Second Industrial Revolution 1865-1905 Began with inventions
and innovations Changed everyday life for Americans
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Focus shifted from agriculture to industry Fueled by:
Capitalism New Inventions Captains of Industry Cheap labor
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Invented by: Henry Bessemer (GB) & William Kelly (US)
Effect: Bessemer process New, more effective method of producing
steel Production increased from 15,000 tons in 1865 to 28 million
tons by 1910 Other notes: Used to build railroads, bridges and
larger buildings (skyscrapers), everyday items Cities in Midwest
become industrial centers
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Invented by: Edwin L. Drake Effect: Could be used to make
kerosene for lamps or fuel Created another gold rush-type situation
in PA, OH and WV Texas oil boom began at Spindletop near Beaumont
in 1901 Terms/People Wildcatters oil prospectors Black gold
nickname for oil, also Texas tea Patent protection for an inventors
rights
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By 1900, Electric streetcars or trolleys powered by overhead
electrical wires replaced horse-drawn streetcars First subway
opened in Boston 1897 Automobiles (Duryea brothers), 1893 Airplanes
(Wright brothers), 1903
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Invented/Improved by: George Westinghouse, George Pullman,
Cornelius Vanderbilt, et al Effect: Railroad lines went national
instead of small, local lines (17 line changes btw. NYC and Chicago
in 1860) Increased western expansion and urban growth Huge economic
impact spurred growth of other industries directly and indirectly
Led to creation of time zones Trunk lines and feeder lines
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Civil War proved how important railroads were becoming. 1862:
Congress charters two transcontinental rail lines. (by 1890 167,000
miles) Along with railroad expansion came increased telegraph
service. Growth of railroads triggered a revolution in the iron and
steel industry. The demand for steel created the demand for
coal.
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1.What were some of the intended consequences? Improve
commerce, populate distant lands, encourage expansion, unite the
nation, 2.What were some of the unintended consequences? Effect on
Native Americans, influx of immigrant workers The Transcontinental
Railroad Andrew J. Russell, JOINING THE TRACKS FOR THE FIRST
TRANSCONTINENTAL RAILROAD, PROMONTORY, UTAH, TERR.(1869). Courtesy
National Archives and Records Administration. In 1869, the east and
west rails met in Promontory, Utah built by immigrants. Marked a
significant moment in American socio-economic history.
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Invented/Improved by: Duryea brothers (1893) Effect: Became a
mode of transportation, mostly for wealthy in early stages Quickly
developed into a sizeable industry, later evolved into
automobiles
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Invented/Improved by: Orville & Wilbur Wright Effect:
Received little public attention at first, later used in World War
I and then commercial air travel Combined glider designs with a gas
engine Originally used a propeller, jet engines developed during
and after WWII Other Notes: First flight December 17, 1903 at Kitty
Hawk, NC; lasted 12 seconds and went 120 feet
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Invented/Improved by: Samuel F.B. Morse Effect: People could
send messages or business orders to distant locations within
minutes Telegraphs usually developed along with railroads Sent
information for businesses, government, newspapers and private
citizens Other Notes: Morse Code system of dots and dashes for
sending messages through electric wires Western Union leading
company had over 2,000 offices by 1866
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Invented/Improved by: Alexander Graham Bell Effect: Quickly
became indispensable for people and businesses By end of 1880s,
more than 1 million telephones installed in USA Women took jobs as
operators connecting calls
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Invented by: Christopher Sholes in 1867 Effect: Allowed people
to easily produce legible documents Women took jobs as typists Led
to invention of carbon paper Sholes sold patent to Remington
Company in 1873 Other Notes: Keyboard developed by Sholes still in
use today with a few changes
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Wizard of Menlo Park Born in Ohio in 1847 Had little formal
education Moved around a lot as a young adult First inventions
electric vote recorder and telegraphic stock ticker in 1869
Received almost 1,100 patents Moved from Newark to Menlo Park in
1876, then to West Orange in 1887 Work was a team effort, employed
more than 10,000 people during World War I
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Invention: Phonograph (record player) 1877 Effect: Allowed
people to record and play back sounds including letters, music and
much more Other Notes: Edison actually stopped work on phonograph
for several years to concentrate on light bulb
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Invention: Incandescent light bulb (1879) Effect: Original
filament was made of bamboo fiber and lasted 600 hours (eventually
upgraded to tungsten) Allowed people to light up indoors and later
outdoors
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Invention: Electric Power Plant (1882) Effect: Delivered
electricity by direct current (DC) to neighboring homes and
businesses in New York City Electric lights replace gaslights,
electric streetcars Improvements: Alternating current (AC)
transformer developed by Westinghouse and Nikola Tesla Other Notes:
White City display of outdoor lights at 1893 Worlds Fair in
Chicago
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Invention: Motion pictures (1893) Effect: Began what is now a
multi-billion dollar and worldwide business Other Notes: Black
Maria first motion picture studio named after police wagons of the
time The Great Train Robbery (1903) first narrative movie 14
scenes, about 10 minutes
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Mass production of goods Sped up manufacturing = increasing
quantity of goods produced. Increased investors profits. Increased
demand for unskilled labor. Increased demand for raw materials.
