The Industrial Society 1850‒1901

The Industrial Society 1850‒1901

The Industrial Society, 1850‒1901
Industrial Development What enabled the United States to build an industrial economy? An Industrial Empire What were the main characteristics of the new steel and oil industries? 18.1 18.2

The Sellers Why were the new methods of advertising so important? The Wage Earners Who were the wage earners in the new economy? 18.3 18.4

Culture of Work How did wage earners organize in this period, and what demands did they make? 18.5

Video Series: Key Topics in U.S. History
The Transcontinental Railroad The Gilded Men The Making of a Consumer Culture Knights of Labor Home

A Machine Culture Centennial Exposition held in Philadelphia
Focused on industrial era innovations U.S. fast becoming industrialized culture Developments in manufacturing, transportation, communications, changed society Laborers in steel, oil, railroads played leading role Lecture Outline: Centennial Exposition held in Philadelphia Focused on industrial era innovations Corliss engine was exposition’s focal point U.S. fast becoming industrialized culture Developments in manufacturing, transportation, communications, changed society Laborers in steel, oil, railroads played leading role Home

Lecture Outline: Image: The Corliss Engine - A “mechanical marvel” at the Centennial Exposition of 1876, the Corliss engine was a prime example of the giantism the public admired. Source: “The Corliss Engine,” The Metropolitan Museum of Art, New York, NY, U.S.A. Image copyright © The Metropolitan Museum of Art/Art Resource, NY. Home

Industrial Development
An Empire on Rails Advantages of the Railroad Building the Empire Linking the Nation via Trunk Lines Rails Across the Continent Problems of Growth Learning Objective: What enabled the United States to build an industrial economy? Home

Conditions for rapid industrial growth Abundance of cheap natural resources Large pools of labor Expanded markets Investment capital Technological progress Government support Industry developed quickly Entrepreneurs flourished Concentrated in Northeast Lecture Outline: Conditions for rapid industrial growth Abundance of cheap natural resources Coal, iron, timber, petroleum, water power Large pools of labor Farm families and European immigrants 8 million immigrants arrived in 1870s and 1880s 15 million immigrants arrived between 1890 and 1914 Expanded markets New devices such as telegraph and telephone helped to exploit Growing cities devoured goods Railroads linked cities – national market Tariffs protected producers from outside competition Technological progress Some older industries doomed Tallow Increased productivity in some industries Kerosene Created new industries Electric lights New agricultural inventions Harvester and combine Government support Gave land, money, and other resources Few regulations Industry developed quickly Entrepreneurs flourished Captains of industry or robber barons Concentrated in Northeast South rebuilding after war, making gains in iron, textiles, and tobacco West provided raw materials Industrial Development

An Empire on Rails 04/06/98 Revolution in transportation and communication U.S. industrial economy based on expansion of the railroads Steamships Telegraph and telephone Lecture Outline: Revolution in transportation and communication U.S. industrial economy based on expansion of the railroads Steamships Made Atlantic crossings twice as fast Telegraph and telephone Transformed communications Industrial Development 2 2 2 2

Advantages of the Railroad
04/06/98 Railroads transformed American life Ended rural isolation National market Led to organization of modern corporation Stimulated other industries Railroads captured imagination of the American people Lecture Outline: Railroads transformed American life Ended rural isolation Tied people together and brought in outside products Fostered interdependence National market Allowed regional economic specialization Made mass production and consumption possible Led to organization of modern corporation Stretched over large geographic area Employed thousands of people Dealt with many customers Large-scale organization and decision making Stimulated other industries Steel, iron, coal, lumber, and glass Service industries near rails Railroads captured imagination of the American people Industrial Development 3 3 3 3

