1. Unit 2 Second Industrial Revolution Ch. 4 in Gateway Book CH
Unit 2 Second Industrial Revolution Ch. 4 in Gateway Book CH. 6 in The Americans What does “Industry” mean?

2. The Triumph of Industry “Industry” means: Business, manufacturing, production, construction, hard work.

3. I. Factors behind American Economic Growth
A. Abundant natural resources

5. B. Growing population provided labor
C. Free enterprise system – market economy: laissez faire capitalism encouraged individual initiative

6. D. Legacy of First Industrial Revolution
1. use of new source of power (steam)
2. mass production
3. factory system

7. E. Role of government 1. Patents encouraged new inventions.
2. Tariffs protected American manufactured goods.
3. Laws protected property and contracts.
4. Land grants encouraged railroad construction.
5. Government regulated currency and banks.

8. F. Stimulus of the Civil War – tariffs, Banking Act, Pacific Railway Act, Homestead Act
Now that Americans have settled out West and have a railroad to ship materials back and forth to markets in the East, that really helps encourage economic growth.

9. II. America’s Second Industrial Revolution
A. Spread of railways
1870
1890

10. B. Technological innovation: Bessemer Process, Telegraph, Telephone, Transatlantic cable, Elevator, Sewing machine, Electric light bulb, Internal combustion engine C. Emergence of national market

11. D. Rise of corporations (limited liability; ability to raise more capital) E. Contributions of entrepreneurs
Some examples of corporations of today.

12. III. Spread of Railways
A. Provided stimulus to iron, coal, and steel industries B. Provided cheaper transportation costs for carrying raw materials and finished goods C. Forged a national market: Henry Flagler – Florida East Coast Railroad

16. Ponce de Leon Hotel- now a part of Flagler College
His former winter home, Whitehall, now Flagler Museum

17. When looking back at Flagler's life after his death on May 20, 1913, George W. Perkins, of J.P. Morgan & Co., reflected, "But that any man could have the genius to see of what this wilderness of waterless sand and underbrush was capable and then have the nerve to build a railroad here, is more marvelous than similar development anywhere else in the world."

18. Interesting Fact!
Henry Flagler died from injuries suffered from falling down a flight of marble stairs at his Whitehall winter home. The rich have problems too, you know… He was 83.

19. IV. Key Industries A. Steel
1. Bessemer process
a. air blown into hot pig iron to remove impurities
b. reduces cost of making steel by 80%
2. Andrew Carnegie adopted Bessemer process – built large steelworks

20. B. Communications
1. Telegraph: Samuel Morse/”Morse Code” (dots and dashes) 2. Telephone: Alexander Graham Bell 3. Transatlantic Cable: Cyrus Field

22. C. Electricity
1. Thomas Edison: phonograph (1877); electric light bulb (1879); motion pictures (1896); improved batter; electric power station backed by J.P. Morgan. 2. Nicola Tesla: alternating current

23. D. Oil 1. Edwin Drake: first oil well drilled in Pennsylvania (1859)
2. John D. Rockefeller: Standard Oil Company; kerosene and gasoline; railroad rebates; pipeline transport

24. E. Transportation
1. Internal combustion engine: at end of 19th century: used controlled explosions to move piston in cylinder
2. Henry Ford: less expensive automobile
3. Wilbur and Orville Wright: airplane (1903)

25. Imagine how things could change in a lifetime
1850
-Horse and buggy
-Candles and oil lamps
-Ice Box
-Mail took months
1910
-Car
-Light bulbs
-Refrigerators
-Telephones and transcontinental railroad

26. V. African-American and Women Inventors
A. Elijah McCoy: oil-drip cups for trains
B. Sarah Goode: fold-away bed
C. Lewis Howard Latimer: new process for making carbon filaments in lightbulbs
D. Jan Ernst Matzeliger: machine for attaching sole to shoes
Latimer, in 1882, the year he filed for U.S. Patent 252,386 "Process of Manufacturing Carbons." This is what Edison’s company used to make their new light bulbs that actually worked. Before they had been using a paper filament that burned out quickly.

27. E. Garrett Morgan: breathing apparatus for use by firemen; a patent for a traffic signal
F. Madam C.J. Walker: hair care products, especially for African-American women
G. Granville Wood: multiplex telegraph
H. Josephine Cochran: first “automatic” dishwasher

28. VI. “Captains of Industry” or “Robber Barons”?
A. Andrew Carnegie (steel)
1. adopted Bessemer process
2. Homestead Strike
3. vertical integration
4. Gospel of Wealth
Carnegie Hall in NY.

29. B. John D. Rockefeller (oil refining)
1. secret rebates from railroads 2. Standard Oil 3. horizontal integration

30. C. John Pierpont (J.P.) Morgan (financier)
1. financed Edison 2. formed General Electric 3. formed U.S. Steel in 1901

31. VII. Invention vs. Innovation
A. Invention: to design something new
B. Innovation: to apply or adopt new machines, processes and/or products

32. VIII. New Business Practices
A. Advantages of large companies
1. Economies of scale
2. Cheaper sources of supply
3. More efficient management

33. B. Dangers of monopoly 1. less incentive to improve products
2. monopolists can overcharge consumers

34. C. Forms of business consolidation
pooling agreement
2. trust
3. holding company

35. IX. U.S. Supreme Court Cases
A. Munn v. Illinois: State governments can regulate grain elevators
B. Wabash v. Illinois: State governments cannot regulate interstate railroads

36. X. Federal Laws Regulating Business
A. Interstate Commerce Act: Congress regulates interstate railroads, sets up enforcement agency
B. Sherman Antitrust Act: Combinations “in restraint of trade” are prohibited.

37. Sherman Anti-Trust Act- 1890
Section 2: "Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony”