Chapter 14 The Second Industrial Revolution

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Chapter 14 The Second Industrial Revolution
Section Notes
Video
The Second Industrial Revolution
Industry and Railroads The Rise of Big
Business Workers Organize The Age of Invention
Maps
Railroads Built by 1910 Railroads Transform
Chicago
Quick Facts
Images
Visual Summary The Second Industrial Revolution
Vertical and Horizontal Integration Political
Cartoon John D. Rockefeller Child Labor Menlo
Park Lab
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Industry and Railroads

• The Main Idea
• During the late 1800s, new technology led to
  rapid industrial growth and the expansion of
  railroads.
• Reading Focus
• What new industries emerged in the late 1800s,
  and why were they important?
• Why did railroads expand, and what changes
  resulted?

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New Industries Emerge

• New technologies
• Electrical power replaced steam and water power.
• Larger factories produced more and more goods.
• Faster transportation moved people and goods more
  cheaply.
• Dramatic industrial growth
• Period sometimes called the Second Industrial
  Revolution

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New Industries Emerge

• Making steel
• The Bessemer process of purifying steel helped to
  make America the worlds top producer and
  transformed the U.S. into a modern industrial
  economy.
• Construction companies could build bigger bridges
  and taller buildings.
• The low cost of steel made ordinary items
  affordable.

• Oil industry begins
• Oil was a key commodity as a fuel source and for
  lubrication.
• Edwin L. Drake drilled the first commercial oil
  well. Oil prospectors, or Wildcatters, looked
  for oil in other regions.
• Major sources of energy from oil fueled a
  revolution in transportation and industry.

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Railroads expand

• Between 1865 and 1890, the number of miles of
  railroad track increased nearly fivefold. Aiding
  the growth, the federal government gave thousands
  of acres of land to railroad companies.

More tracks

• Laid tracks westward from Omaha, Nebraska
• Prairie lands and gently rolling hills made for
  quick progress.

Union Pacific

• Tracks were laid eastward from Sacramento,
  California. Chinese workers laid tracks through
  tougher terrain, crossing deserts and blasting
  through mountains.
• Uniting the country physically and economically,
  the two rail lines met on May 18, 1869.

Central Pacific
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Important Effects
Creation of rail network promoted trade and
provided jobs. Demand for rails and railcars
boosted steel industry and train manufacturers.
Settlement of the West was easier, and sparsely
populated areas began to fill with residents.
With railroads, new towns were founded and
existing ones expanded.
Railroads led to the adoption of standard time.
Before, each area had its own local time based on
the position of the sun. Accurate timekeeping was
needed for the trains to keep to their schedule.
C. F. Dowd proposed dividing the earth into time
zones, setting the clocks alike in each zone.
Railroad officials used this idea in 1883, and by
1918 standard time was adopted for the nation as
a whole.
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The Rise of Big Business

• The Main Idea
• Corporations run by powerful business leaders
  became a dominant force in the American economy.
  
• Reading Focus
• What conditions created a favorable climate for
  business during the late 1800s?
• How did business structures change?
• Who were the leading industrial tycoons, and what
  did they achieve?
• How did mass marketing change the way goods were
  sold?

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A Favorable Climate for Business
The American ideal was one of self-reliant
individualism. A strong work ethic made one
successful, and entrepreneurs risked their money
and talents in new ventures.

• Free markets
• With capitalism, competition determines prices
  and wages, and most industries are run by private
  businesses.
• In the 1800s, business leaders believed in
  laissez-faire capitalism with no government
  intervention.
• They believed government regulation would destroy
  self-reliance, reduce profits, and harm the
  economy.

• Social Darwinism
• Many thinkers believed that inequalities were
  part of the natural order.
• Charles Darwin believed that members of a species
  complete for survival in a natural selection
  process.
• Applied to society, stronger people, businesses,
  and nations would prosper, and weaker ones would
  fail in a survival of the fittest.

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Business Structures Change

• Proprietorships and partnerships
• Small businesses were run by individual
  proprietors or had more than one owner in a
  partnership. In either case, owners are
  personally responsible for all business debts and
  obligations.
• Corporations
• As industries grew, the structure of ownership
  changed. Businesses were owned by stockholders
  decisions made by a board of directors, with
  day-to-day operations run by corporate officers.
  Investment money was raised by selling stock, and
  investors were bound only by the amount of their
  investment.
• Trusts and Monopolies
• Some companies merged and turned their stocks
  over to a board of trustees who ran the group of
  companies as a single entity. Sometimes a trust
  gained a monopoly, having complete control of an
  industry. With no competition, prices could be
  raised or lowered at will.

