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A New Industrial Age


A New Industrial Age Natural resources and new ideas create a boom for industry and railroads. Government addresses corruption in business, and laborers organize for ... – PowerPoint PPT presentation

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Title: A New Industrial Age

A New Industrial Age
  • Natural resources and new ideas create a boom for
    industry and railroads. Government addresses
    corruption in business, and laborers organize for
    better working conditions

Section 1 The Expansion of Industry
  • At the end of the 19th century, natural
    resources, creative ideas, and growing markets
    fuel an industrial boom

Natural Resources Fuel Industrialization
  • By 1920s, U.S. is worlds leading industrial
    power, due to
  • - Wealth of natural resources
  • - government support for business
  • - growing urban population

Steel The backbone of industry
  • Steel played the biggest role in moving the U.S.
    into the Industrial revolution
  • - It is a mixture of Iron and other metals
  • Steel had been used to make Knives, Swords, and

Steel The backbone of industry
  • 1860 - Bessemer Process enabled people to make
    iron into steel at a low cost
  • - Bessemer process put air into iron to remove
    carbon to make steel
  • Railroads demanded most of the new steel (9/10)
  • Steel required both iron and coal
  • - Coal both source of fuel and carbon
  • - Coal mining, iron mining and steelmaking
    expanded along with railroads
  • Steel also used in barbed wire farm machines
  • Changed construction Brooklyn Bridge
    steel-framed skyscrapers

Inventions in Electricity
  • 1800's - scientist continued to learn about
  • Learned how to make electricity from a generator
  • - Used Niagara Falls to generate the electricity
  • Electricity changed business
  • - By 1890 used to run numerous machines
  • Became available in homes encouraged invention
    of appliances
  • Allowed manufacturers to locate plants anyplace
    industry grew

Inventions in Electricity
  • Thomas Edison - made widest use of electricity
  • - Wanted practical inventions (something that
    would sell)
  • - Took out new patent almost every month for a
    5-year period
  • - Light bulb, motion picture camera,
    .phonograph most famous inventions

Inventions Change Lifestyles
  • 1867 - Christopher Sholes invented typewriter

Inventions Change Lifestyles
  • 1876 - Alexander Graham Bell Thomas Watson
    introduce telephone
  • - People didn't see a practical purpose for the
    telephone at first
  • - By 1890's several cities were connected by
    phone lines
  • Office work changed
  • - By 1910, women were 40 of clerical workers

Inventions Change Lifestyles
  • Inventions impacted factory work led to
  • - clothing factories hired many women
  • Industrialization made jobs easier improves
    standard of living
  • - By 1890, average workweek 10 hours shorter
  • - Workers regained power in the market as
  • Some laborers thought mechanization reduced value
    of human worker

Changes in Everyday Life
  • Companies could mass produce products cheaply
  • - Plows
  • - Zippers
  • - Ready made clothing
  • Improved quality of life

Changes in Everyday Life
  • Companies began advertising
  • - Procter Gamble (Ivory soap)
  • Department stores developed to handle womens
  • - R.H. Macy in New York
  • - Marshall Field in Chicago
  • Woolworths and Sears Roebuck offered products to
    people in small towns

Section 2
  • The Age of the Railroads The growth and
    consolidation of railroads benefits the nation
    but also leads to corruption and required
    government regulation.

Rails across America
  • 1860 Abraham Lincoln promised a
    transcontinental Railroad if elected
  • 1862 Pacific Railroad Act
  • Required Large amounts of Capital
  • - Congress gave companies loans and government
    land located along new tracks
  • Two Companies were hired to build it

Central Pacific
  • Central Pacific would build east from Sacramento
  • Central Pacific hired Chinese
  • - Discriminated against at 1st due to size
  • - Drank gallons of tea which made them less
    likely than the Irish to get sick
  • Had to cross the Sierra Nevada Mountains
  • One place required them to lay track along cliff
    face with a 1,400 drop
  • Workers were dropped down in basket to light
    dynamite fuses
  • Had to dig through mountains
  • - Started on both sides and met in the middle

Union Pacific
  • Union Pacific would build west from Omaha
  • Hired Irish immigrants
  • Unskilled labor
  • Drinking un-boiled ditch water made them sick

Track Completed
  • Two Companies raced to see who could lay the most
  • - Averaged 1 to 2 miles per day
  • Union Pacific 1,086 miles
  • Central Pacific 690 miles
  • May 10, 1869 - Track was completed in
    Promontory, Utah
  • - Connected with a golden spike
  • - Attached a telegraph wire to the stake
  • - Transmitted a charge to the entire nation when
    it was finished

Combining the Railroads
  • Western railroads were big from the beginning due
    to Government help
  • Large rail systems in the east were formed by
    combining smaller companies
  • Cornelius Vanderbilt created the New York Central
    Systems by buying smaller systems in the eastern
    United States
  • 1873 New York Central provided services between
    New York and Chicago

