THE RISE OF INDUSTRIAL AMERICA, 1865–1900 AP US History East High School Mr. Peterson Spring 2011.

THE RISE OF INDUSTRIAL THE RISE OF INDUSTRIAL AMERICA, AMERICA, 1865–19001865–1900

AP US HistoryAP US HistoryEast High SchoolEast High School

Mr. PetersonMr. PetersonSpring 2011Spring 2011

Focus QuestionsFocus Questions

What innovations in technology and business drove What innovations in technology and business drove increases in industrial production after 1865?increases in industrial production after 1865?

How did Carnegie, Rockefeller, and other corporate How did Carnegie, Rockefeller, and other corporate leaders consolidate control over their industries?leaders consolidate control over their industries?

Why did the South’s experience with Why did the South’s experience with industrialization differ from that of the North and the industrialization differ from that of the North and the Midwest?Midwest?

How did the changing nature of work affect factory How did the changing nature of work affect factory workers’ lives, and how did they respond?workers’ lives, and how did they respond?

How did corporations undercut labor’s bargaining How did corporations undercut labor’s bargaining power in the 1890s?power in the 1890s?

The Rise of Corporate America The Rise of Corporate America

The Character of Industrial ChangeThe Character of Industrial Change

Large-scale manufacturingLarge-scale manufacturing Large coal depositsLarge coal deposits Technological innovationTechnological innovation Demand for workers who could be Demand for workers who could be

controlledcontrolled Constant pressure to cut costs and Constant pressure to cut costs and

pricesprices Relentless drop in pricesRelentless drop in prices Money supply shortage leads to high Money supply shortage leads to high

interest ratesinterest rates

p. 538

Railroad Problems and InnovationsRailroad Problems and Innovations

193,000 miles by 1900193,000 miles by 1900 Collis Huntington, Jay Gould and Collis Huntington, Jay Gould and

others need capitalothers need capital Land and loan subsidies from all Land and loan subsidies from all

levels of governmentlevels of government Bonds and stock to publicBonds and stock to public High levels of debt by 1900High levels of debt by 1900

Magnetic telegraphMagnetic telegraph New organizations and accountingNew organizations and accounting

Consolidating the Railroad IndustryConsolidating the Railroad Industry

Large companies buy up smaller Large companies buy up smaller onesones Divide country into 4 time zonesDivide country into 4 time zones Standard gauge trackStandard gauge track Relied on shipping rate cutsRelied on shipping rate cuts

Interstate Commerce Act (1887)Interstate Commerce Act (1887) Oversee railroadsOversee railroads Banned monopolistic activityBanned monopolistic activity

Banker J. Pierpont Morgan gets Banker J. Pierpont Morgan gets control of many railroadscontrol of many railroads

Applying the Lessons of Railroads to Applying the Lessons of Railroads to SteelSteel

Andrew CarnegieAndrew Carnegie Rags to riches storyRags to riches story

Builds own steel millBuilds own steel mill Uses Bessemer processUses Bessemer process ““watch the costs, and the profits watch the costs, and the profits

will take care of themselves”will take care of themselves” Vertical integrationVertical integration Could see big pictureCould see big picture

p. 539

p. 539

Fig. 18-2, p. 541

Table 18-1, p. 541

The Trust: Creating New Forms of The Trust: Creating New Forms of Corporate OrganizationCorporate Organization

Consolidation in many industriesConsolidation in many industries Oligopolies Oligopolies

Petroleum drilled in 1859Petroleum drilled in 1859 Edwin Drake Edwin Drake Titusville, PATitusville, PA ““crude-oil” distilledcrude-oil” distilled Lubricants, kerosene Lubricants, kerosene

John D. RockefellerJohn D. Rockefeller

Took over competition in oil Took over competition in oil industryindustry Lower pricesLower prices

Set up pool of companies, trustSet up pool of companies, trust Standard Oil TrustStandard Oil Trust 90% of oil refining capacity90% of oil refining capacity

Integrated oil industry vertically Integrated oil industry vertically and horizontallyand horizontally

