I NDUSTRIALISM AND U RBANIZATION OF A MERICA 1. T HE I NDUSTRIAL G IANT 2.

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INDUSTRIALISM AND URBANIZATION OF AMERICA

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THE INDUSTRIAL GIANT

IndustrialismSamuel SlaterAndrew CarnegieInvestor

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INDUSTRIALIZATION

Industrialization is the production of goods by machines in large factories

Industrialization had already begun in England Britain government forbade anyone to sell a

spinning or weaving machine to another country or even take plans to another country People that worked on cotton mills were not allowed to

leave the country. Failed in 1789

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SAMUEL SLATER

Worked in an English cotton mill Saw an advertisement in the paper 21-14 Boards a ship dressed as a farmer

1791 Pawtucket, Rhode Island First cotton spinning mill is opened Mills to make thread-cloth still had to be made by

hand Francis Lowell

Trip to GB in 1810 Built a factory in 1814

Waltham Associates Cotton spun, dyed, and woven into finished cloth

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THE FACTORY SYSTEM

1820-1830s Factories began to produce many goods

Wheat to flour Trees to lumber Factories where people produced other goods

The foundations for an industrial society were in place.

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1848

Factories and workshops were quite large Most employed less than 20 people Most workers used hand tools like their grandfathers

had to produce goods The majority of Americans still earned a living by

farming After the Civil War the US entered a period of

dizzying industrial growth. By 1900 the US was the largest producer of goods

More than France and GB combined In 1850 the United States was an agricultural

nation By 1900 it was an industrial giant

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ANDREW CARNEGIE

Family arrived in the United States from Scotland at the age of 13

His family had little money and everyone needed to find work

1st job- bobbin boy 1.20/ wk

Taught himself how to operate the telegraph and went to school to learn bookkeeping. $35/wk at 17 Moved up the ladder with his boss

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COMPARISON

Saved his money and was a wise investor Investor—A person

who lends or uses money in a business deal in order to make more money

Age 33 $50,000/year

Age 48 multimillionaire

Not much education 15 weeks of work/

year $133/year One of his children

has only one shoe and the other has a pair of mismatched shoes

Carnegie Thomas O’Donnell

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RAILROADS WORD ATTACK

GaugeTranscontinentalCornelius VanderbiltNew York CentralNational Market

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GROWTH OF RAILROADS

By the start of the Civil War there were 30,000 miles of railroad track 2/3 northeast and midwest 1/3 South West had almost none

Most of the railroad tracks were owned by different companies 40-50 miles long 100 average Each company built their own track and

determined the gauge Gauge is the space between the track Problem

NYC To Chicago 14 times 2-3 weeks

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A NATIONWIDE RAILROAD SYSTEM

From the Civil war to the turn of the century there was a creation of a nationwide railroad system

The most spectacular growth was in the West Transcontinental lines were built

Transcontinental —Extending across a continent

Encouraged by the government Free land and loans of money

Private investors put up a lot of money as well

1900 200000 miles of track

More than all of the European countries combined

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CORNELIUS VANDERBILT The leader in the building of railroads

Beginning in the 1850’s bought small railroad lines between Chicago and New York Converted all the track to the same gauge and added track to

connect them The trip could now be made in 1 day without unloading

Vanderbilt called his railroad system The New York Central New York, Pennsylvania, Ohio, Indiana, and Illinois

The Pennsylvania Railroad was being built by Tom Scott Philadelphia, Pittsburg, St. Louis, and Chicago

All Railroad companies agreed to adopt 48 ½ inch gauge 1886 all railroad track but 13000 miles in the south were

the same gauge 13,000 miles were done in one day June 1st

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RAILROADS AND GROWTH

Building and maintaining the railroad created a huge demand of products Lumber

Ties, poles, bridges One mile 2000 ties

Steel 1880 ¾ of all steel was used in building railroads

Jobs 1900 one million people worked on America’s railroads

Aided the growth of Industrialism Increased the efficiency of transportation.

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TIME FOR SOME MATH 2 CITIES 100 MILES APARTSIMILAR MP3 PLAYERS MADE IN EACH CITY

40 dollars 50 dollars$1/mile$150

North Salt Lake Beaver

Before the Railroad

40 dollars 50 dollars 5¢/mile $45

After the Railroad

What Happens?

The company in Beaver goes out of businessNorth Salt Lake company makes more money

Prices go downmarket becomes larger

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NATIONAL MARKETS

Will NSL lower prices as the cost goes down? Yes, if it wants to continue to compete.

Railroads made large scale production possible The market for companies becomes the Nation

instead of their hometown The only way that they can compete with each other is

by becoming larger and more efficient.

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RICH IN RESOURCES

CapitalCorporation

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RICH IN RESOURCES

Before the Civil War coal was being mined in Pennsylvania and Ohio 3,000,000 tons 1865

By the end of the century new mines had been opened in the west Utah, Colorado, and Wyoming 200,000,000 tons in 1900

Most of the iron came from the Mesabi Range in Minnesota The US was the largest iron producer in the world

Gold, Silver, Copper, Lead and zinc American Forests Produced a seemingly

endless supply of lumber

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OIL Discovered in Pennsylvania in 1859

First used for lighting and lubrication Used later as fuel for motors After the turn of the century America had more

oil than it needed. Growing Population

1860-1910 Tripled Due to immigrants and children being born

Larger population means a larger market Huge availability of capital

Capital-money in the form of savings that is invested in a business

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CAPITAL

Most money for big projects comes from two places Government and Capital

Railroads 10 billion dollars to build

Federal Government 1 billion 9 billion in the form of capital Where does the capital come from?

Corporations are formed A group of people who have joined together to

operate as one “legal unit” for business purposes

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CORPORATIONS

Corporations sell shares of ownership also called stock

The buyers are called shareholders If the business does good they share in the

profits If the business does bad they may lose money

Corporations existed before the Civil War Most of the large businesses in the late 19th

century were corporations Corporations were attractive to investors all over

the world 10 x more money was invested in 1900 than 35

years before

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FINDING A BETTER WAY

PatentAlexander Graham BellThomas Alva EdisonMenlo ParkPhonograph

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FINDING A BETTER WAY

Inventions 1790- 27 patents a year 1890-23,500 patents a year Patent—a special right that prohibits anyone,

from using, making, or selling the invention without the inventor’s permission.

Most patents were for minor improvements on existing machines

Others created whole new industries.

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BIG INVENTIONS

Alexander Graham Bell registered a patent for the telephone in 1876 Fifteen years later:

Half a million telephones created Copper mines increase mining Lumber industry

Refrigerated Railroad Car Typewriter Internal Combustion engine

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THOMAS ALVA EDISON

Not well educated Had the most important quality of an inventory

Endless Curiosity Didn’t start school until he was 8

Teacher told him that he was dumb Mom pulled him out of school

She was a schoolteacher and taught him at home Thomas basically educated himself

Taught himself about chemistry Set up a chemistry lab in his parents basement

First Job Selling newspapers and candy on a train Set up a chemistry lab in the baggage car

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As a teenager he learned to operate the telegraph Turned his mind to electricity

19 He was thinking of making a living as an inventor

First invention Stock Ticker—40,000

Set up shop in 1876 Newark, New Jersey 40/year for five years Telegraph that could send four messages over one line

Menlo Park Larger laboratory- started a business of inventing 15 assistants

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MENLO PARK

New idea at the time A minor invention every 10 days A big thing every 6 months

The first year the phonograph was invented Created a whole new industry

Edison was a tireless worker 2-3 hours of sleep Expected his assistants to work hard too Most people wanted to know 2 things in an interview

Hours and pay “We don’t pay anything, and we work all the time.”

