1. Chapter 13 The Triumph of Industry

2. Introduction What impact does a war have on industry and technology? What impact does a war have on industry and technology? What specific impact did industry have on the Civil War? What specific impact did industry have on the Civil War?

3. http://www.history.com/videos/the-industrial- revolition

4. 1. Technology and Industry Post Civil War Post Civil War Rapid industrial growth Rapid industrial growth Railroads expanded Railroads expanded Natural resources helped Natural resources helped Coal – steam power Coal – steam power Lumber Lumber Rivers for shipping Rivers for shipping Edwin Drake – first oil well (whales previously) Edwin Drake – first oil well (whales previously) Workforce grows Workforce grows New surge in immigration from Europe and Asia New surge in immigration from Europe and Asia Large and willing work force to fuel industry Large and willing work force to fuel industry

5. Technology & Industry cont. Technology & Industry cont. Growth of capitalism Growth of capitalism Laissez faire – govt. stays out of business Laissez faire – govt. stays out of business Horatio Alger - “rags to riches” idea; the American dream Horatio Alger - “rags to riches” idea; the American dream Entrepreneurship – invest money to make a profit; creates jobs Entrepreneurship – invest money to make a profit; creates jobs Protective tariffs Protective tariffs

6. Innovation Electricity transforms life Electricity transforms life Thomas Edison – light bulb Thomas Edison – light bulb 1,000 patents (grant giving exclusive rights to develop and sell for a limited time) 1,000 patents (grant giving exclusive rights to develop and sell for a limited time) Communication Communication Samuel F.B. Morse – telegraph Samuel F.B. Morse – telegraph Alexander Graham Bell – telephone Alexander Graham Bell – telephone Steel Steel Henry Bessemer – Bessemer Process Henry Bessemer – Bessemer Process Purified iron ore to create lightweight, strong steel Purified iron ore to create lightweight, strong steel Suspension bridges held by steel cables (Brooklyn Bridge) Suspension bridges held by steel cables (Brooklyn Bridge) Westinghouse – air brakes; electricity over long distances Westinghouse – air brakes; electricity over long distances Swift – refrigeration cars (meat) Swift – refrigeration cars (meat)

7. Innovation cont. The nation is linked by railroads The nation is linked by railroads Adopted 24 time zones for scheduling Adopted 24 time zones for scheduling Streetcars, subways, commuter rails appear Streetcars, subways, commuter rails appear Mass production Mass production

13. http://www.history.com/shows/modern- marvels/videos/the-telegraph-and-telephone

14. http://www.history.com/shows/modern- marvels/videos/light-bulb-turns-night-into-day

16. 2. Rise of Big Business Most businesses privately owned – limited capital Most businesses privately owned – limited capital Desire for profits, expansion, access to transportation leads to corporations Desire for profits, expansion, access to transportation leads to corporations Many people share ownership Many people share ownership Huge amounts of capital for research, technology, reinvestment Huge amounts of capital for research, technology, reinvestment Board of directors, some shareholders receive dividends (payments) Board of directors, some shareholders receive dividends (payments)

17. Big Business cont. J.P Morgan – banking J.P Morgan – banking Cornelius Vanderbilt – steamboats then railroads Cornelius Vanderbilt – steamboats then railroads John D. Rockefeller – oil John D. Rockefeller – oil Andrew Carnegie – steel Andrew Carnegie – steel Some became monopolies where they bought out competition or drove them out of business Some became monopolies where they bought out competition or drove them out of business Cartel – people in same business agree on production to keep prices high Cartel – people in same business agree on production to keep prices high Trust – put business in other names or smaller companies Trust – put business in other names or smaller companies

18. http://www.history.com/videos/john-d- rockefeller-oil-money-and-power

21. Corporate Giants – How? Horizontal Integration Horizontal Integration Consolidate (buy) many smaller companies in the same business Consolidate (buy) many smaller companies in the same business Rockefeller - bought small oil companies Rockefeller - bought small oil companies Vertical Integration Vertical Integration Control all parts of the production process Control all parts of the production process Rockefeller did this also – controlled oil wells, pipelines, retail outlets, etc. Rockefeller did this also – controlled oil wells, pipelines, retail outlets, etc. Standard Oil Standard Oil

22. Debating the Giants Captains of Industry or Robber Barons? Captains of Industry or Robber Barons? Robber barons Robber barons Unfairly kept high prices, paid workers little, stifled competition, swindled the poor Unfairly kept high prices, paid workers little, stifled competition, swindled the poor Captains of industry Captains of industry Increased labor force, stimulated the economy, technology benefited all, shaped the U.S. into strong industrial power Increased labor force, stimulated the economy, technology benefited all, shaped the U.S. into strong industrial power Most men were philanthropists and donated millions Most men were philanthropists and donated millions

