1. Industrialization
Chapter 14

2. Section 1: The Rise of Industry
American industry grew rapidly after the Civil War, bringing revolutionary changes to American society.

3. The United States Industrializes (pages 436-437)
With the end of the Civil War, American industry expanded and millions of people left their farms to work in mines and factories.
By the early 1900s, the U.S. had become the world’s largest leading industrial nation. By 1914 the GNP, was eight times greater than at the end of the Civil War.
What was responsible for this growth?
-3 Factors That Led to the Industrial Boom:
A wealth of natural resources.
A growing urban population that provided both cheap labor and markets for new products.
Government support for business.

4. Question 1. Which answer is NOT a reason why people would leave farms to work in mines and factories?
A. Farm work was and is, a 12 hour a day 365 days per year job.
B Factories and mines offered more money than working on farms.
C Farm income was and is, subject to the weather.
D Mines and factories are more dangerous work environments.
E. None of the above

5. 1st Factor Natural Resources: abundance of raw materials; vast natural resources that industry depended on; water, timber, coal, iron, and copper.
These resources were here in America! Less import of resources now because America had them!
Most of these resources were located in the mountains of the West. The settlement of the West helped accelerate industrialization, as did the transcontinental railroad by bringing settlers and miners to the West and moving resources back to the factories in the East.
*Edwin L. Drake- drilled the first oil well near Titusville, PA in 1859; oil production increased.

6. 2. The transcontinental railroad had what impact on the price of natural resources?
A Increased the cost
B Decreased the cost
C Had no change on the cost
D All of the above
E None of the above

7. Edwin L. Drake Drilled a well in Titusville, PA and struck oil
Harvested kerosene: threw away the gasoline

8. 3. Why would Edwin L. Drake throw away gasoline?
A Kerosene was the only fuel used at the time.
B There was no market for gasoline
C. The internal combustion engine had not been invented.
D All of the above
E None of the above

9. 2nd Factor Large Workforce:
Between 1860 and 1910, the population of the U.S. tripled. This provided a large workforce and a greater demand for consumer goods.
Why the population growth? Large families and a flood of immigrants.

10. 4. Why would people have large families during this time period (1865 to 1901)?
A No birth control
B No social services like Social Security, Medicare, etc.
C Cultural traditions
D All of the above
E None of the above

11. 3rd Factor Government Support for business:
Laissez-faire economics, popular idea in the late 1800s; government should not interfere with the economy. Supply and demand needed to regulate prices and wages.
Profit motive = entrepreneurs increase; attracted to manufacturing and transportation fields. Result=hundreds of factories and thousands of miles of railroad built.
Foreign investments helped fund the nation’s industrial buildup.
Laissez-faire = government low taxes and low spending; no regulations on industry = all policies to help industry.
High tariff controversy? Is the U.S. ready to compete by the early 1800s freely with other nations or do we still nee a protective tariff?

12. 5. Why would the US government have policies during this period to support business?
A Increase economic growth
B Increase tax revenue
C Increase employment
D All of the above
E None of the above

13. New Inventions Promote Change: New inventions increased America’s productivity, which in turned produced wealth and job opportunities.
Samuel Morse: 1844 telegraph to send messages; before telegraph horse and rider
Elias Howe: sewing machine
Elisha Otis: safety elevator kept elevator cars from suddenly falling
George Pullman: rail sleeping car
Thaddeus Lowe: ice machine
Gustavus Swift: invented refrigerated rail cars for transporting food
Alexander Graham Bell:1876 invented telephone
Thomas Alva Edison: light bulb; electric generator, motion picture

14. 6. How does increased productivity of business increase wealth?
A Producing items at a higher cost decreases profits
B Producing items at lower cost has no impact on wealth.
C Producing items at a lower cost increases profits
D All of the above
E None of the above

15. The Power of Electricity
*Thomas Alva Edison established the world's first research lab in New Jersey. There he perfected the incandescent light bulb, which was patented in He later invented an entire system for producing and distributing electrical power.
-The harnessing of electricity completely changed the nature of business in America.
Inventions Change Lifestyles
*Alexander Graham Bell and *Thomas Watson invented the telephone, which opened the way for a worldwide communications network.
-Both the typewriter and the telephone created new jobs for women.
-In 1870 women made up 5% of the workforce -- by 1910 they counted for nearly 40% of the clerical workforce.

