Chapter 14 A New Industrial Age

AKS 40a - explain the impact of the railroads on industries, such as steel, and on the organization of big business 40b - describe the impact of the railroads in the development of the West, including the transcontinental railroad, and the use of Chinese labor 40c - identify John D. Rockefeller, Sr. and the Standard Oil Company, Andrew Carnegie and Carnegie Steel, and the rise of trusts and monopolies, to include horizontal and vertical integration 40d - describe technological inventions, such as the telephone, automobile, airplane, and Thomas Edison's electric light bulb and phonograph, and their impact on American life 41a - describe Ellis Island, the change in immigrants' origins to southern and eastern Europe, and the impact of this change on urban America 41b - explain the Chinese Exclusion Act of 1882 and anti-Asian immigration sentiment on the West Coast 41c - evaluate the effects of increased urbanization, including overcrowding, pollution, poverty, crime, but also, improvement in quality of life due to the availability of resources 41d - identify the Knights of Labor, American Federation of Labor, and Samuel Gompers 41f - describe the Homestead Strike, Haymarket Square, and the 1894 Pullman strike as examples of industrial unrest

Essential Questions What fueled the industrial boom at the end of the 19th Century?

Activator Why do you think industry boomed during this period? What technologies helped? What natural resources?

Setting the stage By 1920s, U.S. is world’s leading industrial power, due to: wealth of natural resources government support for business growing urban population Black gold/Oil Pre-European arrival, Native Americans make fuel, medicine from oil 1859, Edwin L. Drake successfully uses steam engine to drill for oil Petroleum-refining industry first makes kerosene, then gasoline

New Uses for Steel Improved techniques to manufacture steel Steel used in railroads, barbed wire, farm machines Changes construction: Brooklyn Bridge; steel- framed skyscrapers

What do you notice about where steel production is concentrated?

Inventions 1876, Thomas Alva Edison establishes first research laboratory 1880, patents incandescent light bulb creates system for electrical production, distribution Electricity changes business; by 1890, runs numerous machines Becomes available in homes; encourages invention of appliances Allows manufacturers to locate plants anyplace; industry grows

Alexander Graham Bell Invents the telephone

Review What did steel do for U.S. growth in the late 19th Century? What were two important inventions and their impact?

Ch. 14.2 Essential Questions How did the railroads affect the growth of the U.S.? What were the social, economic and political consequences?

Railroads! Rails make local transit reliable, westward expansion possible Government makes land grants, loans to railroads to help settle West to develop country 1869, first transcontinental railroad completed, spans the nation

Credit Mobilier Wish for control, profit leads some railroad magnates to corruption Union Pacific stockholders form construction company, Crédit Mobilier overpay for laying track, pocket profits Black mark on Grant Administration

Railroad Abuses Farmers angry over perceived railroad corruption railroads sell government lands to businesses, not settlers fix prices, keep farmers in debt charge different customers different rates Grangers fight back

Interstate Commerce Act 1886, Supreme Court: states cannot set rates on interstate commerce Public outrage leads to Interstate Commerce Act of 1887 federal government can supervise railroads establishes Interstate Commerce Commission (ICC)

Review What President’s administration was hurt by the Credit Mobilier scandal? What did the Interstate Commerce Act do?

14.3 Big Business and Labor Essential Questions Who were the Barons of Industry? What were the social, political, and economic results?

Andrew Carnegie Carnegie searches for ways to make better products more cheaply Hires talented staff; offers company stock; promotes competition Uses vertical integration—buys out suppliers to control materials Through horizontal integration merges with competing companies Carnegie controls almost entire steel industry

Vertical and Horizontal Integration

Social Darwinism Darwin’s theory of biological evolution: the best- adapted survive Social Darwinism, or social evolution, based on Darwin’s theory Applies to business as well

Big Business Businesses try to control industry with mergers— buy out competitors Buy all others to form monopolies—control production, wages, prices John D. Rockefeller founds Standard Oil Company, forms trust trustees run separate companies as if one

Robber Barons Rockefeller profits by paying low wages, underselling others when controls market, raises prices Critics call industrialists robber barons industrialists also become philanthropists

Sherman Anti-Trust Sherman Antitrust Act: trust illegal if interferes with free trade

Working Conditions Northern wages generally higher than Southern Exploitation, unsafe conditions unite workers across regions Most workers have 12 hour days, 6 day workweeks perform repetitive, mind-dulling tasks no vacation, sick leave, injury compensation To survive, families need all member to work, including children Sweatshops, tenement workshops often only jobs for women, children require few skills; pay lowest wages

Review What is vertical integration? What is horizontal integration? Who used trusts to overwhelm business competition? What did the Sherman Anti-Trust Act do?

Labor unions What are labor unions?

Unions Craft unions include skilled workers from one or more trades Samuel Gompers helps found American Federation of Labor (AFL) AFL uses collective bargaining for better wages, hours, conditions AFL strikes successfully, wins higher pay, shorter workweek For test… did not use sit-down strikes!

Industrial Unionism Industrial unions include skilled AND unskilled workers in an industry Eugene V. Debs forms American Railway Union; uses strikes

Striking! Government Responds using force and arrests workers! The Homestead Strike The Pullman Company Strike The Great Strike of 1877 The Haymarket Affair – BOMB killed 7 policeman Common thread is violence and the government supports BIG BUSINESS over labor!!!!

Review How did government respond to labor movements in the late 19th Century? What labor riot was started with a bomb ad 7 policeman were killed?