Chapter 14 Industrialization Section 1 The Rise of Industry.

Chapter 14Chapter 14IndustrializationIndustrialization

Section 1Section 1The Rise of IndustryThe Rise of Industry

Causes of IndustrializationCauses of Industrialization

Natural Resources/ Raw Materials Natural Resources/ Raw Materials – Water, Timber, Coal, Iron, Copper, OilWater, Timber, Coal, Iron, Copper, Oil– Edwin Drake-Penn. 1859 1Edwin Drake-Penn. 1859 1stst Oil Drilling Oil Drilling

Large Workforce Large Workforce – Large FamiliesLarge Families– ImmigrantsImmigrants

Laissez-Faire system (hands-off)Laissez-Faire system (hands-off)New InventionsNew InventionsRailroadsRailroadsFormation of CorporationsFormation of Corporations

Effects of IndustrializationEffects of Industrialization

Drained resources/Pollution increasesDrained resources/Pollution increasesSteel and Oil become giant industriesSteel and Oil become giant industriesFactory workers face harsh living and working Factory workers face harsh living and working conditionsconditionsNo limits on immigrationNo limits on immigrationNo regulation of trade across countryNo regulation of trade across countryTariffs and metallic standards become political Tariffs and metallic standards become political issuesissues

Tariff IssueTariff Issue

Northern Leaders-high tariffs, protect Northern Leaders-high tariffs, protect American industry from foreign American industry from foreign competitioncompetition

Southern Leaders-low tariffs to provide Southern Leaders-low tariffs to provide trade and keep manufactured import trade and keep manufactured import prices lowprices low

Morill TariffMorill Tariff

Passed when south secededPassed when south seceded

Tripled tariffsTripled tariffs

Gave land and money to railroadsGave land and money to railroads

Sold public lands with mineral resources at low Sold public lands with mineral resources at low cost to businessescost to businesses

High Tariff backfired: other countries raised High Tariff backfired: other countries raised tariffs and it hurt farmerstariffs and it hurt farmers

New InventionsNew Inventions

Alexander Graham Bell: 1876-TelephoneAlexander Graham Bell: 1876-Telephone– 1877: Bell Telephone Company became American 1877: Bell Telephone Company became American

Telephone and Telegraph CompanyTelephone and Telegraph Company

Thomas Edison: 1877-phonograph, 1879-Thomas Edison: 1877-phonograph, 1879-practical light bulb, electric generator, battery, practical light bulb, electric generator, battery, motion picturemotion picture– 1889: Edison General Electric Company (GE) began 1889: Edison General Electric Company (GE) began

supplying power to NYCsupplying power to NYC

Other InventionsOther Inventions

Ice MachineIce MachineRefrigerated railroad Refrigerated railroad carscarsStandard SizesStandard SizesPower Driven Sewing Power Driven Sewing MachineMachineMass Produced Mass Produced ShoesShoes

Telegraph Cable Telegraph Cable Across Atlantic (1886)Across Atlantic (1886)

RadioRadio

CarCar

AirplaneAirplane

Chapter 14Chapter 14IndustrializationIndustrialization

Section 2Section 2

The RailroadsThe Railroads

Pacific Railway Act: 1862Pacific Railway Act: 1862

Lincoln: Transcontinental RailroadLincoln: Transcontinental RailroadUnion Pacific Railroad: workers included Union Pacific Railroad: workers included Civil War veterans, immigrants from Civil War veterans, immigrants from Ireland, miners, farmers, cooks, Ireland, miners, farmers, cooks, adventurers, and ex convictsadventurers, and ex convictsCentral Pacific Railroad: workers included Central Pacific Railroad: workers included Mexicans, Native Americans, and once Mexicans, Native Americans, and once reached California 10,000 laborers came reached California 10,000 laborers came from Chinafrom China

Transcontinental RailroadTranscontinental Railroad

18691869

Tied smaller lines togetherTied smaller lines together

Time Zones were created in 1883 to Time Zones were created in 1883 to coordinate schedules and were permanent coordinate schedules and were permanent in 1918in 1918

Government Land Grants to Government Land Grants to RailroadsRailroads

Investors did not always have the $ to develop Investors did not always have the $ to develop rail linesrail lines

