Transcript Chapter 20

An
Industrial
Society
(1860-1914)
Section 1
The
Growth
of
Industry
Section 1 Objectives
• To identify factors that nurtured the
industrial revolution
• To explain how business cycles reflected
rapid economic growth
• To describe the growth of the steel and
electric-power industries
• To analyze how inventions changed
American life
A NEW INDUSTRIAL
AGE
LATE 19TH CENTURY
AMERICA EXPERIENCED
AN INDUSTRIAL BOOM
THE EXPANSION OF INDUSTRY
• After the Civil War (1865)
the U.S. was still largely
agricultural
• By 1920, the U.S. was the
leading industrial power
in the world
What factors helped U.S. industry grow?
•
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Plentiful Natural Resources
Growing Population
Improved Transportation
High Immigration
New Inventions
Investment Capital
Government Assistance
Plentiful Natural Resources
Growing Population
From 1860-1900, the U.S. population grew
from 31.5 million to 76 million. This led to
a growing need for goods. The demand
for goods spurred the growth of
industry.
Improved Transportation
Railroad building boomed after the Civil
War. As shipping raw materials and
finished goods to markets became even
easier, industry grew.
High Immigration
Immigrant population boomed between 1860-1900
with 14 million immigrants. Many immigrants
brought valuable specialized skills with them,
such a metalworking. Other immigrants
provided factories with the workers needed
for growing industries.
New Inventions
New machines and improved processes helped
industry produce goods more efficiently.
INVENTIONS SPUR
INDUSTRY
BESSEMER STEEL PROCESS
• Oil was not the only valuable natural
resource
• Coal and iron were plentiful within
the U.S.
• When you removed the carbon
from iron, the result was a lighter,
more flexible and rust resistant
compound – Steel
• The Bessemer process did just that
(Henry Bessemer & William Kelly)
• Bessemer’s process cut the cost of
steel so much that steel output
increased 500 times between 1867
and 1900
BESSEMER CONVERTOR
CIRCA 1880
NEW USES FOR STEEL
BROOKLYN BRIDGE
SPANS 1595 FEET IN NYC
• The railroads, with
thousands of miles of
track, were the
biggest customers
for steel
• Other uses emerged:
barbed wire, farm
equipment, bridge
construction
(Brooklyn Bridge1883),and the first
skyscrapers
ELECTRICITY
• 1876- Thomas Alva
Edison established the
world’s first research
lab in New Jersey
• There Edison perfected
the incandescent light
bulb in 1880
• Later he invented an
entire system for
producing and
distributing electricity
• By 1890, electricity
powered numerous
machines
EDISON
THE TELEPHONE
• Another important
invention of the
late 19th century
was the telephone
• Alexander Graham
Bell and Thomas
Watson unveiled
their invention in
1876
BELL AND HIS PHONE
How did other inventions of the 19th century
change the way of life in America?
Other inventions, such as the typewriter and the
sewing machine, helped open up jobs for
women. They also changed how people
purchased their clothing since ready-made
clothing was available.
THE TYPEWRITER
• Christopher Sholes
invented the typewriter
in 1867
• His invention forever
affected office work
and paperwork
• It also opened many
new jobs for women
• 1870: Women made
up less than 5% of
workforce
• 1910: They made up
40%
Investment Capital
When the economy was thriving, many
businesses made large profits. Banks and
wealthy individuals hoped to share in
the profits of businesses by loaning
them money to build factories and buy
equipment.
Government Assistance
State and federal governments used tariffs,
land grants, and subsidies to help
businesses grow. Lately, government
bailouts have aided industry.
The Business Cycle
• A Pattern of good times and bad times
• Booms-people buy more and invest in
business, and business and industry grow
• Busts-spending and investing decrease,
causing industries to lay off workers and
make fewer goods. Businesses may shrink
or even close. Called DEPRESSION.
• 1837,1857, 1873, 1893
Why does the economy grow during a boom?
During a boom period, people buy more
consumer goods. People invest in business. As
a result, industries and businesses grow.
How are economic booms and busts related?
Usually, after a period where the economy is down
or in a bust time, it will be followed by a strong
economic growth.