Impact of Railroads
  • Helped end Indian control of the west
  • - Lines cut through Indians territory
  • - Carried settlers, buffalo hunters, and minors
  • Tied the East and West economies together
  • - Carried raw materials, crops, and live stock
    from West to East
  • - Midwestern cities became processing centers
    (Chicago and St. Louis)
  • - .Helped the growth of industry by turning
    America into one giant market place

Impact of Railroads
  • Helped people settle and farm the West
  • - Raised cattle and wheat top to feed people in
    the cities
  • - People moved West with dreams of independence
  • - Farmers were often at the mercy of railroads
    who transported goods to market and
  • - Eastern buyers who determined how much they
    would pay for them

Impact of Railroads
  • Changed the way people thought about the
  • - Before railroads People lived and worked near
    water transportation routes
  • - Railroad made it possible to transport goods
    without water
  • - Denver, Colorado and Cheyenne, Wyoming
    developed without water Transportation
  • - Weather didn't stop Railroad

Impact of Railroads
  • Schedules became a part of American life
  • - Standard time established
  • - 1st established railroad time that was too
    local (over 100 time zones)
  • - November 18, 1883 - standard time went into
    effect (divided U.S. into 4 zones)
  • - Many communities refused to accept it
  • -1918 - Congress adopted standard time\
  • - Today we have six (4 original plus the Alaska
    time and Hawaii- Aleutian time)

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Opportunities and Opportunists
  • Railroads required great supply of materials,
  • Iron, coal, steel, lumber, glass industries grew
    to meet demand
  • 1880 - George M. Pullman built railcar factory
    on Illinois prairie
  • Pullman provided housing, doctors, shops,
    sports field for workers
  • Company tightly controlled residents to ensure
    stable work force
  • tarnished

Opportunities and
  • Wish for control, profit leads some railroad
    magnates to corruption
  • - Union Pacific stockholders formed
    construction company, Crédit Mobilier
  • - overpaid for laying track, pocketed
  • - Republican politicians were implicated
    reputation of party

The Grange and the Railroads
  • Farmers became angry over perceived railroad
  • - Railroads sold government lands to
    businesses, not settlers
  • - Fixed prices kept farmers in debt
  • - Charged different customers different rates

Granger Laws
  • Grangers sponsored state local political
  • Pressed for laws to protect farmers interests
  • Munn v. Illinois - Supreme Court upheld states
    right to regulate RR
  • Set principle that federal government could
    regulate private industry
  • 1886 - Interstate Commerce Act - Supreme Court
    said states couldnt set rates on interstate
  • Public outrage led to Interstate Commerce Act of
  • - Federal government could supervise railroads
  • - Established Interstate Commerce Commission
  • Legal battle with railroads difficult for ICC to
    take action

Panic and Consolidation
  • Abuses, mismanagement, competition almost
    bankrupt many railroads
  • Railroad problems contribute to panic of 1893,
  • By mid-1894, 25 of railroads taken over by
    financial companies

Section 3
  • Big Business and Labor The expansion of industry
    results in the growth of big business and prompts
    laborers to form unions to better their lives.

The Centennial- 100 year anniversary (1876)
  • U. S. threw itself a birthday party that lasted 6
  • World's Fair in Philadelphia
  • Millions of people came to see American
    advancements in technology
  • - Biggest attraction - Corliss engine (steam
    engine) - supplied power to 8,000 other machines.

What made Industry Grow
  • Railroads - made possible a vast national
    exchange of goods
  • Inventions - New ideas and inventions helped U.S.
    become an industrial Giant
  • Patent - guarantees an inventor all the profits
    for/her invention for a certain length of time
  • Before 1860 - 36,000 patents
  • Between 1860 and 1900 - 650,000
  • Natural Resources - U.S. had abundant supplies of
    coal, iron ore, oil, forest, water resources, and
    fertile land
  • Human labor and talent - U.S. population more
    than doubled between 1860 and 1900 (much of this
    population came from immigrants)
  • Capital-large profits could be made from
    America's growing economy
  • - This encouraged Banks and wealthy people to
    lend money to build new factories (A lot of
    capital came from European investors)

Gilded Age
  • American industry enabled a few people to become
    rich beyond imagination
  • Had palace like homes with gilded decoration
  • 1883 - William and Alvia Vanderbilt threw party
    that cost 200 per person (1,200 guest 250,000
  • - Average non farm person made 438 per year
  • Nations economy seesawed between boom and bust
    (called business cycle)