16. 7. What was one of the effects of inventions on women's participation in the workplace.
A No effect
B Increased
C Decreased
D All of the above
E None of the above

17. Section 2: The Age of the Railroads
After the Civil War, the rapid construction of railroads accelerated the nation’s industrialization and linked the country together.

18. 8. Why would the rapid completion of the railroads accelerate the industrialization of USA?
A Made the cost of natural resources used by industry cheaper.
B Expanded the market for industrial products
C Allowed for easier movement of workers.
D All of the above
E None of the above

19. I. Linking the Nation
A. After the Civil War, railroad construction dramatically expanded. In 1862 President Abraham Lincoln signed the Pacific Railway Act, which provided for the construction of a transcontinental railroad by the Union Pacific and Central Pacific railroad companies. To encourage rapid construction, the government offered each company land along its right of way.

20. 9. Why would the government give land to the railroads along the transcontinental railroad?
A Railroads could sell the land to raise capital.
B Encourage the development of towns
C Did not cost the government any money
D All of the above
E None of the above

21. B. In 1865 the Union Pacific, under engineer Grenville Dodge, pushed westward from Omaha, Nebraska. Weather, labor, money, and engineering problems hampered the project. The workers included Civil War veterans, Irish immigrants, farmers, miners, cooks, and ex-convicts. Camp life was dangerous.
C. Four merchants known as the “Big Four” invested in the Central Pacific Railroad. They each bought stock in the railroad and eventually made a fortune. One of them, Leland Stanford, became Governor of CA, founded Stanford University, and later became a U.S. Senator.
*Transcontinental Railroad- in May 1869 the Central Pacific and the Union Pacific met in Utah to nail the Golden Spike that marked the nation's first cross-country railroad.

22. 10. Why would “Camp Life” be very dangerous?
A Camps were in remote areas
B There was little or no law enforcement
C Many of the workers had criminal backgrounds
D All of the above
E None of the above.

23. II. Railroads Spur Growth
Railroads encouraged the growth of American industry. They linked the nation and increased the size of markets. The railroad industry stimulated the economy by spending large amounts of money on steel, coal, and timber (natural resources )
Cornelius Vanderbilt: famous railroad consolidator
1883 American Railway Association divided the country into __4__ time zones, or regions. where the same time was kept = safety and more reliability = Eastern, Central, Mountain, and Pacific.
Large integrated railroad systems provided increased efficiency, a decrease in time spent in long distance travel, and it united Americans from different regions.

24. 11. What was NOT one of the immediate effects of the railroads?
A. Creation of 4 time zones in the USA
B Increased efficiency in transportation
C Loss of the horse and wagon
D Decrease in time spent crossing the country
E None of the above

25. III. The Land Grant System
Land Grants were given to railroad companies by the federal government to encourage railroad construction.
Railroad companies like the Union Pacific and Central Pacific were able to cover all their building costs by selling land to settlers, real estate agencies, and other businesses.

26. 12. Which of the following would be similar today to “Land Grants” to spur development of 21st century industries?
A Tax credits for solar installations
B Child care tax credits
C Food stamps
D All of the above
E None of the above

27. IV. Robber Barons-The growth and consolidation of railroads benefited the nation, but also led to corruptness and required government regulation.
The wealth of railroad entrepreneurs led to accusations that they had acquired their wealth through illegal means. One of the entrepreneurs with the worst reputation was Jay Gould, who used information he obtained as a railroad owner to manipulate stock prices to his benefit.
Railroad investors realized they could make more money through land grants than by running a railroad, so many investors bribed members of Congress to vote for more land grants.

