Factors that created a technological boom in the US: 1. Natural Resources 2. New Inventions 3. Government support for business 4. Growing Urban population.

The Industrial Age

The Industrial Age

Factors that created a technological boom in the US:

1. Natural Resources2. New Inventions3. Government support

for business4. Growing Urban

populationBy the 1920’s the US will

be the leading industrial power

New Inventions

The Bessemer Process – Invented by Henry Bessemer and William Kelly (1856)› Transferred iron

into steel by removing carbon

› Produced a light, flexible, rust-resistant metal.

Advantages of Steel

Railroads open the west Machines were more

durable Taller buildings

conserved space Less vulnerable to fire

than wooden structures› Chicago Fire of 1871-

City burned for 2 days and left 90,000 homeless

Railroad Industry They were the largest consumers of steel The spread of railroads led to:

1. Growth of Towns2. New Markets3. Greater Opportunities for Wealth

Time Zones

Professor C.F. Dowd– proposed dividing the earth into time zones (1869)› Divided the earth

into 24 time zones for every hour of the day.

› Unified the Nation under time.

Railroad Abuses

Misuse of government land grants

Rates showed discrimination – Charged different customers different rates› Charged farmers higher

rates to keep them in debt

› Charged more for shorter routes if there were no alternate carriers available

The Granger Laws

Supported by Grange members (Populists) Established maximum freight and

passenger rates and prohibited discrimination

The Supreme Court upheld the Granger Laws in Munn v. Illinois› Government could regulate railroads for the

public good – meaning that the government can now regulate private industry to serve the public good.

Captains of Industry or Robber Barons

During this time, businessmen created large business organizations known as trusts› The ingenuity of these entrepreneurs earned them the

nickname of Captains of Industry› Yet their ruthlessness in building wealth at the expense of

their competitors, workers, and consumers often earned them the title of Robber Barons

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Herbert Spencer used Darwin’s natural selection theory and applied it to human society. The “fittest” were intelligent and strong both physically and emotionally. Those who were not would drop out of society.

William Sumner applied this idea to business. Competition drives out those that shouldn’t be in business. This justified shrewd investments and unscrupulous business practices. It was viewed as the way things worked.

John D. Rockefeller

Born to a low income family but worked his way up to becoming the owner of the Standard Oil Company (today Exxon)› Most profitable company and

made him the richest man in the world (but paid workers very little)

Sold his oil at lower prices than it cost to produce it› Raised prices once he put his

competitors out of business. Monopoly – complete control of

the market and price of a product› Control over the industries

production, wage, and prices.

John D. Rockefeller Established Trusts to

reduce competition outside of Cleveland. (location of Standard Oil)› Trust is a business

arrangement under which a number of companies unite into one system.

By 1882 Rockefeller controlled more than 90% of the oil companies in the US.

Andrew Carnegie

Owner of Carnegie Steel Company – produced 20% of the nations steel› Carnegie made 25

million in one year personally

Introduced new techniques and machinery to make better products for less money

Encouraged competition among his workers to increase production and cut costs

Andrew Carnegie

Bought out his suppliers (Vertical Integration) and competitors (Horizontal Integration) to create a monopoly

Offered company stock to employees

Carnegie gave 90% of his wealth to charity: Carnegie Hall, Carnegie Foundation, various universities , and 3,000 libraries.

J.P. Morgan

One of the most powerful bankers of his era, J.P. Morgan (1837-1913) financed railroads and helped organize U.S. Steel, General Electric and other major corporations.

Morgan used his influence to help stabilize American financial markets during several economic crises. However, he faced criticism that he had too much power and was accused of manipulating the nation’s financial system for his own gain.

Factory Conditions

12+ hour workdays, 6 days a week for very low wages.

No vacations or sick leave, unemployment, or workers compensation

Factories were dirty, poorly ventilated, poorly lit, and dangerous› In 1882 an average of

675 workers were killed in labor related accidents each week!

Factory Conditions

Typical pay for a factory worker:› Men - $2 per day› Women - $1 per day› Children - $0.27 per

day

These conditions led to the rise of labor unions

The Haymarket Square

1886 Chicago – 1,200 gathered together to protest the killing of a striker by police the previous day at the McCormick Reapers factory.

Police fired into the crowd when a bomb was thrown at them.

Public opinion began turning against the labor movement because it was seen as encouraging violence.

The Homestead Strike Located in Homestead, Pennsylvania, pitted Carnegie Steel

Company against the nation’s strongest trade union, the Amalgamated Association of Iron and Steel Workers. 

His plant manager, Henry Clay Frick, stepped up production demands, and when the union refused to accept the new conditions, Frick began locking the workers out of the plant.

A strike was formed and Frick calls in guards. When they arrived they were faced with 10,000 strikers, many of whom were armed.› The Battle began.

The Homestead Strike After an all day battle the guards surrendered The sheriff then called in 8,000 militia. Under their

protection, strikebreakers were able to get the plant running again.

The corporation had more than a hundred strikers arrested, most were finally released, each case consumed much of the union’s time, money, and energy. The strike lost momentum and

ended on November 20, 1892. With the Amalgamated Association virtually destroyed, Carnegie Steel moved quickly to institutelonger hours and lower wages. 

The Pullman Strike of 1894 America was experiencing an

economic depression that started in 1893.

Because of this depression, Pullman laid off some workers, lowered workers wages, but kept rent the same.

Workers protested these wage cuts and shut down production – violent strike

Strike ended after federal troops were called in.

Organized by Union advocate Eugene Debs› Became the leading Socialist

figure in America

The Triangle Shirtwaist Factory Fire March 1911 – a fire

broke out at the Triangle Shirtwaist Factory in New York City

Female workers were trapped inside with the exit doors locked› Locked to prevent

workers from stealing materials or taking breaks

146 women died in the fire

The Triangle Shirtwaist Factory

50 of the dead were killed jumping from the windows into the street

Public outrage led New York to pass new restrictions:› Strict fire codes, 54-

maximum work week for women and minors, no workers under the age 14, and prohibited work on Sunday

American Federation of Labor

With the harsh living and working conditions factory workers faced, many labor unions formed

These Unions worked to protect the interests of its members.

One of the most influential unions at this time was the American Federation of Labor, led by Samuel Gompers.

American Federation of Labor

They focused on wages, working hours, and working conditions.

AFL used strikes, boycotts, and collective bargaining to make changes.

Companies VS Labor Unions

Companies refused to negotiate with unions› Forbid union

meetings, fired union members, forced employees to sign “Yellow-Dog Contracts” promising not to join a union or take part in a strike

Membership in unions decline

The Department of Labor

Established in 1884 Responsible for

occupational safety, wage and hour standards, unemployment benefits and services

Labor Day

1st organized in 1882 by Peter McGuire› Proposed that the government dedicate a

day to “all who labor”› Became a federal holiday in 1894› Observed on the 1st Monday in September