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The Expansion of American Industry


Chapter 13 The Expansion of American Industry iRespond Question Master A.) Response A B.) Response B C.) Response C D.) Response D E.) Response E Percent Complete 100 ... – PowerPoint PPT presentation

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Title: The Expansion of American Industry

Chapter 13
  • The Expansion of American Industry

Life in 1865
Life in 1900
Transcontinental Railroad
  • Began in 1862
  • Central Pacific Railroad- from Sacramento, CA
  • Union Pacific Railroad- from Omaha, Nebraska
  • Met 1869 at Promontory Point, UT
  • Developed time zones-four in U.S. Eastern,
    Central, Mountain, Pacific

  • Telegraph Morse code
  • Western Union had 900,000 miles of wire by 1900
  • Alexander Graham Bell invented the telephone
  • Set up American Telephone and Telegraph Company
  • By 1900, 1.5 million phones

Electric Power
  • Thomas A. Edison built his invention factory
  • Phonograph, 1877
  • Electric glass bulb 1880, made of bamboo fiber
  • Power plant in New York City

Alternating Current
  • George Westinghouse developed alternating current
  • Used transformer to boost power levels
  • Created Westinghouse Electric

Bessemer Process
  • Henry Bessemer in England and William Kelley in
    U.S. developed steel process
  • Easier to remove the impurities from production
  • Mass production now possible
  • Led to a new age of building

Brooklyn Bridge
  • Engineer John A. Roebling
  • designed suspension bridge
  • with thick steel cables suspended
  • from high towers
  • His son Washington took ever
  • After many set-backs, the
  • bridge opened May 24, 1883.

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Section 2
  • The Growth of Big
  • Business

Business Leaders of the Late 1800s
  • Robber Barons?
  • Drained the country of its natural resources
  • Persuaded officials to interpret laws in their
  • Drove competitors to ruin
  • Paid their workers meager wages
  • Workers forced to work in dangerous and unhealthy
  • Captains of Industry?
  • Increased the supply of goods by building
  • Created jobs that allowed Americans to buy their
  • Founded and funded museums, libraries, and

Andrew Carnegie
  • Emigrated to the U.S. in 1848 used money earned
    as superintendent of PA railroad to invest in
    steel mills
  • Established Carnegie Steel Company, drove
    competitors out of business, and soon controlled
    the entire steel industry
  • Bought the iron ore mines, mills,
  • shipping and rail lines to transport
  • his steel products to market
  • Philanthropist gave away 350 million
  • Gospel of wealth free to make money and
  • should give it away

Social Darwinism
  • Darwin all animal life had evolved by a process
    of natural selection
  • Social Darwinism society should do as little as
    possible to interfere with peoples pursuit of
  • Government should stay out of the affairs of
  • The most fit would become rich and society
    would benefit
  • Most Americans agreed that government should not
    tax business nor regulate their relations with

Monopolies and Cartels
  • Monopoly
  • Complete control of a product or service
  • A business bought its competitors or drove them
    out of business
  • Could then charge high prices
  • Cartel
  • A loose association of businesses that make the
    same product
  • Members agreed to limit the supply of their
    product and keep prices high

The Standard Oil Trust
  • Edwin L. Drake struck oil in Titusville, PA in
  • John D. Rockefeller set up a refinery in Ohio in
  • He undersold his competitors and bought them out.
  • In 1882 the owners of Standard Oil and other
    companies combined their operations, appointing
    nine trustees. Rockefeller controlled the trust
  • Forty companies joined the trust and controlled
    the nations oil, limiting competition
  • 1890 Congress passed the Sherman Antitrust Act,
    outlawing any combination of companies that
    restrained commerce proved ineffective for 15

Horizontal and Vertical Consolidation
  • Horizontal Consolidation
  • Create a giant company by bringing together many
    firms that were in the same business
  • Example Standard Oil Trust
  • Vertical Consolidation
  • Gaining control of the many different businesses
    that make up all phases of a products
  • Example Carnegie Steel
  • Could charge less because of economies of scale
    as production increases, the cost goes down

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Business Cycle
  • Boom and bust
  • Rapid industrial growth placed strains on the
  • Businesses overproduced then cut wages and laid
    off workers
  • Often caused a panic, resulting in bank and
    business failures
  • Panic of 1893

Section 3
  • Industrialization and
  • Workers

The Growing Work Force
  • 14 million immigrants between 1860 and 1900
  • Contract Labor Act, 1864
  • 8 to 9 million moved to the cities
  • Every family member worked little relief for the

Factory Work
  • Laborers worked 12 hours, 6 days a week
  • Piecework fixed amount for each finished piece
  • Frederick Winslow Taylor increased efficiency,
    The Principles of Scientific Management
  • Division of Labor workers performed one small
    task, over and over
  • Work boring and dangerous

Working Women and Children
  • Women operated simple machines and had no chance
    to advance
  • Children made up more than 5 of the labor force
  • Children stunted in body and mind
  • Jacob Riis attacked child labor in Children of
    the Poor

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Section 4
  • The Great Strikes

Gulf Between Rich and Poor
  • Socialism economic and political philosophy that
    favors public or social control of property and
    income, not private control
  • Communism Complete government ownership of land
    and property Karl Marx, along with Friedrich
    Engels, wrote a pamphlet called the Communist
    Manifesto that denounced capitalism and predicted
    that workers would overturn it

Rise of Labor Unions
  • National Trades Union, 1834 ended with Panic of
  • National Labor Union, 1866 failed during a
  • Knights of Labor, 1869 men, women, skilled and
    unskilled Terence Powderly wanted equal pay, 8
    hour day, end to child labor disappeared by
  • American Federation of Labor, 1886 Samuel
    Gompers wanted skilled workers only supported
    collective bargaining, negotiation between labor
    and employers
  • The Wobblies (Industrial Workers of the World),
    many Socialists, radical union of unskilled
    workers such as miners, lumbermen, migrant farm
    workers, textile workers

Reaction of Employers
  • Feared unions
  • Tactics to stop unions
  • 1. Forbade union meetings
  • 2. Fired union organizers
  • 3. Yellow dog contracts promised
    never to join a
  • union
  • 4. Refused collective bargaining
  • 5. Refused to recognize unions as
  • representatives

Strikes Rock the Nation
  • Haymarket Riot, 1886, at Chicagos McCormick
    reaper factory bomb killed seven policemen,
    gunfire killed dozens. Eight anarchists, radicals
    who oppose all government, were tried for
    conspiracy to commit murder.
  • Homestead, 1892, Homestead, PA. Frick called in
    the Pinkertons. In a shootout, several died and
    many were wounded.
  • Pullman, 1894, Eugene V. Debs called for a
    boycott of Pullman cars. Disrupted western
    railroad traffic. Federal troops sent to see that
    mail got through. Set pattern for the employers
    to get court orders against unions. Government
    opposition limited union gains for more than 30