Transcript Document 7194625

A New Industrial Age
Natural resources and new ideas create a boom for
industry and railroads. Government addresses
corruption in business, and laborers organize for
better working conditions
Section 1
The Expansion of Industry
At the end of the 19th century, natural
resources, creative ideas, and growing
markets fuel an industrial boom
Natural Resources Fuel Industrialization
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By 1920s, U.S. is world’s leading industrial
power, due to:
- Wealth of natural resources
- government support for business
- growing urban population
Steel: The backbone of industry
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Steel played the biggest
role in moving the U.S.
into the Industrial
revolution
- It is a mixture of Iron
and other metals
Steel had been used to
make Knives, Swords,
and Guns (VERY
EXPENSIVE)
Steel: The backbone of industry
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1860 - Bessemer Process enabled
people to make iron into steel at a low
cost
- Bessemer process put air into iron to
remove carbon to make steel
Railroads demanded most of the new
steel (9/10)
Steel required both iron and coal
- Coal both source of fuel and carbon
- Coal mining, iron mining and
steelmaking expanded along with
railroads
Steel also used in barbed wire & farm
machines
Changed construction: Brooklyn
Bridge; steel-framed skyscrapers
Inventions in Electricity
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1800's - scientist continued to learn about electricity
Learned how to make electricity from a generator
- Used Niagara Falls to generate the electricity
Electricity changed business
- By 1890 used to run numerous machines
Became available in homes & encouraged invention of
appliances
Allowed manufacturers to locate plants anyplace & industry grew
Inventions in Electricity
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Thomas Edison - made
widest use of electricity
- Wanted practical inventions
(something that would sell)
- Took out new patent almost
every month for a 5-year
period
- Light bulb, motion picture
camera, .phonograph most
famous inventions
Inventions Change Lifestyles
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1867 - Christopher
Sholes invented
typewriter
Inventions Change Lifestyles
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1876 - Alexander Graham
Bell & Thomas Watson
introduce telephone
- People didn't see a practical
purpose for the telephone at
first
- By 1890's several cities
were connected by phone
lines
Office work changed
- By 1910, women were 40%
of clerical workers
Inventions Change Lifestyles
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Inventions impacted factory work & led to
industrialization
- clothing factories hired many women
Industrialization made jobs easier& improves standard
of living
- By 1890, average workweek 10 hours shorter
- Workers regained power in the market as consumers
Some laborers thought mechanization reduced value of
human worker
Changes in Everyday Life
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Companies could mass produce products
cheaply
- Plows
- Zippers
- Ready made clothing
Improved quality of life
Changes in Everyday Life
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Companies began advertising
- Procter& Gamble (Ivory soap)
Department stores developed to
handle women’s clothing
- R.H. Macy in New York
- Marshall Field in Chicago
Woolworth’s and Sears Roebuck
offered products to people in small
towns
Section 2
The Age of the Railroads
The growth and consolidation of railroads
benefits the nation but also leads to corruption
and required government regulation.
Rails across America
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1860 – Abraham Lincoln
promised a transcontinental
Railroad if elected
1862 – Pacific Railroad Act
Required Large amounts of
Capital
- Congress gave companies
loans and government land
located along new tracks
Two Companies were hired
to build it
Central Pacific
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Central Pacific would build east from Sacramento California
Central Pacific hired Chinese
- Discriminated against at 1st due to size
- Drank gallons of tea which made them less likely than the Irish
to get sick
Had to cross the Sierra Nevada Mountains
One place required them to lay track along cliff face with a 1,400
drop
Workers were dropped down in basket to light dynamite fuses
Had to dig through mountains
- Started on both sides and met in the middle
Union Pacific
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Union Pacific would
build west from Omaha
Nebraska
Hired Irish immigrants
Unskilled labor
Drinking un-boiled ditch
water made them sick
Track Completed
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Two Companies raced to see who
could lay the most track
- Averaged 1 to 2 miles per day
Union Pacific – 1,086 miles
Central Pacific – 690 miles
May 10, 1869 - Track was
completed in Promontory, Utah
- Connected with a golden spike
- Attached a telegraph wire to the
stake
- Transmitted a charge to the entire
nation when it was finished
Combining the Railroads
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Western railroads were big from
the beginning due to Government
help
Large rail systems in the east were
formed by combining smaller
companies
Cornelius Vanderbilt created the
New York Central Systems by
buying smaller systems in the
eastern United States
1873 – New York Central provided
services between New York and
Chicago
Impact of Railroads
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Helped end Indian control of the
west
- Lines cut through Indian’s
territory
- Carried settlers, buffalo hunters,
and minors west
Tied the East and West economies
together
- Carried raw materials, crops, and
live stock from West to East
- Midwestern cities became
processing centers (Chicago and St.
