1. CH 14
Industrialization

2. Section 1 – Rise of Industry
GNP – Total value of goods and services produced by a country
U.S. GNP was 8X greater in the early 1900’s then it was before the Civil War.

3. Natural and Human Resources
Industry needed water, timber, coal, iron, copper
First oil well in Titusville, PA in 1859
Petroleum (Kerosene)
Oil fields grew rapidly from Pennsylvania to Texas
Labor needs led to more immigration
China and Eastern Europe

4. Free Enterprise and the Government
Laissez-Faire Economics
“Let Do”
Low taxes, limited government debt
Entrepreneurs
Tariffs and the issue of free trade
Contradictions to laissez-faire ideas
Did American industry really need protection from foreign competition

5. New Technology Thomas Edison
Alexander Graham Bell (Telephone)
AT&T
Thomas Edison
Electricity
Refrigerated railroad car, automatic loom, sewing machines, telegraph, radios

6. Section 2 - Railroads
Many new inventions made settling the West easier
Nothing aided the settlement of the west more than the Transcontinental Railroad

7. Transcontinental Railroad
Two railroad companies worked on the first Transcontinental Railroad…
The Union Pacific Company started in Omaha, Nebraska
The Central Pacific Company started in Sacramento, California
Final spike at Promontory Summit, UT on May 10, 1869

9. Pioneers of the Railroad Industry
Grenville Dodge
Union Pacific
“Big Four”
Central Pacific
Cornelius Vanderbilt
Grand Central Station

10. National Railway System
Time Zones
Huge benefit to the nation’s infrastructure
Travel was safer and more efficient

11. Land Grant System
Government gave railroads land that was sold to raise money for railroad construction

12. Robber Barons
Railroad owners that built their fortunes by swindling investors
Jay Gould
Credit Mobilier Scandal
James J. Hill
The anti-robber baron
Great Northern Railroad
Only transcontinental railroad not eventually forced into bankruptcy

13. Sec 3 Big Business
Corporation – an organization owned by many people but treated by law as though it was a single person
The people who owned the corporation were Stockholders
The shares of ownership those people owned were called Stocks

14. Companies had two different kinds of costs
Fixed Costs – costs that companies pay whether they are running or not
Operating Costs – costs that occur when running a company

15. Consolidation of Industry
Vertical Integration
A company owns all of the different businesses on which it depends
Horizontal Integration
Combining of firms engaged in the same type of business

16. Competition and Laissez-faire economics led to the control of a few very powerful men in industry
These men became the most powerful men in the U.S. during the time.

17. Andrew Carnegie – Steel industry
John D. Rockefeller – Standard Oil Company
Jay Gould – Financier, banker

18. Monopolies When a single company controls an entire market
Trusts – legal concept that allows one person to manage another person’s property

19. Sec 4 Unions
From 1865 to 1897, the U.S. experienced a rise in the value of money called deflation
Workers became angry when companies tried to pay them less and they formed Unions to fight back.

20. 2 types of Unions
Trade Union – a union made up of skilled workers such as “Teachers Union”
Industrial Union – a union that united all workers within a certain industry, like the “Pelham High School Union”

21. Workers who tried to organize a strike were fired and put on a blacklist
When workers formed a union companies would use a lockout to not allow them in the factory and refuse to pay them.

22. If the union called for a strike, the employer would hire replacement workers called strikebreakers

23. 3 Major Strikes of the late 1800s
The Great Railroad Strike of 1877
The Haymarket Riot
The Pullman Strike

24. The Great Railroad Strike of 1877
The strike involved 80,000 railroad workers in 11 states
It also affected 2/3 of the nation’s railways

25. President Hayes ordered the army to reopen many of the rail lines but before it was over more than 100 people were dead and millions of dollars of equipment had been destroyed.

26. Haymarket Riot
In 1886, organizers called for a strike to fight for an 8 hour work day
In Chicago 3,000 people gathered for a rally
When the police entered someone threw a bomb in the middle of the officers

27. 7 police officers and 4 workers were killed
The Knights of Labor were blamed for the bombing

28. Pullman Strike
Pullman cars were a type of rail car used by different train companies
In an effort to end the strike the government began to use the cars for the U.S mail

29. Grover Cleveland sent in troops to end the strike saying that he had to “keep the mail running”