Very few workers ever complained “Edison made your work interesting. He made me feel

like I was making something with him. I wasn’t just a workman.”

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INVENTIONS OF EDISON

Light bulb Storage battery Moving Picture Camera Central Power Plant Hundreds of other things

HOMEFUN!! Find an invention of Edison not mentioned in

this lesson and give me a one paragraph summary of what it is and what it does.

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THE LIGHT BULB Edison wanted to find a way to use electricity to light homes

and businesses Ingredients

Needed a glass bulb without air A material that would light when an electrical current passed

through it Thin enough to glow, but not crumble

Others were working on the same thing Edison was the first to succeed

Several hundred experiments to find something that would glow for a few seconds Not good enough

Several hundred more experiments One minute or more Not good enough

1600 materials Strand of thread coated with carbon 13 minutes

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OTHER INVENTIONS

Storage Batteries 5 years 10,296 Experiments Genius “one percent inspiration ninety-nine

percent perspiration” When Edison died in 1931 people wanted to

honor him.

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GROWING BUSINESS ENTERPRISES

Andrew CarnegieHenry BessemerJohn D RockefellerStandard Oil Company

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ANDREW CARNEGIE

One of the most enterprising of all Americans Started out as a bobbin boy Worked for Tom Scott and invested his income wisely Could have retired by the time he was thirty

He was too ambitious

1865 Iron Bridge Company Saw that the need for wooden bridges would go

away Hired the best iron makers and bridge designers Became the nations largest bridge maker

Steel Stronger and less likely to break Impurities had to be burned out

Several weeks for 50lbs

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HENRY BESSEMER Worked on discovering a way to burn the impurities

quickly Steam or air into the melted iron By 1870 30000 lbs of steel in a matter of minutes

Carnegie visited Bessemer in 1872 and was sold on the idea The railroads had made it to the deposits of iron Pittsburg became the center of the industry

Carnegie sold his bridge company and built a plant to make steel near Pittsburg Had no problems convincing the railroad to switch to steel

rails Lasted 20 times as long

Carnegie invested his profit back into his business and bought everything associated with the industry He could produce steel cheaper than anyone.

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CUTTING THE COMPETITION

1880—1000 steel and iron making companies Very few could compete with Carnegie Carnegie bought the more efficient companies

Andrew Carnegie was good a seeing changes coming and adjusting to them Growing Cities He began to shift his production to steel beams for

buildings 1890’s Carnegie’s plant produced as much steel

as all of his competitors combined He became the richest man in the world at the

time The US became the largest maker of steel in the

world

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OIL

The oil industry began in Pennsylvania The oil seeped through rock and floated on the

creeks in the region. A Yale professor developed a simple method for

refining this oil into kerosene After 1900 oil became valuable as fuel for machines

and automobiles The first oil well was drilled in Titusville in 1859

It became known as “Black Gold” John D Rockefeller followed the developments in

Pennsylvania Already made his money in the wholesale grocery

business At 27 he decided to give oil a try

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JOHN D ROCKEFELLER

1867 Rockefeller buys a refinery in Cleveland, Pennsylvania Why? 30/1000

The key to the oil business was in refining If he could dominate refining, he could dominate

the oil industry 1870 The Standard Oil Corporation was

formed Rockefeller offered to buy all of the other

Cleveland refineries. Generous price to those willing to sell Ruthless enemy to those who were unwilling

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Kerosene was one of the important bi-products of oil. Rockefeller cut his prices way below the competition Tried to force them out of business 2 years Standard Oil controlled almost all refineries

Rockefeller bought more and more refineries Put his profits back into his business to increase

efficiency Soon he owned everything related to the business

Rockefeller paid attention to details Solder 40-39 drops

2500 the first year—hundreds of thousands of dollars

The SOC began to use questionable business tactics to beat its rivals..

Problems?