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Industrial Tycoons
Starting with an oil refinery and superb business
sense, John D. Rockefeller used both vertical and
horizontal integration to capture 90 percent of
the U.S. oil refinery business by 1879.
Rockefeller gave away over half of his fortune
to charity. He donated millions to education and
good works through his Rockefeller Foundation.
Rockefeller and oil
Andrew Carnegie rose from immigrant child to
steel magnate. He used profits from various
business investments to found his own company. By
the end of the century the Carnegie Steel Company
dominated the U.S. steel industry. After
retiring, Carnegie devoted his time to charity,
supporting education and building public
libraries.
Carnegie and steel
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Industrial Tycoons
Vanderbilt began investing in railroads during
the Civil War. By 1872, he owned the New York
Central Railroad. At the height of his career he
controlled 4,500 miles of track. He supported few
charities, but gave money to what would come to
be Vanderbilt University. He died leaving an
estate of 100 million.
Cornelius Vanderbilt
George Pullman made his fortune designing and
building sleeper cars that made long-distance
travel more comfortable. He built a town south of
Chicago to house workers in relative comfort,
believing happy workers were more productive. The
Pullman Company controlled aspects of life in the
town, and criticism was not tolerated.
George Pullman
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A Mixed Legacy

• Critics
• Business tycoons were robber barons who
  profited unfairly by squeezing out competitors.
  They lived lavish lifestyles from their
  ill-gotten rewards.
• Proponents
• Business tycoons were captains of industry who
  used their business skills to make the American
  economy more productive. That in turn made the
  American economy stronger.

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Mass Marketing
Retailers looked for new ways to maximize their
profits.
Household goods were targeted toward women, who
made most of those purchasing decisions.
Wholesome images were used to convey a sense of
purity. Brand names helped customers remember
products. The convenient department store
emerged, providing a variety of goods. The stores
bought in bulk, passing the savings on to the
customers.
Mail-order companies gave rural dwellers access
to a huge variety of goods. The Sears, Roebuck
and Company catalog was 507 pages. Customers made
their selections, sent in the payments, and
waited for the merchandise to arrive.
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Workers Organize

• The Main Idea
• Grim working conditions in many industries led
  workers to form unions and stage labor strikes.
• Reading Focus
• What was the relationship between government and
  business in the late 1800s?
• What were working conditions like for industrial
  workers?
• How did workers seek change?

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Government and Business

• Hands-off policy
• Government did not interfere with business in the
  late 1800s, but as corporations expanded and
  gained power, that policy began to change.
• Controlling the giants
• The Sherman Antitrust Act was passed in 1890,
  making it illegal to form trusts that interfered
  with free trade. It prohibited monopolies and
  activities hindering competition.
• The law was vague, however, and it was seldom
  enforced.
• Workers
• The government paid less attention to workers,
  who scraped by on small wages. By 1890, 10
  percent of the population controlled 75 percent
  of the nations wealth. The rich were very rich,
  and many industrial workers made less than 500
  per year.

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Industrial Workers

• The workforce
• Many factory workers were immigrants or rural
  Americans moving to the cities for jobs.
• The best jobs went to native-born whites or
  European immigrants.
• Less well-paying jobs were open to African
  Americans, as household help or laborers.
• By 1900, one in six children between the ages of
  10 and 15 held factory jobs.

• Working conditions
• Most unskilled laborers worked 10-hour days, six
  days a week.
• They had no paid vacation and no sick leave.
• Speed of production led to terrible accidents.
  Injured workers were replaced.
• Sweatshops were common. These cramped workshops
  set up in shabby tenement buildings were common
  in the garment industry.

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Workers Seek Change
In 1794, Philadelphia shoemakers formed a trade
union. Over decades, unions formed for skilled
trade workers, but they remained small and local.

Early organizing
After the Civil War, things changed. The Knights
of Labor formed in 1869. Under the leadership of
Terence V. Powderly in the 1880s, they began to
accept unskilled workers, women, and African
Americans as members. They campaigned for
reforms, such as eight-hour workdays and the end
of child labor through boycotts and negotiations.

Nation Unions
After wage cuts, the first railroad strike
occurred in 1877. Initial strikes quickly spread,
and state militias were called out. Violence
ensued, lives were lost, and costly damage was
done. The arrival of U.S. Army troops put an end
to the strike.
The Great Railroad Strike
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Strikes and Turmoil

• The Haymarket Riot
• 1886 was a difficult year for labor.
• One of the worst clashes was at Haymarket Square
  in Chicago. A bomb was thrown in a crowd gathered
  to protest violent police action. Gunshots rang
  out, and eleven people were killed and hundreds
  injured before it was over.
• Foreign-born unionists were blamed for the
  violence, and the press fanned xenophobia.
• Eight men were charged with conspiracy, but no
  evidence connected them to the crime.
• All eight were convicted and sentenced to death.
  After four hangings and one suicide, the last
  three were pardoned.

• The American Federation of Labor
• Employers struck back at organized labor, forcing
  employees to sign documents saying they would not
  join a union.
• Blacklists of people deemed troublemakers were
  made and shared by employers, who refused to hire
  anyone listed.
• Striking workers were replaced with scabs, or
  strikebreakers.
• Samuel Gompers led a group of skilled workers to
  form the American Federation of Labor in 1886.
• Using strikes and other tactics, the AFL did win
  wage increases and shorter workweeks.

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The Homestead Strike
Unions made some gains, but conflicts continued.
Carnegie Steel workers in Homestead,
Pennsylvania, refused to work faster, and the
manager tried to lock them out. The workers
seized the plant. Gunfire erupted when private
guards hired by the company tried to take
control. After a 14-hour battle and fourteen
deaths, the governor called out the state
militia. The steelworkers union withered within
months.
The Pullman Strike
After laying off a third of its employees in
1893, the Pullman Company cut the wages of
remaining workers by 25 percent without lowering
their rents. Workers went on strike with the
support of Eugene V. Debs, the leader of the
American Railway Union. The government ordered
the strike be called off, but the union refused.
President Grover Cleveland called in federal
troops, and the strike collapsed. The late 1800s
would remain an era of big business.
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The Age of Invention

• The Main Idea
• Important innovations in transportation and
  communication occurred during the Second
  Industrial Revolution.
• Reading Focus
• What advances in transportation were made in the
  late 1800s?
• What inventions led to a communications
  revolution?
• How did Thomas Edison help shape the modern world?

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Advances in Transportation

• Streetcars were horse-drawn vehicles placed on
  rails on the street to make the ride smoother.
  Streetcars needed more power than horses could
  provide, and cable cars were invented in San
  Francisco to get cars up the steep hills there.
  The cars latched on to a moving cable
  underground.
• Subways developed as a result of increased
  traffic from horses and electric streetcars
  competing for space. Boston built the first
  subway line in 1897, with New York City following
  in 1904.

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Advances in Transportation

• Automobilesinventors were experimenting with
  vehicles for personal use as well. A breakthrough
  came with the invention of the internal
  combustion engine in 1867. The first practical
  motorcar in the U.S. was built in 1893.
  Automobiles were only for the wealthy a new car
  cost about 2,500.
• AirplanesOhio bicycle makers Wilbur and Orville
  Wright were the first to successfully fly an
  airplanefor 12 seconds in 1903. They followed
  this success with even longer flights.

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Communications Revolution

• The telegraph
• Samuel F. B. Morse patented his method of
  communicating by sending messages over wires
  with electricity, calling it the telegraph.
• Operators tapped out patterns of long and short
  messages that stood for letters of the alphabet.
  The system was known as Morse code.
• After the Civil War, the telegraph grew with the
  railroads. Telegraph wires were strung along the
  tracks, and train stations had telegraph offices
  in them.

• The telephone
• Two men were working on devices that could
  transmit voices using electricity.
• Alexander Graham Bell patented his device hours
  before his competitor, and he gets the credit for
  the invention of the telephone in 1876.
• Companies found the telephone to be an essential
  business tool. People wanted to have them in
  their homes as well.
• By 1900, more than a million telephones had been
  installed across the nation.

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The Typewriter
Inventors in many nations made attempts to create
a writing machine.
Christopher Latham Sholes, a Milwaukee printer,
developed the first practical typewriter in 1867.
He later improved upon his machine by designing
the QWERTY keyboard, still the standard on
keyboards today. The most frequently used letters
were placed far apart so they would not jam when
they were struck.
The typewriter could produce legible documents
very quickly. Businesses began to hire women as
typists to manage company correspondence, opening
up new job opportunities for women.
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Thomas Edison

• Obsessed with progress
• As a child, Thomas Edison was curious about
  everything. Nearly deaf by twelve, he declared
  himself an inventor by age twenty-two. In 1886,
  he opened his own research laboratory in Menlo
  Park, N.J.
• Hard work
• Edison said, Genius is 1 percent inspiration, 99
  percent perspiration. He worked alongside his
  assistants and spent long hours tinkering with
  designs. Inventions poured out of the lab, and
  Edison became known as the Wizard of Menlo Park.
• Electric lighting
• Edison developed the practical electric lighting.
  With the incandescent bulb came the need for
  widely available electricity. Edison would bring
  electricity to New York City, designing and
  producing all of the parts necessary for an
  electricity network. Electric power plants spread
  across the country.
• Over his lifetime, Edison earned over 1,000 U.S.
  patents.

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