Transcript No Slide Title

The American Nation
Chapter 20
Industrial Growth, 1865–
1914
Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River, NJ. All rights reserved.
The American Nation
Chapter 20: Industrial Growth, 1865–1914
Section 1:
Railroads Spur Industry
Section 2:
The Rise of Big Business
Section 3:
Inventions Change the Nation
Section 4:
The Rise of Organized Labor
Copyright © 2003 by Pearson Education, Inc., publishing as Prentice Hall, Upper Saddle River, NJ. All rights reserved.
Railroads Spur Industry
Chapter 20, Section 1
• What factors led to the construction of a network
of railroads after the Civil War?
• How did railroad executives eliminate
competition?
• How did railroad building encourage the growth
of the American economy?
Factors That Contributed to a Railroad Boom
Chapter 20, Section 1
Standardized track
Early railroads were short, local lines. They used
tracks of different gauges, or widths. Therefore, trains
from one line could not run on the tracks of another
line. In 1886, most railroads adopted the same gauge.
That allowed American railroads to join together in a
network, or system of connected lines.
New inventions
New inventions helped make railway travel safer and
faster.
• George Westinghouse invented the air brake, which
allowed an engineer to stop all the railroad cars at
once.
• George Pullman designed a railroad sleeping car.
Pullman cars had convertible berths for sleeping as
well as lavatories.
• Rail lines added dining cars.
Factors That Contributed to a Railroad Boom
Chapter 20, Section 1
Consolidation
To operate railroads more efficiently, companies
began to consolidate, or combine. Larger companies
bought smaller companies. Cornelius Vanderbilt used
ruthless tactics to buy up most of the rail lines
between Buffalo and Chicago.
New rail lines
Companies raced to create thousands of miles of new
tracks. After the first transcontinental rail line in 1869,
railroad companies built three more transcontinental
lines. James Hill completed the last one—the Great
Northern
Eliminating Competition
Chapter 20, Section 1
With the overbuilding of rail lines in some parts of the country, railroad
companies looked for ways to outdo or get rid of the competition—especially
in the West.
• Railroads granted secret rebates, or discounts, to their biggest
customers. This practice forced many small companies out of business. It
also hurt small farmers, who had to pay higher rates.
• Railroad owners looked for ways to end competition, including pooling. In
a pool, several railroad companies agreed to divide up the business in an
area. Then, they fixed shipping prices at a high level.
Reaction to rebates and pools
• Rebates and pools angered small farmers in the South and the West. Both
practices kept shipping prices high for them.
• Many farmers joined the Populist party. The party called for government
regulation of rail rates.
• Congress did pass laws regulating railroad companies, but the laws did
not end abuses.
Railroads Contribute to the Growth of the American
Economy
Chapter 20, Section 1
• The building of rail lines created thousands of
jobs for steelworkers, lumberjacks, miners, and
railroad employees.
• The large railroads pioneered new ways of
managing business, such as having separate
shipping, accounting, and service departments.
Other big businesses soon copied these
management techniques.
• Railroads opened every corner of the country to
settlement and growth.
Section 1 Assessment
Chapter 20, Section 1
Railroad companies were able to form a network of rail lines across the nation
because
a) loggers cut down whole forests that were in the way of railroad building.
b) railroads standardized the size of the track they used.
c) many short lines served only local communities.
d) northern lines and southern lines had different kinds of track.
Small farmers in the South and the West called for the government to regulate
railroads because
a) railroad building gave jobs to miners and lumberjacks but not to farmers.
b) the noise of air brakes was frightening livestock along the track.
c) rather than competing for customers, railroads were dividing up the
business in an area, then fixing high shipping rates.
d) James Hill was encouraging some farmers and ranchers to settle near his
railroad by helping them buy equipment.
