The Expansion of IndustryThe Expansion of IndustryMain IdeaMain Idea

At the end of the 19At the end of the 19thth century, natural century, natural resources, creative ideas, and growing resources, creative ideas, and growing

markets fueled an industrial boommarkets fueled an industrial boom

Why it matters nowWhy it matters nowTechnological developments of the late Technological developments of the late

1919thth century paved the way for the century paved the way for the continued growth of American Industrycontinued growth of American Industry

Natural Resources Fueled Natural Resources Fueled IndustrializationIndustrialization

What led to the What led to the nation’s industrial nation’s industrial boom?boom?– Wealth of natural Wealth of natural

resources, resources, government support government support for business/new for business/new inventions, and a inventions, and a growing urban growing urban population that population that provided cheap labor.provided cheap labor.

Video- Oil IndustryVideo- Oil Industry

Natural ResourcesNatural Resources

Texas oil boomTexas oil boom– Spindletop, near Spindletop, near

Beaumont, TX.Beaumont, TX.– Petroleum RefiningPetroleum Refining– Oil to KeroseneOil to Kerosene– Oil to GasolineOil to Gasoline

Black GoldEdwin L. Drake

BessemerProcess

Uses forSteel

Video- Steel Industry

Inventions Promote ChangeInventions Promote Change

How did new inventions and products How did new inventions and products affect people at home and at work?affect people at home and at work?– Helped improve people’s standard of living. Helped improve people’s standard of living.

Freed people from backbreaking work. Freed people from backbreaking work. Factories could mass produce items.Factories could mass produce items.

Video- Railroads

Inventions & ChangeInventions & Change

ElectricityThomas Alva Edison

Lightbulb-1880Westinghouse

Christopher SholesTypewriter

1867

Alexander Graham BellTelephone 1876

Phonograph 1877

Taking NotesTaking Notes

Resources, Ideas, Resources, Ideas, MarketsMarkets

Impact

Oil DrillOil Drill Oil Boom, WealthOil Boom, Wealth

Bessemer ProcessBessemer Process Bridge Construction, Bridge Construction, more Railroadsmore Railroads

SteelSteel Frame buildingsFrame buildings

Electrical PowerElectrical Power Artificial light widely Artificial light widely availableavailable

TelephoneTelephone Faster communicationsFaster communications

The Age of RailroadsThe Age of Railroads

Main IdeaMain IdeaThe growth and consolidationThe growth and consolidation

of railroads benefited the nationof railroads benefited the nation

but also led to corruption and requiredbut also led to corruption and required

government regulationgovernment regulation

Why it Matters NowWhy it Matters NowRailroads made possible the expansionRailroads made possible the expansion

of industry across the United Statesof industry across the United States

Railroads Span Time and SpaceRailroads Span Time and Space

How did the government facilitate the How did the government facilitate the expansion of the railroads?expansion of the railroads?– Government made huge land grants and Government made huge land grants and

loans to the railroad companies and set time loans to the railroad companies and set time zones to be set.zones to be set.

Railroads Span Time and SpaceRailroads Span Time and SpaceNational NetworkNational Network– Union Pacific and Central Pacific Union Pacific and Central Pacific

RailroadsRailroads– Promontory, Utah on May 10, 1869Promontory, Utah on May 10, 1869– Transcontinental RailroadTranscontinental Railroad

Romance and RealityRomance and Reality– Central Pacific- Chinese Central Pacific- Chinese

immigrantsimmigrants– Union Pacific- Irish immigrants & Union Pacific- Irish immigrants &

Civil War veteransCivil War veterans– Harsh life;1888-2,000 killed,20,000 Harsh life;1888-2,000 killed,20,000

injuredinjured

Railroad TimeRailroad Time– 1869-C.F. Dowd- 24 time zones1869-C.F. Dowd- 24 time zones– 4 time zones in the U.S.4 time zones in the U.S.

Eastern, Central, Mountain, Eastern, Central, Mountain, PacificPacificNov. 18,1883- Synchronized Nov. 18,1883- Synchronized time across countrytime across country

Opportunities and OpportunitiesOpportunities and Opportunities

How would the growth of railroad lines How would the growth of railroad lines promote the growth of cities and trade?promote the growth of cities and trade?– It helped establish new markets, and offered It helped establish new markets, and offered

rich opportunities for both visionaries and rich opportunities for both visionaries and profiteers.profiteers.

