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Chapter 6 A New Industrial Age


Sewing Machine (1846) by John Singer. Internal Combustion Engine (1860) ... Uriah Stephens was the founder. Open to all workers regardless of race, gender, or skill ... – PowerPoint PPT presentation

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Title: Chapter 6 A New Industrial Age

Chapter 6 A New Industrial Age
  • 1850-1900

Labor Unions Emerge in America
  • Problems for Factory Workers
  • 7 day work week
  • 12 hours per day
  • No sick leave, vacations, injury insurance in
    1882, avg. 675 workers killed each week
  • Low wages required all members of a family to
    work no time for schools

Sweatshops and Sweaters
  • Workshops is housing tenements
  • Required few skills
  • 14 hour work days
  • 27 cents/hour
  • Women and children were most often employed

Early Union Movement in U.S.
  • 1866- National Labor Union est. by steel workers
  • 1868- NLU presses Congress for 8 hr. workday
  • NLU refused to allow African American workers
    into Union

Expansion of Industry
  • Main Idea- at the end of the 19th Century,
    natural resources, creative ideas, and growing
    markets fueled an Industrial Boom in the United

Black Gold
  • Edwin Drake discovers oil in 1859 in Titusville,
  • Oil is transformed into Kerosene for home use
  • Gasoline, the byproduct was originally thrown

Iron and the Bessemer Process
  • Henry Bessemer (1850)
  • Injected air into molten iron is remove carbon
    and other impurities
  • Steel was the result

New Uses for Steel
  • Railroad Tracks
  • Farm Equipment- McCormick-Deere
  • Brooklyn Bridge (NY) over the East River
  • Skyscrapers first built in Chicago

New Inventions and Change
  • Thomas Alva Edison
  • Wizard of Menlo Park
  • Light Bulb (1880)
  • Created 1st Research Laboratory

Electricity Changes Lifestyles
  • George Westinghouse makes electricity safe
  • Changes the nature of business
  • Spurs the explosion of home appliances

Inventions Change Lifestyles
  • Typewriter (1867) by Chris Sholes
  • Telephone (1876) by Alexander Bell
  • Sewing Machine (1846) by John Singer
  • Internal Combustion Engine (1860)
  • Electric Motor (1873) by Westinghouse
  • Phonograph (1877) by Edison
  • Radio (1895) by Joseph Marconi

Age of the Railroads
  • Transcontinental RR completed in 1869
  • 20,000 workers to complete
  • Thousands of Chinese immigrants are hired to work

Railroad Time Zones
  • 1869- C.F. Dowd divides the earth into 24 time
  • Nov. 18, 1883- Railroad crews synchronize their
  • Congress adopts it in 1918

Railroads Create Opportunities
  • RR Promote trade throughout the nation
  • Connected Regions
  • Dozens of new cities are created along the
    railroad lines

Pullman, Illinois (1880)
  • Created by George Pullman
  • Factory made sleeper cars Tightly controlled
  • No Alcohol allowed
  • Residents rioted in 1894

Railroad Abuses
  • Credit Mobilier Scandal(1867)- Union Pacific
    Railroad created a construction company that
    charged 3 times the actual cost of laying track
  • 23 Million in false building expenses
  • Several U.S. Congressmen received money
  • Republican Party is tarnished by the scandal

Granger Laws and the Railroads
  • Farmers Issues with the Railroads
  • Misuse of Land Grants
  • Fixing of Shipping Rates (Short vs. Long Haul)

Munn vs. Illinois (1877) Supreme Court case that
allowed the states to regulate the railroad
companies for the benefit of farmer and consumers
Interstate Commerce Act (1887)
  • Congress passes a law that gives the Federal
    Government the power to regulate the railroad
    companies over the states
  • Establishes the Interstate Commerce Commission
  • 1897 Supreme Court ruling limits the ICC from
    setting shipping rates of railroad companies

Panic of 1893
  • Railroad financial issues lead to nationwide
  • In 1894, many of the nations railroads are taken
    over by investment companies
  • J.P. Morgan reorganizes the railroads into 7
    powerful companies that will control 70 of all
    railroad lines in America

