Unit 2: Industry & the Rise of Big Business

Things That Prompted Industrial Growth The Civil War Vast Amount of Natural Resources Large # of New Immigrants Entrepreneurs Protective Tariffs Laissez-faire policies New Inventions Expanding RR

The Civil War Industry was spurred by the amount of guns, weaponry, ships, and clothing need to conduct war Products need to be made both quickly & efficiently

Westward Expansion makes a vast amount of natural resources available

Civil War which supplied a Immigration Large numbers of immigrants from Europe & Asia came to America after the Civil War which supplied a sizable workforce.

Asian Immigrants Processed @ Angel Island Chinese worked in mines, laundries, opium dens & on the Transcontinental RR from west to east

Chinese Exclusion Act, Due to labor competition, by 1892, Congress enacted the Chinese Exclusion Act which prohibited Chinese laborers from immigrating to America.

Japanese Immigrants Japanese were also discriminated against & were not allowed to go to school with white children. This upset the Japanese government.

Gentlemen’s Agreement Since the U.S. wanted to trade with Japan, Pres. Theodore Roosevelt made a Gentlemen’s Agreement with the Japanese gov’t. Eased tensions & limited Japanese emigration.

European Immigration European Immigrants coming to America were processed at Ellis Island. Before the Civil War, most Europeans immigrated from Northern & Western Europe (Britain, Germany & France) .

European Immigration After the Civil War, a new wave of immigration brought people from Southern & Eastern Europe (Italy, Greece, Romania, Bulgaria, etc.)

These new immigrants found it harder to assimilate to American culture because they: Seldom spoke English 2. Were most often Catholic or Jewish 3. Had strange & different customs

Entrepreneurs or people who invest in a product or enterprise fueled industrialization

Congress enacted a number of protective tariffs to encourage people to buy American made products as well as encouraging laissez-faire policies, which allow businesses to operate under minimal government regulation.

New Inventions Thomas Edison: George Westinghouse: > 1,000 patents Technology to send electricity over long distances Alexander Graham Bell

New Inventions Bessemer Process Created strong, but lightweight steel which allowed to be built

Expansion of the Railroad stimulates new technology Time zones Subways Commuter trains Electric streetcars

Transcontinental Railroad meets at Promontory Point, Utah, 1869

Transcontinental RR Chinese Workers lay track from West to East. Irish Workers lay track from East to West.

Farmers are charged by the railroad to store and transport Farmers & the Railroad Farmers are charged by the railroad to store and transport their grain.

Dealing with the Railroad leads to a number of Farmer’s Organizations which use collective bargaining to get lower rates & learn new farming techniques.

The Populist Party Forms!

Southern & Colored Farmers’ Alliances The Grange

Effects of Industrial Growth Oil, kerosene & gasoline industries created Size of workforce increased American made goods cheaper Electricity, phone, RRs & Steel companies develop Mass production of products Environmental damage

Andrew Carnegie STEEL Tycoon Big Business Leaders Andrew Carnegie STEEL Tycoon

Big Business Leaders JP Morgan Cornelius Vanderbilt Banking Railroads

John D. Rockefeller ~ Standard Oil Big Business Leaders John D. Rockefeller ~ Standard Oil

Making that $$$ Vertical Integration Horizontal Integration All stages of production of a good are controlled by one company. i.e. Oil industry=A single company owns the oil wells, refines the oil & then sells the gasoline. A company controls a single stage of production or single industry completely, resulting in a monopoly. i.e. Oil Industry=Owns all of the gas stations

Other Business Tactics Monopolies=Complete control of a production or service Trusts=Group of separate companies placed under the control of a single managing board in order to form a monopoly. Cartels=Businesses making the same product agree to cut production to make the price

Sherman Anti-Trust Act 1890 law banning any trust that restrained interstate trade or commerce Purpose: to keep monopolies & cartels from forming