28. 13. The previous slide implies that “government regulation” is an effect of what?
A consolidation of railroads
B Entrepreneurs accumulation of wealth
C Corruption
D All of the above
E None of the above

29. Andrew Carnegie (steel)—Pittsburgh and New York
Robber baron is a pejorative term used for a powerful 19th century United States businessman and banker. The term may now relate to any businessman or banker who used questionable business practices to become powerful or wealthy.
Andrew Carnegie (steel)—Pittsburgh and New York
J. P. Morgan (banking, finance, industrial consolidation)—New York City
Jay Gould (railroads)--New YorkCornelius Vanderbilt (railroads)--New York[8]
John D. Rockefeller (oil), Standard Oil--New York
Cornelius Vanderbilt (railroads)--New York[8]

30. 14. Which term below would be an example of a “pejorative” term used in the 21st Century similar to Robber Barron?
A Bernie Maddof’s Ponsi investment scheme
B Companies moving jobs offshore
C Hedge Funds
D All of the above
E None of the above

31. The wealth of railroad entrepreneurs led to accusations that they had acquired their wealth through illegal means. One of the entrepreneurs with the worst reputation was Jay Gould, who used information he obtained as a railroad owner to manipulate stock prices to his benefit.
Railroad investors realized they could make more money through land grants than by running a railroad, so many investors bribed members of Congress to vote for more land grants.

32. In 1872 corruption in the railroad system became public with the Credit Mobilier scandal. Several stockholders of the Union Pacific set up the Credit Mobilier, a construction company. The investors signed contracts with themselves. The company greatly overcharged Union Pacific, and the railroad agreed to pay the inflated bills.
When the railroad was completed, the investors had made a fortune, but the railroad was almost bankrupt. Congress agreed to give additional grants to the railroad after several members of Congress were given shares in Union Pacific at a price well below market value. An investigation implicated several members of Congress, including James Garfield, who later became president Union Pacific had taken up to $23 million in stocks, bonds, and cash.

33. 15. What current event is similar to the Credit Mobilier scandal?
A Recession of 2008
B Mortgage lending practices of 1990s and 2000s
C The government’s bailout of General Motors
D All of the above
E None of the above.

34. Chapter 14, Section 3 Guided Reading Notes: Big Business
The Rise of Big Business: By 1900, big businesses dominated the economy.
The Role of Corporations
Big business would not have been possible without the corporation.
Corporation: an organization owned by many people but treated by law as though it were a single person.
Stockholders/Stocks

35. Economies of Scale:
Money from stock = investment of in new technologies, hiring a large workforce, and purchase of machines that increase efficiency
Economies of scale: corporations making goods cheaply because they produce so much so quickly using large manufacturing facilities.
Criticisms of corporations: using wealth to drive small companies out of business.

36. The Consolidation of Industry: To stop prices from falling (cut in their profits), many companies formed pools, or agreements to maintain prices at a certain level. Criticism: interfered with competition and private property rights. Companies that formed pools had no legal protection and could not enforce their agreements in court. Pools generally did not last long. Sooner or later competition resumed.

37. John Rockefeller “Robber Baron” Rich from Oil Industry
Founded Standard Oil Company in 1870

38. Andrew Carnegie Business tycoon Scottish immigrant: Rags to riches
Steel industry

39. Andrew Carnegie and Steel:
Built first American steel mills to use the Bessemer Process: make high quality steel efficiently and cheaply.
Vertical Integration: (steel industry) company owns all of the different businesses on which it depends for its operation.
Horizontal Integration: (oil) combining many firms engaged in the same type of businesses into one large corporation. = monopolies; Rockefeller Standard Oil (buyouts)
Later monopolies would be outlawed by the Sherman Antitrust Act

40. Bessemer Process Injecting Air into molten iron to create STEEL
Made Carnegie wealthy!

42. Monopoly
Owning the majority of a group of companies in the same business

43. Selling the Product:
Advertising Industry Rose: Woolworth’s; Sears, Roebuck
Mail-order catalogs, chain stores

44. Working the United States:
Chapter 14, Section 4 Guided Reading Notes: Unions (the other side of the spectrum)
Working the United States:
Life for workers in industrial America was difficult.
Machines replaced skilled labor; work became monotonous. = little pride in one’s work.
Working conditions were unhealthy and dangerous. Workers breathed in dust, lint, and toxic fumes. High number of injuries.
Real wages rose  Standard of living rose
Uh-oh – Deflation: workers felt like they were being paid less money for the same amount of work. = many workers decided to organize.

