{ the growth of industry 1865 - 1914 chapter 19. { railroads lead the way chapter 19 – section 1
TRANSCRIPT
{
The Growth of Industry 1865 - 1914
Chapter 19
{
Railroads Lead the Way
Chapter 19 – Section 1
By the 1890s, five railway lines crossed the
country
Hundreds of smaller lines branched off from them
The railroad system grew rapidly
Workers sang work songs such as “I’ve Been
Working on the Railroad”
Expansion accompanied consolidation
This is the practice of combining separate
companies
It also created railroad barons who controlled
the nation’s rail traffic
Railroad Expansion
{• Cornelius Vanderbilt – gained control of the NY Central line and then made a fortune by consolidating several companies that stretched form NYC to the Great Lakes
• James J. Hill – built the Great Northern line between Minnesota and Washington State
• Collis P. Huntington & Leland Stanford – founded the Central Pacific which connected California & Utah
Railroad Barons
Railroad systems carried raw materials such as iron ore, coal, and timber to factories
There was a demand for iron tracks and locomotives
But in 1880: companies asked the tracks to be made of steel; this increased the steal industry
Railroads Stimulate the Economy
{• Different railroad lines used different
gauges (widths)• One line could not use another line’s tracks• As companies consolidated, they adopted a
standard gauge of 4 feet, 8.4 inches as the width of the track
• This made shipment and transport a lot easierImproving the
Railroads
4 developments of new technology arose AIR BRAKES CAR COUPLERS REFRIGERATED CARS PULLMAN SLEEPING CAR
Railroad Technology
{• These were developed by George Westinghouse
• They improved the system for stopping trains
• They made train travel safer
Air Brakes
{• These were invented by Eli H. Janney• They made it easier for railroad workers to
link cars
Car Couplers
{• These were developed by Gustavus Swift• They allowed the railroads to ship meat and
other perishable goods over long distances
Refrigerated Cars
{• This was developed by George M. Pullman• It provided a luxury railway car• The seat converted into beds for overnight
journeys• Dining was also improved and raised train
travel to a new level of comfort
Pullman Sleeping Car
Networks expanded and companies competed for customers
Large companies offered secret rebates (discounts) to their biggest customers
Smaller companies couldn’t afford to offer rebates so they were forced out of business
Competing for Customers – Rebates
Barons also made secret agreements among themselves known as pools
They divided the railway business among their companies
They set rates for each region No one competition in the region meant
that a railroad could charge higher rates and earn greater profits
Competing for Customers – Pools
Now American industry was expanding into the west
Flour milling industry moved from Ohio to Minneapolis and then Kansas City
Trains redistributed the population as they carried homesteaders into the Great Plains
They made it easier for people to move from rural areas to the cities
Railroads Change America
Now Americans are looking at time in a different way
People began measuring distances by how many hours the trip would take rather than by the number of miles traveled
Time Zones
{Inventions
Chapter 19 – Section 2
1910: Americans drove cars through lit up streets
They went to department stores Shopping was even done through mail or
telephone The automobile, electric light, and
telephone were invented after 1870 And they became part of everyday life for
millions of people
Communication Changes
{• 1844: it was introduced by Samuel Morse• 1860: thousands of miles of lines were
controlled by the Western Union Tel. Co.• Telegraph offices trained operators to
transmit messages in Morse Code
Telegraph
{• Cyrus Field was determined to link the US & Europe by the use of this telegraph
• After several attempts he was finally able to lay this cable across the Atlantic Ocean
• It brought the US & Europe closer together
Telegraph
{• It was invented by Alexander Graham Bell and it, too, revolutionized communications further
• Bell was born & educated in Scotland but moved to the US and studied ways of teaching hearing-impaired people to speak
• 1876: he developed a device that transmitted speech – the telephone
Telephone
{
• One day while Bell was preparing to test this new device of his, he accidentally spilled some battery acid on his clothes
• He called out to his assistant in the other room and said: “Mr. Watson, come here. I want you!”
