The Expansion of Industry Section 14-3 pp. 436-439

Preview Questions What were American’s important natural resources? How did new inventions change Americans’ way of life?

Natural Resources Fuel Industrialization Three Causes of Technological Advances Large supply of natural resources New inventions Growing urban population that demanded new products

Natural Resources Fuel Industrialization America’s Abundant Natural Resources Oil: Used for kerosene and gasoline Edwin L. Drake: Stem Engine Drill Coal Iron: Bessemer process (W. Kelly) turned iron into steel Used for RR’s, farm tools, cans, skyscrapers (W. Jenney), bridges

Inventions Promote Change Electricity Thomas Edison’s light bulb George Westinghouse – cheap, safe electricity Typewriter Christopher Sholes Telephone Alexander Graham Bell

Inventions Promote Change Changes in American Life More women work in offices Work done in factories Poor conditions for employees Increased time for leisure New products

The Age of the Railroads Section 14-2 pp. 442-446

Preview Questions How did the railroads change the way Americans told time? How did the growth of railroads affect the nation? Why did the farmers fight the railroads?

RR’s Span Time and Space Transcontinental Railroad Completed in Promontory Point, Utah in 1869 Work completed by Irish and Chinese immigrants and Civil War veterans United the nation

RR’s Span Time and Space RR Workers Faced Challenges Life threatening working conditions Low pay Discrimination

RR’s Span Time and Space

Opportunities and Opportunists Benefits of Railroad Growth Easier to travel long distances Iron, Steel, Coal, Lumber, Glass industries grow Increased trade Growth of many communities Pullman’s Town

Opportunities and Opportunists Drawbacks of RR Growth Abuse of Power Corruption Credit Mobilier Scandal Inflated costs of building RR Bribed members of government

The Grange and the RRs Farmers Challenge Railroads Upset over large land grants and high shipping prices Many states began to pass laws regulating RRs Munn v. Illinois Supreme Court declared government had authority to regulate RRs Interstate Commerce Commission created to supervise RRs – not effective

Big Business and Labor Section 14-3 pp. 447 – 455

Preview Questions How did Carnegie take control of the steel industry? How did entrepreneurs try to control competition? What were the two major types of unions?

Carnegie’s Innovations Industrial mogul who made his fortune in steel companies

Carnegie’s Innovations Vertical Integration: Company buys out its suppliers Control quality and cost of product Created monopolies Horizontal Integration: Company merges with similar companies

Social Darwinism Theory that taught “only the strong survive” Promoted competition, hard work, and responsibility Used as justification for exploitation of workers and immense wealth

Fewer Control More Monopoly: Holding Company: Complete control over an industry’s production, quality, wages, and prices Eliminated competition and increased profits Holding Company: Corporation that did nothing but by the stock of other companies. Ex: John D. Rockefeller and Standard Oil

Fewer Control More Trusts: A large corporation made up of many companies that receive dividends on profits earned by all the companies combines Helped to create monopolies Ex: John D. Rockefeller and Standard Oil “Robber Barons”

Fewer Control More Sherman Antitrust Act Made it illegal to form trusts Not effective

Labor Unions National Labor Union Knights of Labor Won 8 hour work days in 1868 Knights of Labor Open to all workers Promoted negotiation over strikes

Union Movements Diverge American Federation of Labor Led by Samuel Gompers Used strikes and collective bargaining Industrial Workers of the World Based on the work of Eugene Debs Made up of Socialists and political radicals Wanted to include skilled and unskilled workers

Strikes Turn Violent Strike Breakthroughs Great Strike of 1877 – President Hayes used federal troops to break up the strike Haymarket Square Riot – Caused public opinion to turn against workers and strikes Pullman Strikes - After strikers turned violent, President Cleveland sent in troops.

Strikes Turn Violent Trends in Labor Organization Women began to organize Employers refused to recognize union leaders “Yellow Dog” Contracts forbid union membership Government break-ups of strikes