Building the Empire 04/06/98 Railroad construction boom 1865‒1916 U.S. laid more than 200,000 miles of track costing billions of dollars Expensive endeavor Cost repaid over time Waste and corruption in railroad industry Built too fast and wastefully Build into Indian lands Lecture Outline: Railroad construction boom 1865‒1916 U.S. laid more than 200,000 miles of track costing billions of dollars More than in all of Europe, including Russia Expensive endeavor American and European investors Federal loaned nearly $65 million Federal railroad grants Railroads sold land to raise cash or used it as security for bonds or loans Prompted corruption Cost repaid over time New settlers boosted value of government and privately owned land Carried government freight, troops, and mail at reduced rates Waste and corruption in railroad industry Built too fast and wastefully Collected government subsidies for each mile of track Build into Indian lands Industrial Development 3 3 3 3

Linking the Nation via Trunk Lines
04/06/98 No integrated rail system before Civil War Designed to protect local interests Civil War - value of long-distance lines seen Construction and consolidation begins Large companies took over small companies Standardization Lecture Outline: No integrated rail system before Civil War Designed to protect local interests Not designed to tap outside markets Designed to avoid cooperation Conflicting schedules, separate depots, different gauges Civil War - value of long-distance lines seen Construction and consolidation begins Large companies took over small companies Standardization Schedules, signals, equipment, gauges Industrial Development 3 3 3 3

Linking the Nation via Trunk Lines (continued)
04/06/98 Four trunk lines East linked with Great Lakes and West Baltimore and Ohio (B&O), Erie RR, New York Central RR, Pennsylvania RR Southern railroad system integrated in 1880s War damage caused delay Rail transportation improved Safe, fast, reliable Standard time Lecture Outline: Four trunk lines East linked with Great Lakes and West Baltimore and Ohio (B&O), Erie RR, New York Central RR, Pennsylvania RR Southern railroad system integrated in 1880s War damage caused delay Rail transportation improved Safe, fast, reliable Automatic couplers, air brakes, refrigerator cars, dining cars, heated cars, electric switches, Pullman’s sleeping cars Standard time Country divided into four time zones Adopted by Congress in 1918 Key Terms: trunk lines: Four major railroad networks that emerged after the Civil War to connect the eastern seaports to the Great Lakes and western rivers. They reflected the growing integration of transportation across the country that helped spur large-scale industrialization. Industrial Development 3 3 3 3

Rails Across the Continent
04/06/98 Congress authorized the transcontinental railroad Delay from sectional tensions ended Union Pacific worked westward Central Pacific worked eastward May 10, Tracks met in Utah By four more lines to Pacific Lecture Outline: Congress authorized the transcontinental railroad Delay from sectional tensions ended South out of picture during Civil War Union Pacific worked westward From Nebraska Irish laborers Central Pacific worked eastward Chinese immigrants May 10, Tracks met in Utah Promontory, Utah Golden spike By four more lines to Pacific Industrial Development 3 3 3 3

Problems of Growth 04/06/98 Overbuilding caused problems Intense competition among railroads Efforts to share failed Consolidation did not solve problems Bankers gained control of railroads J. Pierpoint Morgan Multiple reforms Lecture Outline: Overbuilding caused problems Intense competition among railroads Special rates and favors Free passes for large shippers Low rates on bulk freight Carload lots Long hauls Rebates Secret discounts below published rates Efforts to share failed Pooling agreements Share traffic Consolidation did not solve problems Purchase, lease, and merge with competition Collapsed in Panic of 1893 Bankers gained control of railroads J. Pierpoint Morgan Took lead on “fixing” railroad problems Liked efficiency and order Multiple reforms Cut fixed cost and debt Issued new stock to provide capital Eliminated rebates, competition for routes and stabilized rates Picked a “voting trust” of trustees Industrial Development 3 3 3 3

Link to MyHistoryLab asset: Watch the Video, “Railroads and Expansion” Lecture Outline: Image: The Meeting of the Central Pacific and Union Pacific Railroads - After the last spike was hammered in at Promontory, Utah, the pilots of the two locomotives exchanged champagne toasts. The chief engineers of the two lines are shaking hands. Absent from the photograph are the Chinese laborers who helped build the railroad. Industrial Development

Discussion Question What enabled the United States to build an industrial economy? Lecture Outline: The United States had an abundance of natural resources, plentiful labor from Europe and American farms, numerous inventions, a national market, prolific capital, favorable government policies, and entrepreneurs who saw the possibilities in developing a national economy. Industrial Development

