Chapter 09

Splash Screen

Contents

Chapter Introduction

Section 1 Rise of Industry

Section 2 The Railroads

Section 3 Big Business

Section 4 Unions

Chapter Summary

Chapter Assessment

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Intro 1

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Intro 2

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Chapter Objectives

• Identify the effects of expanding population on industry.

• Explain the effects of technological innovations such as the telephone and telegraph on American development.

Section 1: Rise of Industry

Intro 3


Chapter ObjectivesSection 2: The Railroads

• Discuss ways in which the railroads spurred industrial growth.

• Analyze how the railroads were financed and how they grew.

Intro 4


Chapter ObjectivesSection 3: Big Business

• Analyze how large corporations came to dominate American business.

• Evaluate how Andrew Carnegie’s innovations transformed the steel industry.

Intro 5


Chapter ObjectivesSection 4: Unions

• Describe industrial working conditions in the United States in the late 1800s.

• List the barriers to labor union growth.

Intro 6

Why It MattersThe rise of the United States as an industrial power began after the Civil War. Many factors promoted industry, including cheap labor, new inventions and technology, and plentiful raw materials. Railroads rapidly expanded. Government policies encouraged growth, and large corporations became an important part of the economy. As industry expanded, workers tried to form unions to fight for better wages and working conditions.

Intro 7

The Impact TodayTrends which began in this era can still be seen today.

• Corporations continue to play an important role.

• Technology continues to change American life.

• Unions remain powerful in many industries.


Intro 8

continued on next slide

Intro 9

End of Intro

Section 1-1

Guide to Reading

American industry grew rapidly after the Civil War, bringing revolutionary changes to American society.

• gross national product

Main Idea


Key Terms and Names

• Edwin Drake

• laissez-faire

• entrepreneur

• Morrill Tariff

• Alexander Graham Bell

• Thomas Alva Edison

Section 1-2

Guide to Reading (cont.)

Reading Strategy


Organizing As you read about the changes brought about by industrialization, complete a graphic organizer similar to the one on page 308 of your textbook listing the causes of industrialization.

• Identify the effects of expanding population on industry.

Reading Objectives

• Explain the effects of technological innovations such as the telephone and telegraph on American development.

Section 1-3


Section Theme

Economic Factors The free enterprise system nurtured the growth of American industry.

Section 1-4



• By the early 1900s, the United States had become the world’s leading industrial nation.

• By 1914 the gross national product (GNP), or total value of goods and services produced by a country, was eight times greater than at the end of the Civil War.

Section 1-5

(pages 308–309)(pages 308–309)

The United States Industrializes


• With the end of the Civil War, American industry expanded and millions of people left their farms to work in mines and factories.

Section 1-6

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• Water, timber, coal, iron, and copper are natural resources found in the United States that led to the country’s industrial success.

• Transcontinental railroads increased industrialization by bringing settlers and miners to the West and moving resources to the factories in the East.

• Petroleum could be turned into kerosene for lanterns and stoves.

The United States Industrializes(cont.)

(pages 308–309)(pages 308–309)

Section 1-7


• The demand for kerosene created the American oil industry.

• In 1859 Edwin Drake drilled the first oil well near Titusville, Pennsylvania.

• As oil production increased, so did economic expansion.

• Between 1860 and 1910, the population of the United States tripled.

• This provided a large workforce and a greater demand for consumer goods.


(pages 308–309)(pages 308–309)

Section 1-8

How did the construction of the transcontinental railroad add to an increase in industrialization?

The railroads brought settlers and miners to the West to work and moved the resources back to the factories in the East.

Click the mouse button or press the Space Bar to display the answer.



(pages 308–309)(pages 308–309)

Section 1-9


(page 310)(page 310)

Free Enterprise• Laissez-faire, a French phrase that

means “let people do as they choose,” was a popular idea in the late 1800s.

• Many Americans believed the government should not interfere with the economy.

• Instead, they wanted supply and demand to regulate prices and wages.

• Entrepreneurs risked their capital to organize and run a business.

Section 1-10


• In the late 1800s, entrepreneurs were attracted to manufacturing and transportation fields.

• As a result, hundreds of factories and thousands of miles of railroad were built.

• Another important source of private capitol was Europe.

• Foreign investors saw more opportunity for profit in the U.S. than they did at home.

Free Enterprise (cont.)


Section 1-11



Why was Europe an important source of private capital?

Foreign investors saw more opportunities for growth and profit in the U.S. than at home.

Free Enterprise (cont.)


Section 1-12


(pages 310–311)(pages 310–311)

Government’s Role in Industrialism• In the late 1800s, state and federal

government had a laissez-faire attitude by keeping taxes and spending low and by not imposing regulations on industry.

• The government did not control wages or prices.

• It adopted policies to help industry.

• Since the early 1800s, the northeastern states and southern states debated on economic policies.

Section 1-13


• Northerners wanted high tariffs to protect their industries from foreign competition.

• Southerners opposed tariffs to keep the cost of imported goods down.

• The Civil War ended the economic debate.

