A New Industrial A New Industrial AgeAgeCh 14Ch 14

Pg 436Pg 436

Industrial BoomIndustrial Boom

B/C of …B/C of … Natural resourcesNatural resources Government support for businessGovernment support for business Growing urban population that provided Growing urban population that provided

cheap labor and markets for new cheap labor and markets for new products.products.

Natural Resources Fuel Natural Resources Fuel IndustrializationIndustrialization

Edwin L. Drake – first to drill for oil Edwin L. Drake – first to drill for oil w/ a steam enginew/ a steam engine

Started an oil boom throughout the Started an oil boom throughout the central U.S.central U.S.

Gasoline, a byproduct of the refining Gasoline, a byproduct of the refining process was originally thrown away.process was originally thrown away.

After the automobile became popular, After the automobile became popular, gasoline became the most important gasoline became the most important use of oil.use of oil.

Natural Resources Fuel Natural Resources Fuel IndustrializationIndustrialization

Abundant coal and iron were available Abundant coal and iron were available in the U.S. (Birmingham, AL)in the U.S. (Birmingham, AL)

Bessemer ProcessBessemer Process – developed by – developed by Henry Bessemer and William KellyHenry Bessemer and William Kelly

Technique involved injecting air into Technique involved injecting air into molten iron to remove the carbon and molten iron to remove the carbon and other impurities.other impurities.

Process was widely used during the Process was widely used during the 1800’s.1800’s.

Natural Resources Fuel Natural Resources Fuel IndustrializationIndustrialization

Railroads were the biggest customer for Railroads were the biggest customer for steel.steel.

Inventors also found uses for the Inventors also found uses for the material. (Glidden’s barbed wire, material. (Glidden’s barbed wire, McCormick and Deere’s farm machinery)McCormick and Deere’s farm machinery)

Steel made innovative construction Steel made innovative construction possible.possible. Brooklyn BridgeBrooklyn Bridge William Le Baron Jenny designed the first William Le Baron Jenny designed the first

skyscraper.skyscraper. Not even the sky seemed to limit what Not even the sky seemed to limit what

Americans could achieve.Americans could achieve.

InventionsInventions

Thomas Edison perfected the Thomas Edison perfected the incandescent light bulb & later incandescent light bulb & later invented an entire system for invented an entire system for producing and distributing electricity.producing and distributing electricity.

Completely changed the nature of Completely changed the nature of business.business.

Spurred the invention of time-saving Spurred the invention of time-saving appliances, as the energy source appliances, as the energy source became available in homes.became available in homes.

InventionsInventions

Electric streetcars made urban Electric streetcars made urban travel cheap and efficient.travel cheap and efficient.

Promoted the outward spread of Promoted the outward spread of cities.cities.

Allowed manufactures to locate Allowed manufactures to locate plants anywhere. (Not just near plants anywhere. (Not just near rivers)rivers)

Inventions change Inventions change lifestyleslifestyles

Christopher Sholes invented the Christopher Sholes invented the typewriter.typewriter. Changed the world of work.Changed the world of work.

Alexander Bell and Thomas Watson Alexander Bell and Thomas Watson invented the telephone.invented the telephone. Opened the way for a worldwide Opened the way for a worldwide

communication network.communication network. Both inventions changed office work Both inventions changed office work

and created new jobs for women.and created new jobs for women.

Results of Industrialization Results of Industrialization and Inventionsand Inventions

Freed some factory workers from Freed some factory workers from hard manual labor.hard manual labor.

Helped improve workers’ standard Helped improve workers’ standard of living.of living.

Reduced the value of humans.Reduced the value of humans. Provided a vast potential market for Provided a vast potential market for

new inventions.new inventions.

Age of the RailroadsAge of the Railroads

Section 2 pg 442Section 2 pg 442

Age of the RailroadsAge of the Railroads By 1859, railroads extended west across By 1859, railroads extended west across

the Missouri river.the Missouri river. Transcontinental RailroadTranscontinental Railroad – a railroad – a railroad

that stretches across the continent.that stretches across the continent. Railroads hired Chinese and Irish Railroads hired Chinese and Irish

immigrants as well as Civil War veterans.immigrants as well as Civil War veterans. Railroad workers faced attacks by Native Railroad workers faced attacks by Native

Americans, accidents, and disease.Americans, accidents, and disease. Thousands of men died and were injured Thousands of men died and were injured

while working on the railroads. while working on the railroads.

Railroad TimeRailroad Time

Railroads united the nation.Railroads united the nation. Each community still operated on a Each community still operated on a

separate time schedule.separate time schedule. None was when the sun was directly None was when the sun was directly

overhead.overhead. So, noon is Boston was 12 minutes So, noon is Boston was 12 minutes

earlier than noon in New York.earlier than noon in New York.

Railroad TimeRailroad Time

C. F. Dowd suggested the earth be split C. F. Dowd suggested the earth be split into 24 time zones. (One for each hour)into 24 time zones. (One for each hour)

U.S. would have Eastern, Central, U.S. would have Eastern, Central, Mountain, and Pacific time zones.Mountain, and Pacific time zones.