Gov’t saw it would benefit nat’l economyGov’t saw it would benefit nat’l economy

Gave land grants to rail companiesGave land grants to rail companies

Rail Companies: sold land along railroad lines to Rail Companies: sold land along railroad lines to settlers, real estate companies, and other settlers, real estate companies, and other businesses to raise $ to build railroadsbusinesses to raise $ to build railroads

Over 128 million acres given to rail companiesOver 128 million acres given to rail companies

Chapter 14Chapter 14IndustrializationIndustrialization

Section 3Section 3

Big BusinessBig Business

Robber BaronsRobber Barons

Jay Gould-insider trading, embezzled from Jay Gould-insider trading, embezzled from own companyown company

Built fortunes from stealing from the publicBuilt fortunes from stealing from the public

Drained country of resourcesDrained country of resources

Drove competition out of workDrove competition out of work

Exploited immigrants and paid low wagesExploited immigrants and paid low wages

Captains of IndustryCaptains of Industry

James J. Hill-Great Northern Railroad-No James J. Hill-Great Northern Railroad-No gov’t grants, lowered fares to settlersgov’t grants, lowered fares to settlers

Served the nation in a positive wayServed the nation in a positive way

Increased American supply of goodsIncreased American supply of goods

Created jobs for AmericansCreated jobs for Americans

Expanded marketsExpanded markets

Credit Mobilier ScandalCredit Mobilier Scandal

Convinced most Americans that business and Convinced most Americans that business and politicians were Robber Baronspoliticians were Robber BaronsInvolved Union Pacific stockholders who created Involved Union Pacific stockholders who created a new construction company (Credit Mobilier)a new construction company (Credit Mobilier)CM overcharged UP on supplies, but UP paid CM overcharged UP on supplies, but UP paid them. CM GOT RICH!!!!them. CM GOT RICH!!!!UP almost bankrupt, so Congress gave more UP almost bankrupt, so Congress gave more grants to UP to keep it going (These grants to UP to keep it going (These congressional members who pushed for new congressional members who pushed for new grants received discounted shares in UP stock)grants received discounted shares in UP stock)SCANDAL WAS EXPOSED!!!SCANDAL WAS EXPOSED!!!

CorporationsCorporations

An organization owned by many people An organization owned by many people but treated by law as though it were a but treated by law as though it were a single personsingle personStock holders: people who own the Stock holders: people who own the corporationscorporationsStock: Shares of ownership (allow corp to Stock: Shares of ownership (allow corp to raise $ to expand, increase tech., hire raise $ to expand, increase tech., hire larger workforce, make goods faster and larger workforce, make goods faster and cheaper)cheaper)

Business CostsBusiness Costs

Fixed costs: Costs a business has to pay Fixed costs: Costs a business has to pay whether or not it is operatingwhether or not it is operating

Operating Costs: costs when running a Operating Costs: costs when running a businessbusiness

Corporations always had advantage over Corporations always had advantage over small businesssmall business

WHY??WHY??

Could sell more stock to meet Could sell more stock to meet costs in hard times, produce costs in hard times, produce

goods faster and cheapergoods faster and cheaper

Making business more efficientMaking business more efficient

Vertical integration: owns all different Vertical integration: owns all different businesses it depends on for operationbusinesses it depends on for operation

Horizontal Integration: combining many Horizontal Integration: combining many firms engaged in the same type of firms engaged in the same type of business into 1 large businessbusiness into 1 large business

MonopoliesMonopolies

Positive: Keep prices low b/c no Positive: Keep prices low b/c no competitioncompetition

Negative: Can charge any price b/c no Negative: Can charge any price b/c no competitioncompetition

TrustsTrusts

Began forming to avoid anti-monopoly Began forming to avoid anti-monopoly lawslaws

Allows a person to manage another Allows a person to manage another person’s property, a trustee manages the person’s property, a trustee manages the stock but does not own any himself so it stock but does not own any himself so it violates no lawsviolates no laws– Does receive shares of the profitDoes receive shares of the profit– Illegal todayIllegal today

