Presentation on theme: "Chapter 19 THE INDUSTRIAL AGE"— Presentation transcript:
1Chapter 19 THE INDUSTRIAL AGE Section 1 Railroads Lead The WaySection 2 InventionsSection 3 An Age of Big BusinessSection 4 Industrial Workers
2Section 1 Railroad Expansion During Civil War, trains carried troops and suppliesAfter war, railroad grew rapidly and drove economic growth in US ( 30,000 to 193,000 miles of track)Railroad expansion came with consolidation, the practice of combining separate companies, in the industryLarge companies buy smaller ones and force them out of businessMakes larger companies more efficient, set standard pricing, makes processes more uniform.
3Sect 1 cont’d Railroad Barons Railroad barons- powerful individuals that controlled the nation’s rail traffic- Vanderbilt - empire stretched NY to Great Lakes- Hill - Great Northern Line, Minnesota to Wash.- Huntington/Stanford- Central PacificAggressive and competitiveFew laws that regulated business
5Sect 1 cont’d Railroad Stimulate the Economy Railroads carried raw materials- Iron ore, coal, and timber to factoriesCarried manufactured goods- from factories to marketsProduce from farms to area cities
6Sect 1 cont’d Demand for iron and locomotives helped the iron mining. 1800’s, tracks went from iron to steelUsing steel, stimulated America’s steel industryRailroads effected the lumber industry, for railway ties, coal industry for fuel for the trains, and railroad companies provided work for thousands.
7Sect 1 cont’d Improving the Railroads - increase use made of rails, it necessary to expand and unifysystems- with rails running across the country, different lines haddifferent rails with different widths and gauges- With this, one train could not use another lines rails- With this, it created gaps in service and made travel veryslow- With the companies consolidated, companies adopted“standard gauge”- 4’-8.5” as the width of the track- This allowed faster shipment of goods at a reduced cost- To more loading and unloading from one train to another
8- Improvements came along with the new technology Sec1 cont’dRailroad Technology- Improvements came along with the new technology- George Westinghouse - air brakes- Eli H. Janney - couplers- Gustavus Swift - refrigerated cars- George Pullman- luxury cars
10Sect 1 cont’d - divided business among their companies and set rates Competing for Customers- competed fiercely for customers, old and new- large companies offered “rebates”, or secretdiscounts to their biggest customers- smaller companies couldn’t match the discounts andwere often forced out of business- big discounts raised freight rates for farmers andothers who ship small amounts- barons also made secret agreements among themselves called(pools)- divided business among their companies and set rates- no other competition means they can charge higher rates andearn higher profits- some laws were created to regulate but did little to stop it
11How did the Railroad stimulate the economy? Section 1 cont’dEssay Question # 1How did the Railroad stimulate the economy?Created new economic links.Carried raw materials to factories.Carried manufactured goods to market.Carried products from farms to cities.Help iron industry – iron for tracks.Help steel industry – steel for tracks.Help timber industry – timber for railroad ties.Help coal industry – fuel for trains.Work for thousands of people.Laid tracks, build station houses.Manufacture railcars and equipment.Redistributed the population (labor force)
12Section 2 Communications By 1910 Americans in cities drove cars through streets lit with electric lightsDepartment stores where they bought everything from kitchen sinks to shoesAmericans could do their shopping by mail or pick up the phone and order from a local storeThe car, electric light and telephone were invented after 1870.Within a generation, they became part of everyday life.Improvements in communications help unify the country and promote economic growth.
13Section 2 cont’d The Telegraph Invented by Samuel Morse 1844 By 1860, US had 1,000 miles of telegraph lines managed by WesternUnion Telegraph companyTrained operators “transmitted”, or sent messages in morse code.Telegrams offered instant communicationStorekeepers ordered goodsReporters transmitted stories to newspapersAmerican used telegrams to send personal messagesTelegraphed liked the US to Europe (in 1860 news from Europe to US took several weeks on ships)Cyrus Field laid a telegraph cable across Atlantic.Transmitted messages within seconds bringing US and Europe closer.
15Section 2 cont’d The Telephone Rings in Invented by Alexander Graham BellBorn and educated in Scotland moved to US to study methods for teaching hearing impaired people to speakExperimented with sending voices through electrical wires1876 developed a device that transmitted speech – telephoneFormed the Bell Telephone Company in 18771890s had sold hundreds of thousands of phonesBusinesses were first customers ten before long telephones were common in homes
17Section 2 cont’d The Genius of Invention Between 1860 and 1890 US government granted more than 400,000 patentsMany inventions were designed to help business operate more efficientlyChristopher Sholes – typewriter (1868)William Burroughs – adding machine (1888)Other inventions for everyday lifeGeorge Eastman – small box camera a.k.a. KodakJohn Thurman – vacuum cleaner
18Section 2 cont’d The Wizard of Menlo Park Thomas Edison dull by his teachers,poor hearing,trouble in school andoften did not attendhis mother home schooledTwelve years old got a job with railroad1st invention – a gadget to send automatic telegraph signals (so he could sleep on the job)1876 set up a workshop in Menlo Park New Jersey from here came the phonograph, motion picture projector and othersMost important invention by far is the light bulb (1879)In 1882 Edison built the 1st central electric power plant illuminating 85 buildings in New York City.