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Section 1 Assessment
Chapter 20, Section 1
Railroad companies were able to form a network of rail lines across the nation
because
a) loggers cut down whole forests that were in the way of railroad building.
b) railroads standardized the size of the track they used.
c) many short lines served only local communities.
d) northern lines and southern lines had different kinds of track.
Small farmers in the South and the West called for the government to regulate
railroads because
a) railroad building gave jobs to miners and lumberjacks but not to farmers.
b) the noise of air brakes was frightening livestock along the track.
c) rather than competing for customers, railroads were dividing up the
business in an area, then fixing high shipping rates.
d) James Hill was encouraging some farmers and ranchers to settle near his
railroad by helping them buy equipment.
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The Rise of Big Business
Chapter 20, Section 2
• What factors were responsible for the growth of
huge steel empires after the Civil War?
• What benefits did corporations and bankers
provide to the growing economy?
• How did John D. Rockefeller amass his huge oil
holdings?
• What were the arguments for and against trusts?
The Growth of the Steel Industry
Chapter 20, Section 2
Bessemer process
• In the 1850s, William Kelly in the United States and Henry Bessemer in
England each discovered a new way to make a strong steel at a low cost.
This way of making steel came to be called the Bessemer process.
Steel mills
• Steel mills sprang up in cities throughout the Midwest. Pittsburgh became
the steel-making capital of the nation. The steel boom brought jobs and
prosperity. It also caused problems, such as polluted water and air.
Andrew Carnegie
• Andrew Carnegie began with one steel mill, then used his profits to buy
out rivals. He also bought iron mines, railroad and steamship lines, and
warehouses. Soon he controlled all phases of the steel industry from
mining iron ore to shipping finished steel. Gaining control of all the steps
used to change raw materials into finished products is called vertical
integration.
Corporations and Bankers
Chapter 20, Section 2
•
•
•
•
By the late 1800s, big factories were producing goods more cheaply than
small factories.
To expand, big factories needed capital, or money, for investment in raw
materials, workers’ pay, and shipping and advertising costs. Many
expanding businesses became corporations—businesses owned by
investors.
• A corporation sells stock, or shares in the business, to investors, who
are known as stockholders.
• In return for their investment, stockholders hope to receive dividends,
or shares of a corporation’s profit.
Corporations also raised money by borrowing millions of dollars from
banks. These loans helped American industry grow at a rapid pace.
The most powerful banker of the late 1800s was J. Pierpont Morgan. He
used his banking profits to gain control of major corporations. By 1901, he
had become the head of the United States Steel Company, the first
American business worth more than $1 billion.
John D. Rockefeller’s Oil Empire
Chapter 20, Section 2
•
•
•
•
•
•
In 1859, drillers near Titusville, Pennsylvania, made the nation’s first oil
strike.
John D. Rockefeller recognized that oil had little economic value until it
was refined to make kerosene. He built an oil refinery.
Rockefeller believed that competition was wasteful. He used his profits to
buy up other refineries. He combined the companies into the Standard Oil
Company.
He did whatever he could to get rid of competition. He slashed prices so
others could not compete, pressured customers not to deal with other
companies, and forced railroads to grant rebates to Standard Oil.
Rockefeller formed the Standard Oil trust—a group of corporations run by
a single board of directors. Stockholders in smaller oil companies turned
over their stock to Standard Oil. In return, they got stock in the new trust.
The Standard Oil board of directors managed all the companies that used
to be the competition. Standard Oil trust had created a monopoly of the oil
industry. A monopoly controls all or nearly all the business of an industry.
Arguments For and Against Trusts
Chapter 20, Section 2
In a free enterprise system, businesses are owned by private citizens. Private
citizens decide what to make, how much to produce, where to sell, and what to
charge. Some Americans said large corporations hurt the free enterprise system.
The Argument Against Trusts
• Trusts and monopolies reduce
competition. Without competition,
there is no need to keep prices low
or improve products.
• New companies can’t compete with
powerful trusts.