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MONOPOLIES, TRUSTS AND POOLS

RebateMonopolyTrustRegulatePoolInterstate Commerce ActSherman Antitrust Act

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MORE ROCKEFELLER

Rockefeller played the railroad companies against each other The would have to give the SOC a rebate

A rebate is a payment given back to a person or company that purchases a good or a service

The rebate had to be kept secret 35 cents versus 10 cents per barrel

SOC became larger and larger Double rebates

Rockefeller gets a stronghold on the oil business 90 percent of the industry Almost a monopoly

Complete control of an industry by one company

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TRUSTS

To tighten their grip the SOC formed trusts Trust- an organization of companies formed with the

intention of controlling an industry Stock holders turned over all stock to the trustees

Received certificates The trustees controlled everything SOC almost controlled the whole market

Trusts catch on Tobacco, leather, sugar and others 1900 2/3rds of goods were produced by a handful of

companies

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CONCERNS

A large company should be able to produce goods at a lower cost than a smaller company which should make goods cheaper?

Yes SOC, Carnegie and some others Most did not

Trusts had put the end to opportunity for success Easy to squish

“The Golden Rule”

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MILLIONAIRES

Prior to the civil war Handful

1900 4000 1893 Carnegie 23 million—420 million

½ billion total worth—9-10 billion Rockefeller Billionaire Vanderbilts close behind James B Duke- Tobacco Gustavus Swift and Philip Armour- Meatpacking

A gap between the Rich and the Poor began to emerge

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THE GAP

Rich viewed their wealth as a reward for their hard work All of society benefitted from their hard work Most of them started out as poor boys Gave generously to improve life in America

Most businessmen lived by the motto of “grab and keep” People felt like these industrialists were taking

advantage of society and returning nothing

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CONTROLLING BIG BUSINESS

People began to look to the government to regulate large business Regulate- to bring under control of the law

Railroads Rebates Pooling

Agreement to stop competing and control traffic Take no more than assigned share Charge the same high price

No competition East of Chicago $.95 West of the Missouri $4.80/mile

These unfair practices hurt all businesses that had to ship goods. The businesses had to pass their costs on to the

consumers The difference went to the owners of the railroads

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NEW LAWS

1887 the US Government passes the Interstate Commerce Act Outlawed railroad pools and rebates Illegal to charge more for short distances along the

same route The Interstate Commerce Commission was formed

To enforce, not given enough power Most courts overturned their rulings

1890 Sherman Antitrust Act

Trusts that restrict trade are illegal Companies found ways around the wording Courts usually sided with the businesses

The law was ignored and monopolies and big business continued to grow.

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THE WORLD OF THE WORKER

Sweatshop

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THE WORLD OF THE WORKER

Industrialism wasn’t just about the rich Before industrialism most people were farmers

Made their own goods-not really fancy Other goods were made by craftsmen

Entire product from beginning to end

This all changed when factories came into being Each part of production was broken down into

several Shoes- 64

Division of labor More shoes produced BORING

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THE MACHINE AGE

It use to take years to become a skilled craftsman Machines- days

Anyone can do it cheaper labor Many craftsmen had to give up their trade and work in

a factory

Factories employed hundreds of thousands of people Few people were known by name or cared about They became a cost of production Competition decrease wages Factory workers put in 10-12 hour days, 6

days/week

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WORKING CONDITIONS

Work began at 6 am 5 minutes late 9 am

Dangerous Dimly lit little fresh air No protection from machinery

Could loose limbs or life Railroads 7000 deaths 33000 injuries- 1891 Mines death because of coal dust

Caving in – thousands died 50000 injured

1900 The US led the world in industrial accidents 20000 deaths 200000 injuries No help from the company when they were injured or

killed

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WORKING CONDITIONS FOR WOMEN AND CHILDREN

Women 20 percent of the work force

Mostly in the garment industry Hot airless rooms Sweatshops Sweatshop- a place where people work for low pay

an in uncomfortable conditions

Children Half of the workers in a cotton mill 1890- 100000 children working in factories and

mines Coal mining

Driving mules-only saw daylight on Sunday Breaker boys-separate coal from the slate

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The boy must sit on his bench all day, bending over constantly to look down on the coal that is passing beneath him. His tender hands become toughened by long and constant contact with sharp pieces of slate and coal. Many cuts and bruises have left marks and scars on them for a lifetime. He must breathe an atmosphere thick with the dust of coal, so thick that one can barely see across the room. . . It is no wonder that . . . His lungs are liable to suffer from the disease know as “miner’s consumption.”