20Section 2 cont’d George Westinghouse Took Edison’s work with electricity furtherDeveloped and built transformers that could send electric power cheaper over longer distancesAs a result, factories, trolleys, streetlights and lamps across the US could be powered by electricity
21Section 2 cont’d African American Inventors A number of African Americans contributed to the era of inventionsLewis Howard Latimer – improved wire for light bulbsGranville Woods – electric incubator, electromagnetic brake (railroad), automatic circuit breakerElijah McCoy – mechanism for oiling machineryJan E. Matzeliger – shoemaking machine (performed many steps performed previously by hand)
22Section 2 cont’d Changing Society Improvements ushered in a new era of transportation – Henry Ford’s automobileWanted to build an inexpensive car to last a lifetime1903 established his own auto making company1906 “we are going to get a car now that we can make in great volume and get the price way down.”Then came the model T (1908)“Anyone can afford, anyone could drive anywhere, almost anyone can keep and repair”Sold 15 million Model T’s.
23Section 2 cont’dFord pioneered a new cheaper way to make cars – assembly lineEach worker performed an assigned job again and againThe assembly line enabled manufacturers to produce large quantities more quickly“Mass production” of goods decreased manufacturing cost, so products sold cheaper
25Section 2 cont’d - Merchants looked for efficient ways to sell goods Selling Goods- Merchants looked for efficient ways to sell goods- One method was mail- Some created “mail order” business- Montgomery Wards- Sears Roebuck- Chain Stores-stores with same stores in many places grew quickly- “five and ten” stores specialized in everyday household and personal items at bargain prices
26Name 5 inventors and describe the inventions they are known for? Sect 2 cont’dEssay Question #2Name 5 inventors and describe the inventions they are known for?George Westinghouse – Air brakes for Trains.Gustavus Swift – Refrigerated Train Cars.Cyrus Field – Transatlantic Telegraph line.Alexander G. Bell – Telephone.George Eastman – CameraJohn Thurman – Vacuum CleanerJan E. Matzeliger – Shoemaking machine.Henry Ford – Assembly line.
27Section 3 Foundations for Growth Black sticky substance – petroleum – seeped from the ground1850 – could burn petroleum to make heat, also to lubricate machineryOil becomes valuableEdwin Drake – thought he could find oil by digging a well1st well – Titusville, PA struck oilCreated multi-million dollar industry
28Section 3 cont’d Land – Labor – Capital – (money for investments) Factors of ProductionNew technology transportation and business methods – tap into rich supply of natural resourcesChange from agricultural economy to an industrial one was possible because the US had what it needed; land, labor and capitalLand –not just land itself but all natural resourcesLabor –Large number of workers to turn raw materials into goodsNeeded due to population growth (pop. Doubled between 1860 and 1900)Capital – (money for investments)Manufactured goods used to make other goods and servicesMachines, buildings and tools are examples of capital goods.One source to make capital is the sale of stock
29Section 3 cont’d Raising Capital With an economy growing, businesses were looking to expandTo do so, they needed capital to buy materialsOne way was to become a corporation (a company that sells shares or stock of its business to the public)People who invest in the corporation are stockholdersGood times – receive dividendsBad times – lose investmentsLate 1800’s many bought and sold stocks in special markets – stock exchangeGrowth of corporations fueled expansionsBanks made money by lending money
30Section 3 cont’d Oil Business As oil grew prospectors and investors came – “oil rush” townsJohn D. Rockefeller – famous figure in oil industryFour partners agree to run business togetherBuilt oil refinery (to process oil) in Cleveland, OH1870’s formed Standard Oil companySet out to dominate oil industry (horizontal integration – combining competing companies into oneStandard oil grew powerful and wealthy
31Section 3 cont’d Standard Oil Trust Rockefeller lower prices to drive out competitionsPressed customers not to deal with RivalsRailroad to give him special rates
32Section3 cont’d1882, Formed a trust (Group of companies managed by same board)Did this by buying stock in different companiesShareholders traded stock for standard oil stock – paid higher dividendsEquals – Standard oil is part owner of other companiesCreated a monopoly – total control of an industry by a single producer.