• Watson heard Bell’s voice coming through the telephone
• This is how the device was invented and it became a success
Telephone
1800s saw a burst of inventions in the US
1860 – 1890: the government granted more than 400,000 patents for new inventions
Christopher Sholes invented the typewriter
William Burroughs invented the adding machine
George Eastman invents a small box camera (the Kodak)
John Thurman developed a vacuum cleaner
Genius of Invention
{• Thomas Edison was called “dull” by his
teachers because of his poor hearing which gave him trouble in school
• So his mother started to homeschool him and found out that he loved anything related to science
• She allowed Thomas to set up a chemistry lab in the family basement
• When he was 12, he got a job working for the railroad where he set up his new lab in a freight carThe Wizard of Menlo
Park
{
• One day, Edison saved the life of a child who fell onto the tracks of an oncoming train
• The child’s father took an interest in Edison and taught him to use the telegraph
• Edison’s first invention was a gadget that sent automatic telegraph signals
• He pretty much invented this so he could sleep on the job
The Wizard of Menlo Park
The Wizard of Menlo Park
In his 20’s Edison decided to go into the “invention business”
1876: he sets up a workshop in Menlo Park, NJ
From his laboratory, he invented the phonograph, the motion picture projector, the telephone transmitter, and the storage battery
However, his most important invention was the electric light bulb
The first workable light bulb was developed and then he designed power plants that could produce electric power and distribute it to light bulbs
The Wizard of Menlo Park
1880: on Christmas, Edison used 40 bulbs to light up Menlo Park
People flocked to see the “light of the future”
He built to the first central electric power plant in NYC, illuminating 85 buildings
Christmas Day
George Westinghouse took Edison’s ideas further
1885: he developed and built transformers that could send electric power more cheaply over longer distances
They were used to power factories, trolleys, streetlights, and lamps
George Westinghouse
Lewis Howard Latimer: developed and improved filament for the light bulb
Granville Woods: patented dozens of inventions such as an electric incubator and made railroad improvements such as an electromagnetic brake and an automatic circuit breaker
Elijah McCoy: invented a mechanism for oiling machinery
Jan E. Matzeliger: developed a shoe-making machine that which revolutionized the shoe industry
African American Inventors
{ {Lewis Howard Latimer
Granville Woods
African American Inventors
{ {Elijah McCoy Jan E. Matzeliger
African American Inventors
Ford wanted to build an inexpensive car that would last a lifetime
He worked as an engineer in Detroit, Michigan
1903: he established an automaking company and began designing cars
Henry Ford’s Automobile
He worked with Charles Sorenson on the Model T
They built the car and tested it on rough roads
1908: the Model T was introduced to the public
Sorenson described it as, “a car which anyone could afford to buy, which anyone could drive anywhere, and which almost anyone could keep in repair”
Model T
Ford Model T
The Assembly Line
After selling 15 million Model T’s, Ford went on to invent a less expensive way to manufacture cars
It was the assembly line and on it each worker performed an assigned task again and again at a certain stage in the production of the automobile
The assembly line enabled manufacturers to produce large quantities of goods more quickly
This was known as mass production and it decreased manufacturing costs, so products could be sold more cheaply
Mass Production
Selling Goods
Merchants also sold good by mail whereas before service was only to post offices
1890s: the US Post Office had expanded its delivery service in rural areas
This allowed companies like Sears to publish catalogs that offered goods from shoes to farm equipment
Catalogs introduced rural families to a variety of goods not found in country stores
{• Chain stores grew rapidly – stores with identical branches in many places
• F.W. Woolworth’s “five-and-ten-cent stores”
• By 1911: there were more than a thousand Woolworth’s in operation
• The Woolworth Building, erected in 1913, stood at 794 feet tall
• It was the tallest building in the world at the time
Selling Goods
{
An Age of Big Business
Chapter 19 – Section 3
Hills of Western Pennsylvania: people find this stick black substance called petroleum
At first they sell it as medicine Then they figure out that by burning it, you can
produce heat and smoke-free light, lubricate machinery, and other things
Suddenly this oil becomes very valuable Edwin L. Drake believes that by digging, you can
find this petroleum; they call him crazy Boy were they wrong; pools of oil did exist
underground
Foundations of Growth
The end of the Civil War to 1900: new methods in technology & business
The US had the resources to go from an agricultural to industrial economy
Factors of Production: land, labor, and capital – these were the most important resources
Factors of Production
