1 A New Industrial Age The Expansion of Industry At the end of the 19 th century, natural resources, creative ideas, and growing markets fueled an industrial boom.

Section 1 Goals and Objectives Upon completion, students should be able to: 1.Explain how the abundance of natural resources, new recovery and refining methods and new used led to extensive industrialization. 2.Identify new inventions at the end of the 19 th century as well as their impact on American life. 2

3 INDUSTRIALIZATION  The aggregate (sum) of manufacturing or technically productive enterprise in a particular field.

4 Entrepreneur  A person who organizes, operates, and assumes the risk of a business adventure.

5 Industrialization Factors Unskilled and semi-skilled labor in abundance New, talented entrepreneurs Oil, Steel, Coal Inventions –New technology that allows mass production Railroads Changes in business strategy –Vertical Integration & Horizontal Consolidation –Social Darwinism

6 Edwin L. Drake > In 1859, he successfully used a steam engine to drill for oil from beneath the earth’s surface.

7 The Bessemer Process  Henry Bessemer was a British manufacturer  This technique injected air into molten iron to remove the carbon and other impurities. Circa (approximately) 1850

8 Thomas Edison  1876, Inventor who pioneered the first research laboratory in New Jersey. He perfected the first incandescent (giving off visible light as a result of being heated) and later invented the entire system of producing and distributing electricity.

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10 Christopher Sholes  Invented the typewriter in 1867 and forever changed the world of work  Provided more jobs for women

11 Alexander Graham Bell  Invented the telephone that opened communications worldwide.  The telephones in offices created new jobs for women  Office jobs for women went from 5% in 1870 to 40% by 1910

Section 2 Goals and Objectives: Upon completion, students should be able to: 1.Identify the role of the railroads in unifying the country. 2.List positive and negative effects of railroads on the nation’s economy. 3.Summarize reasons for and outcomes of the demand for railroad reform. 12

13 Transcontinental Railroad  Means passing or extending across a continent.  TRANSCONTINENTAL RAILROAD  1869 the Central Pacific and Union Pacific Railroads met at Promontory, Utah

14 Building the 1st Transcontinental Railroad Pacific Railway Act of 1862 – U.S. Government hired Union Pacific and Central Pacific Railway Company to extend railways across the United States. Central Pacific – Started in Sacramento, CA Union Pacific – Started in Omaha, NE The 2 railroad companies met in Promontory, Utah to drive the “Golden Spike” on May 10, 1869

15 Transcontinental Railroad Map

The Birth of the railroads 16

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18 How did the Railroad influence life in American?  Rapid growth of industry and businesses  Once isolated cities were not linked  Rapid shipment of cattle, grains, and other goods  Rapid travel for passengers

19 Who did the Railroad Impact Continued Native Americans (called it the Iron Horse) had land taken for the RR Helped Westward expansion Made trade much easier Hurt the farmers economically because of the higher costs for farmers They made deals with wealthy businessmen (became corrupt) Became crucial to the U.S. economy

20 Who Built the Railroads?  The Central Pacific Railroad hired thousands of Chinese immigrants  The Union Pacific Railroad hired Irish immigrants and desperate, out of work Civil War veterans  All these workers faced disease, Indian attacks, harsh winters, accidents, and less pay than white workers

21 Railroad Laborers Chinese ImmigrantsIrish Immigrants

22 C.F. Dowd  He proposed a remedy for the time zone problems. Based on the fact that the earth was divided into 24 time zones, one for each hour of the day, the U.S. would contain 4 time zones:  Eastern, Central, Mountain, Pacific  10:00 9:008:007:00

23 George Pullman: Sleeper Railroad Cars Pullman Town  Comfort for his travelers and control for his employees

24 Pullman Cars A Pullman porter

25 A “Company Town”: Pullman, IL A “Company Town”: Pullman, IL

26 New Uses For Steel From Inventors  Railroads  Barbed Wire  Deere Farm Machines  Bridges  Skyscrapers

27 Credit Mobilier  A corrupt construction company formed by Union Pacific Railroad stockholders.  RESULTS:  Gave their own company contracts to lay track for 2-3 times the actual cost  Pocketed the profits. Over $23 million

28 The Grange a.k.a. The Patrons of Husbandry  Grangers (social and educational organization), were farmers who faced low crop prices, high cost loans, and high RR shipping charges. Founded in 1867  Purpose: To stop railroad corruption  Misuse of government land grants which RR workers sold to other businesses rather than to settlers  Stop fixed prices that kept farmers in debt  Non-consistent pricing for hauling

