Transcript Ch.5 – An Industrial Era

Ch. 6 – A New Industrial Age
(1865 – 1920)
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U.S. Becomes an Industrial Power
Immense industrial boom began after the
Civil War.
 Due to three major factors:
 1) wealth of natural resources
 2) government support for business
 3) growing urban population provided both
cheap labor & markets for new products.
 By 1920 United States was the leading
industrial power in the world.
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Bessemer Process (1850s - Present)
 Cheaper and faster way to make steel.
Special process burned impurities out of iron,
producing a strong & durable steel.
Revolutionized steel industry.
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Railroads – Steel rails supported more
powerful trains. Railroads became largest
consumers of steel.
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Skyscrapers Needed steel girders
to support their great
weight. Steel frame
allowed architects to
build as high as they
wanted. Saved space
in crowded cities.
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Bridges – Brooklyn
Bridge (connecting
Manhattan to New
York) built w/ steel.
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Thomas Alva Edison
Perfected the incandescent
light bulb (1879). One of
the most important
inventions of the century.
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George Westinghouse
Invented the electrical
transformer. Changed high
voltage electricity into low
voltage use for American
homes.
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Impact of Electricity
Electricity helped
businesses grow, powered
machines, spurred invention
of time saving appliances, &
promoted outward
expansion of cities.
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Alexander Graham Bell
 1876 invented “speaking
telegraph” – later the
telephone.
 Established Bell
Telephone Company to
sell his invention and later
American Telephone &
Telegraph Company
(1885) to provide local and
long distance service.
 Telephone opened door
for worldwide
communications network &
greatly impacted office
work.
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Christopher Sholes
Invented the typewriter in
1867. Increased
productivity in offices &
created new jobs for
women.
Andrew Carnegie
Became the King of Steel.
Carnegie born in Scotland to
poor parents. Came to
America & later used
Bessemer Process to build
steel mills in America –
Carnegie Steel Company..
Worth over $500 million at
the time of his retirement in
1905.
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Carnegie & Vertical Integration
Carnegie bought mining companies, rail lines, ore
ships, and pig iron plants. Had a hand in each
industry critical to steel making.
Vertically Integrated his business - Controlled all
steps required to turn a raw material into a finished
product.
“Gospel of Wealth”
Carnegie known for his great philanthropy. Gradually
gave his fortune away to charities & worthy causes.
Believed that the rich had a duty to donate their
money to aid society.
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John Rockefeller
 Owned Standard Oil
Company - largest
oil refining business
in U.S.
 Used ruthless
methods to get rid of
competition. Pricecutting would drive
others out of
business, then
prices were raised
again.
John Rockefeller
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Rockefeller & Horizontal Integration
Rockefeller concentrated on acquiring all other oil
refineries. By 1879, he owned 90% of American oil
refineries.
Horizontally Integrated his business - Expanded in
one area of production only. Gave him control over
production & prices.
Monopoly
Complete control over every aspect of an industry.
Standard Oil later bought barrel companies, railroads,
pipelines. Had total control of market until oil struck
in Texas & Louisiana.
New Type of Business Entities
Vertical Integration & Horizontal Integration
“Next!”
1904 Political Cartoon of Standard Oil Company
Andrew Carnegie
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John D. Rockefeller
Robber Barons or Captains of Industry?
Carnegie & Rockefeller considered by some
to be either:
 “Robber Barons” – greedy, used ruthless
business practices, made their $ off of the
poor or working-class American.
 “Captains of Industry” – smart, used good
business sense to get ahead of competitors,
role models for other Americans aspiring to
build a business.
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Social Darwinism
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William Graham Sumner
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Applying Charles Darwin’s “survival of the fittest”
concept to society. Strongest, most intelligent
people flourish, while the poor are lazy or inferior.
Influential Social Darwinist. Believed that
“millionaires were a product of natural selection”.
Success or failure in business is governed by
nature and no one has a right to intervene.
Laissez Faire Economics
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School of thought that rejected government
involvement in the economy. Free market should
determine who produced goods & services. U.S.
practiced laissez faire economics throughout most
of the Industrial Age.
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Sherman Antitrust Act (1890)
 U.S. government concerned expanding
corporations would stifle free competition.
 Made it illegal to form a monopoly or
“trust” that interfered with free trade.
 Prosecuting companies under the Sherman
act was difficult. If companies felt pressure
from govnt, they would reorganize into
smaller corporations.
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Labor Unions Emerge (Late 1860s –
Present)
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Laborers joined together in unions to improve their
standing in the workplace. Millions of Americans
worked long hours in unsafe factories for little pay.
Not entitled to vacations, sick leave,
reimbursement for injuries on the job, ect.
Knights of Labor (1869) & American
Federation of Labor (1881)
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First major labor unions.
Equal pay for men & women, 8 hr. work day,
compensation for on-the-job injuries. Used
strikes & collective bargaining (right of unions to
represent workers as a group).
The Gilded Age
1870s – 1890s
United States History
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The “Gilded Age” (1870s
– 1890s)
Nickname for Industrial
Age - Coined by author
Mark Twain to describe
life in America during the
late 1800s.
Greed and corruption
were the underside of
public life. Growing gap
between the few rich and
many poor.
Gilded = brass
underneath, but coated
with gold.
 The
Political Machine
 Organized group that controlled the
activities in a city.
 Political machines had strong support
from immigrants. Helped immigrants
find jobs, housing, etc.. In return
political bosses received votes &
elected to city government.
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Tweed Ring Scandal
Political bosses often corrupt. Over - charged city for
projects, then pocketed extra money. Graft – illegal
use of political influence for personal gain.
Tammany Hall, NY City’s Democratic political machine.
Defrauded NYC of nearly $200 million dollars.
Political cartoonist Thomas Nast helped to bring down
“Boss” William Tweed by exposing corruption in
newspapers (later arrested and imprisoned).
 Patronage
System
 Presidents and elected officials
complained about the problem of
patronage – giving out government
jobs to people who helped get the
candidate elected (also called the spoils
system).
 Patronage system led to corruption &
incompetence in public service jobs.
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Reform of the Patronage
System
 Pres. Chester Arthur (18811885). Urged Congress to
pass civil service law.
 Pendleton Civil Service
Act of 1883 – thousands of
govnt jobs based on merit,
not patronage. Candidates
had to pass an exam &
could not be fired for
political reasons.
 Result of Reforms – public
service became more
honest and efficient.
President Chester Arthur