How did the panics of 1873 and 1893 affect
industry and workers?
During the panics of 1873 and 1893, millions of
people lost their jobs and thousands of
businesses failed.
Causes
The Growth of Industry
1860-1914
Effect
American industry grows
During the period from
1860-1914.
Read the cause and effect statements below. In the blank before each item, write T if the
statement is true and F if it is false.
________1. When customer spending and business investment decrease,
industries grow and hire more workers.
________2. The Bessemer steel process increased the cost of making iron into
steel.
_______ 3. The effect of Thomas Edison’s light bulb on America was the
widespread use of electric light instead of gas light.
________4. One of the effects of the invention of the sewing machine was that
people began to buy ready-made clothing in standard sizes.
The Growth of Industry
1860-1914
Section 2
Railroads
Transform
the
Nation
Section 2 Objectives
• To analyze the funding for the first
transcontinental railroad
• To identify the groups that worked on the
first transcontinental railroad
• To describe the linking together of the two
railroads
• To evaluate the changes brought about by
the railroads
Why did Americans want to build a
transcontinental railroad?
A railroad that spanned the entire continent would
encourage people to settle the West and
develop its economy. The economies of the
East and the West would be linked through
trade. (1)
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How was the transcontinental railroad financed?
The government lent both the Union Pacific &
Central Pacific millions of dollars. It also gave
them 20 square miles of public land for every mile
of track they laid. The railroad companies then
would sell the land to raise money. (2)
THE AGE OF THE RAILROADS
• The growth and
consolidation of the
railroad industry
influenced many
facets of American
life
• However, the
unchecked power of
the railroad
companies led to
widespread abuses
and then reforms
Railroads Become Scandalous
CREDIT MOBILIER SCANDAL
• Stockholders of Union Pacific
Railroad formed a construction
company in 1864
• Stockholders then gave
contracts to the company to lay
track at 3 times the actual costs
and pocketed the difference
• They donated shares of the
stock to 20 Republican
members of Congress in 1867
• The fake Credit Mobilier
Company made almost
$44,000,000 off the federal
government
POSTER FOR BOGUS
CONSTRUCTION COMPANY
•
INTERSTATE COMMERCE
ACT
In 1887, the Federal
government reestablished their control
over railroad activities
• Because of railroad
abuses Congress
passed the Interstate
Commerce Act and
established a 5-member
Interstate Commerce
Commission (ICC) (3)
• The ICC struggled to
gain power until 1906
1887 –
CONGRESS
PASSED THE ICA
THE GRANGE AND THE RAILROADS
GRANGERS PUT A
STOP TO RAILROAD
CORRUPTION
• Farmers were especially
affected by corruption in the
railroad industry
• Grangers (a farmers
organization) protested land
deals, price fixing, and
charging different rates to
different customers
• Granger Laws were then
passed protecting farmers
• States were given regulation
control of railroads by the
Courts
• Grange member formed
cooperatives which were
owned and run by their
members
• They bought grain elevators
and sold crops directly to
merchants (4)
What problem did the Central Pacific face when
hiring workers?
The Central Pacific faced labor shortages because
most men wanted to try and strike it rich as
miners.
How did Chinese workers benefit the Central
Pacific?
The Chinese were efficient, fearless and
hardworking. Because they followed their own
customs and drank tea instead of unboiled
water, they were sick less often than other
workers.
A great number of
Central Pacific’s
workers were from
China. (5)
Where did the Union Pacific get workers?
Union Pacific workers came from a variety of
backgrounds including former soldiers from the
North & South and freed slaves. One of the
largest groups of workers was immigrants, many
from Ireland. (5)
A NATIONAL NETWORK
• By 1869, tracks had
been laid across the
continent (Golden
Spike- Utah)
• Immigrants from China
and Ireland and out-ofwork Civil War vets
provided most of the
difficult labor
• Thousands lost their
lives and tens of
thousands were injured
laying track
IMMIGRANTS FROM
CHINA LAID TRACK
How did the Union Pacific and Central Pacific
companies celebrate the completion of the
transcontinental railroad?
