2. The Growth of US Industry 1865 to 1900 A. At the time of the Civil War, the US was still largely an agricultural country B. By the early 1900s, the United States was the world’s leading industrial Power

4. Factors Leading to Industrialization A) Abundant natural resources (water, timber, coal, iron, copper, oil) B) Large Workforce (1860-1910 the population of the US tripled – roughly 20 million immigrants came to the US between 1870 and 1910). C) Favorable Government Polices -- laissez- faire & high tariffs

7. INVENTORS AND INVENTIONS 1. 1876 – Invented the telephone 2. By 1915 nine million phones were in use in the USA 3. Telephones made US industries efficient and competitive by allowing suppliers, producers and sellers to better communicate Alexander Graham Bell

8. INVENTORS AND INVENTIONS Turned electricity from a scientific curiosity into a practical source of power 1876 – opened invention factory in NJ (1 st light bulb, phonograph, motion picture projector) 1882 -- 1 st electrical power station and distribution system in NYC By 1900 electricity was more efficiently powering factories and household items Thomas Edison

9. INVENTORS AND INVENTIONS 1. Pioneer in the automobile industry 2. Improved upon the assembly-line process, which made automobiles affordable to the middle class after WWI Henry Ford

10. INVENTORS AND INVENTIONS 1. First successful flight at Kitty Hawk, North Carolina The Wright Brothers

11. INDUSTRIAL LEADERS 1. At the time of the Civil War, the nation’s railroads ran on iron rails that wore out quickly 2. RR owners knew steel would last longer, but it was expensive Andrew Carnegie

12. INDUSTRIAL LEADERS 3. In 1872 Andrew Carnegie, a Scottish immigrant who built iron bridges for railroads, went to England to study a less expensive process to make steel – the Bessemer Process 4. Carnegie was so impressed by the process that he decided to bring it back with him to the USA. 5. “The day of iron has passed,” he announced, “Steel is king”.

13. INDUSTRIAL LEADERS 6. Carnegie was right. By the 1880s, steel was replacing iron in rails, locomotives and bridges. Steel nails, needles and knives became common household items

14. INDUSTRIAL LEADERS 7. Many companies competed fiercely to supply steel 8. In order to keep costs low Carnegie took various steps. The one we will focus on is “Vertical Integration”.

15. CARNEGIE & VERTICAL INTEGRATION Instead of paying companies for coal, lime and iron, Carnegie’s company BOUGHT coal mines, limestone quarries and iron ore fields.

16. INDUSTRIAL LEADERS 1. Rockefeller invested in his first oil refinery in 1862 2. To reduce competition, he did everything he could to drive his rivals out of business. Those companies he could not destroy, he bought 3. Rockefeller took Carnegie’s idea of vertical integration a step further with horizontal integration John D. Rockefeller

18. INDUSTRIAL LEADERS JP Morgan….finance Cornelius Vanderbilt…railroads

19. CORPORATIONS Big businesses such as railroads needed lots of capital. After the Civil War, more and more businesses became corporations: 1) the businesses are able to raise a lot of cash (selling stock to stock holders) 2) stockholders have limited liability – if the company fails, stock holders only lose their investments By the 1880s, thousands of corporations were doing business across the USA

21. INDUSTRIAL LEADERS A. By 1880, Rockefeller controlled 95% of the nation’s oil refining B. To prevent horizontal integration, many states passed laws that prevented one company from owning stock in another C. In 1882 Standard Oil formed the first TRUST.

22. ROCKEFELLER’S OIL TRUST In trusts, stockholders of one company act as trustees of another company. Though they technically don’t OWN the company, they can control it, making their company bigger and more powerful Trusts were unpopular with lots of American people because they feared monopolies Trusts were popular with businessmen: Other businesses such as railroads, meatpacking, sugar, whiskey and tobacco all created trusts

23. How successful was organized labor in improving the conditions of workers from 1865 to 1900? Analyze the factors that contributed to the level of success achieved? (2000 DBQ)