James B. “Buck” DukeJames B. “Buck” Duke

Cigarette industryCigarette industry American Tobacco trustAmerican Tobacco trust Targeted young with trading Targeted young with trading

cards and prizescards and prizes

p. 541

Sherman Anti-Trust ActSherman Anti-Trust Act

18901890 Outlawed trusts and monopoliesOutlawed trusts and monopolies Ineffective Ineffective Failed to define trust or restraint of Failed to define trust or restraint of

tradetrade United States v. E.C. Knight United States v. E.C. Knight

(1895)(1895) Manufacturing not interstate Manufacturing not interstate

commercecommerce

Stimulating Economic GrowthStimulating Economic Growth

The Triumph of TechnologyThe Triumph of Technology

New inventionsNew inventions Streamlined manufacturingStreamlined manufacturing Stimulated consumer demandStimulated consumer demand

Singer Sewing Machine Singer Sewing Machine CompanyCompany

Alexander Graham Bell-Alexander Graham Bell-telephonetelephone

Thomas A. EdisonThomas A. Edison

““invention factory”invention factory” Phonograph- “sound writer”Phonograph- “sound writer” Incandescent light bulbIncandescent light bulb

Electric power systemElectric power system Motion picture cameraMotion picture camera

Menlo Park laboratory Menlo Park laboratory Model for other businessesModel for other businesses

p. 543

ElectricityElectricity

Thomas EdisonThomas Edison Interrelated system of power plants, Interrelated system of power plants,

transmission lines, light fixturestransmission lines, light fixtures Direct current-DCDirect current-DC

George WestinghouseGeorge Westinghouse Alternating current-ACAlternating current-AC Systems combine-110 ACSystems combine-110 AC

Private ownership, regulated Private ownership, regulated monopoliesmonopolies

p. 544

p. 545

Specialized ProductionSpecialized Production

ManufacturingManufacturing Skilled workersSkilled workers

SeamstressesSeamstresses

Shift styles quicklyShift styles quickly

p. 546

Advertising and MarketingAdvertising and Marketing

Mass-produced consumer Mass-produced consumer goodsgoods Flour, soap, matches, canned Flour, soap, matches, canned

goodsgoods Brand names, trademarks, Brand names, trademarks,

guarantees, slogans, guarantees, slogans, endorsements, unique productsendorsements, unique products Demand and brand loyaltyDemand and brand loyalty

p. 547

Social and Environmental Costs Social and Environmental Costs and Benefitsand Benefits

Social benefitsSocial benefits Labor-saving productsLabor-saving products Lower pricesLower prices

Advances in transportation and Advances in transportation and communicationscommunications

Social costsSocial costs Bankrupt companies and dreamsBankrupt companies and dreams Expendable workersExpendable workers Environmental devastationEnvironmental devastation

p. 548

The New SouthThe New South

Obstacles to Economic Obstacles to Economic DevelopmentDevelopment

Lagging industrial developmentLagging industrial development Lack of capitalLack of capital Few banksFew banks Growing cash crops such as Growing cash crops such as

cotton or tobacco made farmers cotton or tobacco made farmers vulnerable to world marketsvulnerable to world markets

Limited funds for educationLimited funds for education

The New South Creed and The New South Creed and Southern IndustrializationSouthern Industrialization

Henry GradyHenry Grady Atlanta ConstitutionAtlanta Constitution

Industrialize SouthIndustrialize South Attract Northern capitalAttract Northern capital More opportunities for black More opportunities for black

workers in industry workers in industry

The Southern Mill EconomyThe Southern Mill Economy

Mill towns supported textile Mill towns supported textile industryindustry Center of textiles by 1920Center of textiles by 1920 Augusta, GA: Lowell of the SouthAugusta, GA: Lowell of the South

Low wagesLow wages Often paid in company scripOften paid in company scrip

Did little to help Did little to help farmers/sharecroppersfarmers/sharecroppers

The Southern Industrial LagThe Southern Industrial Lag

Birmingham (AL) Steel Birmingham (AL) Steel controlled by U.S. Steelcontrolled by U.S. Steel Higher prices, despite lower costsHigher prices, despite lower costs

Segregated work forceSegregated work force Environmental damageEnvironmental damage

p. 550

Factories and the Work ForceFactories and the Work Force

From Workshop to FactoryFrom Workshop to Factory

Restructuring of work habitsRestructuring of work habits Emphasis on workplace disciplineEmphasis on workplace discipline