• Trusts have too much political
influence. They are able to buy
favors from elected officials.
The Argument in Favor of Trusts
• Competition can ruin businesses
and put people out of work.
• The wealthy contribute the most to
the community.
• Corporations bring lower
production costs, lower prices,
higher wages, and a better quality
of life for all.
• By 1900, Americans had the highest
standard of living in the world.
In 1890, Congress passed the Sherman Antitrust Act, banning the formation of
trusts and monopolies. However, the law was too weak to be effective.
The Growth of American Business
• Steel and oil
become giant
industries
• Monopolies and
trusts dominate
important
industries
• Factory workers
face harsh
conditions
• Membership in
labor unions
grows
Effects Today
Effects
• Railroad boom
spurs business
• Businesses
become
corporations
• Nation has rich
supply of natural
resources
• New inventions
make business
more efficient
The Rise of Industry
Causes
Chapter 20, Section 2
• United States is
world’s leading
economic power
• American
corporations do
business around
the world
• Government laws
regulate
monopolies
Section 2 Assessment
Chapter 20, Section 2
A corporation is a business that
a) is owned by several small businesses that make the same product.
b) controls all the steps used in changing a raw material into a finished
product.
c) controls all or nearly all the business in a single industry.
d) is owned by investors who have bought shares of the business,
hoping for a share of the profits.
One argument against trusts is that
a) they discourage competition, which results in higher prices.
b) too much competition ruins businesses.
c) they spread the profits out among too many people.
d) they are too efficient and put people out of work.
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Section 2 Assessment
Chapter 20, Section 2
A corporation is a business that
a) is owned by several small businesses that make the same product.
b) controls all the steps used in changing a raw material into a finished
product.
c) controls all or nearly all the business in a single industry.
d) is owned by investors who have bought shares of the business,
hoping for a share of the profits.
One argument against trusts is that
a) they discourage competition, which results in higher prices.
b) too much competition ruins businesses.
c) they spread the profits out among too many people.
d) they are too efficient and put people out of work.
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Inventions Change the Nation
Chapter 20, Section 3
• What new devices speeded up communications
after the Civil War?
• How did Thomas Edison and other inventors
bring new technologies to Americans at work and
at home?
• What changes did the automobile and the
airplane make in American life?
New Devices Speeded Up Communications
Chapter 20, Section 3
A flood of invention swept the United States in the late 1800s. Between 1870
and 1900, the federal government issued more than 500,000 new patents—
licenses for new inventions.
Inventions improve communications.
Telegraph
Speeded up communication within the United States.
Transatlantic cable
Cyrus Field had the idea of laying a cable under the ocean so
that telegraph messages could go back and forth from one
country to another. In 1858, Britain’s Queen Victoria sent the
first transatlantic, or across the Atlantic, message.
Telephone
Alexander Graham Bell’s “talking machine” did not interest
people much at first. By 1885, Bell formed his own company
and sold more than 300,000 phones. With the telephone, the
pace of business speeded up even more. People no longer had
to go to a telegraph office.
Thomas Edison and Other Inventors
Chapter 20, Section 3
New inventions and ideas made business more efficient and life easier.
Thomas Edison
• He used a system where teams of experts refined his ideas.
• His workshop invented the light bulb, phonograph, and first
motion picture projector.
• The power plant was one of Edison’s most important creations.
Soon factories replaced steam-powered engines with safer,
quieter, electric engines.
