Chapter 9 Section 1 The U.S. Industrializes A. Work Force 1. People left the farm and moved to the city B. By the 1900’s the U.S. was the world’s leading Industrial Nation C. Abundant Resources 1.Water 2. Timber 3. Coal 4. Iron 5. Copper D. Petroleum-Oil 1. Edwin Drake E. Between 1860-1910, the U.S. population tripled

Edwin Drake

II. Free Enterprise A. Laissez-Faire 1. Govt. should not interfere with business B. Entrepreneurs 1.Risked their capital to organize and run a business 2. Hundreds of factories were built. 3. Thousands of miles of railroad tracks were laid. C. Foreign Investment III. Government’s Role in Industry A. Laissez-Faire Attitude 1. Taxes and spending kept low 2. No government regulation of industry. B. Tariffs 1. North wanted high tariffs 2. South wanted low tariffs 3. Morrill Tariff- Raised tariffs

1. Contradicted Laissez-Faire 2. Other countries raised tariffs on us C. High Tariffs hurt Americans 1. Contradicted Laissez-Faire 2. Other countries raised tariffs on us D. American companies were strong, began to encourage free trade IV. New Inventions A. Increased productivity, wealth and opportunities B. Alexander Graham Bell-Telephone 1876 C. Thomas Alva Edison perfected- 1.Phonograph 2. Light Bulb 3. Electric Generator 4. Dictaphone 5. Mimeograph 6. Motion Picture

Alexander Bell Thomas Edison

1. Northop Automatic Loom 2. Power Driven Sewing Machine D. Clothing Industry 1. Northop Automatic Loom 2. Power Driven Sewing Machine 3. Cloth Cutters E. Shoe Industry 1. Mass Production 2. Produced much cheaper

Section 2 Linking the Nation Pacific Railway Act Transcontinental Railroad Union Pacific + Central Pacific Union Pacific Workers 1. Civil War Vets 2. Irish Immigrants 3. Farmers 4. Miners 5. Cooks 6. Ex-Convicts C. Central Pacific hired 10,000 workers from China

The Transcontinental Railroad

II. Railroads Spur Growth A. Linked the nation B. Increased Market Size C. Spent heavily 1. Steel 2. Coal 3. Timber III. Railroad Consolidations A. Unconnected Lines B. 7 systems controlling all rail traffic C. Cornelius Vanderbilt 1. Merged 3 short NY railroads to form the New York Central in 1869 2. Offered direct service from NY to Chicago D. Time Zones 1. More reliable 2. Safer

IV. Land Grants A. Given by Federal Government B. Covered building costs by selling land to 1. Settlers 2. Real Estate Agencies 3. Other Businesses

Section 3 The Rise of Big Business Corporations – Owned by many but treated as though it was a single person. Stockholders-People who own the corporation Stock-ownership shares in a corporation Selling stock raises money but spreads out the risk. B. Corporations invest in new technology to increase efficiency C. Costs 1. Fixed Costs-Has to pay whether it is operating or not. 2. Operating Costs-Only occur when in operation

II. Consolidating of Industry A. Competition caused lower prices 1. Corporations created pools to keep prices constant 2. Didn’t last long B. Andrew Carnegie 1. President of Pennsylvania Railroad 2. Started his own steel company 3. Bessemer Process C. Vertical Integration- Owns all businesses it depends on for operation. D. Horizontal Integration-Combines many of the came kinds of companies into one large Corporation E. Monopolies-When one company gains control of an entire industry F. Trusts-Allows a person to manage property of others G. Holding Companies-Own the stock of other companies 1. do not produce anything themselves.

III. Selling the Product A. Advertising 1. Illustrations B. Department Stores C. Chain Stores D. Mail Order Catalogs

Section 4 Working in the U.S. A. Working Conditions 1. Monotonous 2. Dangerous 3. Uneven distribution of wealth B. Deflation-A rise in the value of money 1. Lower Prices 2. Lower Wages 3. Time to Organize II. Early Unions A. Types of workers 1. Craft Workers 2. Common Laborers

B. Trade Unions 1. Craft Workers-People with specific skills C. Industrial Unions 1. Craft Workers and Common Laborers D. Efforts to prevent unionization 1. Oaths and contracts 2. Detectives 3. Organizers were fired and put on a blacklist E. If Unions were formed 1. Lockouts 2. Strikebreakers F. Marxism 1. Class struggle shapes society 2. Workers would revolt 3. Socialist society-evenly divided wealth 4. Classes would no longer exist G. Anarchism-Society did not need government

III. Struggles to Organize A. Attempts to organize often ended in violence B. Great Railroad Strike of 1877 1. 80,000 railroad workers in 11 states went on strike 2. Violence erupted 3. President Hayes sent in the Army to break the strike 4. 100 people died millions of dollars in property were lost C. Better Organization 1. Knights of Labor 2. Arbitration

D. The Haymarket Riot 1. Bomb thrown during a strike 2. 7 police and 4 workers died E. Pullman Strike 1. Boycott of Pullman cars 2. Mail cars were attached to Pullman cars IV. American Federation of Labor A. United over 20 Labor Unions: Pushed for 1. Recognition of Union 2. Collective Bargaining 3. Closed Shops 4. 8 hour Workday V. Working Women A. Worked as domestic servants, teachers, nurses, sales clerks, and secretaries B. Were paid less and excluded from unions C. Women’s Trade Union League