A New industrial Age

Section 1: The Expansion of Industry, Pages 228-251

U.S. Industrialization, 1870-1900

In the 1860s the U.S. lagged behind Great Britain, France, and Germany in industrial output.

By 1900 the U.S. had moved so far into the lead that factories in the U.S. produced more than all THREE of the European leaders combined?

How and why did this rapid change occur?

Why did the U.S. industrialize so rapidly between 1870 and 1900?

1. America had abundant natural resources: coal, iron ore, oil, timber, rivers2. Large and growing labor supply (workers) 3. Widespread faith in capitalism 4. Federal government and legal environment

promoted the growth of big business 5. A surge in technological innovation 6. The nation had a group of talented and

ambitious entrepreneurs along with a tradition of hard work and an adventurous American spirit

7. An expanding domestic marketplace

Coal Miners

How did Edwin L. Drake contribute to

industrialization? He was the first to use a steam

engine to drill for oil. Led to a boom in the oil business

in the U.S. Oil was used for kerosene to

light homes and later for automobiles.

Oil Fields in Pennsylvania

Kerosene Lamp

What was the Bessemer process?

Bessemer process was a way to remove air pockets from iron to produce steel.

***Steel was used for Railroads Bridges (Brooklyn Bridge) First Skyscrapers (Cities grew) Farm Machinery Barbed wire (fenced in the West) Small Appliances

Steel

Vide0: Steel and Skyscrapers Story of Us , Disc 2 Cities 12:30, Edison at 35:00 http://www.cleanvideosearch.com/m

edia/action/yt/watch?videoId=1Lw9Px59gsY&name=America%3A+The+Story+of+Us+-+E07+-+Cities&uploadUsername=reuptakes&hitCount=2788

What inventions of the time changed the way

people lived and worked?

Light bulb Electricity Telephone Typewriter Refrigerated railroad cars

EalexanA

Thomas Edison

What contributions did Thomas Edison make?

1. He perfected the light bulb 2. He set up the first research

lab at Menlo Park 3. He helped design a system to

distribute electricity

GE: Revenue: $168.3 billionNo. of employees: 300,000

How did the light bulb and electricity

transform American life? Americans no longer worked by the

sun Factories and businesses can

operate 24 hours a day Electric street cars allowed people

to travel faster Factories could produce goods

faster and cheaper

Video Thomas Edison

Story of US Disc 2 Cities 34:00

What led to a revolution in communication in the U.S.? Alexander Graham Bell invented

the telephone Americans could communicate

faster and over longer distances Led to a worldwide

communications network that changed the way people worked and lived

Alexander Graham Bell (1876)

U. S. Patents Granted

1790s 276 patents issued.1990s 1,119,220 patents issued.

Technology and New Inventions included…. Ice Machine Refrigerated railroad car

Automated loom Mass produced shoes

Standard sizes were developed from measurements taken from Union soldiers during the Civil War.

Next:

The Age of Railroads

THE AGE OF THE RAILROADS

CHAPTER 6, SECTION 2 Page 236-240

Question: What name would you give to the present age?

What was the Transcontinental Railroad?

• A Railroad that connected the West to the East • Central Pacific (began in CA) Union Pacific railroads connected at Promontory Point, Utah • Completed 1869

1 Foot a day

How did Railroad Expansion Change American Life? Cities and towns grew, the West was settled

Business corruption led to government regulation of railroads

Standardized time—times zones were set up

Better diets and cheaper goods for Americans

Industry (factories) spread across the nation

Americans traveled more

LINKING THE NATION

Standardized time (Time Zones) 1883 Railroad companies set up time zones to manage the train schedule

4 time zones in the U.S. Quickly adopted by other businesses

***Americans began to work and live by the clock

Pullman Company

Manufactured sleeper cars for trains

Owned by George Pullman Pullman, Illinois was a town built to house company workers

Luxury Travel

Tourism in the West

Reasons for Government Regulation of Businesses (1870-1900s)

Some businessmen were corrupt

Railroads impacted the entire economy

Monopolies hurt the consumer (higher prices)

What was the Credit Mobilier Scandal? Construction Company hired to lay tracks -Purpose: to steal railroad money for its shareholders-Stole $23 million-An Example of corrupt business practices of some companies

Which laws were adopted to give the government more power to regulate the railroads? (1870-

1900Granger Laws –to set railroad fares

Munn v Illinois court case Sherman Antitrust Act Interstate Commerce Act

Cornelius Vanderbilt Takes on His Competitors: 9:00-19:00

What was Munn v Illinois, 1877?

Supreme Court case States won the right to

regulate the railroads Farmers and other

consumers benefitted from regulation of fares

What was the Interstate Commerce Act, 1887?

Purpose: to lower railroad rates Stated the federal government

had the right to regulate businesses (railroads)

Set up the Interstate Commerce Commission (ICC)

Advantages of Railroad Expansion (1877-1890)

Travel across the country was faster and safer

Goods traveled faster and cheaper to consumers

Connected markets and spurred settlement of the West

Supported economic growth Time zones were established

Disadvantages of Railroads (1877-1890) Farmers resented railroad companies

because they controlled shipping fees

Some railroad owners were corrupt in abusing their power

Workers were sometimes overworked and underpaid

Carried more settlers West and led to decline of Plains Indians

Stanford University (Leland Stanford)

Vanderbilt

Chapter 6 A New Industrial Age , Section 3, Pages 241-249

Bill Gates, Harvard drop out, tech genius, and founder of Microsoft. Can a corporation have too much power and control in one industry?

4 Industrialists of the late 1800s

Andrew Carnegie—steel John D. Rockefeller –oil J.P. Morgan—banking and U.S. Steel

Cornelius Vanderbilt—railroads

http://www.history.com/shows/men-who-built-america/videos/the-men-who-built-america-andrew-carnegie

Video Series on History Channel: Men Who Built America

Andrew Carnegie “Rags to Riches” story Grew up poor in Scotland Became rich in steel industry He used vertical and horizontal

integration to increase profits He built one of the largest steel

companies in the world Carnegie believed he should give most

of his fortune to society . He gave away 90% of his money before he died to libraries, education foundations, and research

Carnegie Mellon University

Carnegie Hall

What are 2 Ways to Organize a Business for

Higher Profits? 1. Horizontal Integration –combining many firms engaged in the same type of business into one large corporation

2. Vertical Integration-a company owns all the different businesses on which it depends including resources, manufacturing, and distribution (page 242)

Draw examples of vertical and horizontal integration in your

notes

Why were some men so successful? Ask Charles

Darwin

What was the philosophy of Social

Darwinism?1.Argument the wealthy used to explain their success

2.Based on the research of Charles Darwin: On the Origin of Species

3.Survival of the Fittest in nature and in business—the best, the strongest will survive and be successful

John D. Rockefeller

In 1913 he became world’s first billionaire.

He was ruthless, but also a great philanthropist.

He gave over $531 million to medical research, black educational institutions, and the University of Chicago.

J.P. Morgan

Made a fortune in banking

Bought Andrew Carnegie’s steel business

Formed U.S. Steel

Cornelius Vanderbilt After the Panic of

1893, railroads will undergo consolidation.

By 1890 seven companies controlled most of the country’s railroads.

MOVIE

Cornelius Vanderbilt home in New York City

Vanderbilt Mansion

NOTES!!!!

JP Morgan Bank Still a force in the industry

How did industrialists gain more control over their industries and limit competition?

Formed Trusts Set up Holding Company Set up Corporations Created Monopolies

Trust-one person controls another

person’s property. Business owners

formed trusts because monopolies

were illegal.

Monopoly

When one company achieves control of the entire market

Advantages of Monopolies

Economies of scale--large efficient businesses could make

produce goods faster and at a cheaper cost

Disadvantages of Monopolies Too much power to control and

industry and set costs and control supply

TODAY = OPEC (Organization of Petroleum Producing

Countries)

What is a Corporation?

An organization owned by many people but treated by law as though it were a single person.

Stockholders own the corporation Corporations can raise money for large projects

while limiting risk

U. S. Corporate Mergers

New York Stock Exchange, 1792

New York Stock Exchange

WSJ: Establish in 1882 to spread financial news

How did they sell new products in the late

1800s? 1. Advertising Magazines and newspapers 2. Mail order Catalogs Sears Montgomery Ward 3. Department stores and chain

stores Woolworth’s

Department Store

Oldest continuously running department store

in the South.

Share of World Manufacturing

Essential QuestionIndustrialization

increased the standard of living and the

opportunities of most Americans,

but at what cost?

Sherman Antitrust Act (1890)

Government declared trusts illegal The government was trying to rein in

the power of big business The law was hard to enforce

In the late 1800s, frustrated In the late 1800s, frustrated workers organized unionsworkers organized unions

Working Conditions, 1870-1900

Machines replaced skilled workers

Workers performed same task over and over

Workplace was dangerous and dirty

Children and women worked for low wages

Breaker Boys photographed by Lewis HineMOVIE

Bobbin Boys photographed by Lewis Hine

Boys on the Street photographed by Lewis Hine

Girl in Factory by Lewis Hine

FACTS Children sometimes worked 14 hours a day

for less than 50 cents a day. In 1899, women averaged $267 a year, men

$498 year and Andrew Carnegie made $23 million with no income tax.