Opportunities and OpportunitiesOpportunities and Opportunities

The growth of railroads influenced the industries and The growth of railroads influenced the industries and businesses in which Americans worked. Iron, coal, steel, businesses in which Americans worked. Iron, coal, steel, lumber, and glass industries grew rapidly.lumber, and glass industries grew rapidly.

Opportunities

New TownsMarkets

PullmanCredit Mobilier

1864

Chicago-StockyardsMinneapolis- Grain

1880-IllinoisGeorge M. Pullman

Union Pacific stockholdersContract to lay tracks

2-3X what it cost

The Grange and the RailroadsThe Grange and the Railroads

How would Granger laws help farmers?How would Granger laws help farmers?– Congress passed laws that would protect their Congress passed laws that would protect their

interests. It established maximum freight and interests. It established maximum freight and passenger rates and prohibit discrimination.passenger rates and prohibit discrimination.

The Grange and the RailroadsThe Grange and the Railroads

Farmers were Farmers were especially affected by especially affected by corruption in the corruption in the railroads. railroads.

The Grangers began The Grangers began demanding demanding governmental control governmental control over the railroad over the railroad industry.industry.

Railroad Abuses

Granger LawsMunn vs. Illinois

Interstate Commerce

Act1887

Taking NotesTaking Notes

ConsolidationOf

Railroads

CorruptionCreation of

Nationwide Markets

Growth of Towns & Cities

Regulation ofIndustry

Rapid GrowthOf Railroads

Big Business and LaborBig Business and Labor

Main IdeaMain IdeaThe expansion of Industry resulted in the The expansion of Industry resulted in the

growth of big business and prompted growth of big business and prompted laborers to form unions to better their liveslaborers to form unions to better their lives

Why it Matters NowWhy it Matters NowMany of the strategies used today in Many of the strategies used today in

Industry and in the labor movement, such Industry and in the labor movement, such as consolidation and the strike, have their as consolidation and the strike, have their

origins in the late 19origins in the late 19thth century century

Carnegie’s InnovationsCarnegie’s Innovations

What business did What business did Andrew Carnegie Andrew Carnegie dominate?dominate?– Steel Business. Steel Business.

1899-The Carnegie 1899-The Carnegie Steel Company.Steel Company.

Carnegie’s InnovationsCarnegie’s InnovationsEarned his money first by buying stock in the Earned his money first by buying stock in the Pennsylvania RailroadsPennsylvania Railroads1899- Carnegie Steel Company1899- Carnegie Steel CompanyNew Business StrategiesNew Business Strategies– Make better products more cheaplyMake better products more cheaply– Attracted talented people by offering them stocks in Attracted talented people by offering them stocks in

the company. He encouraged competition.the company. He encouraged competition.

Carnegie looked to control as much of the steel Carnegie looked to control as much of the steel industryindustry– Vertical Integration-Vertical Integration- process in which he bought out process in which he bought out

his suppliers. Control materials.his suppliers. Control materials.– Horizontal Integration-Horizontal Integration- companies producing similar companies producing similar

products merge. Limited competition.products merge. Limited competition.

Production Process Horizontal Integration Vertical Integration

Raw Materials:Coal and Iron Mines

Manufacturing the Steel:Steel Mills

Transportation to andFrom mill: Railroads

Owner X

Owner Y

Owner Z

Carnegie Owns

Carnegie Owns

Carnegie Owns

Social DarwinismSocial Darwinism

What does the theory of Social Darwinism What does the theory of Social Darwinism advocate?advocate?– The strongest will survive. The strongest will survive.

What methods did ruthless business What methods did ruthless business operators use to eliminate their operators use to eliminate their competition?competition?– Big businesses form monopolies. They Big businesses form monopolies. They

merged small companies into larger ones. merged small companies into larger ones. They could fix their prices and wages to their They could fix their prices and wages to their advantage.advantage.

Social Darwinism and BusinessSocial Darwinism and BusinessAndrew Carnegie explained his extraordinary success by pointing to Andrew Carnegie explained his extraordinary success by pointing to his hard work, shrewd business investments, and innovative his hard work, shrewd business investments, and innovative business practices.business practices.

Social DarwinismBusiness

Charles DarwinOn the Origin of Species

Herbert Spencer William G. Sumner

Survival ofthe Fittest

Laissez Faire BusinessBusiness is governed

by Natural Law

Fewer Control MoreFewer Control More

Control

J.P. Morgan1901-Carnegie Steel Co.