Railroad companies loved the idea and Railroad companies loved the idea and many communities also practiced the many communities also practiced the time zones.time zones.

In 1884, an international conference set In 1884, an international conference set worldwide time zones that incorporated worldwide time zones that incorporated railroad time.railroad time.

Railroad CorruptionRailroad Corruption

Stock holders of Union Pacific Railroad Stock holders of Union Pacific Railroad gave Credit Mobilier a contract to lay gave Credit Mobilier a contract to lay track at 2-3 times the actual costs.track at 2-3 times the actual costs.

Stock holders then pocketed the profits.Stock holders then pocketed the profits. Also “donated” shares of stock to Also “donated” shares of stock to

Congressional representatives.Congressional representatives. Congressional investigation proved that Congressional investigation proved that

Union Pacific had taken $23 million in Union Pacific had taken $23 million in stocks, bonds, and cash.stocks, bonds, and cash.

Railroad AbusesRailroad Abuses

Railroad companies misused Railroad companies misused government land grants.government land grants.

Fixed freight pricesFixed freight prices Charged different customers Charged different customers

different pricesdifferent prices

Granger LawsGranger Laws Sponsored state and local political Sponsored state and local political

canidatescanidates Elected legislatorsElected legislators Successfully pressed for laws to protect Successfully pressed for laws to protect

farmers interest.farmers interest. Munn v. IllinoisMunn v. Illinois

Supreme Court upheld Granger LawsSupreme Court upheld Granger Laws Established the principle – the federal Established the principle – the federal

government’s right to regulate private government’s right to regulate private industry to serve public interest. industry to serve public interest.

Interstate Commerce ActInterstate Commerce Act

In 1886, Supreme Court ruled that a In 1886, Supreme Court ruled that a state could not set rates on interstate state could not set rates on interstate commerce.commerce.

Public was outragedPublic was outraged In response, Congress passed the In response, Congress passed the

Interstate Commerce ActInterstate Commerce Act – – Act reestablished the right of the federal Act reestablished the right of the federal

gov. to supervise railroad activities and gov. to supervise railroad activities and establish a 5-member Interstate Commerce establish a 5-member Interstate Commerce Commission.Commission.

Panic of 1893Panic of 1893

Corporate abuses, mismanagement, Corporate abuses, mismanagement, overbuilding, and competition overbuilding, and competition pushed many railroads to pushed many railroads to bankruptcy.bankruptcy.

One of the major causes of the panic One of the major causes of the panic of 1893.of 1893.

Big Business and LaborBig Business and Labor

Section 3 Pg 447Section 3 Pg 447

Andrew CarnegieAndrew Carnegie

Worked his way up to private secretary to Worked his way up to private secretary to the head of the Pennsylvania Railroad.the head of the Pennsylvania Railroad.

After successful work he was offered an After successful work he was offered an opportunity to buy stock of the company.opportunity to buy stock of the company.

Mortgaging his mother’s home to make Mortgaging his mother’s home to make this possible, he made a tremendous this possible, he made a tremendous amount of money from the dividends.amount of money from the dividends.

First industrial mogul to make a fortune First industrial mogul to make a fortune in a rags to riches fashion.in a rags to riches fashion.

Andrew CarnegieAndrew Carnegie Entered the steel business w/ his earnings.Entered the steel business w/ his earnings. BY 1899, Carnegie Steel Company made BY 1899, Carnegie Steel Company made

more steel than all of Great Britain.more steel than all of Great Britain. Success due to…Success due to…

Searched for new ways to make products Searched for new ways to make products cheaper.cheaper.

Used new machinery and techniques.Used new machinery and techniques. Attacked talented people by offering stock of Attacked talented people by offering stock of

the company.the company. Controlling as much of the industry as Controlling as much of the industry as

possible.possible.

Controlling IndustryControlling Industry

Vertical Integration – buy out Vertical Integration – buy out suppliers to control the raw suppliers to control the raw materials and transportation materials and transportation systems.systems.

Horizontal Integration – buy out Horizontal Integration – buy out competing steel producers. competing steel producers. Companies w/ similar products merge.Companies w/ similar products merge.

Social DarwinismSocial Darwinism Charles Darwin’s book Charles Darwin’s book Origin of the Origin of the

SpeciesSpecies Natural Selection Natural Selection – some individuals of – some individuals of

a species pass their traits along to the a species pass their traits along to the next generation.next generation.

Less – suited individuals are weeded out Less – suited individuals are weeded out and do not survive.and do not survive.

Philosophers used this theory to explain Philosophers used this theory to explain the evolution of human society.the evolution of human society.

Justified “laissez faire” and concluded Justified “laissez faire” and concluded that the market place should not be that the market place should not be regulated.regulated.

ConsolidationConsolidation

MergersMergers Usually occurred when 1 corporation Usually occurred when 1 corporation

bought out the stock of another bought out the stock of another company.company.

A firm that bought out all competitors A firm that bought out all competitors could achieve a monopoly.could achieve a monopoly.