23. Giants cont. Social Darwinism develops out of Charles Darwin’s theory of evolution and natural selection: “survival of the fittest” Social Darwinism develops out of Charles Darwin’s theory of evolution and natural selection: “survival of the fittest” Applied this theory to capitalism Applied this theory to capitalism The rich were the best because they earned it The rich were the best because they earned it The most rigorous and productive rise to the top The most rigorous and productive rise to the top Reluctant to help poor – they were unfit Reluctant to help poor – they were unfit Government should stay out of it Government should stay out of it

24. Regulations ICC – Interstate Commerce Commission – first federal body set up to monitor business (railroads) ICC – Interstate Commerce Commission – first federal body set up to monitor business (railroads) Sherman Antitrust Act – Outlawed any trust that operated “in restraint of trade or commerce among the states.” Sherman Antitrust Act – Outlawed any trust that operated “in restraint of trade or commerce among the states.” Both seldom enforced but at least an attempt Both seldom enforced but at least an attempt

26. Factories Immigrants made up large % of work force Immigrants made up large % of work force Long hours – 12-16 hours, 6 days/week Long hours – 12-16 hours, 6 days/week Sweatshops – small, hot, dirty workplaces Sweatshops – small, hot, dirty workplaces Many women & children employed – 1 in 5 children worked rather than attend school – stunted physical and emotional growth – lost childhood Many women & children employed – 1 in 5 children worked rather than attend school – stunted physical and emotional growth – lost childhood Strict regulation of employees Strict regulation of employees Dangerous – hearing loss from noise, accidents from faulty equipment, poor ventilation Dangerous – hearing loss from noise, accidents from faulty equipment, poor ventilation Child labor Child labor http://www.history.com/videos/the-fight-to-end-child- labor http://www.history.com/videos/the-fight-to-end-child- labor http://www.history.com/videos/the-fight-to-end-child- labor http://www.history.com/videos/the-fight-to-end-child- labor

39. 3. Organized Labor Pros of industrial expansion: Pros of industrial expansion: Economy grew drastically: Economy grew drastically: great wealth for industrialists great wealth for industrialists higher standards of living higher standards of living availability of goods, availability of goods, access to public institutions (schools, museums) access to public institutions (schools, museums) Cons of industrial expansion: Cons of industrial expansion: People who worked in factories struggled to survive, immigrant workers faced discrimination People who worked in factories struggled to survive, immigrant workers faced discrimination

40. Labor Unions Form Early attempts – collective bargaining – group negotiates for better wages, conditions Early attempts – collective bargaining – group negotiates for better wages, conditions Socialism spreads in Europe 1830’s Socialism spreads in Europe 1830’s Favors public (not private) control of property and industry Favors public (not private) control of property and industry 1848 – Karl Marx, Friedrich Engels Communist Manifesto – denounced capitalism and predicted workers would overthrow owners 1848 – Karl Marx, Friedrich Engels Communist Manifesto – denounced capitalism and predicted workers would overthrow owners

41. Labor Unions cont. Knights of Labor – created for all workers of any trade, skilled or unskilled Knights of Labor – created for all workers of any trade, skilled or unskilled AFL – American Federation of Labor founded by Samuel Gompers AFL – American Federation of Labor founded by Samuel Gompers Craft union of skilled workers Craft union of skilled workers Required dues Required dues Sought wages, working conditions, better hours Sought wages, working conditions, better hours Opposed women – feared they would drive wages low Opposed women – feared they would drive wages low

42. Strikes Railroad strikes – caused destruction of property Railroad strikes – caused destruction of property militias called in to protect temporary workers, federal troops sent to stop strikers militias called in to protect temporary workers, federal troops sent to stop strikers Haymarket Square – wanted 8 hour workday, violence began, bomb killed policemen, several others killed Haymarket Square – wanted 8 hour workday, violence began, bomb killed policemen, several others killed

43. Strikes cont. Homestead Strike - Carnegie cuts wages at steel plant; partner (Frick) hired Pinkerton agency, killed several Homestead Strike - Carnegie cuts wages at steel plant; partner (Frick) hired Pinkerton agency, killed several Workers ended strike but led to epidemic of other strikes Workers ended strike but led to epidemic of other strikes Pullman Strike – railway car workers required to live in company towns, wages cut; Eugene V. Debs organizes strike – shut down railroads, mail delivery Pullman Strike – railway car workers required to live in company towns, wages cut; Eugene V. Debs organizes strike – shut down railroads, mail delivery

44. http://www.history.com/videos/andrew- carnegie-and-the-homestead-strike

45. http://www.history.com/videos/jp-morgan- battles-coal-miners-in-1902

49. Impact of Labor Unions Frequent use of troops citing “interference with trade” Frequent use of troops citing “interference with trade” Trend of contract negotiations & strikes Trend of contract negotiations & strikes Splits within the union – radical, moderate Splits within the union – radical, moderate Mistrust and fear of labor; conflicts Mistrust and fear of labor; conflicts