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Chapter 6
A New Industrial Age
The Expansion of Industry
Natural Resources Fuel Industrialization
• BLACK GOLD
• 1840s – Americans use kerosene to light lamps
• 1859 – steam engines used to drill for oil
• Petroleum-refining industries in Cleveland and Pittsburgh
• BESSEMER STEEL PROCESS
• Iron – soft and tends to break and rust
• Steel – lighter, more flexible, and rust-resistant
• 1850 – Henry Bessemer and William Kelly
• NEW USES FOR STEEL
• Railroads
• The Brooklyn Bridge• Completed in 1883• Spans across the East
River in New York
• William Le Baron Jenney designs the first skyscraper with a steel frame
Inventions Promote Change
• THE POWER OF ELECTRICITY
• Thomas Alva Edison • George Westinghouse
• 1890 – electric power ran machines
• Electric streetcars• Industry not bound to
rivers
• INVENTIONS CHANGE LIFESTYLES
• Thomas Alva Edison invents the light bulb
• Christopher Sholes invented the typewriter in 1867
• Alexander Graham Bell and Thomas Watson invent the telephone in 1876
The Age of the Railroads
Railroads Span Time and Space
• A NATIONAL NETWORK
• 1869 – the transcontinental railroad
• 1861 – 30,000 miles of tracks
• 1890 – 180,000 miles of tracks
• ROMANCE AND REALITY
• The Central Pacific Railroad employed thousands of Chinese immigrants
• The Union Pacific hired Irish immigrants and out-of-work Civil War veterans
The Grange and the Railroads
• GRANGER LAWS
• 1871 – Illinois authorized a commission “to establish maximum freight and passenger rates and prohibit discrimination”
• 1877 – Munn v. Illinois• Supreme Court upholds the Granger laws
• INTERSTATE COMMERCE ACT 1887
• 1886 – the Supreme Court ruled that a state could not set rates on interstate commerce
• Interstate Commerce Act• Reestablished the right
of the federal government to supervise railroad activities
• Established a five-member Interstate Commerce Commission (ICC)
Big Business and Labor
Carnegie’s Innovations
• Andrew Carnegie
• 1873 – Carnegie enters the steel business• 1899 – Carnegie Steel Company manufactured more
steel than all factories in Great Britain
• NEW BUSINESS STRATEGIES
• Carnegie’s success based on new management practices• Make better products more
cheaply• Use of new machinery and
techniques
• Improvement of his own manufacturing operation• Vertical integration
• Horizontal integration
Social Darwinism and Business
• PRINCIPLES OF SOCIAL DARWINISM
• Herbert Spencer• Used Darwin’s theories
to explain the evolution of human society
• Economists justify laissez faire• The marketplace
should not be regulated
Fewer Control More
• Mergers result in monopolies• Holding companies buy
out stocks of other companies
• J. P. Morgan and United States Steel
• Trust
• ROCKEFELLER AND THE “ROBBER BARONS”
• 1870 – Rockefeller’s Standard Oil Company processed two or three percent of the country’s crude oil
• 1880 – Rockefeller controlled 90 percent of the refining business
• Industrialists become philanthropists
• Rockefeller gave away over $500 million
• Carnegie donated about 90 percent of the wealth he accumulated
• SHERMAN ANTITRUST ACT
• 1890 – the Sherman Antitrust Act made it illegal to form a trust that interfered with free trade between states or with other countries
• Standard Oil reorganized into single corporations
• BUSINESS BOOM BYPASSES THE SOUTH
• The South still tried to recover from the Civil War, • Lack of capital• Northern businesses owned 90 percent of the
stock in the most profitable Southern enterprise
• The South remained agricultural• Only growth in forestry, mining, and in the tobacco,
and textile industries
Labor Unions Emerge
• LONG HOURS AND DANGER• Steel mills – a seven-day workweek
• Seamstresses – worked 12 or more hours a day, six days a week
• Sweatshops
• EARLY LABOR ORGANIZING
• The National Labor Union (NLU)• Formed in 1866
• The Colored National Labor Union (CNLU)
• The Knights of Labor• “An injury to one is the concern of all”• Membership was officially open to all workers
Union Movements Diverge
• CRAFT UNIONISM
• The American Federation of Labor (AFL), with Samuel Gompers as president
• Focus on collective bargaining
• INDUSTRIAL UNIONISM
• The American Railway Union (ARU)
• Included skilled and unskilled laborers
• Eugene V. Debs
Strikes Turn Violent
• THE GREAT STRIKE OF 1877
• 1877 – workers for the Baltimore and Ohio Railroad (B&O) protest their second wage cut in two months
• Stopped freight and passenger traffic on 50,000 miles,
• Federal troops end the strike
• THE HAYMARKET AFFAIR
• May 4, 1886 – 3,000 people gathered at Chicago’s Haymarket Square to protest police brutality
• The crowd was dispersing when police arrived• Someone tossed a bomb into the police line
• THE HOMESTEAD STRIKE
• Carnegie Steel Company’s Homestead plant
• Steelworkers called a strike on June 29, 1892
• Pinkerton Detective Agency
• Strikebreakers
• THE PULLMAN COMPANY STRIKE 1894
• Panic of 1893 and the economic depression
• Pullman company laid off 3,000 of its 5,800 employees
• Cut the wages of the rest by 25 to 50 percent
• WOMEN ORGANIZE
• Mary Harris Jones• Exposed child labor
conditions• 1909 – Pauline Newman
organizes the International Ladies’ Garment Workers’ Union (ILGWU)
• The Triangle Shirtwaist Factory Fire in New York City in March 25, 1911