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Chapter 14 Industrialization Section 1 The Rise of Industry.

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Presentation on theme: "Chapter 14 Industrialization Section 1 The Rise of Industry."— Presentation transcript:

1 Chapter 14 Industrialization Section 1 The Rise of Industry

2 Causes of Industrialization Natural Resources/ Raw Materials –Water, Timber, Coal, Iron, Copper, Oil –Edwin Drake-Penn st Oil Drilling Large Workforce –Large Families –Immigrants Laissez-Faire system (hands-off) New Inventions Railroads Formation of Corporations

3 Effects of Industrialization Drained resources/Pollution increases Steel and Oil become giant industries Factory workers face harsh living and working conditions No limits on immigration No regulation of trade across country Tariffs and metallic standards become political issues

4 Tariff Issue Northern Leaders-high tariffs, protect American industry from foreign competition Southern Leaders-low tariffs to provide trade and keep manufactured import prices low

5 Morill Tariff Passed when south seceded Tripled tariffs Gave land and money to railroads Sold public lands with mineral resources at low cost to businesses High Tariff backfired: other countries raised tariffs and it hurt farmers

6 New Inventions Alexander Graham Bell: 1876-Telephone –1877: Bell Telephone Company became American Telephone and Telegraph Company Thomas Edison: 1877-phonograph, practical light bulb, electric generator, battery, motion picture –1889: Edison General Electric Company (GE) began supplying power to NYC

7 Other Inventions Ice Machine Refrigerated railroad cars Standard Sizes Power Driven Sewing Machine Mass Produced Shoes Telegraph Cable Across Atlantic (1886) RadioCarAirplane

8 Chapter 14 Industrialization Section 2 The Railroads

9 Pacific Railway Act: 1862 Lincoln: Transcontinental Railroad Union Pacific Railroad: workers included Civil War veterans, immigrants from Ireland, miners, farmers, cooks, adventurers, and ex convicts Central Pacific Railroad: workers included Mexicans, Native Americans, and once reached California 10,000 laborers came from China

10 Transcontinental Railroad 1869 Tied smaller lines together Time Zones were created in 1883 to coordinate schedules and were permanent in 1918

11 Government Land Grants to Railroads Investors did not always have the $ to develop rail lines Govt saw it would benefit natl economy Gave land grants to rail companies Rail Companies: sold land along railroad lines to settlers, real estate companies, and other businesses to raise $ to build railroads Over 128 million acres given to rail companies

12 Chapter 14 Industrialization Section 3 Big Business

13 Robber Barons Jay Gould-insider trading, embezzled from own company Built fortunes from stealing from the public Drained country of resources Drove competition out of work Exploited immigrants and paid low wages

14 Captains of Industry James J. Hill-Great Northern Railroad-No govt grants, lowered fares to settlers Served the nation in a positive way Increased American supply of goods Created jobs for Americans Expanded markets

15 Credit Mobilier Scandal Convinced most Americans that business and politicians were Robber Barons Involved Union Pacific stockholders who created a new construction company (Credit Mobilier) CM overcharged UP on supplies, but UP paid them. CM GOT RICH!!!! UP almost bankrupt, so Congress gave more grants to UP to keep it going (These congressional members who pushed for new grants received discounted shares in UP stock) SCANDAL WAS EXPOSED!!!

16 Corporations An organization owned by many people but treated by law as though it were a single person Stock holders: people who own the corporations Stock: Shares of ownership (allow corp to raise $ to expand, increase tech., hire larger workforce, make goods faster and cheaper)

17 Business Costs Fixed costs: Costs a business has to pay whether or not it is operating Operating Costs: costs when running a business Corporations always had advantage over small business WHY??