• After the south seceded, the Morrill Tariff was passed, which reversed years of declining tariffs.

Government’s Role in Industrialism(cont.)

(pages 310–311)(pages 310–311)

Section 1-14


• The high tariffs contradicted laissez-faire policies and harmed many Americans.

• As the United States raised tariffs on foreign products, other countries responded by raising tariffs against American products.

• American companies who sold goods overseas, especially farmers, were hurt by these high tariffs.


(pages 310–311)(pages 310–311)

Section 1-15


• Many business leaders and members of Congress felt tariffs were necessary to protect American industry against the already established European factories.

• By the early 1900s, American industries were larger and highly competitive.

• Many business leaders began to encourage free trade, believing they could compete internationally and succeed.


(pages 310–311)(pages 310–311)

Section 1-16



What were some problems caused by high tariffs?

When other countries placed high tariffs against American goods, it hurt American companies selling products overseas. Rural American farmers were especially hard hit by the tariffs, causing many of them to leave farms and take factory jobs.


(pages 310–311)(pages 310–311)

Section 1-17


(pages 311–312)(pages 311–312)

New Inventions• New inventions increased America’s

productivity, which in turn produced wealth and job opportunities.

• In 1876 Scottish-American inventor Alexander Graham Bell invented the telephone.

• In 1877 Bell and his associates organized the Bell Telephone Company, which later became the American Telephone and Telegraph Company (AT&T).

Section 1-18


• In the late 1800s, Thomas Alva Edison invented or perfected the phonograph, the light bulb, the electric generator, the dictaphone, the mimeograph, and the motion picture.

• In 1882 the Edison Electric Illuminating Co. became a new industry and began supplying electric power to customers in New York City.

New Inventions (cont.)

(pages 311–312)(pages 311–312)

Section 1-19


• The clothing industry increased productivity in the mid-1800s with the introduction of the Northrop automatic loom, the power driven sewing machine, and cloth cutters.

• Mass production in the shoe industry allowed large factories to produce shoes more cheaply and efficiently than local cobblers.

• The savings were then passed on to the consumer.


(pages 311–312)(pages 311–312)

Section 1-20



How did technology cause the prices of shoes to go down?

Large factories could mass-produce shoes more quickly and cheaply than local cobblers could, resulting in lower prices.


(pages 311–312)(pages 311–312)

Section 1-21

Checking for Understanding

__ 1. policy that government should interfere as little as possible in the nation’s economy

__ 2. the total value of goods and services produced by a country during a year

__ 3. one who organizes, manages, and assumes the risks of a business or enterprise

A. gross national product

B. laissez-faire

C. entrepreneur

Define Match the terms on the right with their definitions on the left.

Click the mouse button or press the Space Bar to display the answers.


A

C

B

Section 1-22

Checking for Understanding (cont.)

Explain how an abundance of natural resources contributed to economic growth in the United States in the late 1800s.

Americans did not have to import resources from other countries, saving resources for internal growth.



Section 1-23

Reviewing Themes



Economic Factors How did the principles of the free enterprise system, laissez-faire, and profit motive encourage the rise of industry?

They put development in the hands of entrepreneurs, not the government.

Section 1-24

Critical Thinking



Synthesizing What role did the federal government play in increasing industrialization in the United States after the Civil War?

Congress subsidized railroads and sold lands below market value.

Section 1-25

Analyzing Visuals



Applying Time Lines Copy the time line on pages 310 and 311 of your textbook onto a separate sheet of paper. Add other inventions you have learned about to the time line in proper chronological order. Be sure to include the date for each invention.

Possible answers: 1859, first oil well dug; 1882, Edison Electric Illuminating Company supplies electric power to New York City; first refrigerated railroad car; 1893, Northrop automatic loom.

Section 1-26

CloseExplain the effects of technological innovations such as the telephone and telegraph on American industrial development.

End of Section 1

Section 2-1


Guide to Reading

After the Civil War, the rapid construction of railroads accelerated the nation’s industrialization and linked the country together.

• Pacific Railway Act

Main Idea

Key Terms and Names

• Grenville Dodge

• Leland Stanford

• Cornelius Vanderbilt

• time zone

• land grant

• Jay Gould

• Crédit Mobilier

• James J. Hill

Section 2-2



Reading Strategy

Organizing As you read about the development of a nationwide rail network, complete a graphic organizer similar to the one on page 314 of your textbook listing the effects of this rail network on the nation.

• Discuss ways in which the railroads spurred industrial growth.

Reading Objectives

• Analyze how the railroads were financed and how they grew.

Section 2-3


Section Theme

Individual Action The railroads provided new ways for some Americans to amass wealth.

Section 2-4



Section 2-5


(pages 314–316)(pages 314–316)

Linking the Nation


• After the Civil War, railroad construction dramatically expanded.

• In 1862 President Abraham Lincoln signed the Pacific Railway Act, which provided for the construction of a transcontinental railroad by the Union Pacific and Central Pacific railroad companies.