Resulted in lower prices on goods for the consumer.
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SECTION 2 THE RISE OF BIG BUSINESS
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The spread of railroads New Inventions Capitalism Captains of
Industry Cheap labor
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Capitalism Industry controlled by private business, competition
determines costs and wages Entrepreneurs Laissez-faire economics no
government intervention in the economy Communism (also called
Marxism) Definition community owns all property and means of
production Karl Marx believed the rich took advantage of working
class Social Darwinism Survival of the Fittest
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Traditional forms of ownership New form of ownership
Corporations Organizers raise money by selling shares of stock
Advantages of corporations Raise more $$, limited liability, more
stability Disadvantages of corporations Wild swings in prices Trust
several companies work as one to set prices and control competition
Monopoly See next page Holding company does nothing but buy out
other companies
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Monopolies Companies that controlled all the business in an
industry in order to eliminate the competition and then raise its
own prices.
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The People who controlled these monopolies are: Andrew Carnegie
Steel John D. Rockefeller Oil Cornelius Vanderbilt, George
Westinghouse, and George Pullman - Railroads
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How did the captains of industry create and maintain control of
United States industry?
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A business leader whose way of achieving personal fortune
contributes positively to the country in some way. This can be
through: Increasing Production Providing Jobs Philanthropy
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Someone who makes large charitable donations ($$) to improve
the well-being of others. This is often to: Hospitals/ Medicine
Schools/ Universities Libraries
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A business man who dominated their industry and made huge
fortunes through unfair business practices. This was done by:
Eliminating smaller/weaker businesses Holding all of the power in
their company Sometimes used illegal business practices
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Controlled the steel Industry Sold Carnegie Steel to J.P.
Morgan for $500 mil in 1901.
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Used vertical integration to be successful. Vertical
Integration = Owning all aspects of production for a certain
product. As a result the owner makes all the profit (money). Gospel
of Wealth Carnegies belief that the rich were morally obligated to
help others
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Owned the Standard Oil Trust Had a reputation as a Robber
Baron
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Tried to control all businesses in the oil industry Gave away
more than $500 million during his lifetime
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The only time I ever saw John Rockefeller enthusiastic was when
a report came in from the creek that his buyer had secured a cargo
of oil at a figure much below the market price. He hounded from his
chair with a shout of joy, danced up and down, hugged me, threw up
his hat, acted so like a mad man that I have never forgotten
it...
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Built a huge railroad empire through ruthless business tactics
Had a reputation as a robber baron
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Left $1 million to Vanderbilt University after his death. He is
the 2 nd wealthiest person in U.S. History
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George Westinghouse George Pullman Company town Pullman built a
town next to his factory in the 1880s that allowed him to strictly
control daily lives of employees, in and out of work
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Marketing products Use of brand names and packaging Ads in
magazines, newspapers and billboards Helped create a new age of
consumerism in the U.S. New ways to shop Department stores Chain
stores