18 Could sell more stock to meet costs in hard times, produce goods faster and cheaper

19 Making business more efficient Vertical integration: owns all different businesses it depends on for operation Horizontal Integration: combining many firms engaged in the same type of business into 1 large business

20 Monopolies Positive: Keep prices low b/c no competition Negative: Can charge any price b/c no competition

21 Trusts Began forming to avoid anti-monopoly laws Allows a person to manage another persons property, a trustee manages the stock but does not own any himself so it violates no laws –Does receive shares of the profit –Illegal today

22 Changes in Selling the Product Large Ads in Newspapers Department Stores Mail Order Catalogues

23 Chapter 14 Industrialization Section 4 Unions

24 The work force and working conditions Low wages resulted in whole family working, children dropped out of school to help Orphaned children (ages 6 and up), used in mines and factories –Jacob Riis-Children of the Poor-book exposed child labor No unemployment, workers comp, health or life insurances Average worker:.22/hour, hours a day

25 Many paid by Piecework (by product not by hour) Discipline very strict (could be fired for being late, talking, resting) Poor working conditions –Monotonous tasks, poorly lit, no ventilation, no heat/ac, lint, dust, toxic fumes, fires –In 1882 avg.: 675 workers killed on the job each week

26 Early Unions Most employers saw unions as illegitimate conspiracies Trade Unions: limited to people with a specific skill Industrial Unions: United all craft workers and common laborers in a particular industry

27 Companies tried to stop unions Forbade union meetings on company grounds Fired and blacklisted union organizers Forced workers to sign contracts agreeing to never join unions Lockouts, Strikebreakers, Scabs Refused to recognize existing unions

28 Political and Social Opposition to Unions No laws giving workers the right to organize Courts ruled in favor of employers, workers fired or jailed, issued injunctions Marxism, Socialism, Communism –b/c of uneven distribution of wealth in America –Economic and political philosophies that favor public control of property and income –Karl Marx: workers of the world unite and throw off chains of oppression, dissolve current govt systems Anarchy: No govt (These ideas had spread in Europe, U.S. feared immigrants would bring radical ideas here)

29 Most Americans opposed these ideas –Wealthy saw it as a threat to fortunes –Politicians saw it as a threat to public order –Workers saw it as a threat to American Dream

30 Labor Unions 1869: Knights of Labor-all working men and women, skilled and unskilled laborers, and minorities were allowed into union –Goals: 8 hr work day, govt labor board, equal pay for women, end to child labor –Initially opposed strikes, used boycotts and arbitration –By 1885: 700,000 MEMBERS!!!!!!

31 1886: American Federation of Labor- Only skilled, white male workers allowed –Samuel Gompers tried to reassure public and govt that unions were not interested in politics or socialist ideas –GOALS: higher wages, better working conditions, 8 hr work day –Willing to strike but preferred to negotiate –By 1900 there were 500,000 members

32 Women and Unions Seen as unfit and incapable of mans work Mostly domestic servants, nurses, teachers, sales clerks, secretaries Paid less for same work (assumed had a man supporting her, so didnt need to be paid as much, saved money for male workers)

33 1903: Womens Trade Union –Mary OSullivan, Lenora OReilly, Jane Addams, and Lillian Ward –GOALS: 8 hr work day, creation of minimum wage, end to child labor STILL BY 1900, MOST WORKERS REMAINED UNORGANIZED, AND UNIONS WERE WEAK!!!!!!!

34 Great Railroad Strike of : recession hits, wages cut 1877: wages cut again Workers began rioting, walked off the job, blocked tracks Over 800,000 railroad workers in 11 states, 2/3 nations railways affected Pres. Hayes called in federal troops to restore order (1 st time in history) Over 100 people died in this strike

35 Haymarket Riot May 1886: Knights of Labor called for nationwide strike to draw attention to issue of 8 hr work day Conflict between strikers and police left one striker dead Haymarket Square, Chicago: about 3000 people met to listen to anarchists speeches about labor

36 Police entered square, a bomb was thrown, police opened fire, 7 police officers and 4 workers dead 8 arrested on weak evidence, all 8 convicted, 4 sentenced to death (1 was a K of L, hurt the union)

37 Pullman Strike 1893: depression hits, wages cut Pullman Co. required workers to live in Company houses and buy from company stores, did not cut these prices with wage cuts Workers protested, blocked railroads Pullman Co. attached mail cars to own Co. cars, now strikers were interfering with mail, which is a federal offense Pres. Cleveland sent in troops, courts issued injuctions

38 Strikes became more violent and employers began to rely on federal troops to restore order!!!!

39 Glue Study Guide on next left side page Answer the study guide on right side. We will be working on this tomorrow as well. TEST TUESDAY!!!!!

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