• To encourage rapid construction, the government offered each company land along its right of way.

Section 2-6

• In 1865 the Union Pacific, under engineer Grenville Dodge, pushed westward from Omaha, Nebraska.

• Weather, labor, money, and engineering problems hampered the project.

• The workers included Civil War veterans, Irish immigrants, farmers, miners, cooks, and ex-convicts.

• Camp life was dangerous.

Linking the Nation (cont.)


(pages 314–316)(pages 314–316)

Section 2-7

• Four merchants known as the “Big Four” invested in the Central Pacific Railroad.

• They each bought stock in the railroad and eventually made a fortune.

• One of them, Leland Stanford, became governor of California, founded Stanford University, and later became a United States senator.

• Because of a labor shortage, the Central Pacific Railroad hired about 10,000 workers from China.



(pages 314–316)(pages 314–316)

Section 2-8

How did the government encourage rapid construction of the railroads?

The government offered each railroad company land. Competition occurred between the two railroad companies as each tried to get as much land and money as possible.




(pages 314–316)(pages 314–316)

Section 2-9

Railroads Spur Growth


• Railroads encouraged the growth of American industry.

• They linked the nation and increased the size of markets.

• The railroad industry stimulated the economy by spending large amounts of money on steel, coal, and timber.

• In the early 1800s, most railways served only local needs, resulting in many unconnected rail lines.

(pages 316–317)(pages 316–317)

Section 2-10

• Eastern capitalists wanted to create a single rail transit system from the many smaller railroads.

• Eventually seven systems controlled most of the railroad traffic.

• The most famous railroad consolidator, Cornelius Vanderbilt, merged three short New York railroads to form the New York Central in 1869.

• He was the first to offer direct rail service from New York City to Chicago.

Railroads Spur Growth (cont.)


(pages 316–317)(pages 316–317)

Section 2-11

• In 1883 rail service became safer and more reliable when the American Railway Association divided the country into four time zones, or regions, where the same time was kept.

• Large integrated railroad systems provided increased efficiency, a decrease in time spent in long distance travel, and it united Americans from different regions.



(pages 316–317)(pages 316–317)

Section 2-12

What were the benefits of integrated railroad systems?

Integrated railroad systems were equipped to shift cars from one section of the country to another and made long distance transportation quicker. It also helped unite people from different regions.




(pages 316–317)(pages 316–317)

Section 2-13


The Land Grant System


• Land grants were given to railroad companies by the federal government to encourage railroad construction.

• Railroad companies like the Union Pacific and Central Pacific were able to cover all their building costs by selling the land to settlers, real estate agencies, and other businesses.

Section 2-14

Why were land grants necessary?

The building and operating of railroad lines required more money than most private investors could raise on their own.

The Land Grant System (cont.)




Section 2-15

(pages 317–318)(pages 317–318)

Robber Barons


• The wealth of railroad entrepreneurs led to accusations that they had acquired their wealth through illegal means.

• One of the entrepreneurs with the worst reputation was Jay Gould, who used information he obtained as a railroad owner to manipulate stock prices to his benefit.

• Railroad investors realized they could make more money through land grants than by running a railroad, so many investors bribed members of Congress to vote for more land grants.

Section 2-16

• In 1872 corruption in the railroad system became public with the Crédit Mobilier scandal.

• Several stockholders of the Union Pacific set up the Crédit Mobilier, a construction company.

• The investors signed contracts with themselves.

• The company greatly overcharged Union Pacific, and the railroad agreed to pay the inflated bills.

Robber Barons (cont.)


(pages 317–318)(pages 317–318)

Section 2-17

• When the railroad was completed, the investors had made a fortune, but the railroad was almost bankrupt.

• Congress agreed to give additional grants to the railroad after several members of Congress were given shares in Union Pacific at a price well below market value.

• An investigation implicated several members of Congress, including James Garfield, who later became president.



(pages 317–318)(pages 317–318)

Section 2-18

• Not all railroad entrepreneurs were corrupt.

• James J. Hill built the Great Northern Railroad without any federal land grants or subsidies.

• It became the most successful transcontinental railroad and the only one not to go bankrupt.



(pages 317–318)(pages 317–318)

Section 2-19

What was the Crédit Mobilier scandal?




(pages 317–318)(pages 317–318)

Section 2-20

Several stockholders of the Union Pacific set up the Crédit Mobilier, a construction company. The investors signed contracts with themselves. The company greatly overcharged Union Pacific and the railroad agreed to pay the inflated bills. When the railroad was completed, the investors had made a fortune, but the railroad was almost bankrupt. Congress agreed to give additional grants to the railroad after several members of Congress were given shares in Union Pacific at a price well below market value. An investigation implicated several members of Congress.


(pages 317–318)(pages 317–318)

Section 2-21


__ 1. a geographical region in which the same standard time is kept

__ 2. a grant of land by the federal government especially for roads, railroads, or agricultural colleges

A. time zone

B. land grant




B

A

Section 2-22




Explain the provisions of the Pacific Railway Act.

The Act provided for the construction of the transcontinental railroad.

