Section 1: The Expansion of Industry, Pages 228- 251
Mar 13, 2016
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