An Industrial Empire Carnegie and Steel Rockefeller and Oil
The Business of Invention Learning Objective: What were the main characteristics of the new steel and oil industries? Home

An Industrial Empire Innovation drove new industrial empire
Bessemer process of refining steel permitted mass production Use of steel changed agriculture, manufacturing, transportation, architecture Lecture Outline: Innovation drove new industrial empire Bessemer process of refining steel permitted mass production Use of steel changed agriculture, manufacturing, transportation, architecture Harder and more durable than iron Longer bridges, taller buildings, stronger railroad tracks, better plows, heavier machinery Symbolized industrial society An Industrial Empire

Carnegie and Steel Steel business complex
04/06/98 Steel business complex Required large capital investment, abundant raw materials, research departments, and sophisticated techniques Rose in Pennsylvania, Ohio, and Alabama Businesses grew larger Lecture Outline: Steel business complex Required large capital investment, abundant raw materials, research departments, and sophisticated techniques Rose in Pennsylvania, Ohio, and Alabama Near large coal deposits Businesses grew larger Required managers with more complex skills Product development, marketing, consumer preferences became important An Industrial Empire 4 4 4 4

Carnegie and Steel (continued)
04/06/98 Andrew Carnegie entered steel business Rags to riches Entered steel industry in 1872 Homestead plant By 1901 – employed 20,000 Produced more steel than Great Britain Sold out to J. P. Morgan United States Steel Company Lecture Outline: Andrew Carnegie entered steel business Rags to riches Entered steel industry in 1872 Partners and subordinates driven hard Henry Clay Frick and Charles M. Schwab Low wages for workers Disliked unions Homestead strike crushed in 1892 Homestead plant Structural beams and angles Used in New York City elevated railway Skyscrapers Washington Monument By employed 20,000 Produced more steel than Great Britain Sold out to J. P. Morgan Carnegie to spend time on philanthropy J. P. Morgan was Carnegie’s chief rival United States Steel Company Created by Morgan First billion-dollar company An Industrial Empire 4 4 4 4

Rockefeller and Oil Petroleum became profitable
Little use for gasoline Kerosene for lighting Other petroleum uses First oil well drilled Edwin L. Drake near Titusville, Pennsylvania Lecture Outline: Petroleum became profitable Little use for gasoline Internal combustion engine just invented Kerosene for lighting Whale oil, cottonseed oil, and tallow candles expensive Opened evenings to activity Changed patterns of daily life Other petroleum uses Lubricating oil, grease, paint, wax, varnish, naphtha, and paraffin First oil well drilled Edwin L. Drake near Titusville, Pennsylvania An Industrial Empire

Rockefeller and Oil (continued)
Standard Oil Company John D. Rockefeller Moved to consolidate to end competition Vertical integration New business organization: the trust Standard Oil Trust Lecture Outline: Standard Oil Company John D. Rockefeller Moved to consolidate to end competition Saw it as wasteful and inefficient High quality at lowest cost Absorbed or destroyed competitors Threatened rivals and bribed politicians Spies to harass competitors’ customers Extorted railroad rebates Lowered transportation costs to undercut competitors Vertical integration Controlled all stages of production Owned wells, timberlands, barrel and chemical plants, refineries, warehouses, pipelines, and fleets of tankers and oil cars New business organization: the trust Standard Oil Trust Centralized Rockefeller control of member companies outside Ohio Beginning of trust movement in other industries Whiskey, lead, and sugar By 1900, 1 percent of companies controlled more than one-third of industrial production Key Terms: trust: A device to centralize and make more efficient the management of diverse and far-flung business operations. It allowed stockholders to exchange their stock certificates for trust certificates, on which dividends were paid. John D. Rockefeller organized the first major trust, the Standard Oil Trust, in 1882. An Industrial Empire