Changes in Selling the ProductChanges in Selling the Product

Large Ads in NewspapersLarge Ads in Newspapers

Department StoresDepartment Stores

Mail Order CataloguesMail Order Catalogues

Chapter 14Chapter 14IndustrializationIndustrialization

Section 4Section 4

UnionsUnions

The work force and working The work force and working conditionsconditions

Low wages resulted in whole family working, Low wages resulted in whole family working, children dropped out of school to helpchildren dropped out of school to help

Orphaned children (ages 6 and up), used in Orphaned children (ages 6 and up), used in mines and factoriesmines and factories– Jacob Riis-Children of the Poor-book exposed child Jacob Riis-Children of the Poor-book exposed child

laborlabor

No unemployment, workers comp, health or life No unemployment, workers comp, health or life insurancesinsurances

Average worker: .22/hour, 14-16 hours a dayAverage worker: .22/hour, 14-16 hours a day

Many paid by Piecework (by product not Many paid by Piecework (by product not by hour)by hour)Discipline very strict (could be fired for Discipline very strict (could be fired for being late, talking, resting)being late, talking, resting)Poor working conditionsPoor working conditions– Monotonous tasks, poorly lit, no ventilation, Monotonous tasks, poorly lit, no ventilation,

no heat/ac, lint, dust, toxic fumes, firesno heat/ac, lint, dust, toxic fumes, fires– In 1882 avg.: 675 workers killed on the job In 1882 avg.: 675 workers killed on the job

each weekeach week

Early UnionsEarly Unions

Most employers saw unions as illegitimate Most employers saw unions as illegitimate conspiraciesconspiracies

Trade Unions: limited to people with a Trade Unions: limited to people with a specific skillspecific skill

Industrial Unions: United all craft workers Industrial Unions: United all craft workers and common laborers in a particular and common laborers in a particular industryindustry

Companies tried to stop unionsCompanies tried to stop unions

Forbade union meetings on company Forbade union meetings on company groundsgrounds

Fired and blacklisted union organizersFired and blacklisted union organizers

Forced workers to sign contracts agreeing Forced workers to sign contracts agreeing to never join unions to never join unions

Lockouts, Strikebreakers, ScabsLockouts, Strikebreakers, Scabs

Refused to recognize existing unionsRefused to recognize existing unions

Political and Social Opposition to Political and Social Opposition to UnionsUnions

No laws giving workers the right to organizeNo laws giving workers the right to organizeCourts ruled in favor of employers, workers fired Courts ruled in favor of employers, workers fired or jailed, issued injunctionsor jailed, issued injunctionsMarxism, Socialism, CommunismMarxism, Socialism, Communism– b/c of uneven distribution of wealth in Americab/c of uneven distribution of wealth in America– Economic and political philosophies that favor public Economic and political philosophies that favor public

control of property and incomecontrol of property and income– Karl Marx: workers of the world unite and throw off Karl Marx: workers of the world unite and throw off

chains of oppression, dissolve current gov’t systemschains of oppression, dissolve current gov’t systemsAnarchy: No gov’t (These ideas had spread in Europe, U.S. Anarchy: No gov’t (These ideas had spread in Europe, U.S. feared immigrants would bring radical ideas here)feared immigrants would bring radical ideas here)

Most Americans opposed these ideasMost Americans opposed these ideas– Wealthy saw it as a threat to fortunesWealthy saw it as a threat to fortunes– Politicians saw it as a threat to public orderPoliticians saw it as a threat to public order– Workers saw it as a threat to “American Workers saw it as a threat to “American

Dream”Dream”

Labor UnionsLabor Unions

1869: Knights of Labor-all working men 1869: Knights of Labor-all working men and women, skilled and unskilled laborers, and women, skilled and unskilled laborers, and minorities were allowed into unionand minorities were allowed into union– Goals: 8 hr work day, gov’t labor board, equal Goals: 8 hr work day, gov’t labor board, equal

pay for women, end to child laborpay for women, end to child labor– Initially opposed strikes, used boycotts and Initially opposed strikes, used boycotts and

arbitrationarbitration– By 1885: 700,000 MEMBERS!!!!!!By 1885: 700,000 MEMBERS!!!!!!

