Chapter 6 A New Industrial Age

The Expansion of Industry Section 1

Inventions (Describe How it Works) New Inventions Inventor and Year Inventions (Describe How it Works)

Inventions (Describe How it Works) Effects of the Invention Inventor and Year Inventions (Describe How it Works) Effects of the Invention Edwin L. Drake 1859 Used a steam engine to drill for oil Henry Bessemer and William Kelly 1850 Bessemer Process – injects air into molten iron to remove the carbon and other impurities Christopher Sholes 1867 Typewriter Alexander Graham Bell and Thomas Watson 1876 Telephone Thomas Alva Edison 1880 Incandescent Light Bulb Research laboratory used for creating safer and inexpensive innovations in electricity

Section Review – Question 5 Which inventon or development in the section had the greatest impact on society? Justify your choice with at least TWO facts/reasons. Think About: The applications of these inventions The impact of inventions on people’s daily lives The effect of inventions on the work place

The Age of the Railroads Section 2

Problems with the Railroads Corruption schemes formed Credit Mobilier: _____________ _________________________ Union Pacific Railroad officers had made over $23 million in stocks Vice-President Colfax and Congressman Garfield implicated No penalty, just loss of reputation for the Republican party.

The Grange and the Railroads Farmer upset with railroads Fixed pricing Various rates Misuse of grants State legislators passed The Granger Laws “to establish a maximum freight and passenger rates and prohibit discrimination” Munn v. Illinois: railroads fought the constitutionality of the Granger Laws Supreme court upheld

Interstate Commerce Act Supreme court ruled that a state could not set rates on interstate commerce. Congress passed the Interstate Commerce Act Interstate commerce commission established Difficulty regulating due to fight from R.R.s Could not set maximum rates Panic of 1893 caused many R.R.s to go bankrupt 2/3 will be controlled by seven powerful companies J.P. Morgan and Co.

Big Business and Labor Section 3

Business Strategies Vertical Integration: a company buys out their suppliers Horizontal Integration: a company buys out, or merges with, its competitors

Business Strategies Monopoly: a complete control over an industry’s production quality, price, and wages Merger: the combination of two or more companies Holding Company: a company that does nothing but buy out the stock of other companies Trusts: a large corporation made up of many companies the receive dividends on profits earned by all companies combined

Social Darwinism Developed from Charles Darwin’s theory of evolution (On the Origin of Species) Survival of the fittest Species evolve and adapt to their surroundings Natural selection weeds out the weaker species Applied to society Used to justify laissez faire economics (gov. should leave society alone to work out its own problems) Success and failure in business are governed by natural law (gov. shouldn’t interfere) Riches were a sign of God’s grace and the poor must be lazy or inferior

Business Titans J.P. Morgan Andrew Carnegie John D. Rockefeller

Compare and Contrast Answer the following questions about your assigned industrialist. What company did they own? What industry was it in? Which business strategies did they use and how? Trusts Horizontal integration Vertical integration Holding companies How did he spend his money?

Carnegie Rockefeller Morgan

Philanthropy The industrialists managed to give millions away to charity.

Working Conditions Long work weeks and days No benefits Dirty, poor ventilation Accidents and injuries common Repetitive work Low wages Everyone had to work in lower income families

Workers in a Birmingham button factory circa 1909

The Rise of Unions What message do the images and slogans included in the poster convey to you? What do you find most persuasive about this poster? Why? Why do you think IWW posters were often called “silent agitators”?

The Rise of Unions Small, local unions since late 1700s First large scale was the National Labor Union (NLU) in 1866 Lead to legalization of an 8-hour work day Problems Short work day for gov. workers Segregation Knights of Labor Strikes as last resort Equality

The Rise of Unions Craft Unions Industrial Unions Skilled workers from trades Began by Samuel Gompers American Federation of Labor formed Used collective bargaining to negotiate hours, conditions, and wages Strikes gained higher wages and shorter work weeks. All skilled laborers Eugene V. Debs – began an industrial union (ARU) Used strike to gain higher wages Failure of future strikes

Socialism Socialism – an economic and political system based on government control of business and property and equal distribution of wealth Would result in the overthrow of capitalism Extreme form = communism (Karl Marx) Industrial Workers of the World (IWW) Radical unionists and socialists Open to African-Americans One major strike victory

Strikes Many of the strikes turned violent Strike Goals of the Strike Results of the Strike Great Strike of 1877 The Haymarket Affair The Homestead Strike Pullman Company Strike

Study/Test Tips Review: In developing your answers to extended responses, be sure to keep these general definitions in mind: discuss means “to make observations about something using facts, reasoning, and arguments; to present in some detail” describe means “to illustrate something in words or tell about it” evaluate means “to examine and judge the significance, worth, or condition of; to determine the value of” show means “to point out; to set forth clearly a position or idea by stating it an giving data which support it”