Section 2-23

Reviewing Themes



Individual Action How did Grenville Dodge contribute to the economic growth of the United States in the late 1800s?

He supervised the Union Pacific’s westward expansion.

Section 2-24

Critical Thinking



Synthesizing How did railroad expansion in the United States lead to industrial growth?

Railroad expansion increased the size of markets and led to great amounts of money being spent on resources.

Section 2-25

Analyzing Visuals



Examining Maps and Graphs Study the map and the graph on page 317 of your textbook. Then make up a quiz of at least five questions based on the information presented.

Quizzes will vary.

Section 2-26

CloseDiscuss ways in which the railroads spurred industrial growth.

End of Section 2

Section 3-1


Guide to Reading

After the Civil War, big business assumed a more prominent role in American life.

• corporation

Main Idea

Key Terms and Names

• stockholder • stock • economies of scale • fixed costs • operating costs • pool

• Andrew Carnegie • Bessemer process • vertical integration • horizontal integration• monopoly • trust • holding company

Section 3-2



Reading Strategy

Organizing As you read about the rise of corporations in the United States, complete a graphic organizer similar to the one on page 319 of your textbook to describe the steps large business owners took to weaken or eliminate competition.

• Analyze how large corporations came to dominate American business.

Reading Objectives

• Evaluate how Andrew Carnegie’s innovations transformed the steel industry.

Section 3-3


Section Theme

Economic Factors Large national corporations formed in the United States in the mid-1800s and contributed to greater production.

Section 3-4



Section 3-5

(pages 319–320)(pages 319–320)

The Rise of Big Business


• By 1900 big business dominated the economy of the United States.

• A corporation is an organization owned by many people but treated by law as though it was a single person.

• Stockholders, the people who own the corporation, own shares of ownership called stock.

• Issuing stock allows a corporation to raise large sums of money but spreads out the financial risk.

Section 3-6

• From the sale of stock, corporations could invest in new technologies to increase their efficiency.

• By making goods quicker and cheaper, these corporations achieved economies of scale.

• All businesses have two kinds of costs.

• Fixed costs are the costs a company has to pay whether it is operating or not. Examples of fixed costs would be loans, mortgages, and taxes.

The Rise of Big Business (cont.)


(pages 319–320)(pages 319–320)

Section 3-7

• Operating costs are costs that occur when a company is in operation. These costs include wages, shipping charges, and supplies.

• Big corporations had an advantage over small manufacturing companies.

• Big corporations could produce more cheaply, and they could continue to operate even in poor economic times by cutting prices to increase sales.

• Many small businesses with high operating costs were forced out of business.



(pages 319–320)(pages 319–320)

Section 3-8

Why were large corporations able to thrive when so many small companies were forced out of business?

Large corporations were able to produce more goods cheaply and more efficiently. They could continue in poor economic times, and they could negotiate rebates from railroads. Small businesses with high operating costs were unable to compete with large corporations and were forced out of business.




(pages 319–320)(pages 319–320)

Section 3-9

(pages 320–322)(pages 320–322)

The Consolidation of Industry


• Competition between corporate leaders caused lower prices for consumers, but it also cut business profits.

• To stop prices from falling, companies organized pools–agreements to keep prices at a certain level.

• Pools usually did not last long.

• As soon as one member cut prices, the pool broke apart.

• By the 1870s, competition had reduced industries to a few large, highly efficient corporations.

Section 3-10

• Andrew Carnegie, a poor Scottish immigrant, worked his way up from a bobbin boy in a textile factory to the president of the Pennsylvania Railroad.

• He invested much of his money in railroad-related businesses and later owned his own business.

• He opened a steel company in 1875 and quickly adapted his steel mills to use the Bessemer process.


The Consolidation of Industry(cont.)

(pages 320–322)(pages 320–322)

Section 3-11

• Carnegie began vertical integration of the steel industry.

• A vertically integrated company owns all the different businesses it depends on for its operation.

• This not only saved money but also made the big company bigger.

• Business leaders also pushed for horizontal integration, combining many firms doing the same type of business into one large corporation.



(pages 320–322)(pages 320–322)

Section 3-12

• A monopoly occurs when one company gains control of an entire market.

• In the late 1800s, Americans became suspicious of large corporations and feared monopolies.

• Many states made it illegal for a company to own stock in another company without permission from the state legislature.



(pages 320–322)(pages 320–322)

Section 3-13

• In 1882 Standard Oil formed the first trust, which merged businesses without violating laws against owning other companies.

• A trust allows a person to manage another person’s property.

• A holding company did not produce anything itself.

• Instead, it owned the stock of companies that did produce goods.



(pages 320–322)(pages 320–322)

Section 3-14

• The holding company controlled all the companies it owned, merging them all into one large enterprise.


(pages 320–322)(pages 320–322)

Section 3-15

Why did Americans fear monopolies?

Americans feared monopolies because a company with a monopoly could charge whatever price it wanted for a product.