1886: American Federation of Labor- Only 1886: American Federation of Labor- Only skilled, white male workers allowedskilled, white male workers allowed– Samuel Gompers tried to reassure public and Samuel Gompers tried to reassure public and

gov’t that unions were not interested in politics gov’t that unions were not interested in politics or socialist ideasor socialist ideas

– GOALS: higher wages, better working GOALS: higher wages, better working conditions, 8 hr work dayconditions, 8 hr work day

– Willing to strike but preferred to negotiateWilling to strike but preferred to negotiate– By 1900 there were 500,000 membersBy 1900 there were 500,000 members

Women and UnionsWomen and Unions

Seen as unfit and incapable of “man’s Seen as unfit and incapable of “man’s work”work”

Mostly domestic servants, nurses, Mostly domestic servants, nurses, teachers, sales clerks, secretariesteachers, sales clerks, secretaries

Paid less for same work (assumed had a Paid less for same work (assumed had a man supporting her, so didn’t need to be man supporting her, so didn’t need to be paid as much, saved money for male paid as much, saved money for male workers)workers)

1903: Women’s Trade Union1903: Women’s Trade Union– Mary O’Sullivan, Lenora O’Reilly, Jane Mary O’Sullivan, Lenora O’Reilly, Jane

Addams, and Lillian Ward Addams, and Lillian Ward – GOALS: 8 hr work day, creation of minimum GOALS: 8 hr work day, creation of minimum

wage, end to child laborwage, end to child labor

STILL BY 1900, MOST WORKERS REMAINED STILL BY 1900, MOST WORKERS REMAINED UNORGANIZED, AND UNIONS WERE UNORGANIZED, AND UNIONS WERE WEAK!!!!!!!WEAK!!!!!!!

Great Railroad Strike of 1877Great Railroad Strike of 1877

1873: recession hits, wages cut1873: recession hits, wages cut1877: wages cut again1877: wages cut againWorkers began rioting, walked off the job, Workers began rioting, walked off the job, blocked tracksblocked tracksOver 800,000 railroad workers in 11 Over 800,000 railroad workers in 11 states, 2/3 nation’s railways affectedstates, 2/3 nation’s railways affectedPres. Hayes called in federal troops to Pres. Hayes called in federal troops to restore order (1restore order (1stst time in history) time in history)Over 100 people died in this strikeOver 100 people died in this strike

Haymarket RiotHaymarket Riot

May 1886: Knights of Labor called for May 1886: Knights of Labor called for nationwide strike to draw attention to issue nationwide strike to draw attention to issue of 8 hr work dayof 8 hr work day

Conflict between strikers and police left Conflict between strikers and police left one striker deadone striker dead

Haymarket Square, Chicago: about 3000 Haymarket Square, Chicago: about 3000 people met to listen to anarchists people met to listen to anarchists speeches about laborspeeches about labor

Police entered square, a bomb was Police entered square, a bomb was thrown, police opened fire, 7 police officers thrown, police opened fire, 7 police officers and 4 workers deadand 4 workers dead

8 arrested on weak evidence, all 8 8 arrested on weak evidence, all 8 convicted, 4 sentenced to death (1 was a convicted, 4 sentenced to death (1 was a K of L, hurt the union)K of L, hurt the union)

Pullman StrikePullman Strike

1893: depression hits, wages cut1893: depression hits, wages cutPullman Co. required workers to live in Pullman Co. required workers to live in Company houses and buy from company stores, Company houses and buy from company stores, did not cut these prices with wage cutsdid not cut these prices with wage cutsWorkers protested, blocked railroadsWorkers protested, blocked railroadsPullman Co. attached mail cars to own Co. cars, Pullman Co. attached mail cars to own Co. cars, now strikers were interfering with mail, which is a now strikers were interfering with mail, which is a federal offensefederal offensePres. Cleveland sent in troops, courts issued Pres. Cleveland sent in troops, courts issued injuctionsinjuctions

Strikes became more Strikes became more violent and employers violent and employers

began to rely on federal began to rely on federal troops to restore troops to restore

order!!!!order!!!!

Glue Study Guide on next left side pageGlue Study Guide on next left side page

Answer the study guide on right side.Answer the study guide on right side.

We will be working on this tomorrow as We will be working on this tomorrow as well.well.

TEST TUESDAY!!!!!TEST TUESDAY!!!!!