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THE RISE OF INDUSTRIAL AMERICA, 1865–1900 AP US History East High School Mr. Peterson Spring 2011

Mar 26, 2015

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THE RISE OF INDUSTRIAL AMERICA, 18651900 AP US History East High School Mr. Peterson Spring 2011 Slide 2 Focus Questions What innovations in technology and business drove increases in industrial production after 1865? What innovations in technology and business drove increases in industrial production after 1865? How did Carnegie, Rockefeller, and other corporate leaders consolidate control over their industries? How did Carnegie, Rockefeller, and other corporate leaders consolidate control over their industries? Why did the Souths experience with industrialization differ from that of the North and the Midwest? Why did the Souths experience with industrialization differ from that of the North and the Midwest? How did the changing nature of work affect factory workers lives, and how did they respond? How did the changing nature of work affect factory workers lives, and how did they respond? How did corporations undercut labors bargaining power in the 1890s? How did corporations undercut labors bargaining power in the 1890s? Slide 3 The Rise of Corporate America Slide 4 The Character of Industrial Change Large-scale manufacturing Large-scale manufacturing Large coal deposits Large coal deposits Technological innovation Technological innovation Demand for workers who could be controlled Demand for workers who could be controlled Constant pressure to cut costs and prices Constant pressure to cut costs and prices Relentless drop in prices Relentless drop in prices Money supply shortage leads to high interest rates Money supply shortage leads to high interest rates Slide 5 p. 538 Slide 6 Railroad Problems and Innovations 193,000 miles by 1900 193,000 miles by 1900 Collis Huntington, Jay Gould and others need capital Collis Huntington, Jay Gould and others need capital Land and loan subsidies from all levels of government Land and loan subsidies from all levels of government Bonds and stock to public Bonds and stock to public High levels of debt by 1900 High levels of debt by 1900 Magnetic telegraph Magnetic telegraph New organizations and accounting New organizations and accounting Slide 7 Consolidating the Railroad Industry Large companies buy up smaller ones Large companies buy up smaller ones Divide country into 4 time zones Divide country into 4 time zones Standard gauge track Standard gauge track Relied on shipping rate cuts Relied on shipping rate cuts Interstate Commerce Act (1887) Interstate Commerce Act (1887) Oversee railroads Oversee railroads Banned monopolistic activity Banned monopolistic activity Banker J. Pierpont Morgan gets control of many railroads Banker J. Pierpont Morgan gets control of many railroads Slide 8 Applying the Lessons of Railroads to Steel Andrew Carnegie Andrew Carnegie Rags to riches story Rags to riches story Builds own steel mill Builds own steel mill Uses Bessemer process Uses Bessemer process watch the costs, and the profits will take care of themselves watch the costs, and the profits will take care of themselves Vertical integration Vertical integration Could see big picture Could see big picture Slide 9 p. 539 Slide 10 Slide 11 Slide 12 Slide 13 Fig. 18-2, p. 541 Slide 14 Table 18-1, p. 541 Slide 15 The Trust: Creating New Forms of Corporate Organization Consolidation in many industries Consolidation in many industries Oligopolies Oligopolies Petroleum drilled in 1859 Petroleum drilled in 1859 Edwin Drake Edwin Drake Titusville, PA Titusville, PA crude-oil distilled crude-oil distilled Lubricants, kerosene Lubricants, kerosene Slide 16 Slide 17 Slide 18 John D. Rockefeller Took over competition in oil industry Took over competition in oil industry Lower prices Lower prices Set up pool of companies, trust Set up pool of companies, trust Standard Oil Trust Standard Oil Trust 90% of oil refining capacity 90% of oil refining capacity Integrated oil industry vertically and horizontally Integrated oil industry vertically and horizontally Slide 19 Slide 20 James B. Buck Duke Cigarette industry Cigarette industry American Tobacco trust American Tobacco trust Targeted young with trading cards and prizes Targeted young with trading cards and prizes Slide 21 Slide 22 p. 541 Slide 23 Sherman Anti-Trust Act 1890 1890 Outlawed trusts and monopolies Outlawed trusts and monopolies Ineffective Ineffective Failed to define trust or restraint of trade Failed to define trust or restraint of trade United States v. E.C. Knight (1895) United States v. E.C. Knight (1895) Manufacturing not interstate commerce Manufacturing not interstate commerce Slide 24 Stimulating Economic Growth Slide 25 The Triumph of Technology New inventions New inventions Streamlined manufacturing Streamlined manufacturing Stimulated consumer demand Stimulated consumer demand Singer Sewing Machine Company Singer Sewing Machine Company Alexander Graham Bell- telephone