Big Business in America
  • Andrew Carnegie
  • 1873-establishes Carnegie Steel Company
  • 1899- Carnegie Steel is the largest producer of
    steel in the world

Carnegies Business Strategies
  • Accounting Systems that allowed for the precise
    tracking of costs
  • Offered stock options in his company to attract
    the most talented people to his company

Carnegies Business Innovations
Vertical Integration 1) Bought the companies
that supplied services to control costs 2) Coal
fields, Iron ore fields 3) Railroad cars 4)
Railroad Lines
  • Horizontal Integration
  • Attempted to limit competition
  • Bought out rival companies
  • Merged with rival companies

Social Darwinism and Business
  • Process of natural selection weeds out the less
  • Philosophy that grew out of Charles Darwins book
  • Success and Failure in business were governed by
    natural laws, laissez faire

New Definition of Success
  • 1867-1880 4,000 new millionaires emerge in
  • Notion that hard work results in success
    appealed to the Protestant work ethic of many
  • According to Social Darwinism, riches were a sign
    of favor with God
  • The poor were therefore lazy and deserved their
    lot in life

Growth and Consolidation of Americas Businesses
After the Panic of 1893, many industrialists
followed the lead of Carnegie and J.P.
Morgan Mergers of companies became common with
one company buying a majority of the stock of
another company Monopolies emerge as companies
gained complete control of an industries
production, wages, and prices
U.S. Steel (1901)
  • Banker J.P. Morgan buy Carnegie Steel for 1
  • Creates the largest corporation in the world

Standard Oil of Ohio
  • John D. Rockefeller
  • Merges with other oil companies to form Trusts
  • Illegal Mergers to control prices
  • Eventually gained total control of oil industry
    in America

The Robber Barons
  • 20 Billionaires in America that will control
    most industry
  • Rockefeller, Carnegie, and Morgan will donate
    millions to charity

Sherman Antitrust Act (1890)
  • Trusts were stifling free competition and driving
    up prices for Americans
  • Congress pass this law to prevent the formation
    of Trusts to control prices
  • Supreme Court did not support the Act because the
    term trust wasnt clearly defined

The Knights of Labor (1869)
  • Uriah Stephens was the founder
  • Open to all workers regardless of race, gender,
    or skill
  • Supported 8 hr. workday
  • Equal pay
  • Used strikes as a last resort

American Federation of Labor
  • Samuel Gompers est. AFL in 1886
  • Union of skilled workers from trades
  • Collective Bargaining
  • Increase Wages
  • 8 hour workday
  • Use of Strikes as a major tactic
  • Very successful

Eugene V. Debs
  • Unions for skilled and unskilled workers
  • American Railway Union in 1889
  • Strikes for higher wages
  • Strikes are the weapon of the oppressed

Socialism and Unions
  • Eugene V. Debs turns to Socialism
  • Socialism is an economic system in which the
    government controls business and equalize
    distribution of wealth
  • Industrial Workers of the World (IWW)
  • Est. in 1905 by radical unionist and socialists
    in Chicago
  • Gave dignity to unskilled workers

Strikes turn Violent
  • 1877- Baltimore and Ohio (BO) Railroad strike is
    ended by federal troops
  • 1886- Haymarket Riot takes place during a strike
    of the McCormick Harvester Factory Chicago
    police strikers are killed
  • 1892- Homestead Strike (Carnegie Steel) 9 steel
    workers killed by Pinkerton Agents
  • 1893- Pullman Strike federal troops are sent to
    end strike Debs is jailed

Mary Harris Mother Jones
  • Organized the United Mine Workers Union
  • Exposed the cruelty of child labor
  • Worked for equal pay for women
  • Safer conditions in the coal industry

Yellow-Dog Contracts
  • Companies fought to limit the power of unions in
  • Refused to recognize unions
  • Fired union members
  • Forced new employees to swear not to join a union
    (yellow-dog contract)
  • Supreme Court ruling in 1890 placed legal limits
    on unions ability to call for strikes