“It will be a great mistake for the community to shoot the millionaires, for they are the bees that make the most honey, and contribute most to the hive even after they have gorged themselves full.”

---Andrew Carnegie

Labor Unions 1860s-1900s

Workers organized for better working conditions and higher wages

Craft unions(trade unions) included skilled workers

Industrial unions

Plumbers joined the Knights of Labor

Haymarket Riot, 1886

Riot in Chicago in 1886 A bomb was thrown, shots were

fired, 7 policemen and 4 workers were killed

Anarchists were blamed and 8 were arrested and 4 hanged

One of the men arrested was a member of the Knights of Labor

Great Strike of 1877 (Railroads)

80,000 workers strike across the country

Destroyed millions of dollars in property

President Hays sent in federal troops (military) to end the strike

Over 100 people died

American Federation of Labor AFL, wanted 8 hour day Trade union of skilled workers Leader –Samuel Gompers Wanted a shorter work week and

higher pay Closed shops—where companies

could only hire union members

Samuel Gompers

Leader of the American Federation of Labor

Focused on collective bargaining—negotiations between labor (workers) and management to reach an agreement

International Workers of the World

IWW or “Wobblies” Made up of radical unionists and

socialists

Iron & Steel Production

Eugene V. Debs

Ran the American Railway Union and ran for president as a socialist

Socialist-an economic and political system based on government control of business and property and equal distribution of wealth

Pullman Strike, Illinois, 1893

American Railway Union Leader—Eugene V. Debs Pullman Company –Pullman rail cars Economic depression of 1893—wage

cuts Attached U.S. mail cars to Pullman

cars to break up the strike. It was a federal offense to stop delivery of the mail.

Homestead StrikeCarnegie Steel –Pittsburg

Pullman Strike

BR: Labor Day Holiday

In September 1892, union workers in New York City took an unpaid day off and gathered in Union Square to support the holiday.

1894 - President Cleveland made a campaign promise to enact the holiday to win votes and he followed through with his promise.

Should we honor U.S. workers with a holiday? Why or why not?

MOVIE

Triangle Shirtwaist Fire

Fire in in New York City where 146 female workers died

Led to changes in local labor laws for women and children

Video: The Story of Us

What is Marxism?

Karl Marx, German philosopher

Das Kapital The Communist

Manifesto , 1848 Government

ownership of property

Wealth and property evenly divided

What is anarchism?

Anarchists believe government is not needed

Some believed in violence to overthrow the government .

From 1865- 1897 the From 1865- 1897 the United States United States experienced experienced DEFLATIONDEFLATION What is deflation? Deflation: a rise in the value of money.

Prices of goods fall. In other words, you can buy MORE GOODS

with the same amount of money. Companies cut wages BUT you could buy

more with your money…..so workers were better off, BUT they did not think so…….

Working Women

Women’s Trade Union League– the first national association dedicated to promoting women’s labor issues.

Ways companies tried to prevent unionization:

1. Workers had to promise not to join unions “yellow dog contracts”

2. Fired striking workers3. Placed names of union

organizers on a “black list.”4. Used Lockouts and

strikebreakers

Why Were Some Americans opposed Unions?

1. Fear of Marxism 2. Rise of Anarchism in Europe 3. Unions grow in Europe 4. European immigrants brought

some of these ideas with them to America

5. Nativism-anti-immigrant feelings

Why was it hard to form a union?

1. Only a small number of workers belonged to unions

2. There were no laws to protect workers

3. Workers did not agree on goals 4. Government sided with

business 5. Violence turned public opinion

against unions 6. Workers moved often

BIG QUESTIONS…SO WHAT????

1. Should the government take an active role in regulating business and industry?

2. What are the rights of workers and how far should the government go to protect those rights?

3. Which economic system best promotes prosperity and national health? Capitalism? Socialism? Communism?

4. Do individuals and businesses have a moral obligation to promote the good of society as a whole??

The automobile transformed American life

1932 New York City

Photograph by Lewis Hine

Wright Brothers

TRADE UNIONS

As industrialization spread, craft workers formed TRADE UNIONS .

TRADE UNIONS were limited to people with specific skills .

INDUSTRIAL UNIONS

United ALL workers –both skilled and unskilled– to ask for higher wages and better working conditions.

Owners of large corporations opposed these unions

The Knights of Labor

First nationwide industrial union Accepted all workers including

women and African Americans, skilled and unskilled

Leader—Terence Powderly Declined after the Haymarket

Riot in 1886

Andrew Carnegie Richest man in the world in 1901. He sold his steel company, which would later become US Steel, and spent the rest of his life giving away $350 million to fund public libraries, education, technology , and promote world peace.

Story of Us

Cities Steel production