The Business of Invention
04/06/98 Age of invention in America Number of patents soared Communications transformed Business and industry innovations Photography Diet changes Telephone and electricity Alexander Graham Bell Thomas Alva Edison Lecture Outline: Age of invention in America Number of patents soared Communications transformed Cyrus W. Field – transatlantic cable Linked Europe and the United States, and later South America, Africa, and Asia Diplomats and business leaders communicated globally Revolutionized journalism, quickened pace of foreign affairs, allowed businesses to expand and centralize Business and industry innovations Typewriter, stock ticker, cash register, calculating machine, and adding machine Clothing industry – high-speed spindles, automatic looms, electric sewing machines Ready-made clothing for the masses Photography George Eastman – camera Motion pictures and film Had to be returned to factory for processing Diet changes New processes for food Flour, canned meat and vegetables, condensed milk, and beer New products Packaged cereals Refrigerated railroad cars Fresh fruit from Florida and California Gustavus F. Swift – Chicago meat packer Nationwide meat distribution from central plants Telephone and electricity Alexander Graham Bell Converted sound waves to electrical impulses Bell Telephone Company dominated American Telephone and Telegraph Company Consolidated more than 100 local systems Thomas Alva Edison First modern research lab at Menlo Park in New Jersey Phonograph – 1877 Incandescent lamp Built on work of Sir Joseph William Swan, an English inventor Edison Illuminating Company Changed daily life Lit homes and businesses at any hour Electric streetcars An Industrial Empire 5 5 5 5

An Industrial Empire Link to MyHistoryLab asset:
Read the Document, “Thomas Edison, ‘The Success of the Electric Light’ (1880)” Lecture Outline: Image: Thomas Edison - In the late 1870s, the electric light and power transfer were only at the invention stage, having been explored unsuccessfully by a number of inventors. At that time Thomas Edison, with his ideas and proven analytical abilities, undertook the problem. It was Edison’s interest in technological systems that led him to a general system of incandescent lighting in the fall of In this photograph, Edison demonstrates another new invention, the phonograph. An Industrial Empire

Discussion Question What were the main characteristics of the new steel and oil industries? Lecture Outline: In the late nineteenth century, an industrial empire took shape, centered around steel and oil, leading to the importance of the automobile in the twentieth century. The result was larger and more complex business organizations and greater concentrations of wealth, capital, and control by a relatively few individuals and companies. An Industrial Empire

The Sellers Marketing developed to sell products
Advertising pervaded American life Department store – a national institution Mail-order catalogs – reached rural customers Brand names – homogeneity of goods Common language of consumption America became a community of consumers Learning Objective: Why were the new methods of advertising so important? Lecture Outline: Marketing developed to sell products Advertising pervaded American life Newspapers, roadside signs Idea of consumption became prominent Department store – a national institution Macy’s in New York, Marshall Field’s in Chicago Browse and buy Innovations in pricing, display, and advertising Mail-order catalogs – reached rural customers Sears, Roebuck and Montgomery Ward Relied on effective transportation and high level of customer literacy Brand names – homogeneity of goods Common language of consumption America became a community of consumers Bound together urban and rural, East and West, rich and poor Home

Discussion Question Why were the new methods of advertising so important? Lecture Outline: Advertising, a relatively new industry, helped to sell the goods of the new industrial economy. Americans learned to buy goods they did not even know they wanted. When bored or troubled, they went to the store—today’s mall—to shop. The Sellers

The Wage Earners Working Men, Working Women, Working Children Home
Learning Objective: Who were the wage earners in the new economy? Home

The Wage Earners Labor of millions of men and women built the new industrial society Improvements for workers in late 1800s Real wages rose Better working conditions Workers’ influence grew Expanding health and educational services Lecture Outline: Labor of millions of men and women built the new industrial society Improvements for workers in late 1800s Real wages rose Better working conditions Workers’ influence grew Expanding health and educational services The Wage Earners