(pages 320–322)(pages 320–322)

Section 3-16


Selling the Product


• Retailers looked for new ways to market and sell their goods.

• Advertising changed, with illustrations replacing small-type line ads.

• The department store changed the idea of shopping by bringing in a huge assortment of products in a large, glamorous building.

• Chain stores, like Woolworth’s, focused on offering low prices instead of special services or fancy decor.

Section 3-17

• Mail-order catalogs were created to reach rural Americans.

• Montgomery Ward and Sears Roebuck were the two largest catalog retailers.

Selling the Product (cont.)



Section 3-18

How did department stores change the idea of shopping?

Department stores brought a huge assortment of products into one building. They made shopping seem glamorous and exciting.



Selling the Product (cont.)


Section 3-19


__ 1. an organization that is authorized by law to carry on an activity but treated as though it were a single person

__ 2. costs that occur while running a company

__ 3. total control of a type of industry by one person or one company

__ 4. costs a company must pay regardless of whether or not it is operating

__ 5. the combining of competing firms into one corporation

A. corporation

B. horizontal integration

C. fixed costs

D. operating costs

E. monopoly




D

E

A

C

B

Section 3-20




List the new methods of advertising and selling that helped push consumer goods in the late 1800s.

New methods included large display ads in newspapers, department stores, chain stores, and mail-order catalogs.

Section 3-21

Reviewing Themes



Economic Factors What factors allowed corporations to develop in the United States in the late 1800s?

General incorporation laws allowed corporations to develop in the United States in the late 1800s.

Section 3-22

Critical Thinking



Forming an Opinion Do you think an individual today can rise from “rags to riches” like Andrew Carnegie did? Why or why not?

Answers will vary.

Section 3-23

Analyzing Visuals



Analyzing Photographs Study the photograph of a woman using an early electric vacuum cleaner on page 322 of your textbook. How would you compare this to today’s vacuum cleaners? How do you think new mass-produced appliances such as this one affected the lives of women in this era?

Vacuums are lighter today. New mass produced appliances gave women more leisure time.

Section 3-24

CloseAnalyze how large corporations came to dominate American business.

End of Section 3

Section 4-1


Guide to Reading

In an attempt to improve their working conditions, industrial workers came together to form unions in the late 1800s.

• deflation

Main Idea

Key Terms and Names

• trade union

• industrial union

• blacklist

• lockout

• Marxism

• Knights of Labor

• arbitration

• closed shop

Section 4-2



Reading Strategy

Sequencing As you read about the increase of American labor unions in the late 1800s, complete a time line similar to the one on page 326 of your textbook by filling in the incidents of labor unrest discussed and the results of each incident.

• Describe industrial working conditions in the United States in the late 1800s.

Reading Objectives

• List the barriers to labor union growth.

Section 4-3


Section Theme

Individual Action People like Samuel Gompers and Mother Jones strove to balance the power of corporations with the needs of workers.

Section 4-4



Section 4-5

(pages 326–327)(pages 326–327)

Working in the United States


• Workers in industrial America faced monotonous work, dangerous working conditions, and an uneven division of income between the wealthy and the working class.

• Between 1865 and 1897, the United States experienced deflation, or a rise in the value of money.

• Relations between workers and employers were made more difficult by deflation.

Section 4-6

• Deflation caused prices to fall and companies to cut wages.

• To the workers, it seemed their company wanted to pay them less for the same work.

• Workers felt the only way to improve their working environment was to organize unions.

Working in the United States (cont.)


(pages 326–327)(pages 326–327)

Section 4-7

How did deflation add to poor relations between workers and employers?

Deflation caused prices to fall and increased the buying power of workers’ wages. Companies cut workers’ wages but prices fell even faster, so that wages were really still going up in buying power. Workers were angry, however, because they were being paid less for the same amount of work.



Working in the United States (cont.)

(pages 326–327)(pages 326–327)

Section 4-8

(pages 327–328)(pages 327–328)

Early Unions


• Two types of workers were a part of industrial America.

• Craft workers had special skills and were generally paid more.

• Common laborers had few skills and as a result received lower wages.

• In the 1830s, craft workers formed trade unions, which were unions limited to people with specific skills.

• By the early 1870s, there were over 30 national trade unions in the United States.

Section 4-9

• Employers opposed industrial unions, which united all craft workers and common laborers in a particular industry.

• Companies went to great lengths to prevent unions from forming.

• Companies would have workers take oaths or sign contracts promising not to join a union.

• They would also hire detectives to identify union organizers.

Early Unions (cont.)


(pages 327–328)(pages 327–328)

Section 4-10

• Workers who organized a union or strike were fired and put on a blacklist–a list of troublemakers.

• Once blacklisted, a worker could get a job only by changing trade, residence, or his or her name.

• If a union was formed, companies used a lockout to break it.

• Workers went without pay and were locked out of the property.



(pages 327–328)(pages 327–328)

Section 4-11

• If the union did strike, employers would hire replacement workers called strikebreakers.

• There were no laws that gave workers the right to organize.

• Marxism, the ideas of Karl Marx, was popular in Europe.

