1. 1865 – 1905 The Second Industrial Revolution
Chapter 6
1865 – 1905
The Second Industrial Revolution

2. 6.1 Objectives:
How did the development of steel and oil refining affect U.S. industry?
What innovations were made in transportation?
How did innovations in communications technology change business practices and daily life in the United States?
How did Thomas Edison’s research laboratory change American life?

3. Steel refining Results
provided a strong, cheap source of building material
allowed expansion of the railroad industry
allowed construction of more complex machines and taller buildings
Facts
Bessemer Process – Blast Furnace

4. Oil refining
Results
resulted in the production of kerosene for fuel and light
allowed the manufacturing of other petroleum products
helped machinery operate
Important Facts
Edwin L. Drake – steam engine to drill
Elijah McCoy – lubricating cup

5. Transportation innovations
Results
Railroads promoted western settlement, urban growth, and economic prosperity.
Automobiles became a substantial industry.
Airplanes introduced new possibilities.
Important Facts
Horseless Carriage
Transcontinental Railroad
George Westinghouse – Air Brake
George Pullman – Railroad Sleeping Car

6. Communications innovations
Results
The telegraph allowed businesses to place long-distance orders quickly.
The telephone brought both businesses and individuals together.
The typewriter allowed the quick production of legible documents.
Facts
Morse – Morse code
Bell – Telephone
Christopher Sholes - Typewriter

7. Thomas Edison’s research laboratory
Results
the light bulb
the phonograph
early motion-picture camera
Facts
Menlo Park
Held more that 1000 patients
Electric Power Plant in NYC

8. 6.2 Objectives:
What arguments did business leaders and social critics make about the role of government in business?
How did business strategies change during the Second Industrial Revolution?
How did entrepreneurs take advantage of changes in business organization?
How did new methods of marketing products change American life?

9. Concerning government’s role in business
Business leaders:
Individuals should be self-reliant.
Businesses prosper most without government interference.
Government interference reduces self-reliance.
Capitalism – private business and competition determine costs
Laissez-faire – let the people doo as they choose, no government intervention
Free Enterprise – supply and demand determine prices

10. Concerning government’s role in business
Social critics:
Factory life and poor working conditions harm workers.
All citizens should own all means of production.
Government assistance would prevent the best businesses from rising to the top.
Communism – no individual ownership of property, means of production should be owned by everyone
Social Darwinism – the fittest people or businesses would rise to the top

11. New business strategies
Corporation – sell a percentage, or “Share” of a company
Vertical integration – acquiring companies that provide material and services that the primary company depends on
Horizontal integration – on companies control of other companies producing the same things
Technological innovation

12. The Corporation
Trust – a group of companies turn control over to a board of trustees
Monopoly – when a trust gains exclusive control with little to no other competition left

13. Entrepreneurs take advantage
Carnegie created corporations and used vertical integration to dominate the steel industry.
Rockefeller created corporations and used horizontal integration to dominate the oil industry.
Vanderbilt bought and consolidated many railroad lines.
Westinghouse and Pullman introduced and controlled new railroad technologies.

14. New marketing methods use of brand names and special packaging
advertising
department stores
catalogs
chain stores

15. 6.3 Objectives:
Why did some Americans want trusts to be banned, and how did the government respond?
What types of working conditions did laborers face in the new age of rapid industrialization?
How did the Knights of Labor attempt to address the needs of many workers?
How did businesses react to strikes in the late 1800s, and how did this affect unions?

16. The banning of trusts
desired because of belief that without competition, large monopolies would have no reason to maintain quality or keep prices low
not accomplished despite passage of the Sherman Antitrust Act

17. Working conditions Workers African Americans Women and Children
low pay
long hours
unsafe environments
possibility of racial discrimination

18. The Knights of Labor included both skilled and unskilled workers
included women and, later, African Americans
organized strikes, marches, and demonstrations
educated and organized workers
Facts
Terence V Powderly – 1st leader of KOL
Mary Harris Jones – organized strikes, marches, and demonstrations

19. The Great Upheaval
1886 saw a year of intense strikes and violent labor confrontations
Haymarket Riot
May of 1886; 40,000 Chicago workers strike
May 3 confrontation results in 2 deaths
May 4 a peaceful rally was breaking up when 200 police showed up, bombs and gunfire opened 60 police wounded
American Federation of Labor – Samuel Gompers organized independent craft unions

20. Strikes in the late 1800s
Businesses responded with blacklists, yellow- dog contracts, lockouts, and violence.
Business tactics hurt many unions and caused skilled workers to break away from unskilled ones.
Other Strikes
Homestead Strike – steel
Pullman – sleeping car factory