Alexander Graham Bell- telephone Slide 26 Thomas A. Edison invention factory invention factory Phonograph- sound writer Phonograph- sound writer Incandescent light bulb Incandescent light bulb Electric power system Electric power system Motion picture camera Motion picture camera Menlo Park laboratory Menlo Park laboratory Model for other businesses Model for other businesses Slide 27 p. 543 Slide 28 Electricity Thomas Edison Thomas Edison Interrelated system of power plants, transmission lines, light fixtures Interrelated system of power plants, transmission lines, light fixtures Direct current-DC Direct current-DC George Westinghouse George Westinghouse Alternating current-AC Alternating current-AC Systems combine-110 AC Systems combine-110 AC Private ownership, regulated monopolies Private ownership, regulated monopolies Slide 29 p. 544 Slide 30 p. 545 Slide 31 Specialized Production Manufacturing Manufacturing Skilled workers Skilled workers Seamstresses Seamstresses Shift styles quickly Shift styles quickly Slide 32 p. 546 Slide 33 Advertising and Marketing Mass-produced consumer goods Mass-produced consumer goods Flour, soap, matches, canned goods Flour, soap, matches, canned goods Brand names, trademarks, guarantees, slogans, endorsements, unique products Brand names, trademarks, guarantees, slogans, endorsements, unique products Demand and brand loyalty Demand and brand loyalty Slide 34 p. 547 Slide 35 Social and Environmental Costs and Benefits Social benefits Social benefits Labor-saving products Labor-saving products Lower prices Lower prices Advances in transportation and communications Advances in transportation and communications Social costs Social costs Bankrupt companies and dreams Bankrupt companies and dreams Expendable workers Expendable workers Environmental devastation Environmental devastation Slide 36 p. 548 Slide 37 The New South Slide 38 Obstacles to Economic Development Lagging industrial development Lagging industrial development Lack of capital Lack of capital Few banks Few banks Growing cash crops such as cotton or tobacco made farmers vulnerable to world markets Growing cash crops such as cotton or tobacco made farmers vulnerable to world markets Limited funds for education Limited funds for education Slide 39 The New South Creed and Southern Industrialization Henry Grady Henry Grady Atlanta Constitution Atlanta Constitution Industrialize South Industrialize South Attract Northern capital Attract Northern capital More opportunities for black workers in industry More opportunities for black workers in industry Slide 40 The Southern Mill Economy Mill towns supported textile industry Mill towns supported textile industry Center of textiles by 1920 Center of textiles by 1920 Augusta, GA: Lowell of the South Augusta, GA: Lowell of the South Low wages Low wages Often paid in company scrip Often paid in company scrip Did little to help farmers/sharecroppers Did little to help farmers/sharecroppers Slide 41 The Southern Industrial Lag Birmingham (AL) Steel controlled by U.S. Steel Birmingham (AL) Steel controlled by U.S. Steel Higher prices, despite lower costs Higher prices, despite lower costs Segregated work force Segregated work force Environmental damage Environmental damage Slide 42 p. 550 Slide 43 Factories and the Work Force Slide 44 From Workshop to Factory Restructuring of work habits Restructuring of work habits Emphasis on workplace discipline Emphasis on workplace discipline Example of shoemakers Example of shoemakers Skilled artisan to unskilled factory worker Skilled artisan to unskilled factory worker Lower-paid women and children Lower-paid women and children Slide 45 p. 555 Slide 46 The Hardships of Industrial Labor High demand for unskilled laborers High demand for unskilled laborers Workers often drifted Workers often drifted 12-hour shifts 12-hour shifts Dangerous work Dangerous work Children as young as 8 Children as young as 8 Railroads dangerous for adults Railroads dangerous for adults Minimal financial aid for disabled and families Minimal financial aid for disabled and families Slide 47 Slide 48 Slide 49 Immigrant Labor French Canadians in NE French Canadians in NE Chinese in West Chinese in West Eastern and Southern European immigrants Eastern and Southern European immigrants Subject to discipline and eviction from company provided homes Subject to discipline and eviction from company provided homes Faced discrimination Faced discrimination Slide 50 p. 559 Slide 51 Slide 52 Women and Work in Industrial America Working-class women had to contribute to family income Working-class women had to contribute to family income Single women could see opportunity Single women could see opportunity Typewriter and telephone lead to shift in work for women Typewriter and telephone lead to shift in work for women Clerical and secretarial Clerical and secretarial Telephone operators Telephone operators Slide 53 p. 553 Slide 54 Hard Work and the Gospel of Success Horatio Alger and Ragged Dick (1867) Horatio Alger and Ragged Dick (1867)