{• Not just the land itself• Also all of the natural resources• Variety of natural resources in the US were
useful for industrial production
Land
{• Larger numbers of workers to turn raw materials into goods
• Rapid growth of population
Labor
{• This includes the machinery, buildings,
and tools used in production• Land & labor are needed to produce
capital goods• These goods are essential for the
production of consumer goods• Capital also means “money for
investment”• One source was selling of stock by
corporations• Also by investing a portion of the
earnings in better equipment
Capital
After the Civil War, businesses looked for ways to expand
They needed to raise capital and the way to do this was to buy raw materials and equipment, to pay workers, and to cover shipping and advertising costs
Raising Capital
Becoming a corporation – a company that sells shares (stock) of its business to the public
The people who invest in the corporation by buying stock are its shareholders
Or partial owners
Ways to Raise Capital
{• Good times: shareholders earn dividends – cash
payments from the corporation’s profits• Late 1800s: hundreds of thousands of people
shared in corporate profits by buying and selling stocks in special markets called the stock exchange
Ways to Raise Capital
Railroads formed the first corporations It helped fuel America’s industrial
expansion Banks played a major role, too Businesses borrowed money from them
to start or expand their operations Banks made profit on the loans they gave
out
Growth of Corporations
Because of Edwin Drake, prospectors and investors rushed to western Pennsylvania
Oil towns sprang overnight: Oil City & Petroleum Center
It expanded as oil was also struck in Ohio & West Virginia
The Oil Business
1839: born in Richford, NY who made a fortune from oil
At 26 years old, along with 4 partners, he set up an oil refinery in Cleveland, Ohio
1870: he organized the Standard Oil Company of Ohio
Most of the oil he acquired were in Cleveland
John D. Rockefeller
One of his methods to build his oil empire was horizontal integration
It meant combining competing firms into one corporation
They produced their own tank cars, pipelines, and even its own wooden barrels
Horizontal Integration
Rockefeller lowered his prices to drive his competitors out of business
He also pressured customers not to deal with rival oil companies
Then he persuaded the railroads to grant him rebates in exchange for his business
Being Competitive
1882: he forms a trust – a group of companies managed by the same board of directors
1st: he acquires stock in many different oil companies
2nd: the shareholders traded their stock for Standard Oil stock, which paid high dividends
This gave the BOD ownership of the other companies’ stock
Rockefeller created a monopoly – total control by a single producer
Standard Oil Trust
It also became big because it was strong and long-lasting
Previously it wasn’t used because it was so expensive
However with the development of new manufacturing techniques, the problem was solved
Steel Business
2 methods of making steel Bessemer Process Open-hearth Process
These helped mills produce steel at an affordable price and in large quantities
Pittsburgh, PA became the steel capital of the US because of its large sources of iron ore
Steel Industry Grows
He was a leading figure in the steel industry
He started as a telegraph operator and soon made his way up to manager of the Pennsylvania Railroad
After learning about the Bessemer Process, he builds a steel plant near Pittsburgh
The plant was named the J. Edgar Thompson Steel Works
This was his biggest customer in the PA Railroad
Andrew Carnegie
Carnegie became powerful through vertical integration
This means to acquire companies that provided the equipment and services needed for yours
He bought iron and coal mines, warehouses, ore ships, and railroads
1900: all of these were combined into the Carnegie Steel Company
It produced 1/3 of the country’s steel
Vertical Integration
1901: Morgan bought Carnegie Steel He was a banker who combined the
Carnegie company with other businesses to form the US Steel Corporation
It was the world’s first billion-dollar corporation
J. Pierpont Morgan
Rockefeller, Carnegie, and other millionaires grew interested in philanthropy – the use of money to benefit the community
They founded schools, universities, and other institutions across the US
Philanthropists
Carnegie: donated $350 million to organizations
He built Carnegie Hall in NYC, which is one of the world’s most famous concert halls
He also founded the Carnegie Foundation for the Advancement of Teaching
Finally he also built more than 2,000 libraries worldwide
Philanthropists
Rockefeller: established the University of Chicago
He also established New York’s Rockefeller Institute for Medical Research
Philanthropists
1889: NJ encourages monopolies by allowing holding companies to obtain charters
This was banned in some states Holding companies would buy
controlling interests in the stock of other companies instead of purchasing the companies outright
Other states passed laws to make mergers easier – the combination of companies
Corporations Grow Larger
1880s: several states passed laws restricting business combinations
