Chapter 14 – A New Industrial Age. Section One – The Expansion of Industry I.Natural Resources Fuel Expansion a. The Growth of Industry i. By 1920s, U.S.

Chapter 14 – A New Industrial Age

Section One – The Expansion of IndustryI. Natural Resources Fuel Expansion

a. The Growth of Industryi. By 1920s, U.S. is world’s leading industrial power, due to:

- wealth of natural resources- government support for business- growing urban population

b. Black Goldi. Pre-European arrival, Native Americans make fuel, medicine from oil ii. 1859, Edwin L. Drake successfully uses steam engine to drill for oiliii. Petroleum-refining industry first makes kerosene, then gasoline

c. Bessemer Steel Processi. Abundant deposits of coal, iron spur industryii. Bessemer process puts air into iron to remove carbon to make steeliii. Later open-hearth process makes steel from scrap or raw materials

d. New Uses for Steeli. Steel used in railroads, barbed wire, farm machinesii. Changes construction: Brooklyn Bridge; steel-framed skyscrapers

II. Inventions Promote Changea. An Age of Inventions

i. Numerous new inventions change the landscape, life, workb. The Power of Electricity

i. 1876, Thomas Alva Edison establishes first research laboratory- 1880, patents incandescent light bulb- creates system for electrical production, distribution

ii. Electricity changes business; by 1890, runs numerous machinesiii. Becomes available in homes; encourages invention of appliancesiv. Allows manufacturers to locate plants anyplace; industry grows

c. Inventions Change Lifestylesi. Christopher Sholes invents typewriter in 1867ii. 1876, Alexander Graham Bell, Thomas Watson introduce telephoneiii. Office work changes; by 1910, women are 40% of clerical workersiv. Inventions impact factory work, lead to industrialization

- clothing factories hire many womenv. Industrialization makes jobs easier; improves standard of living

- by 1890, average workweek 10 hours shorter- as consumers, workers regain power in market

vi. Some laborers think mechanization reduces value of human worker

Section Two – The Age of RailroadsI. Railroads Span Time and Space

a. Railroads Encourage Growthi. Rails make local transit reliable, westward expansion possibleii. Government makes land grants, loans to railroads

- to help settle West- to develop country

b. A National Networki. 1859, railroads extend west of Missouri Riverii. 1869, first transcontinental railroad completed, spans the nation

c. Romance and Realityi. Railroads offer land, adventure, fresh start to manyii. People of diverse backgrounds build railroad under harsh conditions:

- Central Pacific hires Chinese immigrants- Union Pacific, Irish immigrants, Civil War vets

iii. Accidents, disease disable and kill thousands every yeard. Railroad Time

i. 1869, C. F. Dowd proposes dividing earth’s surface into 24 time zonesii. 1883, U.S. railroads, towns adopt time zonesiii. 1884, international conference sets world zones, uses railroad time

- Congress adopts in 1918

II. Opportunities and Opportunistsa. New Towns and Markets

i. Railroads require great supply of materials, partsii. Iron, coal, steel, lumber, glass industries grow to meet demandiii. Railroads link isolated towns, promote trade, interdependenceiv. Nationwide network of suppliers, markets developsv. Towns specialize, sell large quantities of their product nationallyvi. New towns grow along railroad lines

b. Pullmani. 1880, George M. Pullman builds railcar factory on Illinois prairieii. Pullman provides for workers: housing, doctors, shops, sports fieldiii. Company tightly controls residents to ensure stable work force

c. Credit Mobilieri. Wish for control, profit leads some railroad magnates to corruptionii. Union Pacific stockholders form construction company, Crédit Mobilier

- overpay for laying track, pocket profitsiii. Republican politicians implicated; reputation of party tarnished

III. The Grange and the Railroadsa. Railroad Abuses

i. Farmers angry over perceived railroad corruption- railroads sell government lands to businesses, not settlers- fix prices, keep farmers in debt- charge different customers different rates

b. Granger Lawsi. Grangers sponsor state, local political candidatesii. Press for laws to protect farmers’ interestsiii. Munn v. Illinois—Supreme Court upholds states’ right to regulate RRiv. Sets principle that federal government can regulate private industry

c. Interstate Commerce Acti. 1886, Supreme Court: states cannot set rates on interstate commerceii. Public outrage leads to Interstate Commerce Act of 1887

- federal government can supervise railroads- establishes Interstate Commerce Commission (ICC)

iii. Legal battle with railroads; difficult for ICC to take actiond. Panic and Consolidation

i. Abuses, mismanagement, competition almost bankrupt many railroadsii. Railroad problems contribute to panic of 1893, depression iii. By mid-1894, 25% of railroads taken over by financial companies