Gustavus Swift
• Meatpacking plant and the use of refrigerated railroad cars to
ship fresh meat
Christopher Sholes
• Typewriter; speeded up communication between businesses
George Eastman
• Lightweight camera; photography became popular
Elijah McCoy
• Device that oiled engines automatically
Granville T. Woods
• A way to send telegraph messages between moving trains
Jan Matzeliger
• A machine that performed almost all steps in making shoes
Inventors
Chapter 20, Section 3
Date
1852
1864
1869
1872
1873
1874
1876
1877
1878
1879
1879
1883
1884
1887
1893
1895
1899
1909
Inventor
Elisha Otis
George Pullman
George Westinghouse
Elijah McCoy
Andrew S. Hallidie
Stephen Dudley Field
Alexander Graham Bell
Thomas Alva Edison
Anna Baldwin
Thomas Alva Edison
James Ritty
Jan E. Matzeliger
Lewis E. Waterman
Granville T. Woods
Charles and J. Frank Duryea
King C. Gillette
John Thurman
Leo H. Baekeland
Invention
Passenger elevator brake
Sleeping car
Air brake
Automatic engine-oiling machine
Cable streetcar
Electric streetcar
Telephone
Phonograph
Milking machine
First practical incandescent light bulb
Cash register
Shoemaking machine
Fountain pen
Automatic air brake
Gasoline-powered car
Safety razor with throwaway blades
Motor-driven vacuum cleaner
Improved plastic
The Automobile and the Airplane Change American Life
Chapter 20, Section 3
In 1913, Henry Ford introduced the moving assembly line.
• Workers stay in one place as products edge past them on a moving belt.
• The assembly line reduced the time needed to build a car.
• The assembly line allowed mass production—the making of large
quantities of a product quickly and cheaply, which meant lower prices.
Reaction to the automobile
• At first, people laughed at the automobile. Some thought it was a
nuisance. Others thought it was dangerous.
• Automobiles gave people freedom to travel easily.
• Eventually automobiles would make travel quicker and trade easier.
On December 17, 1903, Orville and Wilbur Wright made the first flight.
• The first flights did not attract much interest. No one could see any use for
a flying machine.
• The United States military first saw a use for airplanes. They could fly over
battlefields to locate enemy positions.
Section 3 Assessment
Chapter 20, Section 3
Thomas Edison was able to file thousands of patents because he
a) sold his ideas through Western Union.
b) set up a laboratory in which teams of experts worked out his ideas.
c) tried over and over again to find a way to send messages across the
Atlantic.
d) bribed patent officials.
One advantage of the moving assembly line was that
a) it reduced the time needed to make something.
b) assembly line workers were never bored.
c) it raised prices, therefore companies brought in more money.
d) it meant that one worker could make a thing from start to finish.
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Section 3 Assessment
Chapter 20, Section 3
Thomas Edison was able to file thousands of patents because he
a) sold his ideas through Western Union.
b) set up a laboratory in which teams of experts worked out his ideas.
c) tried over and over again to find a way to send messages across the
Atlantic.
d) bribed patent officials.
One advantage of the moving assembly line was that
a) it reduced the time needed to make something.
b) assembly line workers were never bored.
c) it raised prices, therefore companies brought in more money.
d) it meant that one worker could make a thing from start to finish.
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The Rise of Organized Labor
Chapter 20, Section 4
• How did workplace changes lead to the rise of
labor organizations such as the American
Federation of Labor?
• What progress and problems affected women in
the workplace during the late 1800s?
• Why did organized labor face hard times after
1870?
The Rise of Labor Organizations
Chapter 20, Section 4
The problems workers faced
The workplace
Before the late 1800s, factories were small and family
run. By the late 1800s, factories had become large,
crowded, and noisy. Wages were low. In some industries,
sweatshops became common. A sweatshop is a
workplace where people labor long hours in poor
conditions for low pay.
Child labor
In 1900, nearly 2 million children under age 15 worked.
Many worked in mills, tobacco factories, garment
sweatshops, and coal mines. They had little chance to
go to school.
Hazards of
work
The workplace could be dangerous. For example, the air
in textile mills was unhealthy and dust filled. Cave-ins
and explosions occurred in mines. Vats of molten metal
spilled in steel mills.
The Rise of Labor Organizations
Ways workers fought back
Chapter 20, Section 4
Knights of
Labor
• In 1869, workers formed the Knights of Labor. At first, the union was
open to skilled workers only.
