Industrialization 1865-1901

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Industrialization 1865-1901

• Chapter 14

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• Section 1 The Rise of Industry
• American industry grew rapidly after the Civil
  War, bringing revolutionary changes to American
  society.

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• The United States Industrializes (pages 436-437)
• With the end of the Civil War, American industry
  expanded and millions of people left their farms
  to work in mines and factories.
• By the early 1900s, the U.S. had become the
  worlds largest leading industrial nation. By
  1914 the GNP, was eight times greater than at the
  end of the Civil War.
• What was responsible for this growth?
• -3 Factors That Led to the Industrial Boom
• A wealth of natural resources.
• A growing urban population that provided both
  cheap labor and markets for new products.
• Government support for business.

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• 1st Factor Natural Resources abundance of raw
  materials vast natural resources that industry
  depended on water, timber, coal, iron, and
  copper.
• These resources were here in America! Less
  import of resources now because America had them!
• Most of these resources were located in the
  mountains of the West. The settlement of the
  West helped accelerate industrialization, as did
  the transcontinental railroad by bringing
  settlers and miners to the West and moving
  resources back to the factories in the East.
• Edwin L. Drake- drilled the first oil well near
  Titusville, PA in 1859 oil production increased.

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Edwin L. Drake

• Drilled a well in Titusville, PA and struck oil
• Harvested kerosene threw away the gasoline

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• 2nd Factor Large Workforce
• Between 1860 and 1910, the population of the U.S.
  tripled. This provided a large workforce and a
  greater demand for consumer goods.
• Why the population growth? Large families and a
  flood of immigrants.

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• 3rd Factor Government Support for business
• Laissez-faire economics, popular idea in the late
  1800s government should not interfere with the
  economy. Supply and demand needed to regulate
  prices and wages.
• Profit motive entrepreneurs increase attracted
  to manufacturing and transportation fields.
  Resulthundreds of factories and thousands of
  miles of railroad built.
• Foreign investments? helped fund the nations
  industrial buildup.
• Laissez-faire government low taxes and low
  spending no regulations on industry all
  policies to help industry.
• High tariff controversy? Is the U.S. ready to
  compete by the early 1800s freely with other
  nations or do we still nee a protective tariff?

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• New Inventions Promote Change New inventions
  increased Americas productivity, which in turned
  produced wealth and job opportunities.
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• Samuel Morse 1844 telegraph to send messages
  before telegraph horse and rider
• Elias Howe 1846 sewing machine
• Elisha Otis 1852 safety elevator kept elevator
  cars from suddenly falling
• George Pullman 1864 rail sleeping car
• Thaddeus Lowe 1865 ice machine
• Gustavus Swift invented refrigerated rail cars
  for transporting food
• Alexander Graham Bell1876 invented telephone
• Thomas Alva Edison 1879 light bulb electric
  generator, motion picture

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• The Power of Electricity
• Thomas Alva Edison- 1876 established the world's
  first research lab in New Jersey. There he
  perfected the incandescent light bulb, which was
  patented in 1880. He later invented an entire
  system for producing and distributing electrical
  power.
• -The harnessing of electricity completely
  changed the nature of business in America.
• Inventions Change Lifestyles
• Alexander Graham Bell and Thomas Watson- 1876
  invented the telephone, which opened the way for
  a worldwide communications network.
• -Both the typewriter and the telephone created
  new jobs for women.
• -In 1870 women made up 5 of the workforce -- by
  1910 they counted for nearly 40 of the clerical
  workforce.

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• Section 2 The Age of the Railroads
• After the Civil War, the rapid construction of
  railroads accelerated the nations
  industrialization and linked the country
  together.

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• I. Linking the Nation
• A. After the Civil War, railroad construction
  dramatically expanded. In 1862 President Abraham
  Lincoln signed the Pacific Railway Act, which
  provided for the construction of a
  transcontinental railroad by the Union Pacific
  and Central Pacific railroad companies. To
  encourage rapid construction, the government
  offered each company land along its right of way.

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• B. In 1865 the Union Pacific, under engineer
  Grenville Dodge, pushed westward from Omaha,
  Nebraska. Weather, labor, money, and engineering
  problems hampered the project. The workers
  included Civil War veterans, Irish immigrants,
  farmers, miners, cooks, and ex-convicts. Camp
  life was dangerous.
• C. Four merchants known as the Big Four
  invested in the Central Pacific Railroad. They
  each bought stock in the railroad and eventually
  made a fortune. One of them, Leland Stanford,
  became Governor of CA, founded Stanford
  University, and later became a U.S. Senator.
• Transcontinental Railroad- in May 1869 the
  Central Pacific and the Union Pacific met in Utah
  to nail the Golden Spike that marked the nation's
  first cross-country railroad.
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• II. Railroads Spur Growth
• Railroads encouraged the growth of American
  industry. They linked the nation and increased
  the size of markets. The railroad industry
  stimulated the economy by spending large amounts
  of money on steel, coal, and timber (natural
  resources? )
• Cornelius Vanderbilt famous railroad
  consolidator
• 1883 American Railway Association divided the
  country into __4__ time zones, or regions.
  where the same time was kept safety and more
  reliability Eastern, Central, Mountain, and
  Pacific.
• Large integrated railroad systems provided
  increased efficiency, a decrease in time spent in
  long distance travel, and it united Americans
  from different regions.

