6.1 The Expansion of Industry At the end of the 19 th century, natural resources, creative ideas, and growing markets fuel an industrial boom.

Natural Resources Fuel Industrialization The Growth of Industry 1920s: U.S. leading industrial power Wealth of natural resources Government support for business Increased urban population Black Gold 1859: Edwin L. Drake uses steam engine to drill for oil kerosene, then gasoline Bessemer Steel Process Abundant deposits of coal, iron spur industry—Bessemer process Iron into steel by injecting air an removing carbon Replaced by open-hearth process New Uses for Steel railroads, barbed wire, farm machines construction: Brooklyn Bridge steel-framed skyscrapers

Inventions Promote Change The Power of Electricity 1876: Thomas Alva Edison first research laboratory 1880: patents incandescent light bulb system for electrical production, distribution Impact in Industrialization manufacturers can locate plants anywhere; industry grows available in homes; encourages invention of appliances Inventions Change Lifestyles 1867: Christopher Sholes—typewriter 1876: Alexander Graham Bell—telephone Impact on Industrialization Women in workforce 1910: 40% of clerical workers are women clothing factories improves standard of living 1890: average workweek 10 hours shorter as consumers, workers regain power in market Dissent: mechanization reduces value of human worker

The growth &consolidation of railroads benefits the nation but also leads to corruption that would require government regulation. 6.2 The Age of the Railroads

Railroads Span Time and Space Railroads Encourage Growth local transit and westward expansion Govn’t: land grants, loans to railroads to settle West A National Network 1859: railroads extend west of Missouri River 1869: first transcontinental railroad, spans the nation

Romance and Reality offer land, adventure, fresh start Railroads built under harsh conditions: Central Pacific: Chinese immigrants Union Pacific: Irish immigrants, Civil War vets Accidents & disease 1888: 2,000 killed; 20,000 injured Railroad Time Lack of uniform schedules 1869: C. F. Dowd proposes 24 time zones 1883: U.S. railroads, towns adopt time zones internat’l conference sets world zones via railroad time 1918: Congress adopts railroad time

Opportunities and Opportunists New Towns and Markets Iron, coal, steel, lumber, glass industries ↑ RR link towns, promote trade; interdependence Nationwide network of suppliers, markets specialization Pullman, Illinois 1880: George M. Pullman builds railcar factory Provides: housing, doctors, shops, sports field Company controls residents → stable work force Crédit Mobilier 1864: Union Pacific stockholders form construction co.—Crédit Mobilier overpay for laying track, pocket profits Republican politicians implicated; party tarnished

The Grange and the Railroads Grange—farmer’s organization angry over perceived railroad corruption Land grants, fixed prices, different rates NEXT Granger Laws Press for laws to protect farmers’ interests Munn v. Illinois—upholds states’ right to regulate RR Fed. government can regulate private industry Interstate Commerce Act 1886: Court rules states cannot set rates on interstate commerce 1887: Interstate Commerce Act fed. govn’t supervise railroads est. Interstate Commerce Commission (ICC)

Panic and Consolidation Abuses, mismanagement, competition bankrupt many railroads Panic of : 25% railroads taken over by financial companies

The expansion of industry results in the growth of big business and prompts laborers to form unions to better their lives. 6.3 Big Business and Labor

NEXT Carnegie’s Innovations New Business Strategies GOAL: make better products more cheaply Hires talented staff; offers company stock; promotes competition vertical integration—buys out suppliers; control materials horizontal integration merges with competition Carnegie controls almost entire steel industry

NEXT Social Darwinism and Business Principles of Social Darwinism theory of biological evolution applied to society: Social Darwinism Natural selection Economists use to justify doctrine of laissez faire A New Definition of Success success of the most capable appeals to wealthy individual responsibility follows Protestant ethic riches as sign of God’s favor poor must be lazy, inferior

NEXT Growth and Consolidation Mergers: buy out competitors Monopolies: control production, wages, prices Holding companies: buy stock of other companies John D. Rockefeller and Standard Oil Company trust; trustees run separate companies as if one Fewer Control More Rockefeller and the “Robber Barons” Profits: low wages and underselling control market → raise prices Robber barons as philanthropists

NEXT Sherman Antitrust Act Government concern: expanding corporations stifle free competition Sherman Antitrust Act: trust illegal if interferes with free trade Business Boom Bypasses the South North owns 90% of stock in RR, most profitable Southern businesses Business problems: high transport cost, tariffs, few skilled workers

Labor Unions Emerge Long Hours and Danger Exploitation, unsafe conditions unite workers 1882: 675 workers killed each week 12-hour days, 6 day/week; repetitive tasks no vacation, sick leave, or injury compensation Women and children: sweatshops require few skills; lowest wages Early Labor Organizing National Labor Union (NLU) Local chapters reject blacks; CNLU forms 1868: Congress legalizes 8-hour day to civil servants Noble Order of the Knights of Labor, Uriah Stephens Open to all races, genders, degrees of skill 8-hour day, equal pay, arbitration Strikes as last resort

NEXT Union Movements Diverge Craft Unionism: skilled workers from one or more trades Samuel Gompers and the American Federation of Labor (AFL) collective bargaining for better wages, hours, conditions strike successfully, wins higher pay, shorter workweek Industrial Unionism: skilled & unskilled workers in an industry Eugene V. Debs forms American Railway Union (ARU); strikes Socialism and the IWW Socialism factors of production owned and operated by the people equal distribution of wealth 1905: Industrial Workers of the World (IWW or Wobblies) radical unionists, socialists; include African Americans Industrial unions give unskilled workers dignity, solidarity

NEXT Strikes Turn Violent The Great Strike of 1877 B&O Railroad strike spreads—50,000 miles impeding interstate commerce; federal troops intervene The Haymarket Affair 3,000 gather at Chicago’s Haymarket Square, protest police brutality Violence ensues; 8 charged with inciting riot, convicted Public opinion turns against labor movement The Homestead Strike 1892, Carnegie Steel workers strike over pay cuts Win battle against Pinkertons; National Guard reopens plant Steelworkers do not remobilize for 45 years The Pullman Company Strike lays off 3,000, cuts wages but not rents; workers strike Pullman refuses arbitration; violence ensues; federal troops sent Debs jailed, most workers fired, many blacklisted

NEXT Women Organize Women barred from many unions Mary Harris Jones: United Mine Workers 1903: leads children’s march to Roosevelt’s home Pauline Newman—International Ladies’ Garment Workers Management and Government Pressure Unions Employers forbid unions; turn Sherman Antitrust Act against labor Legal limitations cripple unions, but membership rises 1911: Triangle Shirtwaist factory fire