• Knights of Labor president Terence Powderly worked to open the union
to immigrants, African Americans, women, and unskilled workers.
• Knights goals included a shorter workday, an end to child labor, and
equal pay for men and women.
• Powderly wanted workers and employers to share ownership and
profits.
Haymarket
Square
• Workers at the McCormick Harvester Company went on strike. The
Knights did not support the strike.
• The McCormick Company hired strikebreakers, or replacements for
striking workers.
• Workers clashed with strikebreakers. Police opened fire, killing four
workers.
• The next day, anarchists, people who oppose all organized government,
led a rally in Haymarket Square.
• A bomb exploded, killing seven police officers.
• Eight anarchists were arrested for what was called the Haymarket Riot.
Antilabor feeling swept the nation.
The Rise of Labor Organizations
Chapter 20, Section 4
American
Federation
of Labor
• In 1886, Samuel Gompers organized the American Federation of Labor
(AFL), for skilled workers only.
• Workers joined a trade union, a union of persons in the same trade, and
the union then joined the AFL.
• The AFL worked for higher wages, shorter hours, improved working
conditions, and collective bargaining, the right of unions to negotiate
with management on behalf of workers.
• African Americans, immigrants, and unskilled workers were barred from
trade unions, and thus, the AFL.
Women in the Workplace
Chapter 20, Section 4
Women worked for better conditions, too.
Mother Jones
Mary Harris Jones devoted much of her life to the cause
of workers. By calling attention to abuses, she helped
pave the way for reform.
International
Ladies’
Garment
Workers Union
(ILGWU)
In 1900, garment workers organized the ILGWU, which
went on strike for better conditions. More than 20,000
women and men walked off their jobs. After a few weeks,
employers met demands for better pay and shorter
hours.
Triangle Fire
In 1911, fire broke out in the Triangle Shirtwaist Factory
in New York City. Nearly 150 people, mostly young
women, died because the company had locked the doors
to keep workers at their jobs. Their deaths shocked the
public and led New York and other states to approve new
safety laws to protect factory workers.
Organized Labor Falls on Hard Times
Chapter 20, Section 4
•
•
•
•
•
Between 1870 and 1900, two major depressions and three
recessions rocked the country. In such hard times, workers lost
jobs or experienced pay cuts.
In the 1870s railroad workers went on strike. In some places, the
strikes turned into riots. In the 1870s and the 1890s, miners
organized strike after strike.
The federal government usually sided with business owners.
Some Presidents sent in troops to end the strikes. Courts usually
ruled against the strikers.
In one case, Pullman workers were jailed for violating the
Sherman Antitrust Act. This act was intended to keep trusts from
limiting free trade. The courts, however, said that the strikers were
limiting free trade.
Union workers staged thousands of strikes during the late 1800s.
However, few Americans supported the strikes. Many feared that
unions were run by foreign-born radicals.
Section 4 Assessment
Chapter 20, Section 4
The AFL worked for collective bargaining, which means
a) people working together to organize informal strikes.
b) a union organizing strikes against two different industries at the same
time.
c) equal pay for men and women.
d) the right of unions to negotiate with management on behalf of
workers.
In the late 1800s, in conflicts between factory owners and workers, the federal
government usually
a) sided with the workers.
b) sided with the factory owners.
c) tried to help but not take sides.
d) refused to get involved at all.
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Section 4 Assessment
Chapter 20, Section 4
The AFL worked for collective bargaining, which means
a) people working together to organize informal strikes.
b) a union organizing strikes against two different industries at the same
time.
c) equal pay for men and women.
d) the right of unions to negotiate with management on behalf of
workers.
In the late 1800s, in conflicts between factory owners and workers, the federal
government usually
a) sided with the workers.
b) sided with the factory owners.
c) tried to help but not take sides.
d) refused to get involved at all.
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