Louis)
- .Helped the growth of industry
by turning America into one giant
market place
Impact of Railroads
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Helped people settle and farm the West
- Raised cattle and wheat top to feed people in
the cities
- People moved West with dreams of
independence
- Farmers were often at the mercy of railroads
who transported goods to market and
- Eastern buyers who determined how much
they would pay for them
Impact of Railroads
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Changed the way people thought about the
environment
- Before railroads People lived and worked near
water transportation routes
- Railroad made it possible to transport goods
without water
- Denver, Colorado and Cheyenne, Wyoming
developed without water Transportation
- Weather didn't stop Railroad
Impact of Railroads
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Schedules became a part of
American life
- Standard time established
- 1st established railroad time that
was too local (over 100 time zones)
- November 18, 1883 - standard
time went into effect (divided U.S.
into 4 zones)
- Many communities refused to
accept it
-1918 - Congress adopted standard
time\
- Today we have six (4 original plus
the Alaska time and HawaiiAleutian time)
Opportunities and Opportunists
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Railroads required great
supply of materials, parts
Iron, coal, steel, lumber, glass
industries grew to meet
demand
1880 - George M. Pullman
built railcar factory on Illinois
prairie
Pullman provided housing,
doctors, shops, & sports field
for workers
Company tightly controlled
residents to ensure stable
work force
tarnished
Opportunities and
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Wish for control, profit leads some railroad
magnates to corruption
- Union Pacific stockholders formed
construction company, Crédit Mobilier
- overpaid for laying track, pocketed profits
- Republican politicians were implicated &
reputation of party
The Grange and the Railroads
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Farmers became angry over perceived railroad
corruption
- Railroads sold government lands to
businesses, not settlers
- Fixed prices & kept farmers in debt
- Charged different customers different rates
Granger Laws
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Grangers sponsored state & local political candidates
Pressed for laws to protect farmers’ interests
Munn v. Illinois - Supreme Court upheld states’ right to regulate
RR
Set principle that federal government could regulate private
industry
1886 - Interstate Commerce Act - Supreme Court said states
couldn’t set rates on interstate commerce
Public outrage led to Interstate Commerce Act of 1887
- Federal government could supervise railroads
- Established Interstate Commerce Commission (ICC)
Legal battle with railroads; difficult for ICC to take action
Panic and Consolidation
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Abuses, mismanagement, competition almost
bankrupt many railroads
Railroad problems contribute to panic of 1893,
depression
By mid-1894, 25% of railroads taken over by
financial companies
Section 3
Big Business and Labor
The expansion of industry results in the growth
of big business and prompts laborers to form
unions to better their lives.
The Centennial- 100 year anniversary
(1876)
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U. S. threw itself a birthday
party that lasted 6 months
World's Fair in Philadelphia
Millions of people came to
see American advancements
in technology
- Biggest attraction - Corliss
engine (steam engine) supplied power to 8,000
other machines.
