1865 – 1905 The Second Industrial Revolution Chapter 6 1865 – 1905 The Second Industrial Revolution

6.1 Objectives: How did the development of steel and oil refining affect U.S. industry? What innovations were made in transportation? How did innovations in communications technology change business practices and daily life in the United States? How did Thomas Edison’s research laboratory change American life?

Steel refining Results provided a strong, cheap source of building material allowed expansion of the railroad industry allowed construction of more complex machines and taller buildings Facts Bessemer Process – Blast Furnace

Oil refining Results resulted in the production of kerosene for fuel and light allowed the manufacturing of other petroleum products helped machinery operate Important Facts Edwin L. Drake – steam engine to drill Elijah McCoy – lubricating cup

Transportation innovations Results Railroads promoted western settlement, urban growth, and economic prosperity. Automobiles became a substantial industry. Airplanes introduced new possibilities. Important Facts Horseless Carriage Transcontinental Railroad George Westinghouse – Air Brake George Pullman – Railroad Sleeping Car

Communications innovations Results The telegraph allowed businesses to place long-distance orders quickly. The telephone brought both businesses and individuals together. The typewriter allowed the quick production of legible documents. Facts Morse – Morse code Bell – Telephone Christopher Sholes - Typewriter

Thomas Edison’s research laboratory Results the light bulb the phonograph early motion-picture camera Facts Menlo Park Held more that 1000 patients Electric Power Plant in NYC

6.2 Objectives: What arguments did business leaders and social critics make about the role of government in business? How did business strategies change during the Second Industrial Revolution? How did entrepreneurs take advantage of changes in business organization? How did new methods of marketing products change American life?

Concerning government’s role in business Business leaders: Individuals should be self-reliant. Businesses prosper most without government interference. Government interference reduces self-reliance. Capitalism – private business and competition determine costs Laissez-faire – let the people doo as they choose, no government intervention Free Enterprise – supply and demand determine prices

Concerning government’s role in business Social critics: Factory life and poor working conditions harm workers. All citizens should own all means of production. Government assistance would prevent the best businesses from rising to the top. Communism – no individual ownership of property, means of production should be owned by everyone Social Darwinism – the fittest people or businesses would rise to the top

New business strategies Corporation – sell a percentage, or “Share” of a company Vertical integration – acquiring companies that provide material and services that the primary company depends on Horizontal integration – on companies control of other companies producing the same things Technological innovation

The Corporation Trust – a group of companies turn control over to a board of trustees Monopoly – when a trust gains exclusive control with little to no other competition left

Entrepreneurs take advantage Carnegie created corporations and used vertical integration to dominate the steel industry. Rockefeller created corporations and used horizontal integration to dominate the oil industry. Vanderbilt bought and consolidated many railroad lines. Westinghouse and Pullman introduced and controlled new railroad technologies.

New marketing methods use of brand names and special packaging advertising department stores catalogs chain stores

6.3 Objectives: Why did some Americans want trusts to be banned, and how did the government respond? What types of working conditions did laborers face in the new age of rapid industrialization? How did the Knights of Labor attempt to address the needs of many workers? How did businesses react to strikes in the late 1800s, and how did this affect unions?

The banning of trusts desired because of belief that without competition, large monopolies would have no reason to maintain quality or keep prices low not accomplished despite passage of the Sherman Antitrust Act

Working conditions Workers African Americans Women and Children low pay long hours unsafe environments possibility of racial discrimination

The Knights of Labor included both skilled and unskilled workers included women and, later, African Americans organized strikes, marches, and demonstrations educated and organized workers Facts Terence V Powderly – 1st leader of KOL Mary Harris Jones – organized strikes, marches, and demonstrations

The Great Upheaval 1886 saw a year of intense strikes and violent labor confrontations Haymarket Riot May of 1886; 40,000 Chicago workers strike May 3 confrontation results in 2 deaths May 4 a peaceful rally was breaking up when 200 police showed up, bombs and gunfire opened 60 police wounded American Federation of Labor – Samuel Gompers organized independent craft unions

Strikes in the late 1800s Businesses responded with blacklists, yellow- dog contracts, lockouts, and violence. Business tactics hurt many unions and caused skilled workers to break away from unskilled ones. Other Strikes Homestead Strike – steel Pullman – sleeping car factory