Chapter 19 The Industrial Age 1876 - 1900

Essential Question How did technological advances change people’s lives and affect businesses?

I. The Second Industrial Revolution Second Industrial Revolution: a period of rapid growth in U.S. manufacturing in the late 1800s Steel Industry: Bessemer Process: a way to manufacture steel quickly and cheaply by blasting hot air through melted iron Railroads: Cheap steel means more railroads Passenger service improved (sleeping cars) Faster shipping of products

Oil and Electricity Oil, or petroleum, now used as a major power source Electricity becomes a source of light and power Patents: exclusive rights to make or sell inventions Thomas Edison and George Westinghouse

Inventions Alexander Graham Bell: 1876 - patented the telephone 1876 – 1893 – gasoline engines used in motorcars (only for wealthy) Henry Ford: 1908 - launches the Model T using the assembly line to reduce cost and make cars more affordable

II. Big Business Leaders Corporations: business that sell portions of ownership called stocks Social Darwinism: view of society based on Darwin’s theory of natural selection Andrew Carnegie – controlled the steel corporation using vertical integration: ownership of a business involved in each step of the manufacturing process $298.3 billion (2012) John D. Rockefeller – controlled the oil industry (Standard Oil) using horizontal integration: owning all business in a certain field and trusts: grouping together a number of companies under a single board of directors (trustees) $663.4 billion (2012) Bill Gates - $ 59 billion (2012)

Antitrust Movement Critics feel business leaders were earning their fortunes through unfair practices and driving out competition Monopoly: total ownership of a product or service Sherman Antitrust Act: 1890 – made it illegal to create monopolies or trusts that restrained trade Did not actually define what a trust or monopoly was, so it was hard to enforce

III. Industrial Workers Machines run by unskilled workers Specialization brought costs down and production up Frederick Taylor: 1909 - efficiency engineer encouraged owners to view workers as interchangeable parts Working conditions get worse

Workers Organize Knights of Labor: 1870 – first national labor union Led by Terrence Powderly Equal pay for equal work End child labor 8-hr workday Every type of worker American Federation of Labor (AFL): 1890 Led by Samuel Gompers Only skilled workers Collective bargaining: all workers acting collectively had a much better chance in negotiation with management

Labor Strikes Haymarket Riot: 1886 – in Chicago, someone threw a bomb and killed 8 police officers – Knights of Labor were blamed Homestead Strike: 1892 – 16 people killed in a gun battle between strikers and Pinkerton detectives at Carnegie’s steel factory Pullman Strike: 1894 – workers stop traffic on railroad lines to protest Pullman’s laying off of workers – federal troops sent in to stop the strike