John D. RockefellerStandard Oil Co.

MergersHolding Companies

Trusts

““Robber Barons”Robber Barons”

1880-Standard Oil controlled 90% of the 1880-Standard Oil controlled 90% of the refining business.refining business.

Paid employees low wages and drove Paid employees low wages and drove competitors out of business by lowering competitors out of business by lowering the price it cost to produce it.the price it cost to produce it.

““Robber Barons”Robber Barons”

He eventually gave away over $500 millionHe eventually gave away over $500 million– University of Chicago, Rockefeller Foundation, University of Chicago, Rockefeller Foundation,

and Medical Foundation.and Medical Foundation.

Fewer Control MoreFewer Control More

Sherman Antitrust ActSherman Antitrust Act– Made it illegal to form a trust that interfered with free Made it illegal to form a trust that interfered with free

trade between states or with other countries.trade between states or with other countries.– Didn’t have much of an impactDidn’t have much of an impact

How did economic factors limit the How did economic factors limit the industrialization in the South?industrialization in the South?– The South had a devastated economy from the Civil The South had a devastated economy from the Civil

War. It was at the mercy of the Northern railroad War. It was at the mercy of the Northern railroad companies for transporting goods to markets.companies for transporting goods to markets.

Business Boom Bypasses the SouthBusiness Boom Bypasses the South– South still trying to recover from the Civil War.South still trying to recover from the Civil War.– People didn’t want to take the risk.People didn’t want to take the risk.

Labor Unions EmergeLabor Unions Emerge

What conditions did many factory What conditions did many factory workers face in the late 19workers face in the late 19 thth century? century?– Long hours(12), poor working conditions, No Long hours(12), poor working conditions, No

vacations, sick days. Worked six days a vacations, sick days. Worked six days a week. week.

Early Labor OrganizingEarly Labor Organizing

National Labor Union(NLU)- 1National Labor Union(NLU)- 1stst large union 1866 large union 1866– William H. SylvisWilliam H. Sylvis– 8 Hour workdays8 Hour workdays

Colored National Labor Union(CNLU)Colored National Labor Union(CNLU)Knights of Labor-Uriah StephensKnights of Labor-Uriah Stephens– ““An injury to one is the concern of all.”An injury to one is the concern of all.”– Open to all workersOpen to all workers– Equal pay for equal work for both men and womenEqual pay for equal work for both men and women– 8 hour workday8 hour workday– Strikes would be a last resortStrikes would be a last resort

Union Movements DivergeUnion Movements Diverge

Two major types of unions made great gains Two major types of unions made great gains under forceful leadersunder forceful leaders

UnionsDiverge

Craft Unionism Industrial Unionism Socialism

AFLSamuel Gompers

ARUEugene V. Debs

IWW“Big Bill” Haywood

Union Characteristics Leader

NLU

CNLU

Knights of Labor

AFL

ARU

IWW

8 hour work day. No blacks8 hour work day. No blacks

8 hour work day. 8 hour work day.

Individual workers. Open toIndividual workers. Open to

All.All.

Collective bargainingCollective bargaining

or negotiationor negotiation

Higher wages, skilled & Higher wages, skilled & unskilled workersunskilled workers

Better working conditions; Better working conditions; miners, dock workers, miners, dock workers, lumberers.lumberers.

William SylvisWilliam Sylvis

Isaac MeyersIsaac Meyers

Uriah StephensUriah Stephens

Samuel GompersSamuel Gompers

Eugene V. DebsEugene V. Debs

William “Big Bill” HaywoodWilliam “Big Bill” Haywood

Strikes Turn ViolentStrikes Turn Violent

Pullman Co.Strike1894

HomesteadStrike1892

HaymarketAffair

May 4,1886

Great StrikeOf

1877

Strikes

Strikes Turn ViolentStrikes Turn Violent

Women OrganizeWomen Organize– Mary Harris JonesMary Harris Jones

UMW- United Mine WorkersUMW- United Mine WorkersChild LaborChild Labor

– Pauline Newman-16 yrs. oldPauline Newman-16 yrs. oldInternational Ladies’ Garment Workers’ Union International Ladies’ Garment Workers’ Union (ILGWU)(ILGWU)Triangle Shirtwaist Factory-NY City, March 28, Triangle Shirtwaist Factory-NY City, March 28, 19111911

Management & Government Pressure Management & Government Pressure UnionsUnions– ““Yellow-Dog Contracts”Yellow-Dog Contracts”