Example of shoemakersExample of shoemakers Skilled artisan to unskilled factory Skilled artisan to unskilled factory

workerworker Lower-paid women and childrenLower-paid women and children

p. 555

The Hardships of Industrial LaborThe Hardships of Industrial Labor

High demand for unskilled High demand for unskilled laborerslaborers Workers often driftedWorkers often drifted 12-hour shifts12-hour shifts

Dangerous workDangerous work Children as young as 8Children as young as 8 Railroads dangerous for adultsRailroads dangerous for adults Minimal financial aid for disabled Minimal financial aid for disabled

and familiesand families

Immigrant LaborImmigrant Labor

French Canadians in NEFrench Canadians in NE Chinese in WestChinese in West Eastern and Southern European Eastern and Southern European

immigrants immigrants Subject to discipline and eviction Subject to discipline and eviction

from company provided homesfrom company provided homes Faced discriminationFaced discrimination

p. 559

Women and Work in Industrial Women and Work in Industrial AmericaAmerica

Working-class women had to Working-class women had to contribute to family incomecontribute to family income Single women could see Single women could see

opportunityopportunity Typewriter and telephone lead Typewriter and telephone lead

to shift in work for womento shift in work for women Clerical and secretarial Clerical and secretarial Telephone operatorsTelephone operators

p. 553

Hard Work and the Gospel of Hard Work and the Gospel of SuccessSuccess

Horatio Alger and Horatio Alger and Ragged Dick Ragged Dick (1867)(1867) ““rags to riches”rags to riches” Andrew CarnegieAndrew Carnegie Most industrial leaders came from Most industrial leaders came from

middle- and upper-classmiddle- and upper-class Rise in real wagesRise in real wages

31% for unskilled31% for unskilled 74% for skilled74% for skilled

Income disparityIncome disparity

Labor Unions and Industrial Labor Unions and Industrial ConflictConflict

Organizing WorkersOrganizing Workers

National Labor Union (NLU)National Labor Union (NLU) Knights of LaborKnights of Labor

Membership soared by 1886Membership soared by 1886 Political success through existing Political success through existing

partiesparties Wildcat strikes fail, membership Wildcat strikes fail, membership

declinesdeclines

p. 558

American Federation of LaborAmerican Federation of Labor

Group of craft unionsGroup of craft unions Headed by Samuel GompersHeaded by Samuel Gompers

““trade unionism, pure and simple”trade unionism, pure and simple” ““bread and butter” issuesbread and butter” issues

Wages, reducing hours, safetyWages, reducing hours, safety

1.6 million members by 19061.6 million members by 1906

Strikes and Labor UnrestStrikes and Labor Unrest

Panic of 1873Panic of 1873 Strikes in coal and railroadsStrikes in coal and railroads Homestead Strike (PA)Homestead Strike (PA)

Carnegie SteelCarnegie Steel Violence, union crushedViolence, union crushed

Pullman Strike (Chicago)Pullman Strike (Chicago) Eugene V. Debs leaderEugene V. Debs leader Pres. Cleveland gets injunction Pres. Cleveland gets injunction

against strikersagainst strikers Debs jailed, strike crushedDebs jailed, strike crushed

p. 560

Social Thinkers Probe for Social Thinkers Probe for AlternativesAlternatives

Social DarwinismSocial Darwinism Natural law controlled social orderNatural law controlled social order ““Survival of the fittest”Survival of the fittest” William Graham SumnerWilliam Graham Sumner

Disapproved of govt. interferenceDisapproved of govt. interference

Opposed by Lester Frank WardOpposed by Lester Frank Ward Dynamic SociologyDynamic Sociology Laws of nature could be Laws of nature could be

circumvented by human willcircumvented by human will

Utopian SolutionsUtopian Solutions

Henry George-socialismHenry George-socialism Progress and PovertyProgress and Poverty ““unearned increment”unearned increment” Land taxLand tax

Edward BellamyEdward Bellamy Looking BackwardLooking Backward Future without poverty or strife-2000Future without poverty or strife-2000

MarxismMarxism Karl Marx and Karl Marx and Das CapitalDas Capital Capitalism would wither awayCapitalism would wither away

p. 563

THE RISE OF INDUSTRIAL THE RISE OF INDUSTRIAL AMERICA, AMERICA, 1865–19001865–1900

AP US HistoryAP US HistoryEast High SchoolEast High School

Mr. PetersonMr. PetersonSpring 2011Spring 2011