2. Learning Targets
Students will be able to explain the factors that helped America industrialize
Students will be able to explain the factors contributing to the expansion of the railroads in America
Students will understand the factors in the rise of big business
Students will be able to explain the causes in the development of labor unions

3. Although the US began to industrialize in the early 1800’s, it was only after the Civil War that it expanded rapidly
What are the factors that allowed this to happen?

4. Factor 1 – Natural Resources
The US has abundant natural resources - can be obtained more cheaply than through importation
Mountains in West source of many resources – construction of the Transcontinental Railroad allowed movement of settlers/miners and shipment of material east

5. New resource exploited – petroleum (oil)
Oil used to produce kerosene used to light lanterns, stoves, etc
What was used before kerosene?
First oil strike in Pennsylvania – drilled by Edwin Drake in 1859

6. Factor 2 – Large Workforce US population tripled between 1860 – 1910
I hate kids
I hate kids
Factor 2 – Large Workforce
US population tripled between 1860 – 1910
High population provided workers and consumers
Population growth caused by large families and immigration
What are some push & pull factors?

7. Factor 3 – Free Enterprise System
Policy of Laissez-faire
Supply and demand
Competition causes lower prices and greater efficiency
Entrepreneurs – people who risk capital seeking profits
Foreign investment

8. Factor 4 – Role of Government
Government kept taxes and spending low
Did not impose costly regulations
Imposed high tariffs. Good idea?

9. A large pizza with pepperoni
Factor 5 – New Inventions
1876 Telephone – Alexander Graham Bell
1877 Bell Telephone (AT&T)
Revolutionized business and personal communication

10. Electricity – Thomas Edison
1877 – Phonograph
1879 – Light bulb, electric generator
Dictaphone, mimeograph, and motion picture
Launched electric power company to supply electricity to cities (GE)

11. Other Inventions Ice machine Refrigerated railroad car Automatic loom
Ready-made clothing
Sewing machine
Shoe-making machines
Canned food
Breakfast Cereal

12. Homework Assignment
Students will choose an invention from the last half of the 1800s
Students will create a one-page paper that conforms to the following requirements:
The name of the invention
A picture of the invention (printed or hand-drawn)
The name of the inventor and year it was invented
A description of the invention that includes what the invention did and how it made life better
Grade will be dependent on depth of research, neatness and quality of product, and effort

13. Factor 6 – Railroads
Boom began with Pacific Railway Act – Union Pacific & Central Pacific
Union Pacific employed mainly Irish / Central Pacific imported Chinese labor
Transcontinental Railroad completed 1869
Miles of track dramatically expanded after Civil War
Railroads created markets and were a market unto themselves

14. After construction of major lines, smaller connecting lines were built (consolidation)
The most successful railroad consolidator was Cornelius Vanderbilt
Consolidation = time zones
New technology such as air brakes allowed heavier locomotives
Rail systems so efficient cost for freight dropped

15. The Land Grant System
Land grants given to railroads to encourage construction
Railroads sold or mortgaged land to cover construction costs

17. Robber Barons
Big businessmen who people believed had gained their wealth through scams, bribes, and cheating
Credit Mobilier Scandal –
Corrupt construction company owned by railroad investors
Inflated bills allowed executives to skim money

18. Great Northern Railroad
Only transcontinental railroad to NOT take land grants
Wise business tactics brought profits on both east and west runs
Only railroad to NOT go bankrupt

19. Learning Target
Students will be able to explain the factors that helped America industrialize
Natural Resources
Large Workforce
Free Enterprise System
Role of Government
New Innovations
Railroads

20. Learning Target
Students will be able to explain the factors contributing to the expansion of the railroads in America
Consolidation – integration of rail lines
Land Grants
New Technology
Time Zones

21. Corporation – an organization owned by many people but treated by law as though it were a single person
Stockholders – people that own shares of the corporation
Stock – shares of ownership
America initially distrusted corporations

22. Economies of Scale
Corporations raise money by selling stocks
They use the money to invest in new technology, large labor force, lots of machines which greatly increases efficiency
They make more goods more cheaply

23. All businesses have two types of costs
Fixed Costs – costs a company has to pay regardless if it is operating or not
Operating Costs – costs that occur when a company is running
What advantages does a corporation have in bad times?
Corporations can produce goods more cheaply and efficiently; they can continue to operate in bad times by cutting prices to increase sales; many were able to negotiate better rates with railroads
Many people felt corporations had unfair advantages and drove out smaller companies

24. The Steel Industry
The nature of steel
Andrew Carnegie – invested in companies supplying railroads
Bessemer Process – process by which steel could be made cheaply and efficiently

25. Vertical Integration - a company owns all the different businesses on which it depends for its operation
Horizontal Integration – combination of many companies of the same type into one large corporation
Monopoly – when a single company achieves control over an entire market
Why would some Americans fear a monopoly? Why would others feel a monopoly was good?

