibility of racial discrimination

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The Knights of LaborThe Knights of Laborincluded both skilled and unskilled

workersincluded women and, later, African

Americans organized strikes, marches, and

demonstrationseducated and organized workersFactsTerence V Powderly – 1st leader of KOLMary Harris Jones – organized strikes,

marches, and demonstrations18

The Great UpheavalThe Great Upheaval1886 saw a year of intense strikes

and violent labor confrontationsHaymarket Riot

◦May of 1886; 40,000 Chicago workers strike

◦May 3 confrontation results in 2 deaths◦May 4 a peaceful rally was breaking up

when 200 police showed up, bombs and gunfire opened 60 police wounded

American Federation of Labor – Samuel Gompers organized independent craft unions

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Strikes in the late 1800sStrikes in the late 1800sBusinesses responded with

blacklists, yellow-dog contracts, lockouts, and violence.

Business tactics hurt many unions and caused skilled workers to break away from unskilled ones.

Other StrikesHomestead Strike – steelPullman – sleeping car factory

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