The public pressured for a federal law to prohibit trusts and monopolies
1890: Congress passes the Sherman Antitrust Act
It sought to “protect trade and commerce against unlawful restraint and monopoly”
But it did not clearly define “trusts” or “monopolies”
Government Regulation
{Industrial Workers
Chapter 19 – Section 4
Industrial growth also brought a growth in the standard of living
Luxuries and necessities were more available and affordable
Factories had been small workplaces where the workers knew one another
Now they became larger and less personal
Working Conditions
{• Workers worked 10 – 12 hours a day, 6 days a week
• They could be fired for any reason and many lost their jobs during downturns
• Or were replaced by immigrants who worked for lower pay
Working Conditions
Accidents were common Steel workers: burns from hot steel Coal miners: died in cave-ins, effects of
gas and coal dust Textile workers: damaged lungs by
airborne lint Garment workers: ruined eyesight form
sewing in poor light Sweatshops – crowded urban factories
Working Conditions
Steel Workers
Coal Miners
Textile Workers
Sweatshops
{• The majority worked as domestic servants but they also worked in the industries
• Textile was very popular for women workers• Now laws regulated workers’ salaries so
women were receiving about ½ of what men earned
Women Workers
{• Hundreds of children under 16 worked in
factories• However social groups brought this to the
attention of their state legislature• Laws were passed which stated that children
had to be at least 12 years old and should not work more than 10 hours a day
• Companies still ignored these laws• The laws didn’t even apply to agriculture which
employed about 1 million children
Child Labor
Angry workers organized into groups to demand better pay and working conditions
These were called labor unions Unfortunately trade unions had little
influence because each one represented only one trade
Labor Unions Form
Knights of Labor
1869: these garment cutters in Philadelphia founded the Noble and Holy Order of the Knights of Labor
Workers were fired if they joined these unions so the Knights met secretly and used special handshakes to identify each other
They were led by Terrence V. Powderly and they even recruited women, African Americans, immigrants, and unskilled workers
AFL
1881: group of national trade unions formed a federation that later one became known as the American Federation of Labor
They represented skilled workers in various crafts and they were led by Samuel Gompers
They asked for higher wages, shorter hours, better working conditions, and the right to bargain collectively with employers
In this system, unions represent workers in bargaining with management
Collective Bargaining
Women & the Unions
Many unions would not admit women workers so some of them founded their own unions
Marry Harris Jones (Mother Mary) – spent 50 years fighting for workers’ rights
Triangle Shirtwaist Co.
1911: a fire broke out in a sweatshop in NYC
The workers were mostly young women and they could not escape from the building because the company had locked the doors to prevent workers from leaving early
Nearly 150 workers died in the fire
1870s/1880s depression led companies to fire workers and lower wages
They also forced workers to take pay cuts
Angry union workers staged strikes which sometimes turned violent
Union Acts
{• July 1877: angry strikers burned rail yards, ripped up track, and destroyed railroad property
• These companies hired strikebreakers who were responsible to replace these strikers
Union Acts
Haymarket Riot
May 1886: Haymarket Square, Chicago
4 strikers had been killed The next day, other strikers
gather around to protest Police arrive at the scene to
break up the protest An unidentified person
throws a bomb which kills 1 officer
After this day many Americans associated labor movement with terrorism & disorder
1892: strike occurs in Andrew Carnegie’s steel plant in Homestead, Pennsylvania
Managers had cut workers’ wages in a way to weaken the steelworker’s union
The union called for a strike and the managers hired nonunion workers and brought in 300 armed guards to protect them
A fight broke out killing 10 people After it was reopened the nonunion
workers returned under the protection of the armed guards; the union failed
Homestead Strike
Pullman Strike
May 1894: workers from George Pullman’s railway-car plant went on strike near Chicago
Pullman responded by closing the plant and 1 month later workers in the American Railway Union supported the strikers
They refused to handle Pullman cars which paralyzed (brought a stop) to rail traffic
Pullman and railroad owners fought back and they persuaded the US Attorney General to obtain an injunction – court order – to stop the union
The workers were led by Eugene V. Debs who refused to end the strike and was sent to jail
Pullman’s Strike
{• President Grover Cleveland sent federal troops to Chicago
• The strike was soon over• This dealt another blow to the union
movement but despite these setbacks workers continued to organize to work for better wages and working conditions
Pullman’s Strike