Rise of Corporations
  • Before 1880 most businesses owned directly by one
    person or partnership
  • Banks were afraid to loan money because company
    could collapse if person died
  • Corporation - company that has Gov. permission to
    raise money by selling stock
  • People buy stock for 2 reasons
  • - Hope price of stock will rise
  • - Want dividends (share of profits)
  • Corporations can borrow money more easily
  • - Continues to exist if when its owners die

Social Darwinism and Business
  • Principles of Social Darwinism
  • Darwins theory of biological evolution the
    best-adapted survive
  • Social Darwinism, or social evolution, based on
    Darwins theory
  • Economists used Social Darwinism to justify
    doctrine of laissez faire
  • Idea of survival success of the most capable
    appealled to wealthy
  • Notion of individual responsibility in line with
    Protestant ethic
  • See riches as sign of Gods favor poor must be
    lazy, inferior

  • People who start businesses
  • They imagined a goal then achieved it
  • Used new inventions to gain what they wanted
  • Many became philanthropist - gave money to
    colleges, libraries, museums, etc
  • Many Entrepreneurs of the 1800's called "Captains
    of Industry" for leadership
  • Critics call them "Robber Barons" for
  • - Destroyed their competitors
  • - Raised prices and lowered quality
  • - Paid low wages and had unsafe factories

Andrew Carnegie (Steel)
  • Born poor
  • Started out in textile business
  • Moved to job with railroads saved money
  • Decided steel was industry of the future
  • - Invested money in steel mills that used latest
  • Used vertical integration - bought out suppliers
    to control materials
  • - Cut cost buy purchasing mines and ships to
  • By 1900 - controlled American steel business
  • Didn't believe in leaving money to family
  • - Gave away 350 million dollars for the
    improvement of mankind

John D. Rockefeller (Oil)
  • Cleveland merchant
  • Entered oil business in 1860's
  • Purchased refinery - plant that turned purify
    crude oil
  • Formed Standard Oil
  • - Trust - a business that controlled many
    businesses in same industry
  • - Charged whatever prices they wanted to

Sherman Antitrust Act
  • Government thought expanding corporations stifled
    free competition
  • Sherman Antitrust Act trust illegal if they
    interfere with free trade
  • Prosecuting companies was difficult
  • Government stopped enforcing act

Business Boom Bypasses the South
  • South recovering from Civil War, hindered by lack
    of capital
  • North owns 90 of stock in RR, most profitable
    Southern businesses
  • Business problems high transport cost, tariffs,
    few skilled workers

Lives of Workers
  • Most workers had 12 hour days, 6 day workweeks
  • - perform repetitive, mind-dulling tasks
  • - no vacation, sick leave, injury compensation
  • To survive, families needed all member to work,
    including children
  • Late 1800's - children worked along aside adults
  • - Child labor laws didnt exist
  • Sweatshops - places where people work long hours
    in unsafe conditions for low wages
  • By 1900 - 2/3 of people were wage earners
  • - Lost sense of accomplishment that comes from
    making product start to finish
  • Treated like another piece of machinery

Call for Action
  • Gov. played no role in telling business how to
  • Workers organized to better lives
  • Labor unions - group of workers that negotiate
    with the company owners about wages and working
  • Railroad Strike of 1877
  • - Railroad cut wages
  • - Workers went on strike
  • - State militias battled angry mobs
  • - President Hayes sent federal troops to stop
    strike and restore order

Knights of Labor
  • Formed by Terrence Powderly (machinist)
  • Became a national union of workers
  • Wanted to reform society
  • - 8 hour workday
  • - Child labor laws
  • - Wanted equal pay for women
  • Were against immigration
  • - Immigrants worked for lower wages
  • - Applauded the Chinese Exclusion Act - Stopped
    all Chinese immigration to the U.S. for 10 years

Reacting to Unions
  • Leaders saw unions power as a threat to profits
  • Blamed unions on socialist and anarchist
  • - Socialist - wanted workers to share in
    ownership and profits of business
  • - Anarchist - rejected all forms of government
    and authority
  • Late 1800's - most Americans sided with business
  • - Felt that person's success should depend upon
    their labor effort

Samuel Gompers and the AFL
  • AFL only had skilled workers (harder to replace)
  • Limited demands to wages and working conditions
  • Began to achieve goals
  • Gov. began to help workers
  • - Passed safety laws

Union Setbacks
  • Homestead Strike of 1892
  • - Steel mill workers won higher wages
  • - Carnegie announced company would only deal
    with employees one on one
  • - Employees protested
  • - Company locked them out hired new employees
  • - Pinkerton agents (people hired as private
    security guards were brought in)
  • - Pinkerton agents and former employees had a
    12 hour gun fight
  • - Gov. sent in militia
  • - Steel workers union destroyed

Union Setbacks
  • Pullman strike 1894
  • - Depression - Pullman Palace car cut wages
  • - Company owned town
  • - refused to cut rent
  • - Workers protested
  • - Federal troops sent in to end strike
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