Unit IV: Migration and Industrialization Chapter 14: A New Industrial Age

The Shaping of Modern America A Society Transformed: The Second Industrial Revolution The Expansion of American Industry Why does it fuel urban expansion? The Settling of the West Why does Westward expansion fuel urban expansion? The Growth of Cities Why does urban expansion fuel Westward expansion?

From Muscle Power to Fossil Fuels Black Gold Oil pollutes farms in Texas First oil well in Pennsylvania (1859) The Blood of Machines Why is petroleum better than whale oil? Internal combustion engine (late 1800s) Railroads use external combustion

Industries and Innovations The Steel Industry The Bessemer Process (1850s) Steel is mentioned in the Bible. Why does the Bessemer process make it revolutionary now? How does steel change patterns of… Work? City growth? Finance? Gender roles?

More Causes of Industrial Expansion Electricity Dynamo (1831) Menlo Park (1876) Why is electricity so valuable for transmitting power? Define: Capital Foreign Investors Precious metals mining Innovations and Inventions Cheap patents Easy ownership

Telegraph and Telephone Samuel Morse and the Telegraph (1837) Why is telegraph so important? What other uses will telegraphs have? Alexander Graham Bell’s Telephone (1871) Bell Telephone Company established (1877) How does electricity change patterns of… Work? City growth? Finance? Gender roles?

The Transcontinental Railroad East and West linked (1869) The Federal Government What interest does the government have in strong railroads? Railroad junctions create new towns How do railroads change the character of existing cities? Expansion of the Rails Pullman Cars (1880) Sleeping and dining cars Distribution becomes nation’s leading business Railroad schedules create time zones

Wealth and Power Pullman What did Pullman hope to achieve for his company, and what was his plan? What was the cause of the strike? Credit Mobilier: Anatomy of a Scandal Define: Self-dealing How do the managers of Union Pacific “rob” the shareholders? How do they protect themselves from prosecution? What is the effect on the government? Why is the Republican Party blamed?

Early Federal Regulations Congress Acts Granger Laws: Munn v Illinois (1877) What do these laws do? The Interstate Commerce Act (1887) Why does Congress have to do this rather than the states? Railroads must charge “reasonable and just” rates Who decides what that means? Railroads win 15 of 16 court cases: Why? Panic of 1893 Review: Why were railroads in trouble? Consolidation: Who buys the failed railroads and why? Result?

The Rise of Big Business Corporations Define: Stock Sold to raise capital Form of borrowing Capital is used to fund the business Interest is paid to the stockholders as dividends Features of the Corporation Define: Economies of Scale Define: Limited Liability Corporate Survival

Andrew Carnegie’s World of Steel Andrew Carnegie and R&D Research and Development Carnegie hires experts in every area of steel production to reduce costs What are the limitations of this process? How does Carnegie attract the best people? Carnegie Steel achieves Vertical Integration Profits are put to further use How does U.S. Steel force railroads to cut rates? Profits are used for? Horizontal Integration Using profits to buy out competing firms in a single area of production

Laissez-Faire Social Darwinism Charles Darwin’s Theory What does “natural selection” mean? Herbert Spencer’s Expansion Laissez-Faire (1776) How does Social Darwinism justify Laissez-Faire economics? Who is to blame for poverty, according to this theory? The Business Cycle From Boom to Bust Expansion, Recession, Depression, Recovery

Mergers and Trusts Mergers Define: Merger; Holding Company J.P. Morgan and U.S. Steel Rockefeller’s Riches Rockefeller and the Oil Trust How does a trust work? How do monopolies encourage consumers to give them power? End Results? Robber Barons Why do they give away their money?

Federal Response The Sherman Antitrust Act (1890) Monopolies may be fined or broken up What constitutes a monopoly or trust? Southern Recovery Why is it so much slower than Northern Recovery? Why did it lack skilled workers?

Organizing Labor The Labor Union The skilled and the unskilled The rise of industry means a great increase in the number of jobs available to unskilled workers. Why? What causes the labor surplus? What does a labor surplus do to wages? Safety? Hours? What is the goal of a labor union?

The Unions The National Labor Union (1866) Aim: General improvements in the lives of workers Cooperatives: Define Who is excluded and why? Knights of Labor Aim: Public ownership of railroads and telegraphs Eight-hour business day called for Allowed women and blacks to join Strike against Jay Gould wins better working conditions

Craft Unionism Samuel Gompers and the American Federation of Labor Aim: Craft Unionism (skilled workers) Rejects calls for sweeping social change Collective Bargaining: Define Contracts Union of unions Why only skilled workers? Why exclude minorities, women and immigrants? Closed shop: Define

Industrial Unionism Eugene V. Debs and the IWW (Wobblies) Define: Socialism; Communism Why is communism feared? Why is it not as accepted in America as in Europe?

Strikes and Violence The Great Strike of 1877 Why is there so little sympathy with the strikers? What does it mean that troops “ended the strike?” The Haymarket Riot Why are union leaders afraid to criticize their own members? Hint: what determines the strength of a union? How is a union similar to a monopoly? Anarchy: opposition to any form of government Bomb explodes in Haymarket square Results of Haymarket Riot? For Unions? For people?

Union and Disunion The Homestead Strike Carnegie Steel Company Union contract expires; Carnegie refuses to deal with the union further Results? Pullman Strike Wages are cut, eventually leading to a strike Pullman closes the plant, firing all workers Results? Railroads attach mail cars to Pullman cars. Why? Define: Blacklist; Yellow Dog Contract