CHAPTER 5 A NEW INDUSTRIAL AGE 1869-1900

THE EXPANSION OF INDUSTRY SECTION 1 THE EXPANSION OF INDUSTRY

After Civil War, advances in technology began to change the nation Large supply of natural resources and labor force Explosion in number of inventions Growing urban population that wanted to consume the new products.

American Business Model Free Enterprise - Businesses are privately owned and operated with little interference from the government. Laissez Faire Capitalism – Government let businesses do as they wanted. Entrepreneurial – People risk their own capital to possibly gain through business ventures.

What were some of these natural resources?

OIL…. Very important natural resource 1840, Canadian geologist discovered that kerosene could be used to light lamps. Kerosene produced from oil Increased Americans’ demand for oil.

Edwin L. Drake 1859, Edwin L. Drake used a steam engine to drill for oil. This helped start an oil boom. Drake never benefited He died a pauper.

GASOLINE Also produced by oil. Thrown away at first. But when the automobile became popular, gasoline was in great demand.

INVENTIONS Here are some of the inventions of the late 1800’s that changed how people lived & worked…..

ELECTRICITY 1879, Thomas Alva Edison perfected an early light bulb. He then worked to establish power plants to generate electricity.

Invention of Electricity changed America... Ran machines like fans & printing presses. Soon became available in homes. Led to invention of appliances. Cities built electric streetcars which made travel cheaper & easier.

TYPEWRITER Invented by Christopher Sholes in 1867. Led to dramatic changes in the workplace.

TELEPHONE Invented by Alexander Graham Bell & Thomas Watson in 1876.

Phonographs, Bicycles, & Cameras

How did the wave of inventions during the late 1800’s change some American’s life?

Work that had been done at home- like sewing clothes- was now done in FACTORIES.

LEISURE TIME Invention of machines allowed employees to work faster…..this led to a shorter work week.

More Women began to work in offices…… By 1910, women made up about 40% of office work force

Unfortunately, many factory employees worked long hours in unhealthy conditions.

THE AGE OF RAILROADS Section 2

BESSEMER PROCESS Turns iron to STEEL. Removes carbon from iron. Steel is lighter, more flexible & doesn’t rust like iron. Process invented by Henry Bessemer

USES OF STEEL: Railroads for tracks Improve farm tools like plow & reaper Cans for preserving food. Structures like Brooklyn Bridge and Skyscrapers

Pittsburgh, Pennsylvania Site of many Steel mills along the rivers.

TRANSCONTINENTAL RAILROAD 1869, work completed on first TRANSCONTINENTAL RAILROAD. This railroad crossed the entire continent.

Building & Running Railroads: Very difficult & dangerous work. Most work done by Chinese & Irish immigrants & desperate out-of-work Civil War Vets.

By 1888, over 2,000 workers had died. 20,000 had been injured. Accidents & diseases affected thousands of railroad builders each year. By 1888, over 2,000 workers had died. 20,000 had been injured.

TIME ZONES: Railroad schedules hard to keep b/c each community set its own times 1870, earth divided into 24 time zones. U.S. contained 4 time zones. Everyone living in a particular zone would follow the same time.

World Time Zones

RAILROADS MADE TRAVEL EASIER, INDUSTRIAL GROWTH POSSIBLE,AND CAUSED COMMUNITIES TO GROW & PROSPER…

Railroads led to creation of new towns… 1880, George M. Pullman built factory outside Chicago . Workers made the sleeping cars he invented for trains.

Pullman built a “Company Town” to house the workers he needed. He created quality housing for his workers. But he tried to control many aspects of their lives…Eventually, the workers rebelled.

Railroad industry offered people chance to become rich. Also attracted many corrupt individuals. Credit-Mobilier scandal of 1868. (This was an illegal manipulation of construction contracts) SCANDAL

FARMERS VS. RAILROADS why?

Farmers claimed railroads sold government land grants to businesses rather than families. They accused railroads of setting high shipping prices to keep farmers in debt.

Many railroad companies failed due to economic depression of 1893 Result: 7 companies owned most of the nation’s railways.