• Marx felt it was the class struggle between the workers and the owners that shaped society.

• He believed the workers would revolt and gain control.



(pages 327–328)(pages 327–328)

Section 4-12

• After the revolution, Marx believed a socialist society would be created in which the wealth was evenly divided, and classes would no longer exist.

• Many labor supporters agreed with Marxism, and some supported the idea of anarchism.

• Anarchists believed society did not need government and that a few acts of violence would cause the government to collapse.



(pages 327–328)(pages 327–328)

Section 4-13

• As ideas of Marxism and anarchism spread in Europe, tens of thousands of immigrants arrived in the United States.

• People began to associate Marxism and anarchism with immigrants.

• They became suspicious of unions as well.



(pages 327–328)(pages 327–328)

Section 4-14

How did companies try to prevent unions from forming?

Companies would have workers take oaths or sign contracts promising not to join a union. They would also hire detectives to identify union organizers. Workers who tried to organize a union were fired and placed on a blacklist. If workers formed a union, companies used a lockout to break it.




(pages 327–328)(pages 327–328)

Section 4-15

(pages 328–330)(pages 328–330)

The Struggle to Organize


• Workers attempted to create large unions, but rarely succeeded.

• Many times confrontations between owners and government ended in violence.

• The Great Railroad strike of 1877 occurred after a severe recession in 1873 forced many companies to cut wages.

• The result was the first nationwide labor protest in Martinsburg, West Virginia, as workers walked off their jobs and blocked tracks.

Section 4-16

• The strike spread until 80,000 railroad workers in 11 states stopped working.

• Violence erupted.

• President Hayes ordered the army to stop the strike.

• In the end, 100 people died and millions of dollars in property were lost.

• The failure of the great railroad strike led to a need for better organized laborers.

The Struggle to Organize (cont.)


(pages 328–330)(pages 328–330)

Section 4-17

• By the late 1870s, the first nationwide industrial union called the Knights of Labor was formed.

• They demanded an eight-hour workday, a government bureau of labor statistics, equal pay for women, an end to child labor, and worker-owned factories.

• They supported arbitration, a process where an impartial third party helps mediate between workers and management.



(pages 328–330)(pages 328–330)

Section 4-18

• The Haymarket Riot caused the popularity of the Knights of Labor to decline.

• A nationwide strike was called to show support of an eight-hour workday.

• A clash in Chicago left one striker dead.

• The next evening, a meeting at Haymarket Square was scheduled to protest the killing.

• Someone threw a bomb.



(pages 328–330)(pages 328–330)

Section 4-19

• In the end, seven police and four more workers were killed.

• Although no one ever knew who threw the bomb, one man arrested was a member of the Knights of Labor.

• This hurt the reputation of the organization, and people began dropping out.



(pages 328–330)(pages 328–330)

Section 4-20

• In 1893 railroad workers created the American Railway Union (ARU).

• They unionized the Pullman Palace Car Company in Illinois.

• After a recession caused the company to cut wages, a boycott of Pullman cars occurred across the United States.

• It tied up the railroads and threatened the economy.

• To end the boycott, U.S. mail cars were attached to Pullman cars.



(pages 328–330)(pages 328–330)

Section 4-21

• Refusing to handle a Pullman car would result in tampering with the mail, a violation of federal law.

• After a federal court ordered the boycott stopped, the strike and the ARU both ended.



(pages 328–330)(pages 328–330)

Section 4-22

What did the railroad managers do to break the union boycott of Pullman cars?

They attached mail cars to the Pullman cars. If the strikers refused to handle the Pullman cars, they would be interfering with the United States mail.




(pages 328–330)(pages 328–330)

• The AFL’s first leader was Samuel Gompers, whose plain and simple approach to labor relations helped unions become accepted.

• Gompers wanted to keep unions out of politics and to fight for small gains such as higher wages and better working conditions.

Section 4-23

(pages 330–331)(pages 330–331)

The American Federation of Labor


• In 1886 delegates from over 20 of the nation’s trade unions organized the American Federation of Labor (AFL).

Section 4-24

• Under Gompers’s leadership, the AFL had three goals: to get companies to recognize unions and agree to collective bargaining; to push for closed shops, where companies could only hire union members; and to promote an eight-hour workday.

• By 1900 the AFL had over 500,000 members.

• The majority of workers, however, were still unorganized.

The American Federation of Labor (cont.)


(pages 330–331)(pages 330–331)

Section 4-25

What were some of Samuel Gompers’s beliefs regarding unions?

Gompers believed that unions should stay out of politics. He was against socialist and communist ideas, and he believed that the AFL should fight for small gains like higher wages and better working conditions. Although willing to use the strike, Gompers felt negotiation was better.



The American Federation of Labor (cont.)

(pages 330–331)(pages 330–331)

Section 4-26


Working Women


• By 1900 women made up more than 18 percent of the labor force.

• Women worked as domestic servants, teachers, nurses, sales clerks, and secretaries.

• Women were paid less than men.