Section Three – Big Business and LaborI. Carnegie’s Inventions

a. Carnegie Makes a Fortunei. Andrew Carnegie one of first moguls to make own fortune

b. New Business Strategyi. Carnegie searches for ways to make better products more cheaplyii. Hires talented staff; offers company stock; promotes competitioniii. Uses vertical integration—buys out suppliers to control materialsiv. Through horizontal integration merges with competing companiesv. Carnegie controls almost entire steel industry

II. Social Darwinism and Businessa. Principles of Social Darwinism

i. Darwin’s theory of biological evolution: the best-adapted surviveii. Social Darwinism, or social evolution, based on Darwin’s theoryiii. Economists use Social Darwinism to justify doctrine of laissez faire

b. A New Definition of Successi. Idea of survival, success of the most capable appeals to wealthyii. Notion of individual responsibility in line with Protestant work ethiciii. See riches as sign of God’s favor; poor must be lazy, inferior

III. Fewer Control Morea. Growth and Consolidation

i. Businesses try to control industry with mergers— buy out competitorsii. Buy all others to form monopolies—control production, wages, pricesiii. Holding companies buy all the stock of other companiesiv. John D. Rockefeller founds Standard Oil Company, forms trust

- trustees run separate companies as if oneb. Rockefeller and the Robber Barons

i. Rockefeller profits by paying low wages, underselling others- when controls market, raises prices

ii. Critics call industrialists robber barons- industrialists also become philanthropists

c. Sherman Antitrust Acti. Government thinks expanding corporations stifle free competitionii. Sherman Antitrust Act: trust illegal if interferes with free trade iii. Prosecuting companies difficult; government stops enforcing act

d. Business Boom Bypasses the Southi. South recovering from Civil War, hindered by lack of capitalii. North owns 90% of stock in RR, most profitable Southern businesses iii. Business problems: high transport cost, tariffs, few skilled workers

IV. Labor Unions Emergea. Long Hours and Danger

i. Northern wages generally higher than Southernii. Exploitation, unsafe conditions unite workers across regionsiii. Most workers have 12 hour days, 6 day workweeks

- perform repetitive, mind-dulling tasks- no vacation, sick leave, injury compensation

iv. To survive, families need all member to work, including childrenv. Sweatshops, tenement workshops often only jobs for women, children

- require few skills; pay lowest wages

b. Early Labor Organizationi. National Labor Union—first large-scale national organization

ii. 1868, NLU gets Congress to give 8-hour day to civil servantsiii. Local chapters reject blacks; Colored National Labor Union formsiv. NLU focus on linking existing local unionsv. Noble Order of the Knights of Labor open to women, blacks, unskilledKnights support 8-hour day, equal pay, arbitration

V. Union Movements Divergea. Craft Unionism

i. Craft unions include skilled workers from one or more tradesii. Samuel Gompers helps found American Federation of Labor (AFL) iii. AFL uses collective bargaining for better wages, hours, conditionsiv. AFL strikes successfully, wins higher pay, shorter workweek

b. Industrial Unionismi. Industrial unions include skilled, unskilled workers in an industryii. Eugene V. Debs forms American Railway Union; uses strikes

c. Socialism and the IWWi. Some labor activists turn to socialism:

- government control of business, property- equal distribution of wealth

ii. Industrial Workers of the World (IWW), or Wobblies, forms 1905iii. Organized by radical unionists, socialists; include African Americansiv. Industrial unions give unskilled workers dignity, solidarity

d. Other Labor Activism in the Westi. Japanese, Mexicans form Sugar Beet and Farm Laborers’ Union in CAii. Wyoming Federation of Labor supports Chinese, Japanese miners

VI. Strikes Turn Violenta. The Great Strike of 1877

i. Baltimore & Ohio Railroad strike spreads to other linesii. Governors say impeding interstate commerce; federal troops intervene

b. The Haymarket Affairi. 3,000 gather at Chicago’s Haymarket Square, protest police brutalityii. Violence ensues; 8 charged with inciting riot, convictediii. Public opinion turns against labor movement

c. The Homestead Strikei. 1892, Carnegie Steel workers strike over pay cutsii. Win battle against Pinkertons; National Guard reopens plantiii. Steelworkers do not remobilize for 45 years

d. The Pullman Company Strikei. Pullman lays off 3,000, cuts wages but not rents; workers strikeii. Pullman refuses arbitration; violence ensues; federal troops sentiii. Debs jailed, most workers fired, many blacklisted

e. Women Organizei. Women barred from many unions; unite behind powerful leadersii. Mary Harris Jones— most prominent organizer in women’s labor

- works for United Mine Workers - leads children’s march

iii. Pauline Newman—organizer for International Ladies’ Garment Workersiv. 1911 Triangle Shirtwaist factory fire results in public outrage

f. Management and Government Pressure Unionsi. Employers forbid unions; turn Sherman Antitrust Act against laborii. Legal limitations cripple unions, but membership rises