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MORE CHILD LABOR

Cotton mills 10-12 hours day or night Cold water to keep them from sleeping

No school Little opportunity to improve themselves. No play

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GOOD CHANGES

New inventions Lower priced goods Price of Steel

$160/ton $17/ton Other products made of steel became cheaper

New skill came in demand Engineers, machinists, traveling salespeople,

accounting, bookkeeping and managing Telephone and Typewriter

Created thousands of jobs Big corporations needed thousands of workers Skilled workers had hope Unskilled workers little or nothing

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WORKERS ORGANIZE WORD ATTACK

Labor union Anarchist Samuel Gompers American Federation of Labor Socialism Strike Breakers

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HOW TO MAKE LIFE BETTER FOR THE WORKERS

The workers needed to have their working conditions and pay improved. Could not do it alone

Easy to replace Other employers were the same Very little say in pay and conditions

Some workers saw that there was power in numbers and began to form labor unions Labor union- an organization of workers that

helps protect jobs and get better wages and working conditions.

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LABOR UNIONS

The workers would elect a leader to speak to their employers Refusal

Strike until agreement is reached No one makes any money Effective if the majority of workers strike

Unions had been around since the 1820’s Weak and unsuccessful Hard to organize and keep going People that belonged were not employed Employers would cut wages when the union

demanded higher ones.

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STRIKES

Owners would call in a private army to battle with strikers Lots of violence

Some strikes were effective Increase in membership in unions Most of the time they lost

Need for money Dropped out of unions

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STRIKE GONE BAD May 3, 1886

Strike at the McCormick Harvester Company in Chicago 8 Hour strike Workers clashed with police 1 killed several injured

Anarchists called a protest at Haymarket square Anarchist-a person who wants to do away with all

government Orderly protest Police move in

Bomb 7 killed

8 anarchist tried and convicted 4 executed

The future of labor unions became connected with what happened at Haymarket

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TRADE UNIONS

Trade unions were the strongest Divided up along lines of special trades

Carpenters, brewers, cigar makers Had a better chance of winning from a strike

Harder to replace

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SAMUEL GOMPERS AND THE AFL

Samuel Gompers Born in 1850 Son of Dutch immigrants Had to drop out of school to earn money for his

family Worked full time at the age of 10 Moved to the US in 1863 Samuel got a job in a cigar-making shop in NYC

The workers went on strike All fired even the one’s who didn’t participate

Blacklisted

Gompers was unable to find work in his trade Returned to cigar-making 1½ years later

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MORE GOMPERS

2nd part of his education Rolling cigars One person read the newspaper

The others made up for his reading time They would discuss the political and social news of

the day Gompers began to think seriously about the

problem of labor in an industrial society Best course of action? Workers work for the improvement of society? Just protect themselves? Form their own political party? Stay out of politics and form their own unions

Many workers were in favor of socialism

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CONCLUSION

Workers should organize unions along lines of their trade, forget about socialism and changing society

Focus on gaining victories in the present and concentrate on wages, hours, job security, and safety. Strike to win them

“more, more, more, now, now, now”

Gompers organized a new cigar makers’ union Became the president at 25 years old Turned to strengthen the national union

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THE AFL

In 1886 Gompers and others brought the trade unions together and formed the AFL American Federation of Labor

It was a union of trade unions

The AFL helped smaller unions and helped them to increase membership Support one another’s strikes