26. Fear of monopolies drove some states to make them illegal
I’m rich and you’re not
Trusts
Fear of monopolies drove some states to make them illegal
To get around the law, businesses were merged by having stockholders place their stock under control of a manager (trustee)
Trusts could control companies as if they were merged into a corporation
Standard Oil – John D. Rockefeller

27. Holding Companies
Does not produce anything
It owns the stock of companies that do produce goods – thus controlling them as if they were one large corporation

28. Selling the Product
New ways of advertising – bold display ads
Department stores
Wanamaker, Macy’s
Chain stores – emphasized low prices
Woolworth 5 & 10 (dime)
Mail-order catalogs
Sears-Roebuck, Montgomery Ward

29. Learning Targets
Students will understand the factors in the rise of big business
Incorporation – limiting liability
Stocks and Stockholders
Bessemer Process
Vertical and Horizontal Integration
Trusts and Holding Companies
Advertising
Changes in Marketing

30. Urban Workers
Unskilled labor – long hours, monotonous, unhealthy or dangerous work environment
Increased living standards – products cheaper
Deflation – prices fell but wages cut
Workers beginning to organize unions

31. We’re going to kill you, you stinking SCAB!
Two types of workers: craft workers and common laborers = skilled and unskilled
Trade Unions – unions limited to people with specific skills
Corporations generally opposed unions
Tactics to fight organization of unions included blacklists, lockouts, and strikebreakers
We’re going to kill you, you stinking SCAB!

32. Why did the government and the American people oppose Unions?
No laws protecting the right to unionize – some courts saw unions as interfering in business
Marxism and Anarchism - European ideas arriving with immigrants –both espoused radicalism
Americans equated unionism with radicalism – led government to use police and army to crush strikes and break-up unions

33. The organizing of Labor Unions
Great Railroad Strike of 1877
Economic recession forced railroads to cut wages
Workers walked off job and blocked tracks
Other states joined the strike – workers destroyed equipment and tracks
State governments called out militia – President Hayes called out army
Violence took >100 lives

34. The Knights of Labor
First national industrial union
Wanted 8 hour workday, equal pay for women, abolition of child labor
Allowed women and minority members
Supported arbitration instead of strikes
Strikes were used to good effect causing union to grow in membership
Haymarket Riot hurt union’s reputation with America – membership declined

35. The Haymarket Riot
Anarchist rally at Haymarket Square, Chicago
Police hit by bomb / shots fired
7 police / 4 workers killed
Among arrested anarchists was member of Knights of Labor

36. The Pullman Strike
1893 American Railway Union founded by Eugene V. Debs
Pullman workers lived in company town
1893 Depression caused Pullman to cut wages – but not lower rents and prices
Union workers boycotted Pullman cars
Railroads attached US Mail cars to Pullman cars
US government called in troops to break boycott

37. American Federation of Labor 1886
Led by Samuel Gompers
“Plain and simple” approach to labor relations
Rejected socialism and Marxism
Three goals:
Collective bargaining
Closed shops – people had to join unions before they could be hired
8 hour workday
Samuel Gompers

38. Working Women
Women working outside the home increased after the Civil War
Jobs generally restricted to “women’s work” – 1/3 domestic servants 1/3 teachers, nurses, clerks, salesgirls, secretaries 1/3 industrial workers
Women paid less. Why?
Women excluded from unions including AFL
1903 Women’s Trade Union League established – sought 8 hour workday, minimum wage, end to evening work, and abolition of child labor

39. Learning Target
Students will be able to explain the causes in the development of labor unions
More Machines = Unskilled Labor
Exploitation of labor
Workers Organize – tactics against business
First unions
Businesses React – anti-union tactics
More unions
Business versus Unions - events