1. Chapter 6
A New Industrial Age

2. The Expansion of Industry
Section 1

6. Inventions (Describe How it Works)
New Inventions
Inventor and Year
Inventions (Describe How it Works)

8. Inventions (Describe How it Works) Effects of the Invention
Inventor and Year
Inventions (Describe How it Works)
Effects of the Invention
Edwin L. Drake
1859
Used a steam engine to drill for oil
Henry Bessemer and William Kelly
1850
Bessemer Process – injects air into molten iron to remove the carbon and other impurities
Christopher Sholes
1867
Typewriter
Alexander Graham Bell and Thomas Watson
1876
Telephone
Thomas Alva Edison
1880
Incandescent Light Bulb
Research laboratory used for creating safer and inexpensive innovations in electricity

9. Section Review – Question 5
Which inventon or development in the section had the greatest impact on society?
Justify your choice with at least TWO facts/reasons.
Think About:
The applications of these inventions
The impact of inventions on people’s daily lives
The effect of inventions on the work place

10. The Age of the Railroads
Section 2

11. Problems with the Railroads
Corruption schemes formed
Credit Mobilier: _____________
_________________________
Union Pacific Railroad officers had made over $23 million in stocks
Vice-President Colfax and Congressman Garfield implicated
No penalty, just loss of reputation for the Republican party.

12. The Grange and the Railroads
Farmer upset with railroads
Fixed pricing
Various rates
Misuse of grants
State legislators passed The Granger Laws
“to establish a maximum freight and passenger rates and prohibit discrimination”
Munn v. Illinois: railroads fought the constitutionality of the Granger Laws
Supreme court upheld

13. Interstate Commerce Act
Supreme court ruled that a state could not set rates on interstate commerce.
Congress passed the Interstate Commerce Act
Interstate commerce commission established
Difficulty regulating due to fight from R.R.s
Could not set maximum rates
Panic of caused many R.R.s to go bankrupt
2/3 will be controlled by seven powerful companies
J.P. Morgan and Co.

14. Big Business and Labor
Section 3

15. Business Strategies
Vertical Integration: a company buys out their suppliers
Horizontal Integration: a company buys out, or merges with, its competitors

16. Business Strategies
Monopoly: a complete control over an industry’s production quality, price, and wages
Merger: the combination of two or more companies
Holding Company: a company that does nothing but buy out the stock of other companies
Trusts: a large corporation made up of many companies the receive dividends on profits earned by all companies combined

17. Social Darwinism
Developed from Charles Darwin’s theory of evolution (On the Origin of Species)
Survival of the fittest
Species evolve and adapt to their surroundings
Natural selection weeds out the weaker species
Applied to society
Used to justify laissez faire economics (gov. should leave society alone to work out its own problems)
Success and failure in business are governed by natural law (gov. shouldn’t interfere)
Riches were a sign of God’s grace and the poor must be lazy or inferior

18. Business Titans
J.P. Morgan
Andrew Carnegie
John D. Rockefeller

19. Compare and Contrast
Answer the following questions about your assigned industrialist.
What company did they own?
What industry was it in?
Which business strategies did they use and how?
Trusts
Horizontal integration
Vertical integration
Holding companies
How did he spend his money?

20. Carnegie
Rockefeller
Morgan

21. Philanthropy
The industrialists managed to give millions away to charity.

25. Working Conditions Long work weeks and days No benefits
Dirty, poor ventilation
Accidents and injuries common
Repetitive work
Low wages
Everyone had to work in lower income families

26. Workers in a Birmingham button factory circa 1909

28. The Rise of Unions
What message do the images and slogans included in the poster convey to you?
What do you find most persuasive about this poster? Why?
Why do you think IWW posters were often called “silent agitators”?

29. The Rise of Unions Small, local unions since late 1700s
First large scale was the National Labor Union (NLU) in 1866
Lead to legalization of an 8-hour work day
Problems
Short work day for gov. workers
Segregation
Knights of Labor
Strikes as last resort
Equality

30. The Rise of Unions Craft Unions Industrial Unions
Skilled workers from trades
Began by Samuel Gompers
American Federation of Labor formed
Used collective bargaining to negotiate hours, conditions, and wages
Strikes gained higher wages and shorter work weeks.
All skilled laborers
Eugene V. Debs – began an industrial union (ARU)
Used strike to gain higher wages
Failure of future strikes

31. Socialism
Socialism – an economic and political system based on government control of business and property and equal distribution of wealth
Would result in the overthrow of capitalism
Extreme form = communism (Karl Marx)
Industrial Workers of the World (IWW)
Radical unionists and socialists
Open to African-Americans
One major strike victory

32. Strikes Many of the strikes turned violent Strike Goals of the Strike
Results of the Strike
Great Strike of 1877
The Haymarket Affair
The Homestead Strike
Pullman Company Strike

33. Study/Test Tips
Review: In developing your answers to extended responses, be sure to keep these general definitions in mind:
discuss means “to make observations about something using facts, reasoning, and arguments; to present in some detail”
describe means “to illustrate something in words or tell about it”
evaluate means “to examine and judge the significance, worth, or condition of; to determine the value of”
show means “to point out; to set forth clearly a position or idea by stating it an giving data which support it”