A big celebration was held in Promontory, Utah, on
May 10,1869. Hundreds of railroad workers,
managers, spectators, and journalists gathered.
Millions of Americans waited to hear the news by
telegraph.
The transcontinental railroad was completed in 1869. The Central
Pacific and Union Pacific railroads met in Promontory Point, Utah
and laid a Golden Spike
What happened in the railroad industry after the
transcontinental railroad was built?
Between 1869 and 1890, the amount of money
earned by railroads carrying freight grew from
$300 million to $734 million per year. (6)
Why did the country need a standard time?
It was too difficult to make train schedules when
every community determined its own time,
based on calculations about the sun’s travels.
(7)
RAILROAD AND TIME
• Before 1883, each
community still
operated on its own
time
• For example: Noon in
Boston was 12
minutes later than
noon in New York
City
• Indiana had dozens
of different times
• No standard time
reference
PROFESSOR DOWD CREATES
TIME ZONES
• In 1869, to remedy this
problem, Professor C.F. Dowd
proposed dividing the earth into
24 time zones
• The U.S. would be divided into
4 zones: the Eastern, Central,
Mountain, and Pacific
• 1883 – Railroads synchronized
their watches across U.S.
• 1884 – International
Conference adopts zones
PROFESSOR DOWD EXPLAINS
HIS TIME ZONES
THE WORLD IS DIVIDED INTO 24 TIME ZONES
THE UNITED STATES IS DIVIDED INTO 4 TIME ZONES
How did the railroads benefit the economy?
Railroads linked the economies of the East &
West. (8)Raw materials such as lumber, grain,
and livestock were carried eastward and
processed in Midwestern cities such as Chicago
and Cleveland. In turn, manufactured goods
from eastern cities were sold to Westerners.
RAILROADS SPUR OTHER
INDUSTRIES
• The rapid growth of the
railroad industry influenced
the iron, coal, steel,
lumber, and glass
businesses (9) as they tried
to keep up with the railroads
demand for materials
• The spread of the railroads
also led to the growth of
towns, new markets, and
opportunity for profiteers
RAILROADS LED TO GROWTH
OF CITIES
• Many of today’s major
cities owe their legacy
to the railroad
• Chicago, Minneapolis,
Denver, and Seattle
(10) all grew up thanks
to the railroad
• Part of transportation
network that crossed
the country
“MY KIND OF TOWN”
1.
Why build it?
Expansion of Railroad
Assessment
2. How was the railroad financed?
The transcontinental railroad is
completed in 1869. U.S. railroad
system expands.
3. What did scandals of RR’s lead to?
4. How did the Grange help farmers?
5. Where did workers come from?
Fill in each box with examples of how the
expansion of the railroad industry affected item.
6. How much money was made?
Expansion of Railroad
Assessment
7. Why did a system of time
develop?
The transcontinental railroad is
completed in 1869. U.S. railroad
system expands.
8. How did RR’s help the economy?
9. What other industries grew?
10. What other big cities grew?
Fill in each box with examples of how the
expansion of the railroad industry affected item.
Section 3
The
Rise
of
Big
Business
The Rise of Big Business
Objectives
• To analyze the growth of corporations
• To describe monopolies and trusts and
evaluate their effects
• To summarize the positive and negative
aspects of the Gilded Age
• To evaluate the development of the
economy of the South
How did businesses change in the late
1800’s?
Until the late 1800’s, most businesses were owned
directly by one person or by a few partners. New
technology caused business owners to want to
buy new equipment. To raise money business
operators formed corporations. A corporation is
a company that raises money by selling shares
of stock.
When a business holds stock in many companies,
often in the same industry, it’s called a trust.
What advantages do corporations have that
smaller businesses do not have?
