Ch. 16 – The Rise of Industrial America

Essential Question: How did the “Second Industrial Revolution” transform the U.S. during the Gilded Age? Lesson Plan for Monday, November 24, 2008: Warm-up question, The Rise of Industry & Urbanization Notes

Gilded Age Industrialization During the Gilded Age, American businesses were transformed: Massive corporations replaced small, family businesses New technology, transportation, marketing, labor relations, & efficient mass-production By 1900, the U.S. was the most industrialized country in the world

The Business of Invention 19th-century inventors led to an “Age of Invention”: Cyrus Field’s telegraph cable Business typewriters, cash registers, adding machines High-speed textile spindles, auto looms, sewing machines George Eastman’s Kodak camera Alexander G. Bell’s telephone By 1905, 10 million Americans had phones; (Bell Telephone Co became AT&T) 13

The Business of Invention Thomas Edison, the “Wizard of Menlo Park,” created the 1st research lab in New York Edison Illuminating Co was the to 1st use electric light in 1882 Tesla’s alternating current (AC) allowed electricity to travel over longer distances & to power streetcars & factories

Patents Issued (1850-1899)

The Business of Invention New technologies allowed for increased industrial production New machines were incorporated into the first assembly lines which allowed for continuous & faster production of goods The railroad linked every region of America & allowed for a mass consumption of goods 13

Chicago Meatpackers: The 1st “Disassembly Line”

The Midwest Made Meat for America A new-and-improved “market revolution”: More regional specialization made mass production & mass consumption possible (Chicago→meat, St Louis→beer, & Minneapolis→grain)

New Methods of Marketing Marketing became a “science”: Advertising firms boomed Department stores like Macy’s & Marshall Field’s allowed customers to browse & buy Chain stores like A&P Grocery & Woolworth’s “Five & Ten” Mail-order catalogues, like Montgomery Ward sold to all parts of America 14

New Forms of Business Organization “Trusts” use a board of trustees to manage a company “Holding companies” oversee & manage other subsidiary companies New types of business organization were used to increase profits: “Trusts” & “holding companies” integrated various businesses under 1 board of directors Vertical & horizontal integration maximized corporate profits Frederick Taylor’s “scientific management” emphasized time efficiency & mid-level managers Led to monopolists like Carnegie, J.P. Morgan, & Rockefeller 13

Vertical & Horizontal Integration U. S. Corporate Mergers By 1900, 1% of U.S. companies controlled 33% of all industry

New Forms of Business Organization Business leaders used a variety of ideas to justify their wealth: The “Gospel of Wealth” argued that it is God's will that some men attained great wealth Social Darwinism taught that natural competition weeds out the weak & the strong survive Were monopolists “captains of industry” or “robber barons”? 14

The “Robber Barons” of the Past