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• III. The Land Grant System
• Land Grants were given to railroad companies by
  the federal government to encourage railroad
  construction.
• Railroad companies like the Union Pacific and
  Central Pacific were able to cover all their
  building costs by selling land to settlers, real
  estate agencies, and other businesses.

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• IV. Robber Barons-The growth and consolidation of
  railroads benefited the nation, but also led to
  corruptness and required government regulation.
• The wealth of railroad entrepreneurs led to
  accusations that they had acquired their wealth
  through illegal means. One of the entrepreneurs
  with the worst reputation was Jay Gould, who used
  information he obtained as a railroad owner to
  manipulate stock prices to his benefit.
• Railroad investors realized they could make more
  money through land grants than by running a
  railroad, so many investors bribed members of
  Congress to vote for more land grants.

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• Robber baron is a pejorative term used for a
  powerful 19th century United States businessman
  and banker. The term may now relate to any
  businessman or banker who used questionable
  business practices to become powerful or wealthy.
• Andrew Carnegie (steel)Pittsburgh and New York
• J. P. Morgan (banking, finance, industrial
  consolidation)New York City
• Jay Gould (railroads)--New YorkCornelius
  Vanderbilt (railroads)--New York8

John D. Rockefeller (oil), Standard Oil--New York
Cornelius Vanderbilt (railroads)--New York8
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• The wealth of railroad entrepreneurs led to
  accusations that they had acquired their wealth
  through illegal means. One of the entrepreneurs
  with the worst reputation was Jay Gould, who used
  information he obtained as a railroad owner to
  manipulate stock prices to his benefit.
• Railroad investors realized they could make more
  money through land grants than by running a
  railroad, so many investors bribed members of
  Congress to vote for more land grants.

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• In 1872 corruption in the railroad system became
  public with the Credit Mobilier scandal. Several
  stockholders of the Union Pacific set up the
  Credit Mobilier, a construction company. The
  investors signed contracts with themselves. The
  company greatly overcharged Union Pacific, and
  the railroad agreed to pay the inflated bills.
• When the railroad was completed, the investors
  had made a fortune, but the railroad was almost
  bankrupt. Congress agreed to give additional
  grants to the railroad after several members of
  Congress were given shares in Union Pacific at a
  price well below market value. An investigation
  implicated several members of Congress, including
  James Garfield, who later became president?
  Union Pacific had taken up to 23 million in
  stocks, bonds, and cash.

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• Chapter 14, Section 3 Guided Reading Notes Big
  Business
• The Rise of Big Business By 1900, big
  businesses dominated the economy.
• The Role of Corporations
• Big business would not have been possible without
  the corporation.
• Corporation an organization owned by many
  people but treated by law as though it were a
  single person.
• Stockholders/Stocks

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• Economies of Scale
• Money from stock investment of in new
  technologies, hiring a large workforce, and
  purchase of machines that increase efficiency
• Economies of scale corporations making goods
  cheaply because they produce so much so quickly
  using large manufacturing facilities.
• Criticisms of corporations using wealth to
  drive small companies out of business.

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• The Consolidation of Industry To stop prices
  from falling (cut in their profits), many
  companies formed pools, or agreements to maintain
  prices at a certain level. Criticism
  interfered with competition and private property
  rights. Companies that formed pools had no legal
  protection and could not enforce their agreements
  in court. Pools generally did not last long.
  Sooner or later competition resumed.

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John Rockefeller

• Robber Baron
• Rich from Oil Industry
• Founded Standard Oil Company in 1870

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Andrew Carnegie

• Business tycoon
• Scottish immigrant Rags to riches
• Steel industry

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• Andrew Carnegie and Steel
• Built first American steel mills to use the
  Bessemer Process make high quality steel
  efficiently and cheaply.
• Vertical Integration (steel industry) company
  owns all of the different businesses on which it
  depends for its operation.
• Horizontal Integration (oil) combining many
  firms engaged in the same type of businesses into
  one large corporation. monopolies Rockefeller
  Standard Oil (buyouts)
• Later monopolies would be outlawed by the Sherman
  Antitrust Act

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Bessemer Process

• Injecting Air into molten iron to create STEEL
• Made Carnegie wealthy!

