Chapter 19 The Rise of Industry The Frontier West 1865 - 1914 Chapter 18 The Frontier West Chapter 19 The Rise of Industry Chapter 20 A Diverse Nation

Chapter 19 The Rise of Industry 1865 – 1914 Railroads: Key to Industrial Growth Section 1, Objectives: Describe how railroads became more efficient after the Civil War. Identify some of the abuses of the railroads. Describe how railroads fueled the growth of industry.

Chapter 19 Section 1 Railroads: Key to Industrial Growth Creating a Railroad Network 1. Connecting lines a. In 1886, railroads in the South decided to adopt the northern gauge. b. The railroads formed a network or system of connected lines. 2. Other improvements a. Rail travel was fast and comfortable with sleeping and dining cars.

Chapter 19 Section 1 Railroads: Key to Industrial Growth B. Consolidation 1. Many companies began to consolidate or combine. 2. The Pennsylvania Railroad consolidated 73 companies into its system. 3. Cornelius Vanderbilt ruthless tactics secured 4,500 miles of track connecting New York to the Great Lakes region.

Chapter 19 Section 1 Railroads: Key to Industrial Growth C. Building New Lines 1. Americans built three more transcontinental railroads. 2. A Canadian, James Hill, finished the last cross-country line in 1893. a. Hill’s Great Northern railroad was built without aid from Congress. b. He gave seed, equipment, and cattle to encourage farmers to move near his railroad.

Chapter 19 Section 1 Railroads: Key to Industrial Growth D. Abuses 1. Cutthroat competition a. Big railroads secretly offered rebates, or discounts to their largest customers. b. In a pool, several railroad companies agreed to divide up business in an area and then fix their prices at a high level. 2. Farmers react a. Farmers in the Populist Party called for government regulation of railroad rates. b. Railroad barons bribed officials to ignore laws.

Chapter 19 Section 1 Railroads: Key to Industrial Growth E. Railroads and Industry 1. Railroads caused rapid growth in industry after 1865. a. Steelworkers turned out millions of tons of iron into steel for tracks and engines. b. Lumberjacks cut down whole forests to supply wood for railroad ties. c. Miners dug for coal to fuel railroad engines. d. New businesses sprang up , and new towns grew by the railroad tracks.

The Rise of Industry 1865- 1914 Big Business Section 2, Objectives: Identify what made steel an important industry. Describe how the growth of railroads changed the way Americans did business. Identify some of the greatest business leaders of the late 1800s. Identify the arguments for and against big business.

Chapter 19 Section 2 Big Business The Steel Industry 1. A new way to make steel a. In the 1850’s William Kelly in the US and Henry Bessemer in England discovered a new way to make steel. i. The Bessemer process enabled steelmakers to produce strong steel at a lower cost.

Chapter 19 Section 2 Big Business 2. Steel mills spring up a. Pittsburgh became the steelmaking capital of he nation. b. Steel mills brought jobs and prosperity to Pittsburgh. c. Steel mills brought thick black smoke that turned the air grey; blanketed houses, trees, and streets; and waste polluted the rivers.

Chapter 19 Section 2 Big Business B. King of Steel – Andrew Carnegie, a Scottish immigrant 1. Huge profits a. Due to Carnegie’s connection to the Pennsylvania Railroad his steel mill in Homestead, Pennsylvania was profitable. B. In the 1870s Carnegie soon controlled all steps to change a raw material into a finished product. This is known as vertical integration.

Chapter 19 Section 2 Big Business C. A duty to society 1. Carnegie believed the rich had a duty to improve society. i. He gave $60 million to build libraries. ii. He gave millions to charities iii. Retiring in 1901 he sold Carnegie Steel and spent time and money helping people.

Chapter 19 Section 2 Big Business D. New Ways of Doing Business 1. Shopping by Mail a. Montgomery Ward, Sears, and Roebuck replaced the demand for locally produced goods with catalogs selling mail ordered goods. 2. Investment in Business a. Factories expanded using capital, or money. b. A corporation (business owned by investors) sells stock (shares in the business) and a dividend (a share of company’s profit) is distributed by the board of directors.

Chapter 19 Section 2 Big Business D.New Ways of Doing Business (continued) 3. The role of banks 1. Corporations borrowed millions of dollars from banks. 2. Bankers became leaders of business. i. J. Pierpont Morgan relayed his banking profits into a business worth more than $1 billion dollars.

Chapter 19 Section 2 Big Business E. Plentiful Resources 1. Oil Boom a. In 1859 oil gushed from Titusville, Pennsylvania. 2. Rockefeller and Standard Oil a. The shrewd businessman Rockefeller slashed prices to drive competitors out of business. 3. The Standard Oil Trust a. Rockefeller formed Standard Oil trust, a group of corporations run by a single board of directors, in 1882

Chapter 19 Section 2 Big Business F. Big Business: Good or Bad 1. Arguments for competitions a. In a free enterprise system, businesses are owned by private citizens. b. Trusts and monopolies put an end to competition. c. Workers felt they were treated badly by large corporations.

Chapter 19 Section 2 Big Business F. Big Business: Good or Bad (continued) 2. Arguments for trusts a. Carnegie argued that competition ruined businesses and put people out of work. b. Large corporations made goods cheaply and helped the consumer. 3. Government reaction a. Congress approved the Sherman Antitrust Act banning the formation of trusts and monopolies.

The Rise of Industry 1865- 1014 An Age of Invention Section 3, Objectives: Identify the inventions that improved communication in the 1800s. Explain why Menlo Park was called an “invention factory.” Describe how Henry Ford revolutionized the automobile industry.

Chapter 19 Section 3 An Age of Invention Advances in Communication 1. Transatlantic cable 2. The telephone B. Thomas Edison and the “Invention Factory” 1. A new approach to invention 2. The electric power plant C. Marvels in Technology

Chapter 19 Section 3 An Age of Invention C. Marvels in Technology 1. African American inventors 2. Inventions for everyday use 3. Refrigeration D. The Automobile 1. Henry Ford i. Assembly line ii. Mass production

Chapter 19 Section 3 An Age of Invention C. Marvels in Technology 1. African American inventors 2. Inventions for everyday use 3. Refrigeration D. The Automobile 1. Henry Ford i. Assembly line ii. Mass production 2. Cars become popular

Chapter 19 Section 3 An Age of Invention E. The Airplane

The Rise of Industry 1865 – 1914 Workers and Unions Section 4, Objectives: Identify what working conditions were like in the factories of the late 1800s. Explain why workers formed unions. Describe the labor movement’s treatment of immigrants and African Americans. Explain why labor unions faced opposition.