1. Big Picture: The growth of the railroad industry fueled the Second Industrial Revolution, which made America the world’s manufacturing leader. Demand for rails and railroad cars spurred expansion in coal mining and steel. CHAPTER 14: THE SECOND INDUSTRIAL REVOLUTION

2. Main idea: During the late 1800s, new technology led to rapid industrial growth and expansion of railroads. CHAPTER 14 SECTION 1: INDUSTRY AND RAILROADS

3. New Industries Emerge Steel and Oil Henry Bessemer developed the Bessemer process in which steel was created faster and more cheaply than ever before. Steel transformed the United States into a modern industrial economy Kerosene popularized as a fuel source Edwin L. Drake drilled the first commercial oil well Wildcatters were oil prospectors Found oil in Texas at Spindletop, produced more than 17 million barrels of oil in 1902

4. Railroads Expand Transcontinental Railroad railroad built in the 1860s that spanned the entire United States Two railway companies: Union Pacific (laid westward tracks) Central Pacific (laid eastward tracks). Met at Promontory Point in Utah. Effects of Expansion Economic: Railroads promoted trade and provided jobs, gave boost to steel and manufacturing. Social: Sped up the settlement of the West, new towns created and existing towns became cities. Development of standard time, or time zones to keep railroads on a timely schedule (1883).

6. Main idea: Corporations run by powerful business leaders became a dominant force in the American economy. CHAPTER 14 SECTION 2: THE RISE OF BIG BUSINESS

7. A Favorable Climate for Business Creation of Big Business Horatio Alger wrote books about young boys making their money through hard work, called “rags to riches.” Business leaders believed in “laissez- fair” or conducting business without intervention by the government. Social Darwinism is the belief that natural selection applied to society. People who are smart and work hard are rich; therefore, if you are poor, you are stupid and lazy.

8. A Favorable Climate for Business Business Structures Proprietorships is a businesses owned by individual owners Partnerships is a business owned by two or more people Corporation is a business owned by stockholders, major decisions are made by a board of directors. Trusts are businesses that merge together and turn over power to a board of trustees, the companies are then run like a single corporation. When a trust gains complete control over an industry it held a monopoly

9. Industrial Tycoons John D. Rockefeller owned Standard Oil which he developed into a monopoly Expanded his business through vertical and horizontal integration. Vertical integration: acquiring companies that supplied to the business. Horizontal integration: acquiring companies that produced the same product. Gave a lot of his fortune to charity, created the Rockefeller Foundation.

10. Industrial Tycoons Andrew Carnegie lived the true “rags to riches” story: immigrated to the US, through hard work he advanced through his early jobs, invested wisely Created the Carnegie Steel Company, sold the company in 1901 to JP Morgan Devoted his life to philanthropy, mostly education; Gave $350 million Gospel of Wealth: Carnegie’s belief that wealthy people had a duty to the rest of society to provide for them.

11. Industrial Tycoons Railroad Cornelius Vanderbilt: owned the New York Central Railroad, stretched from Michigan and north to Canada, 4,500 miles of track. Founded Vanderbilt University George Pullman designed and built railroad cars, Pullman Palace Car Company based in Chicago Company had entire town with homes, shops, church, and a library. Very strict rules. Legacy of Business Tycoons Robber Barons: Viewpoint that entrepreneurs in the late 1800s profited unfairly by squeezing out competitors and using tough tactics. Negative viewpoint Captain of Industry: Viewpoint that entrepreneurs in the late 1800s used their business skills to make the American economy more productive. Positive viewpoint

12. Mass Marketing Rise of Department Stores Retailers looked to maximize their profits, formed department stores to sell variety of products in one place. Mail order companies emerge to serve rural populations.

13. Main idea: Grim working conditions in many industries led workers to form unions and stage labor strikes. CHAPTER 14 SECTION 3: WORKERS UNITE

14. Government and Business Government maintains a hands off attitude toward business. Sherman Antitrust Act (1890) made it illegal to form trusts that interfered with free trade, prohibited monopolies Very vague, government stopped trying to enforce it Government paid little attention to workers

15. Industrial Workers Many industrial workers are children, approximately one in six children held a job Workers typically worked 10 hours per day 6 days a week No vacation, no sick leave, no compensation for injuries on the job Pressure from employers to work as fast as possible, many accidents, no workmen’s comp Sweatshops: Cramped workshops set up in shabby tenement buildings, common in the garment industry

16. Workers Seek Change Workers began organizing to pressure employers to make the workplace safer and pay more reasonable Knights of Labor led by Terence V. Powderly, accepted unskilled labor, women, African Americans, and employers By 1886 had more than 700,000 members Campaigned for: the 8 hour work day, end to child labor, and equal pay for equal work

17. Workers Seek Change ~ Labor Strikes The Great Railroad Strike of 1877 northern railroads cut wages workers in Baltimore and Ohio Railroad walked off the job Violent revolt against the railway companies Eventually stopped by US Army, 100 people died Haymarket Riot Crowds gathered in Haymarket Square in Chicago to protest violent police action at the strike the day before someone threw a bomb into the crowd, people panicked, guns were fired People blamed foreign born unionists for the violence Xenophobia: fear of foreigners

18. Workers Seek Change American Federation of Labor After Haymarket Riot employers struck back at organized labor and unions Forced employees to sign documents called yellow dog contracts saying they will NOT join unions Blacklists: lists of people thought to be troublemakers, refused to hire them Samuel Gompers founded the American Federation of Labor, won gains for the workers

19. Workers Seek Change ~ Strikes Continue Homestead Strike: Workers at Carnegie Steel Company in Homestead, Pennsylvania protest when manager wanted to increase production Gunfire erupts, battle rages for 14 hours, state militia breaks up conflict. Pullman Strike led by workers after company cuts wages but does not lower rent Eugune V. Debs, leader of American Railway Union, leads strike of working on any Pullman cars US Government orders end to strike due to disrupting delivery of US mail Workers who did not quit were blacklisted or fired Unions struggled for progress

20. Main Idea: Important innovations in transportation and communication occurred during the Second Industrial Revolution. CHAPTER 14 SECTION 4: THE AGE OF INVENTION

21. Advances in Transportation People needed easier access around cities, mass transit, or public transportation systems that carried large numbers of people First forms of mass transit were horse drawn carriages, called street cars. Evolved into cable cars and then electric street cars. Larger cities like NY and Boston had too much traffic from street cars caused need for alternative – subway lines. Automobiles began to be introduced, only to wealthy. Orville and Wilbur Wright flew the first airplane in North Carolina in 1903.

22. Communications Revolution Samuel B. Morse invented the Telegraph in 1837, after Civil War telegraph grew with railroads. Strung telegraph wires along the railroad tracks. Alexander Graham Bell invented the telephone in 1876, by 1900 more than a million had been installed in offices and homes across the nation. Christopher Latham Sholes invited the typewriter and the QWERTY keyboard in 1867. Companies hired women as typists.

23. Thomas Edison Major inventions: Phonograph (record player) Telephone transmitter Developed way to develop electrical network. Motion picture camera Most famous invention was the light bulb