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Monopoly

• Owning the majority of a group of companies in
  the same business

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• Selling the Product
• Advertising Industry Rose Woolworths Sears,
  Roebuck
• Mail-order catalogs, chain stores

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• Chapter 14, Section 4 Guided Reading Notes
  Unions (the other side of the spectrum)
• Working the United States
• Life for workers in industrial America was
  difficult.
• Machines replaced skilled labor work became
  monotonous. little pride in ones work.
• Working conditions were unhealthy and dangerous.
  Workers breathed in dust, lint, and toxic fumes.
  High number of injuries.
• Real wages rose ? Standard of living rose?
• Uh-oh Deflation workers felt like they were
  being paid less money for the same amount of
  work. many workers decided to organize.

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WORKING CONDITIONS
-low wages -long hours -dangerous
conditions -company towns -child labor
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Sweatshops

• Illegal factories where workers work for less
  than legal wages

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Craft Unions

• Union limited to those who participate in that
  type of work
• Ex. All carpenters

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Trade Unions

• Used Collective Bargaining negotiating with the
  strength of numbers
• All workers for an employer

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• Early Unions
• Trade Unions unions limited to people with
  specific skills. Largest and most successful in
  1873 Iron Molders International Union.
• Employers were often forced to recognize and
  negotiate with trade unions because they
  represented workers whose skills they needed.
• However, employers generally regarded labor
  unions as conspiracies that interfered with their
  property rights. They particurlaly opposed
  industrial unions united all craft workers
  (special skills and training) and common laborers
  (few skills and received low wages).

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• Techniques used to stop labor unions
• Oaths and sign contracts promising not to join an
  union hired detectives to go undercover and
  identify union organizers blacklist a list of
  troublemakers lockout locked workers out of
  the property and refused to pay them hired
  strikebreakers.

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Collective Bargaining

• Negotiation between labor unions and employers

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Arbitration

• Resolution of disputes outside of court

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Yellow Dog Contract

• Workers agree NOT to join a union while employed

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• Political and Social Opposition
• Workers wanting to join a union faced several
  major problems
• No laws allowing workers the right to organize.
• Owners were not required to negotiate with
  workers.
• Courts frequently rules against them, referring
  to them as conspiracies.
• Perception that they threatened American
  industries.
• Marxism basic force shaping capitalist society
  was the class struggle between workers and
  owners workers would eventually revolt, seize
  control of the factories, and overthrow the
  govt then govt would seize all private
  property and create a socialist society where all
  property would be evenly divided leading to a
  Communist society.
• Many labor supporters agreed with Marx, and a few
  even supported anarchism.
• All of these ideas were driving forces in
  Euorpoean unions immigrants nativism
  attempts at suppression of unions.

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• The Struggle to Organize
• The Great Railroad Strike Circle Map
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• The Knights of Labor Circle Map
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• The Haymarket Riot Circle Map
• The Pullman Strike Circle Map
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The great Railway Strike of 1877

• Response to wages being cut
• Lasted for 45 days
• Ended by federal troops

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Knights of Labor

• The Knights grouped workers by industry,
  regardless of trade or skill
• First to organize women

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Haymarket Riot

• A bomb was exploded during a Union Labor Rally in
  the Haymarket Square, in Chicago.
• 1886
• 7 policemen were killed

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Pullman Strike

• Wages were cut but rents remained the same
• Pres. Cleveland strike disrupts the mail
• Troops were sent in to break it up

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• The American Federation of Labor
• AFL first leader Samuel Gompers his approach
  helped unions become accepted in American
  society.
• He believed that unions should stay out of
  politic rejected socialist and communist ideas.
• Gompers felt that the AFL should fight for small
  gains within the American system. Gompers was
  willing to use the strike method, but preferred
  negotiations.
• AFLs 3 main goals under Gompers leadership
• Tried to get companies to recognize unions and to
  agree to collective bargaining.
• Pushed for closed shops companies could only
  hire union workers.
• Promoted an 8-hour workday.
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American Federation of Labor

• Largest group of labor unions
• Founded by Samuel Gompers

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• Working Women
• After Civil War women wage earners increased.
• womens work teachers, nurses, sales clerks,
  domestic servants.
• Light industrial jobs
• Paid less than men most unions, including the
  AFL excluded women.
• Mary Kenney OSullivan and Leonora OReilly
  decided to establish a separate union for women
  with the help of Jane Addams and Lillian Ward
  WTUL
• WTUL pushed for creation of minimum wage, an end
  to evening work for women, and abolition of child
  labor.

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