1. CHAPTER 5
A NEW INDUSTRIAL AGE

2. THE EXPANSION OF INDUSTRY
SECTION 1
THE EXPANSION OF INDUSTRY

3. After Civil War, advances in technology began to change the nation
Large supply of natural resources and labor force
Explosion in number of inventions
Growing urban population that wanted to consume the new products.

4. American Business Model
Free Enterprise - Businesses are privately owned and operated with little interference from the government.
Laissez Faire Capitalism – Government let businesses do as they wanted.
Entrepreneurial – People risk their own capital to possibly gain through business ventures.

5. What were some of these natural resources?

6. OIL…. Very important natural resource
1840, Canadian geologist discovered that kerosene could be used to light lamps.
Kerosene produced from oil
Increased Americans’ demand for oil.

7. Edwin L. Drake
1859, Edwin L. Drake used a steam engine to drill for oil.
This helped start an oil boom.
Drake never benefited
He died a pauper.

8. GASOLINE Also produced by oil.
Thrown away at first. But when the automobile became popular, gasoline was in great demand.

9. INVENTIONS
Here are some of the inventions of the late 1800’s that changed how people lived & worked…..

10. ELECTRICITY 1879, Thomas Alva Edison perfected an early light bulb.
He then worked to establish power plants to generate electricity.

11. Invention of Electricity changed America...
Ran machines like fans & printing presses.
Soon became available in homes.
Led to invention of appliances.
Cities built electric streetcars which made travel cheaper & easier.

12. TYPEWRITER Invented by Christopher Sholes in 1867.
Led to dramatic changes in the workplace.

13. TELEPHONE
Invented by Alexander Graham Bell & Thomas Watson in 1876.

14. Phonographs, Bicycles, & Cameras

15. How did the wave of inventions during the late 1800’s change some American’s life?

16. Work that had been done at home- like sewing clothes- was now done in FACTORIES.

17. LEISURE TIME
Invention of machines allowed employees to work faster…..this led to a shorter work week.

18. More Women began to work in offices……
By 1910, women made up about 40% of office work force

19. Unfortunately, many factory employees worked long hours in unhealthy conditions.

20. THE AGE OF RAILROADS
Section 2

21. BESSEMER PROCESS Turns iron to STEEL. Removes carbon from iron.
Steel is lighter, more flexible & doesn’t rust like iron.
Process invented by Henry Bessemer

22. USES OF STEEL: Railroads for tracks
Improve farm tools like plow & reaper
Cans for preserving food.
Structures like Brooklyn Bridge and Skyscrapers

23. Pittsburgh, Pennsylvania
Site of many Steel mills along the rivers.

24. TRANSCONTINENTAL RAILROAD
1869, work completed on first TRANSCONTINENTAL RAILROAD.
This railroad crossed the entire continent.

25. Building & Running Railroads:
Very difficult & dangerous work.
Most work done by Chinese & Irish immigrants & desperate out-of-work Civil War Vets.

28. By 1888, over 2,000 workers had died. 20,000 had been injured.
Accidents & diseases affected thousands of railroad builders each year.
By 1888, over 2,000 workers had died.
20,000 had been injured.

29. TIME ZONES:
Railroad schedules hard to keep b/c each community set its own times
1870, earth divided into 24 time zones.
U.S. contained 4 time zones.
Everyone living in a particular zone would follow the same time.

30. World Time Zones

31. RAILROADS MADE TRAVEL EASIER, INDUSTRIAL GROWTH POSSIBLE,AND CAUSED COMMUNITIES TO GROW & PROSPER…

32. Railroads led to creation of new towns…
1880, George M. Pullman built factory outside Chicago .
Workers made the sleeping cars he invented for trains.

33. Pullman built a “Company Town” to house the workers he needed.
He created quality housing for his workers. But he tried to control many aspects of their lives…Eventually, the workers rebelled.

34. Railroad industry offered people chance to become rich.
Also attracted many corrupt individuals.
Credit-Mobilier scandal of (This was an illegal manipulation of construction contracts)
SCANDAL

35. FARMERS VS. RAILROADS why?

36. Farmers claimed railroads sold government land grants to businesses rather than families.
They accused railroads of setting high shipping prices to keep farmers in debt.

37. Many railroad companies failed due to economic depression of 1893
Result: 7 companies owned most of the nation’s railways.

38. BIG BUSINESS
Section 3

39. Complete the following graphic.
Methods of Eliminating Competition

40. ANDREW CARNEGIE
Scottish immigrant who became a giant in the steel industry by eliminating competition and creating an efficient business.

41. VERTICAL INTEGRATION:
Through VERTICAL INTEGRATION he bought companies that supplied his raw materials like iron and coal, & railroads needed to transport steel.
REDUCED Production Costs
Maximized Efficiency

42. Vertical Integration Hubb’s Hamburgers Hubb’s Hubb’s Hubb’s Hubb’s

43. Horizontal Integration
He used HORIZONTAL INTEGRATION by buying out or merging w/other steel companies.
Eliminate Competition
Increase “Market Share”
Control the “Market”

44. Horizontal Integration
Hubb’s
Hamburgers

45. Many entrepreneurs tried to control competition by forming a MONOPOLY

46. Monopoly When a single company gains control of an entire market.
Purchasing from them is your only option.
They determine whatever price they want.

47. Trust
Formed to manage the assets of businesses that have the intent to monopolize business, to restrain trade competition, or to fix prices.
Prominent trusts included Standard Oil (Rockefeller), U.S. Steel (Carnegie and J.P. Morgan), the American Tobacco Company

48. America's 1st Billionaire!
JOHN D. ROCKEFELLER
Used Standard Oil Trust to almost completely control the oil industry.
America's 1st Billionaire!

49. SHERMAN ANTITRUST ACT 1890 Made it illegal to form a TRUST.
Was not effective in stopping all trusts, but was a movement away from Laissez-faire

50. Holding Company A holding company does NOT produce anything.
It OWNS majority share of STOCK in other companies.
This is a method to avoid the anti-trust law

51. Carnegie’s success helped popularize theory of …
SOCIAL DARWINISM

52. What is Social Darwinism?
Theory, based on ideas of biologist Charles Darwin.
Said that “natural selection” enabled the best suited people to survive & succeed

54. Average Pay – 22 CENTS per hour
The working day could range from 10 to 16 hours for six days a week
Average Work Week – 59 Hours per week.

55. Workers respond by forming LABOR UNIONS:
Many workers worked long hours under dangerous conditions for low wages.
Women, children, & workers in sweatshops worked under harsh conditions.

56. The Purpose of Labor Unions
Unions use the power of collective bargaining to work with employers to improve working conditions, wages, and other forms of compensation (benefits).
Fought to stop Industrialists from taking advantage of their workers.

57. Trade Union – united skilled workers in a specific trade of craft - i
Trade Union – united skilled workers in a specific trade of craft - i.e. Carpenters.
Industrial Unions – united all workers, including Craft workers and UNSKILLED workers in a particular industry - UAW

58. Several Labor Unions:
NATIONAL LABOR UNION (NLU)- Persuaded Congress to legalize an 8 hour day.
COLORED NATL’ LABOR UNION (CNLU)
KNIGHTS OF LABOR – First Nation-wide Union - Failed after series of strikes failed.

60. MARY HARRIS (MOTHER) JONES
Organizer for the United Mine Workers.
struggle for better conditions hurt by government intervening on side of management.

61. Samuel Gompers- Formed the American Federation of Labor (AFL).
Gompers used strikes & collective bargaining.

62. EUGENE DEBS formed an industrial union…a union for all workers.
American Railway Union (ARU)
Debs & other workers turned to socialism to improve their lives.

63. IWW or WOBBLIES
Union formed in 1905 by radicals & socialists

64. UNION MOVEMENTS DIVERGE….
STRIKES TURN VIOLENT!!!

65. Unions used strikes to improve conditions
1877, workers for Baltimore & Ohio railroad went on strike protesting a wage cut.
Strike broken up when railroad president had U.S. Mail Cars attached to the trains.
Stopping the mail was a crime.

66. HAYMARKET AFFAIR
1886, bomb exploded at a labor demonstration in Chicago’s Haymarket Square in support of striking workers
Several killed
Anarchists charged w/inciting a riot. 4 were hanged. 1 Committed suicide in jail.
Made Labor Unions look violent

67. HAYMARKET AFFAIR

68. HOMESTEAD, PENNSYLVANIA
1892, steel workers & Pinkerton guards fought a battle near Pittsburgh. Deaths on both sides.

69. 1894, Eugene Debs led strike against the Pullman Company
Strike turned violent when fed. Troops called out to break the strike.

70. Despite pressures of government action, unions continued to grow