• It was felt that men needed a higher wage because they needed to support a family.

• Most unions excluded women.

Section 4-27

• A separate union for women was created by Mary Kenney O’Sullivan and Leonora O’Reilly.

• The Women’s Trade Union League (WTUL) was the first national association dedicated to promoting women’s labor issues.

Working Women (cont.)



Section 4-28

Why were women paid less than men were paid?

It was assumed that a woman had a man who was supporting her. It was believed that men needed a higher wage because they had a family to support.



Working Women (cont.)


Section 4-29




__ 1. an agreement in which a company agrees to hire only union members

__ 2. an organization of common laborers and craft workers in a particular industry

__ 3. settling a dispute by agreeing to accept the decision of an impartial outsider

__ 4. an organization of workers with the same trade or skill

__ 5. a company tool to fight union demands by refusing to allow employees to enter its facilities to work

A. trade union

B. industrial union

C. lockout

D. arbitration

E. closed shop




B

D

E

A

C

Section 4-30




List the groups of workers represented by the Knights of Labor and the American Federation of Labor.

Industrial workers and trade workers were represented by the Knights of Labor and the American Federation of Labor.

Section 4-31

Reviewing Themes



Individual Action What political contribution did Mary Harris “Mother” Jones make to American society?

She became a key organizer for the United Mine Workers union.

Section 4-32

Critical Thinking



Analyzing Why did early labor unions fail?

Early labor unions failed because of confrontations that led to violence and courts that ruled against them. They fought for many things all at the same time, and frequent strikes and blacklisting hurt them.

Section 4-33

Analyzing Visuals



Analyzing Photographs Examine the photograph of workers in a watch factory at the top of page 331 of your textbook. Most of the people in the picture are women. What do you think the jobs were of the men in the photograph?

The men were probably managers or supervisors.

Section 4-34

CloseDescribe industrial working conditions in the United States in the late 1800s.

End of Section 4

Chapter Summary 1

End of Chapter Summary

Chapter Assessment 1



Reviewing Key TermsDefine Match the terms on the right with their definitions on the left.

__ 1. a grant of land by the federal government especially for roads, railroads, or agricultural colleges

__ 2. policy that government should interfere as little as possible in the nation’s economy

__ 3. total control of a type of industry by one person or one company

__ 4. settling a dispute by agreeing to accept the decision of an impartial outsider

A. gross national product

B. laissez-faireC. land grantD. economies of

scaleE. fixed costsF. monopolyG. trustH. holding

companyI. arbitrationJ. Marxism

B

F

C

I




Reviewing Key Terms (cont.)


__ 5. the reduction in the cost of a good brought about especially by increased production at a given facility

__ 6. a combination of firms or corporations formed by a legal agreement, especially to reduce competition

__ 7. theory of socialism in which a class struggle would exist until the workers were finally victorious, creating a classless society

G

J

D A. gross national product







Reviewing Key Terms (cont.)


__ 8. the total value of goods and services produced by a country during a year

__ 9. costs a company must pay regardless of whether or not it is operating

__ 10. a company whose primary business is owning a controlling share of stock in other companies

E

H

A A. gross national product







Reviewing Key Facts

The United States had an advantage in industrializing due to its resources and large workforce. What resources did the nation have? Why was its workforce large?

The nation had iron ore, water, copper, coal, and timber. Its workforce was large due to large families and floods of immigrants.




Reviewing Key Facts (cont.)

How did inventions contribute to economic growth in the United States in the late 1800s?

Inventions helped increase the nation’s productive capacity and improved transportation and communication.





How did the federal government encourage railroad companies to construct railroads?

The government offered land grants.





What new methods of selling products were developed in the late 1800s?

Large display advertisements in newspapers, department stores, chain stores, and mail-order catalogs were used.





Why did workers try to organize labor unions in the United States in the late 1800s?

Workers tried to change poor working conditions, low pay, and job security.





What were the two basic types of workers in American industry at this time?

Craft workers and common laborers were the two basic types of workers.




Critical Thinking

Analyzing Themes: Individual Action List the names and actions of five people who contributed to American economic growth in the late 1800s.

Answers will vary.




Critical Thinking (cont.)

Analyzing Analyze the impact of technological innovations and industrialization on the American labor movement.

Inventions such as electric power and the automatic loom led to large manufacturing companies and industrialization but created a host of challenges for workers, such as harsh working conditions. This led workers to unite and join labor unions.


Economics and HistoryThe graph below shows steel production from 1865 to 1900. Study the graph and answer the questions on the following slides.


Interpreting Graphs Between what years did steel production have the greatest increase?

The greatest increase occurred between 1895 and 1900.

Economics and History (cont.)




Economics and History (cont.)



Making Inferences How did increased steel production contribute to American industrialism?

Increased steel production allowed railroads to be built, improving transportation and benefiting industry.




Directions: Choose the phrase that best completes the following sentence.

Labor unions were formed in order to

F protect factory owners and improve workers’ wages.

G improve workers’ wages and make factories safer.

H make factories safer and prevent lockouts.

