1. Chapter 6, Section 1: Technology and Industrial Growth

2. Causes of the Industrialization
1. Natural Resources
Edwin Drake: Drilled first oil well in U.S. History in Titusville, Pennsylvania
Oil: Before: used to boil whale blubber/After: Kerosene and gasoline (after automobile)
2. Large Workforce
Immigration increased (Asia and Europe)
3. Capitalism and Entrepreneurs
Entrepreneur: One who risks (invests) money in order to make money
Horatio Alger: Wrote: “Rags to Riches” novels about “entrepreneurial spirit”
4. Government Policy
-Laissez-Faire: “Free Enterprise” Government took “hand’s-off” approach to business (Supply/Demand) with little regulation (rules)
-Protective Tariffs: Taxes on imports aimed at protecting local business

3. “Rags to Riches” Novels: Horatio Alger

4. Innovation Drives the Nation
Patent: Exclusive permission to develop and sell an Invention for a certain period of time
Thomas Edison: Inventor who set up Menlo Park Research Laboratory in New Jersey: Invented Light Bulb (1880)
Alexander Graham Bell: 1876: Patented Telephone
Gugliemo Marconi: Wireless Telegraph: “Father of Radio”
Nikola Tesla: development of the alternating-current electrical system that's widely used today and discovered the rotating magnetic field (the basis of most AC machinery).

6. Bessemer Process: Henry Bessemer: Purifying Iron by “Blasting” it with intense heat
Suspension Bridges: Roadway suspended in air w/ steel cables.
-Brooklyn Bridge: 1883: First of its kind
Skyscraper: Used steel frames for height: Home Insurance Building: Chicago: First Skyscraper ever built
STEEL

7. Technology and Transportation
Railroads
George Westinghouse: 1869: Invented Air Brakes
Granville Woods: 1887: Train Telegraph
Gustavus Swift: Refrigerated Rail Car
BIG Problem: Times were set independently (Usually using sun) Scheduling Became Impossible
SOLUTION: 1884: 27 Countries created 24 “Time-Zones”
Airplane: 1903: Orville and Wilbur Wright: Kitty Hawk, N.C. First Successful Flight

8. Spiral of Growth
Railroads stimulated (Sped up/helped) innovation and industrialization
-Brought Natural Resources from Western U.S.
Mass Production: Factories turned out large numbers of product in short amount of time.

9. Impact of Industrialization
1. Linked World Markets: Food…etc.
2. Changed American Society: Growth of Cities
3. Environmental Problems: Pollution
-National Park Service: 1872: Formed to protect environment against abuses of business.
*Yellowstone National Park: 1872: First National Park in U.S. History
*Indiana Dunes National Lakeshore: 1966

10. Chapter 6, Section 2: Rise of Big Business

11. The Corporation
Corporation: Many people “share” ownership of ONE company – Ex: Microsoft
Monopoly: Complete control of a product or service
Cartel: Businesses agree to make same product and limit supply to drive up prices. (OPEC-oil, De Beers-diamonds)
J.D. Rockefeller: Standard Oil/ Controlled Railroads to “corner” oil market
Jay Gould: American financier and railroad builder; controlled the price of the stocks he bought as well as the stock market itself.
J.P. Morgan: Developed research labs
Cornelius Vanderbilt: Railroad tycoon: N.Y. to Chicago direct rail line.
Andrew Carnegie: U.S. Steel/Pittsburgh, PA

12. Vertical/Horizontal Integration
Horizontal Integration: Consolidate many firms into one business (Super Company)
** Was Illegal
Trust: Companies assign stock to board of TRUSTEES who get paid with stock profits (Made Horizontal Integration Legal)
Vertical Integration: Control ALL businesses involved in product development (Monopoly: Own the Board)
The main difference is that horizontal integration buys the competing companies while vertical integration aims at the raw material sources necessary to produce that product