1) By selling stock, a corporation can raise
large amounts of money
2) A corporation has special legal status and
continues to exist after its founders die. Banks
are more likely to lend corporations money
3) A corporation limits the risks to its investors,
who do not have to pay off the corporations
debts
BLACK GOLD
• In 1859, Edwin Drake used a
steam engine to drill for oil
• This breakthrough started an
oil boom in the Midwest and
later Texas
• At first the process was
limited to transforming the oil
into kerosene and throwing
out the gasoline -- a byproduct of the process
• Later, the gasoline was used
for cars
• John D. Rockefeller soon
started his oil business in
EDWIN DRAKE PICTURED
1863
WITH BARRELS OF OIL
Rockefeller Uses Ruthless Methods To Gain
Control of the Oil Industry
He decided to put his competitors out of
business by creating monopolies and
forming trusts.
John D. Rockefeller took a $2000 investment
in 1859 and turned it into one of the most
profitable businesses in the United States.
Rockefeller became known as a robber baron
but also gave away $500,000,000 to charity.
BUSINESS GROWTH &
CONSOLIDATION
• Mergers could result in a
monopoly (Trust)
• A monopoly is complete
control over an industry
by wiping out competition
• An example of
consolidation: In 1870,
Rockefeller’s Standard Oil
Company owned 2% of
the country’s crude oil
• By 1880 – it controlled
90% of U.S. crude oil
• That’s in 10 years!
CHICAGO’S STANDARD OIL BUILDING
IS ONE OF THE WORLD’S TALLEST
ROBBER BARONS
J.P
MORGAN
IN PHOTO
AND
CARTOON
• Alarmed at the cut-throat
tactics of industrialists,
critics began to call them
“Robber Barons”
• Famous “Robber Barons”
included Carnegie (steel),
Rockefeller (oil), Vanderbilt
(RR), Stanford (RR), J.P.
Morgan (Banking), and Jay
Gould (RR)
• Robber Barons got richer
while many Americans got
poorer
Jay Gould
Robber Baron
Jay Gould used illegal tactics like
bribing officials and selling fake stock
to amass a fortune in excess of $77
million, mostly in the railroad
industry. (Sound like Bernie Madoff?)
Bernie Madoff is a present day
robber baron
SHERMAN ANTI-TRUST ACT
• In 1890, the Sherman
Anti-Trust Act made it
illegal to form a monopoly
(Trust)
• Prosecuting companies
under the Act was not
easy – a business would
simply reorganize into
single companies to avoid
prosecution
• Seven of eight cases
brought before the
Supreme Court were
thrown out
BIG BUSINESS AND LABOR
• Andrew Carnegie was
one of the first industrial
moguls
• He entered the steel
industry in 1873
• By 1899, the Carnegie
Steel Company
manufactured more steel
than all the factories in
Great Britain combined
Carnegie’s Methods of Gaining Control of the
Steel Industry Differ From Rockefeller’s
Andrew Carnegie believed in making the best and
cheapest product. He did this by controlling all
the processes related to the manufacture of the
steel. By doing this, he was able to gain control
over the steel industry.
The Guilded Age
• The term "gilded age" was coined by Mark Twain and Charles Dudley Warner
to describe the concentration of wealth in late nineteenth-century American
society.
• During this period, industrial kingpins such as Andrew Carnegie, J.P. Morgan,
and John D. Rockefeller amassed unprecedented fortunes. Meanwhile, the
drive to accumulate wealth translated into miserable working conditions in
factories, coal mines, and oil fields.
• Violent strikes broke out throughout the country. Of the thousands of strikes that
erupted during the 1880's and 1890's, some of the most furious were the Great
Railroad Strike of 1877, the Haymarket Riot of 1886, and the Pullman strike of
1894.
Characteristics of the “Gilded Age”
Many wealthy people had gained their wealth
through inheritance and not working to obtain it.
Few actually got rich through hard work. The
number of wealthy people in America disguised
society’s problems, such as corrupt politics and
widespread poverty.
Why is its name appropriate for the era?
To gild means to coat an object with gold. It
appears that America was a nation of wealth;
however, many Americans lived in horrible
poverty.
ROBBER BARONS WERE
GENEROUS, TOO
• Despite being labeled
as greedy barons, rich
industrialists did have a
generous side
• When very rich people
give away lots of money
it is called
“Philanthropy”
• Carnegie built libraries,
Rockefeller, Leland
Stanford, and Cornelius
Vanderbilt built schools
ROCKEFELLER CHAPEL –
UNIVERSITY OF CHICAGO
The Economy of the South Grows Slowly
The South had been left in ruins following the Civil
War. It remained mostly an agricultural region
with little industry. Also, the price of cotton, the
South’s main crop, was very low.