BIG BUSINESS Section 3

Complete the following graphic. Methods of Eliminating Competition

ANDREW CARNEGIE Scottish immigrant who became a giant in the steel industry by eliminating competition and creating an efficient business.

VERTICAL INTEGRATION: Through VERTICAL INTEGRATION he bought companies that supplied his raw materials like iron and coal, & railroads needed to transport steel. REDUCED Production Costs Maximized Efficiency

Vertical Integration Hubb’s Hamburgers Hubb’s Hubb’s Hubb’s Hubb’s

Horizontal Integration He used HORIZONTAL INTEGRATION by buying out or merging w/other steel companies. Eliminate Competition Increase “Market Share” Control the “Market”

Horizontal Integration Hubb’s Hamburgers

Many entrepreneurs tried to control competition by forming a MONOPOLY

Monopoly When a single company gains control of an entire market. Purchasing from them is your only option. They determine whatever price they want.

Trust Formed to manage the assets of businesses that have the intent to monopolize business, to restrain trade competition, or to fix prices. Prominent trusts included Standard Oil (Rockefeller), U.S. Steel (Carnegie and J.P. Morgan), the American Tobacco Company

America's 1st Billionaire! JOHN D. ROCKEFELLER Used Standard Oil Trust to almost completely control the oil industry. America's 1st Billionaire!

SHERMAN ANTITRUST ACT 1890 Made it illegal to form a TRUST. Was not effective in stopping all trusts, but was a movement away from Laissez-faire

Holding Company A holding company does NOT produce anything. It OWNS majority share of STOCK in other companies. This is a method to avoid the anti-trust law

Carnegie’s success helped popularize theory of … SOCIAL DARWINISM

What is Social Darwinism? Theory, based on ideas of biologist Charles Darwin. Said that “natural selection” enabled the best suited people to survive & succeed

Average Pay – 22 CENTS per hour The working day could range from 10 to 16 hours for six days a week Average Work Week – 59 Hours per week.

Workers respond by forming LABOR UNIONS: Many workers worked long hours under dangerous conditions for low wages. Women, children, & workers in sweatshops worked under harsh conditions.

The Purpose of Labor Unions Unions use the power of collective bargaining to work with employers to improve working conditions, wages, and other forms of compensation (benefits). Fought to stop Industrialists from taking advantage of their workers.

Trade Union – united skilled workers in a specific trade of craft - i Trade Union – united skilled workers in a specific trade of craft - i.e. Carpenters. Industrial Unions – united all workers, including Craft workers and UNSKILLED workers in a particular industry - UAW

Several Labor Unions: NATIONAL LABOR UNION (NLU)- Persuaded Congress to legalize an 8 hour day. COLORED NATL’ LABOR UNION (CNLU) KNIGHTS OF LABOR – First Nation-wide Union - Failed after series of strikes failed.

MARY HARRIS (MOTHER) JONES Organizer for the United Mine Workers. struggle for better conditions hurt by government intervening on side of management.

Samuel Gompers- Formed the American Federation of Labor (AFL). Gompers used strikes & collective bargaining.

EUGENE DEBS formed an industrial union…a union for all workers. American Railway Union (ARU) Debs & other workers turned to socialism to improve their lives.

IWW or WOBBLIES Union formed in 1905 by radicals & socialists

UNION MOVEMENTS DIVERGE…. STRIKES TURN VIOLENT!!!

Unions used strikes to improve conditions 1877, workers for Baltimore & Ohio railroad went on strike protesting a wage cut. Strike broken up when railroad president had U.S. Mail Cars attached to the trains. Stopping the mail was a crime.

HAYMARKET AFFAIR 1886, bomb exploded at a labor demonstration in Chicago’s Haymarket Square in support of striking workers Several killed Anarchists charged w/inciting a riot. 4 were hanged. 1 Committed suicide in jail. Made Labor Unions look violent

HAYMARKET AFFAIR

HOMESTEAD, PENNSYLVANIA 1892, steel workers & Pinkerton guards fought a battle near Pittsburgh. Deaths on both sides.

1894, Eugene Debs led strike against the Pullman Company Strike turned violent when fed. Troops called out to break the strike.

Despite pressures of government action, unions continued to grow