14. The Big Business Debate
Support: “Captains of Industry”
1. Efficient
2. Lower Prices
3. Provided Jobs
4. Made U.S. Powerful
5. Philanthropists: Helped fellow man
Against: “Robber Barons”
1. Unfair Advantages
2. Drove Small businesses out
3. No Competition
4. Monopolies would RAISE prices
5. “Swindle” Poor
Video:

15. Big Business Debate

16. Social Darwinism Charles Darwin: On the Origin of Species
Animals evolved through Natural Selection
“Survival of the fittest”
Social Darwinism: Wealth was a measure of one’s value and those who had it were “fit” Those who do not should “adapt”
* Many used theory as a way to discriminate against minorities and other “poverty-stricken” Americans and Immigrants because of their “unfitness”

17. Government Regulations
Interstate Commerce Commission (ICC) (1887): Could monitor railroads that cross state lines. Then refer records to Congress to address “unfairness”
Sherman Anti-trust Act (1890): Outlawed Trusts/Monopolies that limited trade among several states
Clayton Act (1914): enacted by Congress to strengthen the antitrust laws that were put into place by the Sherman Act. It provided more detailed provisions to prohibit anticompetitive price discrimination, kept corporations from making exclusive dealing practices and expanded the ability for individuals to sue for damages. This act also allowed unions to organize and prevented anticompetitive mergers.
Federal Trade Commission (FTC) (1914): administers antitrust and consumer protection legislation in pursuit of free and fair competition in the marketplace.
Video:

18. Chapter 6, Section 3: Organized Labor Movement

19. Worker Hardships
Immigrants and poor exploited by big business: (Low Wages)
Long Days: (12 Hour/ 6 Days per week)
Unsafe conditions: Sweatshops: Small, hot, dark, and dirty: Triangle Shirt waste Co. NYC (Top)
Children exploited (20% Employed 1890’s)
Company Towns: Pullman Town-Chicago (Bottom) Isolated communities owned by company
Company Stores: Workers forced to shop at company owned stores that overcharged them

20. Labor Unions Form
Collective Bargaining: negotiating with employer as a group: Strikes used to force negotiation (Top Left)
Socialism: Favors PUBLIC control of property/ Opposite of Capitalism (Private Ownership)
Communism: an economic theory favoring a classless society and the abolition of private property. (Karl Marx: Communist Manifesto)
Knights of Labor: Industrial Union: Uriah Stephens
1881: Terence Powderly : Became president (Bottom)
American Federation of Labor: Samuel Gompers: “Skilled worker” Union (Top)
Video:

21. Strikes Rock the Nation
Railroad Strike of 1877: First major strike in U.S. History (Wages): Government sided w/ Business and Violence Erupted
Haymarket Riot: 1886: Chicago: Knights of Labor (Fair Wages/ 8 HR Work Day)
Anarchists: Anti-government: Joined protest: Bomb Exploded: Dozens Killed/ Including Police
Video:
Video:

22. Strikes Rock the Nation
Homestead Strike: Pennsylvania: U.S. Steel (protest wage cuts during depression)
Pinkerton: Private “Strike Breaking” Police Force (intimidate workers)
*Anarchist tried to assassinate Henry Frick: (Carnegie’s Partner)
*Government Sided w/ Business
Video:

23. Strikes Rock the Nation
Pullman Strike: 1893: Pullman Palace Car Company: Chicago
Eugene Debs: American Railway Union President
*Workers blocked trains from running during strike.
*Pullman attached MAIL CARS to his
*Grover Cleveland sent troops to end strike
*Eugene Debs arrested for “federal offense”

24. Effects on Labor Movement
Trend: general course of events
Government trend was to side with business
Socialism spread through U.S.
Eugene Debs: Ran for President in 1900
*Radical ideas continued to spread because of Industrial worker’s “perception” of unfairness

25. DID YOU KNOW?
During a coal miner’s strike in 1921, miners in West Virginia (Battle of Blair Mountain) wore red handkerchiefs around their necks to show unity.
They were nicknamed “rednecks”!
…Oh yeah… and the color red is usually associated with Communism (Marxism), too!