Sharecropping is a system of agriculture
in which a landowner allows a tenant to
use the land in return for a share of the
crops produced on the land.
The Sharecropping System Affect Workers
Landowners rented their land to sharecroppers
who paid a large portion of their crops as rent.
Often they had to buy their seed and tools on
credit. Sharecroppers made little money from the
sale of cotton because of low prices. Merchants
often cheated them, increasing their debt.
Sharecropping kept poor
Americans in constant poverty.
Many never even learned to read
or write.
Match the term in the second column with the description in the first column. Write the letter
of your answer in the blank.
The Rise of
Big
Business
Assessment
______ 1. A person who gives away a great deal
of his or her money to charity.
a.
Jay Gould
______ 2. A company that raises money by selling
shares of stock.
b.
robber baron
______ 3. A business leader who became wealthy
by using dishonest methods.
c.
corporation
______ 4. A company that wipes out it competitors
and controls an industry.
d.
John D. Rockefeller
______ 5. A wealthy businessman who controlled the
oil industry.
e.
sharecropping
______ 6. A legal body created to hold stock in many
companies, often in the same industry.
f.
Andrew Carnegie
______ 7. A wealthy businessman who controlled the
steel industry.
g.
monopoly
______ 8. The era of the late 1800’s, which was a time
of fabulous wealth for a few Americans.
h.
trust
______ 9. People who got richer while most Americans got poorer
i.
philanthropist
______10. Land owners gave farm workers land, seed, and tools in
return for a part of the crops they raised.
j.
Guilded Age
Section 4
Workers
Organize
Section 4 Objectives
• To describe working conditions in the late
1800's
• To trace the beginnings of the labor
movement
• To evaluate union setbacks and significant
strikes
• To describe the founding of the American
Federation of Labor
1.
Why were workers discontented with working
conditions in the late 1800’s?
Business owners tried to run businesses as cheaply as
possible and sacrificed workers’ safety or didn’t provide
workers with the necessary equipment they needed.
Workers were often paid very low wages. Many workers
toiled in Sweatshops, which were places where workers
labored long hours under poor conditions.
WORKERS HAD POOR
CONDITIONS
• Workers routinely worked
6 or 7 days a week, had
no vacations, no sick
leave, and no
compensation for injuries
• Injuries were common –
In 1882, an average of
675 workers were killed
PER WEEK on the job
How did workers try to improve working
conditions?
Discontented workers joined together to improve
their lives by forming labor unions-groups of
workers that negotiated with business owners to
obtain better wages and working conditions.
LABOR UNIONS EMERGE
• As conditions for
laborers worsened,
workers realized they
needed to organize
• The first large-scale
national organization of
workers was the
National Labor Union in
1866
• The Colored National
Labor Union followed
CRAFT UNIONS
• Craft Unions were unions of
workers in a skilled trade
• Samuel Gompers led the Cigar
Makers’ International Union to
join with other craft unions in
1886
• Gompers became president of
the American Federation of Labor
(AFL)
• He focused on collective
bargaining to improve conditions,
wages and hours
2.
What was the Knights of labor?
The Knights of Labor was a Loose federation of workers
from many different trades. Even women were allowed
to join. They inspired many people to join their cause.
The Knights of Labor
allowed women and
African Americans to join
their union.
What were the affects of the depression of
1873 for workers?
Millions of workers took pay cuts, and about 1/5
lost their jobs.
During the Panic of
1873 hundreds of banks
closed.
3.
What caused the Railroad Strike of 1877?
Two railroad strikes, one in 1877 and one in
1884-5, showed how angry workers could
become. In 1877, The B & O Railroad declared
a 10% wage cut for workers. Workers refused
to run the trains. This was the first labor union
strike in the U.S.
4.
How did the Railroad Strike of 1877 end?
As the news spread of the strike, workers in
many cities and in other industries joined in.