What made Industry Grow
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Railroads - made possible a vast national exchange of goods
Inventions - New ideas and inventions helped U.S. become an industrial Giant
Patent - guarantees an inventor all the profits for/her invention for a certain
length of time
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Before 1860 - 36,000 patents
Between 1860 and 1900 - 650,000
Natural Resources - U.S. had abundant supplies of coal, iron ore, oil, forest,
water resources, and fertile land
Human labor and talent - U.S. population more than doubled between 1860
and 1900 (much of this population came from immigrants)
Capital-large profits could be made from America's growing economy
- This encouraged Banks and wealthy people to lend money to build new
factories (A lot of capital came from European investors)
Gilded Age
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American industry enabled a few people to
become rich beyond imagination
Had palace like homes with gilded decoration
1883 - William and Alvia Vanderbilt threw
party that cost $200 per person (1,200 guest
$250,000 total
- Average non farm person made $438 per year
Nations economy seesawed between boom and
bust (called business cycle)
Rise of Corporations
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Before 1880 most businesses owned directly by one
person or partnership
Banks were afraid to loan money because company
could collapse if person died
Corporation - company that has Gov. permission to
raise money by selling stock
People buy stock for 2 reasons
- Hope price of stock will rise
- Want dividends (share of profits)
Corporations can borrow money more easily
- Continues to exist if when its owners die
Social Darwinism and Business
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Principles of Social Darwinism
Darwin’s theory of biological evolution: the best-adapted survive
Social Darwinism, or social evolution, based on Darwin’s
theory
Economists used Social Darwinism to justify doctrine of laissez
faire
Idea of survival & success of the most capable appealled to
wealthy
Notion of individual responsibility in line with Protestant ethic
See riches as sign of God’s favor; poor must be lazy, inferior
Entrepreneurs
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People who start businesses
They imagined a goal then achieved it
Used new inventions to gain what they wanted
Many became philanthropist - gave money to colleges, libraries,
museums, etc
Many Entrepreneurs of the 1800's called "Captains of
Industry" for leadership
Critics call them "Robber Barons" for ruthlessness
- Destroyed their competitors
- Raised prices and lowered quality
- Paid low wages and had unsafe factories
Andrew Carnegie
(Steel)
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Born poor
Started out in textile business
Moved to job with railroads saved money
Decided steel was industry of the future
- Invested money in steel mills that used latest technology
Used vertical integration - bought out suppliers to control
materials
- Cut cost buy purchasing mines and ships to transport
By 1900 - controlled American steel business
Didn't believe in leaving money to family
- Gave away 350 million dollars for the improvement of
mankind
John D. Rockefeller (Oil)
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Cleveland merchant
Entered oil business in 1860's
Purchased refinery - plant
that turned purify crude oil
Formed Standard Oil
- Trust - a business that
controlled many businesses
in same industry
- Charged whatever prices
they wanted to
Sherman Antitrust Act
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Government thought expanding corporations
stifled free competition
Sherman Antitrust Act: trust illegal if they
interfere with free trade
Prosecuting companies was difficult
Government stopped enforcing act
Business Boom Bypasses the South
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South recovering from Civil War, hindered by
lack of capital
North owns 90% of stock in RR, most
profitable Southern businesses
Business problems: high transport cost, tariffs,
few skilled workers
Lives of Workers
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Most workers had 12 hour days, 6 day workweeks
- perform repetitive, mind-dulling tasks
- no vacation, sick leave, injury compensation
To survive, families needed all member to work, including children
Late 1800's - children worked along aside adults
- Child labor laws didn’t exist
Sweatshops - places where people work long hours in unsafe conditions for
low wages
By 1900 - 2/3 of people were wage earners
- Lost sense of accomplishment that comes from making product start to
finish
Treated like another piece of machinery
Call for Action
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Gov. played no role in telling
business how to operate
Workers organized to better lives
Labor unions - group of workers
that negotiate with the company
owners about wages and working
conditions
Railroad Strike of 1877
- Railroad cut wages
- Workers went on strike
- State militias battled angry mobs
- President Hayes sent federal
troops to stop strike and restore
order
Knights of Labor
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Formed by Terrence Powderly
(machinist)
Became a national union of
workers
Wanted to reform society
- 8 hour workday
- Child labor laws
- Wanted equal pay for women
Were against immigration
- Immigrants worked for lower
wages
- Applauded the Chinese
Exclusion Act - Stopped all
Chinese immigration to the U.S. for
10 years
Reacting to Unions
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Leaders saw unions power as a threat to profits
Blamed unions on socialist and anarchist
- Socialist - wanted workers to share in ownership and
profits of business
- Anarchist - rejected all forms of government and
authority
Late 1800's - most Americans sided with business
leaders
- Felt that person's success should depend upon their
labor effort
Samuel Gompers and the AFL
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AFL only had skilled workers
(harder to replace)
Limited demands to wages
and working conditions
Began to achieve goals
Gov. began to help workers
- Passed safety laws
Union Setbacks
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Homestead Strike of 1892
- Steel mill workers won higher wages
- Carnegie announced company would only
deal with employees one on one
- Employees protested
- Company locked them out hired new
employees
- Pinkerton agents (people hired as private
security guards were brought in)
- Pinkerton agents and former employees
had a 12 hour gun fight
- Gov. sent in militia
- Steel workers union destroyed
Union Setbacks
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Pullman strike – 1894
- Depression - Pullman
Palace car cut wages
- Company owned town
- refused to cut rent
- Workers protested
- Federal troops sent in
to end strike