Working Men, Working Women, Working Children
04/06/98 Before 1900, life for wage earners hard Chronically low wages Average wages: $400–500 per year, needed $600 for decent living Some jobs varied from average Breadwinner might be woman or child Immigrants and minorities Chinese Exclusion Act Dangerous working conditions Safety standards low Lecture Outline: Before 1900, life for wage earners hard Chronically low wages Average wages: $400–500 per year, needed $600 for decent living Some jobs varied from average More - Construction, government employees, clerical workers, western miners Less - coal miners, agricultural workers, garment workers, unskilled factory hands Breadwinner might be woman or child Both women and children worked in increasing numbers “Child labor” meant under 14; low wages Girls made less than boys Working women usually young and single 25 percent of married African American women worked Women moved into clerical jobs, few became professionals Some professions feminized - nurses, schoolteachers, and librarians Women’s earnings unequal to men’s Woman’s place in the home Jobs seen as extension of household activity Clothing and textiles Food products Cigars, tobacco, and shoes Immigrants and minorities Earned less than white Protestant men Discrimination Blacks were last hired, first fired; earned less than workers at almost every skill level Chinese and later Japanese lived segregated from whites Chinese Exclusion Act Dangerous working conditions Safety standards low Accidents common Health issues - dust, chemicals, and pollutants Key Terms: Chinese Exclusion Act: Legislation passed in 1882 that excluded Chinese immigrants for ten years and denied U.S. citizenship to Chinese nationals. It was the first U.S. exclusionary law aimed at a specific racial group. The Wage Earners 5 5 5 5

The Wage Earners Lecture Outline:
Image: New Jobs for Women - As demand for workers grew, women took over many of the duties formerly performed by men. Despite their performance in the workplace, however, the women were usually overseen by male supervisors. The Wage Earners

Discussion Question Who were the wage earners in the new economy?
Lecture Outline: The hard work of millions of men and women built the new factory society. Their work was grueling and often dangerous. Men, women, and children often worked for low wages in unsafe conditions. The Wage Earners

Culture of Work Labor Unions Labor Unrest Home Learning Objective:
How did wage earners organize in this period, and what demands did they make? Home

Culture of Work Adjustments in work habits
Farm workers adjusted to factory’s disciplines Impersonal work conditions Economic and social mobility Rags-to-riches stories - Horatio Alger Workers did rise in status Gave workers hope Lecture Outline: Adjustments in work habits Farm workers adjusted to factory’s disciplines Indoors rather than outdoors Pace to the clock rather than the sun Needs of market rather than rhythms of nature Supervisors, hierarchies, and rules Impersonal work conditions Machines displaced artisans Workers rarely saw employers High turnover and mobility Economic and social mobility Rags-to-riches stories - Horatio Alger Andrew Carnegie Actual record was limited Most business leaders came from well-to-do or middle-class families Not usually immigrants Workers did rise in status Move from manual labor to middle class Working-class children more likely to rise up ladder Gave workers hope Tied them to the system Tempered response to labor unions Culture of Work

Labor Unions Low numbers in labor unions Knights of Labor - 1869
Seen as “foreign” and radical Workforce fragmented Knights of Labor Founded as secret fraternal order Open policy Pitted workers against monopoly Platform Tide turned against Knights Lecture Outline: Low numbers in labor unions Seen as “foreign” and radical Out of step with American tradition of individual advancement Workforce fragmented Craft and ethnic differences Knights of Labor Founded as secret fraternal order Garment workers in Philadelphia Terence V. Powderly – elected 1879 Ended secrecy and recruited aggressively Open policy Skilled and unskilled, women, African Americans Only excluded nonproducers Bankers, lawyers, liquor dealers, and gamblers Pitted workers against monopoly Even employers could join Common interests with workers Against strikes Platform Eight-hour day Abolition of child labor Utopian reform Tide turned against Knights Jay Gould defeated Knights at Pacific Railroad in 1886 Haymarket Riot Turned public sympathy against unions Key Terms: Knights of Labor: Founded in 1869, this labor organization pursued broad reform and practical issues such as improved wages and hours. The Knights welcomed all laborers regardless of race, gender, or skill. Culture of Work