J prevent lockouts and fight deflation.

Test-Taking Tip Read each part of each answer choice carefully. Only one answer choice contains two correct reasons.




What are some of the reasons the United States had become the world’s leading industrial nation by the early 1900s?

Possible answers: The United States had abundant natural resources, a large workforce, and a free enterprise system.

End of Chapter Assessment

F/F/F 3-Fact

The New York Stock Exchange In 1792 business-people met in New York City to establish a stock exchange—a marketplace for buying and selling stock in companies. At first, the new stock exchange was located under a buttonwood tree on Wall Street.The organization took its present name, the New York Stock Exchange, in 1863. Huge amounts of the capital required for the nation’s industrialization after the Civil War passed through the New York Stock Exchange. As stock trading grew, investors from across the nation needed financial news. In 1882 Henry Charles Dow and Edward D. Jones founded Dow Jones & Company. This new company sent bulletins on the day’s business to Wall Street’s financial houses. The day’s last delivery contained a news sheet, which became The Wall Street Journal in July 1889. Today, The Wall Street Journal has the largest daily circulation of any newspaper in the United States.

FYI Contents 3

Carnegie Steel

OPEC

Click on a hyperlink to view the corresponding slide.Click on a hyperlink to view the corresponding slide.

FYI 3-1a

In 1898, although Carnegie Steel’s output had risen threefold over the previous few years, the number of workers needed to produce the steel had decreased by 400. The use of electricity to drive automatic machinery was largely responsible for the decline in the workforce.

FYI 3-2b

Today the Organization of Petroleum Exporting Countries (OPEC) tries to maintain stability in the oil industry to ensure profits. This is called a cartel. Since 1970 OPEC has controlled approximately one-third to one-half of the world’s oil supply. In 2001 member nations included Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.

FYI 4-1

A century after the railroad strike of 1877, another group of transportation workers, air traffic controllers, went on strike demanding higher wages and fewer working hours. In August 1981, over 11,000 striking air traffic controllers were fired.

Moment in History 1



You Don’t Say 2-1

Time Tales Opponents of standard time called local time “God’s time” because it was based on the laws of nature–the sun’s position in the sky. Not until 1918 was Congress able to pass a law that standardized time zones.

You Don’t Say 4-1

Hard Work Strict rules were enforced in the workplace in the late 1800s. Many bosses forbade singing, drinking, joking, smoking, or conversation on the job. They also denied immigrant workers time to celebrate their national holidays and holy days, and they did not accommodate workers who did not want to work on the Sabbath.

CT Skill Builder 1

Making Inferences

Just as you are about to leave home to catch your school bus, you hear a radio report. Firefighters are battling a blaze near the bus garage. Your bus is late. Although no one told you, you know that the fire disrupted the bus schedule. You have made an inference. From the limited facts available, you formed a conclusion. By combining facts and general knowledge, you inferred that the fire trucks delayed your bus.



CT Skill Builder 2

Learning the Skill

Learning how to make inferences will help you draw conclusions about particular situations. To make accurate inferences, follow these steps:


Making Inferences

• Read or listen carefully for stated facts and ideas.

• Review what you already know about the same topic or situation.

• Use logic and common sense to form a conclusion about the topic.

• If possible, find information that proves or disproves your inference.

CT Skill Builder 3

Practicing the Skill

Read the passage on the next slide about early airplanes, and then answer the questions on the following slides.

Making Inferences

CT Skill Builder 4

Practicing the Skill (cont.)

On December 8, 1903, Samuel Langley was ready for his second attempt at flying a manned, self-propelled aircraft. This had never been done before.Langley used a $50,000 U.S. government grant to build a plane based on unmanned aircraft designs, adding a very powerful engine. The plane broke apart on takeoff and crashed into the Potomac River.In contrast, Wilbur and Orville Wright used a little more than $1,000 of their personal savings to build their aircraft. The brothers carefully studied the problems with previous planes and designed one with better wings, a more efficient propeller, and a strong but light engine. On December 17, 1903, these intrepid Americans made the first manned, powered flight in history on the sand dunes of Kitty Hawk, North Carolina.

Making Inferences

1. What are the facts regarding Langley’s attempt?

2. What are the facts regarding the Wright brothers’ attempt?

CT Skill Builder 5

Langley used a large government grant and a powerful engine. The plane broke apart and crashed.



The Wright brothers used their own money, studied previous designs, built a lightweight engine and better wings, and successfully flew.

Making Inferences


CT Skill Builder 6



3. What inferences might you draw based on the success of the Wright brothers and failure of Langley?

Answers will vary.

Making Inferences


M/C 1-1

M/C 2-1

Railroads, 1870 and 1890

Miles of Track, 1870-1890

Click on a hyperlink to view the corresponding slide.Click on a hyperlink to view the corresponding slide.

M/C 2-1a

M/C 2-2b

M/C 3-1

M/C 4-1

Why It Matters Transparency

Daily Focus Skills Transparency 1












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GO 2

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GO 4

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Chapter 09