Transcript File

INDUSTRY 1865-1914
Section 1: Technology and Industrial
Terms and People
• Entrepreneur – people who invest money in a product of
enterprise in order to make a profit
• Protective Tariff – taxes that would make imported goods
cost more than those made locally
• Laissez Faire – allows businesses to operate under
minimal government regulation (hands-off)
• Patent – is a grant by the federal government giving an
inventor the exclusive right to develop, use, and sell an
Terms and People
• Thomas Edison – inventor supported by wealthy
industrialists like J.P. Morgan, established a research
laboratory at Menlo Park, New Jersey
Terms and People
• Bessemer Process – a process for purifying iron, resulting
in strong, but lightweight, steel
Terms and People
• Suspension Bridges – bridges in which the roadway is
suspended by steel cables
Terms and People
• Time Zones – one for each hour of the day, adopted by
the railroads and still in use today
• Mass Production – a system for turning out larger
numbers of products quickly and inexpensively
America’s industrial revolution was known
as the “second industrial revolution,”
driven by business leaders, creative
inventors and scientists
Encouraging Industrial Growth
One spark to this growth was the Civil War
o Guns
o Ammunition
o Medical supplies
o Uniforms
o Food
Immigration was encouraged to meet demand for labor
o Pushed from homelands by political and religious upheaval along
with crop failures
Natural resources fueled much of this growth, coal,
lumber, rivers, and oil
The government played a key role in the industrial
revolution. They gave millions of acres to the railroads,
imposed tariffs to encourage “buying American,” and held a
laissez-faire attitude toward business dealings.
Innovation Drives the Nation
Patents increased rapidly, and businessmen invested in
new innovations, hoping to create new industries and
expand old ones.
Inventor Thomas Edison supported by J.P. Morgan gave us
light, and central power plants
Steel – skyscrapers, elevators, and bridges
• Rail travel made great leaps in the transportation of
people and goods. How did railroads contribute to the
growth of American cities? (pg. 105)
The impact of Industrialization
• Industrialization allowed the U.S. to dominate world
markets. (grain, steel and textiles)
• The U.S. had more miles of rail track then the rest of the
world combined
Section 2 The Rise of Big Business
Terms and People
• Corporation – type of group ownership, with shares
• Monopoly – complete control of a product or service
• Cartel – in this arrangement businesses with the same
product agree to limit production to increase prices
• John D. Rockefeller – an oil tycoon, made deals with
railroads to increase profits
Terms and People
• Horizontal integration – consolidating small companies in
the same business to lower costs (read pg. 110)
• Trust – companies assign their stock to a board of
• Andrew Carnegie – business tycoon who along with
others consolidated all aspects of production to lower cost
of production (read pg. 113)
• Vertical integration – the term used to define the
consolidation process (read pg. 111)
Terms and People
• Social Darwinism – term coined by Graham Sumner to
describe “wealth or one’s inherent value and those who
had it were the most “fit”
• ICC – (Interstate Commerce Commission) first federal
body to monitor American business operations
• Sherman Antitrust Act – outlawed any trust that operated
“in restraint of trade or commerce among the several
Section 3: The Organized Labor
Terms and People
• Sweatshops – workers (mainly immigrants) worked 12
hour days, 6 days a week, in small and dirty workhouses
• Company Towns – communities, owned by the business
and rented out to employees
Terms and People
• Collective Bargaining – negotiating as a group for higher
wages or better working conditions
• Socialism – an economic and political philosophy that
favors public, instead of private, control of property and
• Knights of Labor – labor union and secret society, devoted
to broad social reform, such as replacing capitalism with
workers’ cooperatives (read Primary Source pg. 117)
Terms and People
• American Federation of Labor (AFL) – founded by Samuel
Gompers, this was a craft union, started with cigar
makers’ and later composed of more than 100 other trade
unions (Why combine groups?)
• Haymarket Riot – Chicago strikers demonstration that left
a legacy of violence when a protester threw a bomb killing
Terms and People
• Eugene V. Debs – the head of the American Railway
Union, he believed that industrial unions allowed groups
to exert united pressure on employers, he was eventually
• Pullman Strike – escalated, halting both rail and mail
traffic, Rail owners cited the Sherman Antitrust Act saying
the strike disrupted free trade (read pg. 120)