33Section 3 cont’d Steel business/Steel industry growth 1800’s became hugeIdea material for railroad tracks and bridgesHenry Bessemer – open hearth processNew process produce at good prices and large amounts1870 built steel mill plants near source of iron ore (Western PA)Pittsburgh becomes steel capitalLocated near Cleveland, Detroit and Chicago
34Section 3 cont’d Andrew Carnegie Leading figure in American Steel 1865 invested in growing iron industryAfter learning Bessemer’s process, started mill near Pittsburgh1890 dominated steel industryBecame powerful by vertical integration (getting companies that provide equipment and services needed i.e. mines, warehouses, ships and railroads)1900’s produced half of nations steel
35Section 3 cont’d Philanthropist Philanthropy – the use of money to benefit the communityCarnegie and RockefellerUsed money to fund colleges and librariesCarnegie Hall and Rockefeller Center
36Section 3 cont’d Corporations grow larger General trend in business was monopoliesBuy stock instead of buying company outrightSome admired, others argued that lack of competition hurts consumers1890 the Sherman Anti-trust act – did not allow trusts or monopolies
37How did Rockefeller create a monopoly with Standard Oil Company? Sect 3 cont’dEssay Question #3How did Rockefeller create a monopoly with Standard Oil Company?Increase control of industry.Formed a trust (companies managed by same Board of Directors)Bought stock from different companies.Shareholders trade their stock.Purchased Standard Oil stock.Standard Oil stock paid higher dividends.Gave ownership of other companies to trust.Right to manage other companies.Created a monopoly.Rockefeller now controlled oil industry.
38Section 4 Working Conditions Industrial growth means jobs Mass production increased, people decreased10 to 12 hour days, 6 days a week could be fired at any timeLost jobs to immigrants for lower payConditions were bad and unsafeSteel workers – burnsCoal miners – cave ins, gases, coal dustGarment workers – crowded and dangerous factories in urban areas called sweat shops
39Section 4 cont’d Women and Children 1900’s one million women in workforceNo laws for pay, women paid half of menHundreds of kids workedThere were child labor laws but no one obeyed
40Section 4 cont’d Growth of labor union Unhappy workers organize union Unions promise better pay and conditionsSkilled workers formed for specialized jobs1800’s conditions worsened labor leaders looked to expand unions1869 garment cutters in Philadelphia founded Noble and Holy Order of the Knights of LaborIf employees found out about union would be firedGroup created secret handshakesKnights of Labor grew, allowed Women, African Americans, Immigrants and Unskilled Laborers1886 members grew to 700,000Strikes turned public opinion against unions and they lost power
41Section 4 cont’d Growth of labor union cont’d 1881 a national trade union for formed American Federation of Labor (AFL)NOT arena footballAFL led by Samuel Gompers (tough minded president from cigar makers union)Fought for higher pay, shorter hours, better conditions and right to collective bargainingCollective bargaining – when unions represent workers and talk with managementEven with strikes – AFL grew to 1.6 million by 1908
42Section 4 cont’d Women and the Unions Many didn’t admit women, so they founded their ownMary Morris Jones (Mother Jones) fought 50 years for worker’s rights1911 Triangle Shirtwaist company – sweatshop in New YorkFire broke out, workers couldn’t get out (mostly immigrant women)150 diedThis pushed the ILGWU (International Ladies Garment Workers Union) to push for safer working environment
43Section 4 cont’d The Unions Act 1870 – 1890 Economic depressions forced wages to drop and fire employeesThis triggered strikes and sometimes violenceWhen depression hit – to cut cost companies forced pay cutsPeople went on strike and violence and damage occurredCompanies hired “strikebreakers” and Federal troops to maintain order
44Section 4 cont’d Haymarket Square - 1886 McCormick Harvester Company gathered to protest the four dead who were killed the previous dayWhen police came to break up crowd, someone threw a bomb and killed a police officerAfter this, public associated the labor movement with terrorism and disorder
45Section 4 cont’d Homestead, PA – 1892 To weaken steelworkers union, company lowered wagesUnion called strike, managers hired nonunion workers and brought in 300 armed guardsBattle left 10 deadGovernor sent in state militia to restore orderAfter this, steelworker union member numbers dwindled
46Section 4 cont’d Pullman Strike – 1894 Union went on strike due to lowering of wagesPullman closed plantsRailroad union supported strikers, refused to handle Pullman carsThis stopped all rail trafficPullman fought back with US Attorney GeneralObtained an “injunction”, a court order, to stop union from obstructing the railwaysUnion Leader Eugene V. Debs refused to end strike and went to jailPresident Cleveland sent Federal troops to end strikeThis dealt another blow to unionsStill unions organize for better pay and working conditions
48Sect 4 cont’d Essay Question #4 What were the working conditions of workers in the late 1800’s and early 1900’s?Noisy.Unhealthy.Steelworkers – suffered burns.Coal miners – cave-insGases.Coal dust.Garment Workers – damaged lungs. (Airborne dust)Crowded factories (sweatshops)Poor lightingBuildings that were firetraps.