45. WORKING CONDITIONS
-low wages
-long hours
-dangerous conditions
-company towns
-child labor

46. Sweatshops
Illegal factories where workers work for less than legal wages

47. Craft Unions
Union limited to those who participate in that type of work
Ex. All carpenters

48. Trade Unions
Used Collective Bargaining: negotiating with the strength of numbers
All workers for an employer

49. Early Unions:
Trade Unions: unions limited to people with specific skills. Largest and most successful in 1873: Iron Molders’ International Union.
Employers were often forced to recognize and negotiate with trade unions because they represented workers whose skills they needed.
However, employers generally regarded labor unions as conspiracies that interfered with their property rights. They particurlaly opposed industrial unions: united all craft workers (special skills and training) and common laborers (few skills and received low wages).

50. Techniques used to stop labor unions:
Oaths and sign contracts promising not to join an union; hired detectives to go undercover and identify union organizers; blacklist: a list of “troublemakers”; lockout: locked workers out of the property and refused to pay them; hired strikebreakers.

51. Collective Bargaining
Negotiation between labor unions and employers

52. Arbitration
Resolution of disputes outside of court

53. Yellow Dog Contract
Workers agree NOT to join a union while employed

54. Political and Social Opposition
Workers wanting to join a union faced several major problems:
No laws allowing workers the right to organize.
Owners were not required to negotiate with workers.
Courts frequently rules against them, referring to them as conspiracies.
Perception that they threatened American industries.
Marxism: basic force shaping capitalist society was the class struggle between workers and owners; workers would eventually revolt, seize control of the factories, and overthrow the gov’t; then gov’t would seize all private property and create a socialist society where all property would be evenly divided; leading to a Communist society.
Many labor supporters agreed with Marx, and a few even supported anarchism.
All of these ideas were driving forces in Euorpoean unions = immigrants = nativism = attempts at suppression of unions.

55. The Struggle to Organize
The Great Railroad Strike: Circle Map
The Knights of Labor: Circle Map
The Haymarket Riot: Circle Map
The Pullman Strike: Circle Map

56. The great Railway Strike of 1877
Response to wages being cut
Lasted for 45 days
Ended by federal troops

57. Knights of Labor
The Knights grouped workers by industry, regardless of trade or skill
First to organize women

58. Haymarket Riot
A bomb was exploded during a Union Labor Rally in the Haymarket Square, in Chicago.
1886
7 policemen were killed

59. Pullman Strike Wages were cut but rents remained the same
Pres. Cleveland: strike disrupts the mail
Troops were sent in to break it up

60. The American Federation of Labor
AFL: first leader Samuel Gompers: his approach helped unions become accepted in American society.
He believed that unions should stay out of politic; rejected socialist and communist ideas.
Gompers felt that the AFL should fight for small gains within the American system. Gompers was willing to use the strike method, but preferred negotiations.
AFL’s 3 main goals under Gompers leadership:
Tried to get companies to recognize unions and to agree to collective bargaining.
Pushed for closed shops: companies could only hire union workers.
Promoted an 8-hour workday.

61. American Federation of Labor
Largest group of labor unions
Founded by Samuel Gompers

62. Working Women After Civil War women wage earners increased.
“women’s work” – teachers, nurses, sales clerks, domestic servants.
Light industrial jobs
Paid less than men; most unions, including the AFL excluded women.
Mary Kenney O’Sullivan and Leonora O’Reilly: decided to establish a separate union for women with the help of Jane Addams and Lillian Ward = WTUL
WTUL: pushed for creation of minimum wage, an end to evening work for women, and abolition of child labor.