Hat makers’ strike Boycott

Gompers elected to be president of AFL

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WORK OF THE AFL Began slowly at first

Some success Severe setbacks

1892 Carnegie Steel Plant Wage cut Strike Scabs were hired

people hired to replace the striking workers—also called strikebreakers

Picket line To prevent the strikebreakers from working

Carnegie’s managers had no interest in bargaining Goal to break the union 300 heavily armed men Men on both sides were killed Strikers gave up after several months

• 10% hired back the rest black-listed• Iron-workers union decreased by 2/3

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SUCCESS

1904 2 million people in unions

Most of them in the AFL Samuel Gompers’ belief in “bread and butter

unionism” proved to be effective Under his leadership labor unions began to be

accepted by some Americans

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URBANIZATION OF AMERICA

Urbanization Kansas City William Le Baron Jennings Frank J Sprague Subway

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URBANIZATION OF AMERICA

New York population 1860 1 million 1910 4.7 million

Philadelphia .5 million 1 million

Chicago 100,000 2 million

1880s some cities doubled in size, Kansas City Some tripled-Minneapolis

At the end of the century twice as many people lived in the rural areas The US was becoming a nation of city dwellers

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RAILROADS AND CITIES

Urban growth and the growth of the railroads was intertwined. Urbanization-referring to the city The cities that grew quickly were the centers of

transportation New York, Philadelphia, Baltimore New Orleans

and San Francisco had good St. Louis, Missouri; and Buffalo, New York had

good It was the railroad that allowed all of these

cities and others become huge urban areas. Minneapolis- Flour milling Chicago

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KANSAS CITY, MISSOURI

Best example of how the railroad changed things 1860 4,000 People Unloading area for steamboats headed to the west or

the east Leavenworth

8000 people Army fort Supply center for the main wagon route out West

Most people would have thought that Leavenworth would be the city that grew rapidly

Several railroad companies built their lines through Kansas City Business Booms for Kansas City 1860-1880 4,000 to 50,000 1900 160,000

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OTHER FACTORS OF GROWTH

Manufacturing 1840s and 1850s manufactures began to use

something perfected by James Watt to power their machines Steam Engine

Most manufacturers chose to build factories in cities Transportation Workers Customers

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GROWTH DUE TO INDUSTRY

Many cities owed their growth to single industries Steel-Pittsburg PA and Birmingham AL Wheat Milling-KC MO and Minneapolis MN New York Chicago and Philadelphia had many

industries Also grew because they were centers of transportation

and banking

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CITY DWELLERS 1860 6 million people lived in cities 1900 30 million Where did they come from?

The country 11 Million from1880-1910

Entire villages were abandoned Drop in prices for farm products

Couldn’t pay their debts and had to leave their farms• They could make more money working in a city• Escape the long hours of working on the farm

Cities were a place of glamour and excitement Invention of lights-turned night into day Department stores Indoor plumbing Ice box

Place of opportunity Education and new careers

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OTHER CITY DWELLERS

Immigrants 3 out of 4

Major source of labor for the cities

As the cities grew the moved upward and outward The price of land skyrocketed Cheaper to build up Prior to the 1884 five or six stories tall

William Le Baron Jennings Build a steel skeleton to carry the weight of the

building and cover it with outer walls 1885 the first 10 story building is built for an

insurance company in Chicago Invention of the electric elevator Skyscrapers

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CONTINUED GROWTH OF CITIES

Prior to the civil war most cities were walking cities Most cities were not bigger than 2 miles As the population increased the city became

crowded New developments in transportation

Horse drawn railway or horse car Twice as fast as walking The city could double in size

1887 Frank J Sprague designs the trolley car Replaced the horse car in 10 years

Elevated Railroads (Els) Subways

1897 Boston opens America’s First Subway

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BEGINNING OF PROBLEMS

The cities became even bigger eight to ten miles

Led to a separation of the rich and the poor Rich moved away from the city center Poor stayed in the city