John D. RockefellerJohn D. Rockefeller

Standard Oil Company joined w/ Standard Oil Company joined w/ competing companies in trust competing companies in trust agreements.agreements.

Participants gave their stock to be Participants gave their stock to be managed by a group of trustees as 1 managed by a group of trustees as 1 company.company.

Rockefeller used a trust to gain total Rockefeller used a trust to gain total control of the oil industry in the U.S.control of the oil industry in the U.S.

Big business owners w/ no competition Big business owners w/ no competition began to be called “robber barons”began to be called “robber barons”

Sherman Antitrust ActSherman Antitrust Act

Gov. concerned that expanding Gov. concerned that expanding corporations would stifle free corporations would stifle free competition.competition.

Sherman Antitrust Act made it illegal to Sherman Antitrust Act made it illegal to form a trust that interfered w/ free trade form a trust that interfered w/ free trade b/w states.b/w states.

Very difficult to prosecute violators of the Very difficult to prosecute violators of the act.act.

Gov. finally gave up trying to enforce the Gov. finally gave up trying to enforce the Sherman Act.Sherman Act.

Business Bypasses the Business Bypasses the South South

South still recovering from the Civil War.South still recovering from the Civil War. Had very little money to use for Had very little money to use for

investments.investments. Southerners were fearful of risky Southerners were fearful of risky

business ventures.business ventures. Northerners owned 90% of stock in the Northerners owned 90% of stock in the

most profitable southern businesses.most profitable southern businesses. South was still primarily agricultural so South was still primarily agricultural so

they were at the mercy of the railroads.they were at the mercy of the railroads.

Labor Unions EmergeLabor Unions Emerge Labor Unions emerged b/c of harsh Labor Unions emerged b/c of harsh

working conditions.working conditions. Steel mills often required 7 day work Steel mills often required 7 day work

weeks, working 12+ hours a week.weeks, working 12+ hours a week. Employees were not given vacation or Employees were not given vacation or

sick leave and were not compensated for sick leave and were not compensated for on the job injuries nor unemployment.on the job injuries nor unemployment.

Factories had poor ventilation and Factories had poor ventilation and machines were very dangerous. machines were very dangerous.

One average 657 workers were injured One average 657 workers were injured per week.per week.

Labor Unions EmergeLabor Unions Emerge

First large scale national labor union First large scale national labor union was the National Labor Union. was the National Labor Union. (NLU)(NLU)

In 1868, Congress legalized the 8 In 1868, Congress legalized the 8 hour work day for factory workers hour work day for factory workers b/c of the NLU.b/c of the NLU.

Types of Labor UnionsTypes of Labor Unions

Craft Unionism – skilled workers Craft Unionism – skilled workers from one or more trades.from one or more trades. American Federation of LaborAmerican Federation of Labor Focused on collective bargaining, or Focused on collective bargaining, or

negotiation b/w representatives of labor negotiation b/w representatives of labor and management, to reach written and management, to reach written agreements on wages, hours, and agreements on wages, hours, and working conditions.working conditions.

Types of Labor UnionsTypes of Labor Unions

Industrial Unionism – labor leaders Industrial Unionism – labor leaders felt that unions should include all felt that unions should include all laborers – skilled and unskilled – in a laborers – skilled and unskilled – in a specific industry.specific industry.

Eugene Debs made the first attempt Eugene Debs made the first attempt to form an industrial union – to form an industrial union – American Railway Union.American Railway Union.

SocialismSocialism

Many labors turned to Socialism.Many labors turned to Socialism. Socialism – economic and political Socialism – economic and political

system based on gov. control of system based on gov. control of business and property and equal business and property and equal distribution of wealth.distribution of wealth.

Industrial Workers of the World or Industrial Workers of the World or the Wobblies.the Wobblies.

Violent StrikesViolent Strikes

Great Strike of 1877Great Strike of 1877 The Haymarket AffairThe Haymarket Affair The Homestead StrikeThe Homestead Strike Pullman Company StrikePullman Company Strike

Women OrganizeWomen Organize

Women were banned from most Women were banned from most labor organization, but they rallied labor organization, but they rallied behind members for change.behind members for change.

Women supported equal working Women supported equal working conditions and an end to child labor.conditions and an end to child labor.

Marry Harris Jones was the most Marry Harris Jones was the most prominent woman organizer.prominent woman organizer.

The women’s crusade influenced the The women’s crusade influenced the passage of child labor laws.passage of child labor laws.

Government PressuresGovernment Pressures

The more powerful the unions became, The more powerful the unions became, the more employers came to fear unions.the more employers came to fear unions.

Many employers forbade union meetings, Many employers forbade union meetings, fired union members, and forced new fired union members, and forced new employees to sign “yellow-dog contracts”.employees to sign “yellow-dog contracts”.

““Yellow-dog contracts” – contract Yellow-dog contracts” – contract swearing that they would not join a join.swearing that they would not join a join.

Legal limitations made it more difficult Legal limitations made it more difficult for unions to be effective.for unions to be effective.