This threw the country into turmoil. In
several cities, state militia battled angry
mobs. President Rutherford B. Hayes called
out federal troops to end the strike. Dozens
of people were killed.
STRIKES TURN
VIOLENT
• Several strikes turned
deadly in the late 19th
century as workers and
owners clashed
• The Great Strike of 1877:
Workers for the
Baltimore and Ohio
Railroad struck to protest
wage cuts
• Other rail workers across
the country struck in
sympathy
• Federal troops were
called in to end the strike
Why did business and government leaders fear
labor unions?
Business leaders feared that labor unions would
spread about socialism and anarchism.
5.
What were the causes and affects of the
Haymarket Affair?
In Chicago in 1886, the McCormick Harvester
Company locked out striking union members
and hired strikebreakers (scabs). On May 3,
union members, strikebreakers, and police
clashed. One union member was killed. Violence
erupted as police moved in to end a protest held
the next day. Police arrested hundreds of union
leaders, socialists, and anarchists. Opposition to
unions increased and the Knights of Labor lost
power.
THE HAYMARKET AFFAIR
• Labor leaders continued to
push for change – and on May
4, 1886, 3,000 people
gathered at Chicago’s
Haymarket Square to protest
police treatment of striking
workers
• A bomb exploded near the
police line – killing 7 cops and
several workers
• Radicals were rounded up
and executed for the crime
The Haymarket Affair in Chicago
6.
7.
What caused the Homestead Strike of 1892?
What was the outcome?
Andrew Carnegie reduced wages at his steel mills
in Homestead, PA, but the union refused to
accept the cut. (6) The company locked out
union workers and hired replacement workers or
scabs. The company also hired 300 armed
guards. The locked out workers gathered
weapons, and a battle broke out and left 12
people dead. The Pennsylvania state militia
began to escort the nonunion workers to the
mills. After 4 months, the strike collapsed,
breaking the union. (7)
THE HOMESTEAD STRIKE
• Even Andrew Carnegie could
not escape a workers strike
• Conditions and wages were not
satisfactory in his Steel plant in
Pennsylvania and workers
struck in 1892
• Carnegie hired Pinkerton
Detectives to guard the plant
and allowed scabs to work
• Detectives and strikers clashed
– 3 detectives and 9 strikers
died
• The National guard restored
order – workers returned to
work
PULLMAN: A FACTORY &
TOWN
THE
TOWN
GEORGE
PULLMAN
• In 1880, George Pullman
built a factory for
manufacturing sleepers
and other railroad cars in
Illinois
• The nearby town Pullman
built for his employees
was modeled after early
industrial European towns
• Pullman workers felt his
puritanical town was too
strict
• When he lowered wages
but not rent – it led to a
violent strike in 1894
8.
9.
What caused The Pullman Strike?
What was the outcome?
• After the Pullman Company laid
off thousands of workers and
cut wages by 25%, the workers
went on strike in the spring of
1894. Pullman also did not
lower rent on company
housing. (8)
• Eugene Debs (American Railroad
Union) tried to settle dispute which
turned violent
• Pullman hired scabs and fired
the strikers – Federal troops
were brought in by President
Grover Cleveland to end the
strike (9)
• Debs was jailed
The Pullman Company built luxury rail cars like the
one that carried President Lincoln’s body back
to Illinois.
10. What methods did the American Federation
of Labor use to win benefits?
It was a national organization of labor unions from
many different trades. They focused on
improving working conditions for workers by
using strikes, boycotts, and negotiation.
EMPLOYERS FIGHT UNIONS
• The more powerful the unions
became, the more employers
came to fear them
• Employers often forbade union
meetings and refused to
recognize unions
• Employers forced new workers
to sign “Yellow Dog Contracts,”
swearing that they would never
join a union
• Despite those efforts, the AFL
had over 2 million members by
1914
WOMEN ORGANIZE
• Although women were
barred from most unions,
they did organize behind
powerful leaders such as
Mary Harris Jones
• She organized the United
Mine Workers of America
• Mine workers gave her the
nickname, “Mother Jones”
• Pauline Newman organized
the International Ladies
Garment Workers Union at
the age of 16