Labor Unions (continued)
American Federation of Labor (AFL) Founded by Samuel Gompers Practical improvements for wages and working conditions Limited membership Lecture Outline: American Federation of Labor (AFL) Founded by Samuel Gompers Loose alliance of national craft unions Practical improvements for wages and working conditions Avoided politics Specific goals Higher wages, shorter hours, better working conditions Assumed workers would be workers all their lives Did not oppose monopolies Limited membership Focused on skilled workers Ignored women and African Americans Women prohibited except in limited areas Cigar Makers’ Union and Typographical Union African Americans not forbidden High initiation fees, technical exam, and other means used to discourage membership Key Terms: American Federation of Labor (AFL): Founded by Samuel Gompers in 1886, the AFL organized skilled workers by craft and pursued specific practical objectives, such as higher wages, shorter hours, and better working conditions. The AFL avoided politics, and while it did not expressly forbid blacks and women from joining, it used exclusionary practices to keep them out. Culture of Work

Labor Unrest Workers helped each other
Assisted new workers in acclimating Social and fraternal organizations Employers - strict laws of the market Wanted a docile workforce Strikes broke out 1880– ,000 strikes Great Railroad Strike Chicago Haymarket incident Homestead Strike Lecture Outline: Workers helped each other Assisted new workers in acclimating Humanized the workplace Friends and relatives of new immigrants helped them find jobs Social and fraternal organizations Offered companionship, help finding jobs, insurance plans Social needs Played cards or pool, sang songs, visited Helped out sick members Dances, picnics, and parades Employers - strict laws of the market Wanted a docile workforce Would often fire union members Hired scabs to replace strikers Obtained court injunctions to stop strikes Pullman Strike of 1894 Strikes broke out 1880– ,000 strikes Great Railroad Strike Paralyzed railroads across the country Deaths of more than 100 workers Federal troops sent in to surpress Chicago Haymarket incident Bomb killed one policeman and wounded six others Police fired into crowd, killing four people Prompted fears of anarchist uprising Homestead Strike Pinkerton detectives and strikers in gun battle Three detectives and ten workers killed State militia called in to restore order Key Terms: Homestead Strike: In July 1892, wage-cutting at Andrew Carnegie’s Homestead Steel Plant in Pittsburgh provoked a violent strike in which three company-hired detectives and ten workers died. Using ruthless force and strikebreakers, company officials broke the strike and destroyed the union. Culture of Work

Culture of Work Lecture Outline:
Image: Map 18.2 Labor Strikes, 1870– More than 14,000 strikes occurred in the 1880s and early 1890s, involving millions of workers. Culture of Work

Culture of Work Link to MyHistoryLab asset:
Read the Document, “George Engel, Address by a Haymarket Anarchist (1886)” Lecture Outline: Image: The Riot in Haymarket Square - In the rioting that followed the bomb explosion in Haymarket Square in Chicago, seven police officers and five workers died and more than 60 officers were wounded, many of them by fellow police. Culture of Work

Discussion Question How did wage earners organize in this period, and what demands did they make? Lecture Outline: Laborers faced many challenges in the new economy, including work that followed the clock, bigger industries, machines, and wages. Unions formed, including the American Federation of Labor (AFL), which still exists. Labor unrest for better wages and safer working conditions often took peaceful forms, but at times resulted in violence that disturbed other Americans. Culture of Work

Conclusion: Industrialization’s Benefits and Costs
04/06/98 Benefits of rapid industrialization Rise in national power and wealth Improved standard of living Human cost of industrialization Exploitation Social unrest Growing disparity between rich and poor Increased power of giant corporations Lecture Outline: Benefits of rapid industrialization Rise in national power and wealth Improved standard of living Human cost of industrialization Exploitation Social unrest Growing disparity between rich and poor Increased power of giant corporations 26 25 25 25

How Did Labor Unrest Manifest Itself as Industrialization Spread?
Where was labor unrest most pronounced? How did factors such as urbanization and wage levels affect labor activity? How did the spread of Knights of Labor assemblies relate to the geographic distribution of different U.S. industries?

The Industrial Society 1850‒1901

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