29 The Grange

30 Grangers Demand Reform  1871, Illinois legislators established maximum freight and passenger rates and prohibited discrimination  The Railroad fought back. In the case to MUNN V. ILLINOIS, the Supreme Court upheld the Granger Laws

31 Interstate Commerce and the Interstate Commerce Commission  Act passed by Congress in 1886 to stop the railroads from setting their own rates for interstate travel  The Federal government can now supervise railroad activities  Interstate Commerce Commission was lead by a five member team who had trouble regulating due to long legal process from railroad resistance

32 Expansion of Industry Resulted in Big Business and Labor  Andrew Carnegie – steel industry  John D. Rockefeller – oil industry  J. P. Morgan - banker Were they Robber Barons Or Captains of Industry

Section 3 Goals and Objectives: Upon completion, students should be able to: 1.Identify management and business strategies that contributed to the success of business tycoons such as Andrew Carnegie 2.Explain Social Darwinism and its effects on society. 3.Summarize the emergence and growth of labor unions 4.Explain the reactions by American society to labor unions. 33

The “Robber Barons” 34

35 Big Business Strategies VERTICAL INTEGRATION  A process in which one person buys out all his suppliers: mines, freighters, railroad lines. This process controls all materials and transportation systems.

36 Vertical Integration Example  What companies can you think of that have total control from the ground up.  Material  Produce  Distribute  Ship  Absorb all profits

37 Big Business Strategies Continued HORIZONTAL INTEGRATION  A process when one person attempts to buy out all competing producers of their product. This will give control over suppliers and limit competition.  Merge

38 Horizontal Integration Example  What are some companies that have bought out or merged with competing companies to gain control?

39 Charles Darwin and Social Darwinism  English naturalist with a theory on evolution which was “natural selection”  ONLY THE STRONG SURVIVE: he observed that some generations flourish and pass the traits down and some do not  Laissez Faire = French term meaning “allow to do”

40 Monopoly  Horizontal Integration in the form of mergers  Mergers are when one company buys out the stock of another

41 Philanthropist  A person who uses his wealth for the common good of other or “do gooders”  Examples: building libraries to promote education, donations to charities

42 Sherman Antitrust Act  The Sherman Antitrust Act was an attempt by the government to stop the expanding corporations from stifling the free competition

43 Labor Unions What, Who, When, Where  WHAT: Organizations formed by laborers to improve wages and conditions  WHO: Skilled, unskilled, male, female, black, and white workers  WHEN: Union movements developed in the late 1800s  WHERE: Workers for Big Businesses

44 WHAT Unions Did

45 WHO were part of the unions >

46 Child Labor

47 WHEN and WHERE > They met at homes, barns, churches, or where ever they could gather

48 WHY  Long hours for little pay (12=14 hours each day, no vacations or sick leave.  Unsanitary conditions that promoted disease and illness.  Dangerous conditions. No payment for on the job injuries that were frequent.  Wages were so low everyone in the family worked, including children.

49 Samuel Gompers and the American Federation of Labor  Gompers: President of the AFL from  Craft Union (skilled workers)  Open to skilled, WHITE men only  Advocated higher wages and shorter work weeks.  Focused on bargaining and negotiations  Used strikes as major tactic

50 Homestead Steel Strike (1892)  Steelworkers strike due to cut in wages by president, Clay Frick.  Frick hires guards to protect the plant so he could hire scabs continue operations.  Violence and deaths Homestead Steel Strike (1892)  Steelworkers strike due to cut in wages by president, Clay Frick.  Frick hires guards to protect the plant so he could hire scabs continue operations.  Violence and deaths

51 Haymarket Riot (1886)  3,000 gather at Chicago’s Haymarket Square to protest police brutality when a striker was killed and several wounded at the McCormick Harvester Plant.  Cause was a bomb  Radicals arrested  Eight Convicted Haymarket Riot (1886)  3,000 gather at Chicago’s Haymarket Square to protest police brutality when a striker was killed and several wounded at the McCormick Harvester Plant.  Cause was a bomb  Radicals arrested  Eight Convicted

52 Pullman Company Strike, 1894  Company laid off half of workers and lowers wages of remaining by 25-50% without lowering housing cost.  Eugene Debs calls for arbitration, boycotts follow  Pullman hires scabs, strike becomes violent, President Cleveland calls for federal troops.  Pullman fires strikers and “blacklist” many

53 The Pullman Strike of 1894

54 The Knights of Labor  Founded by Uriah Stephens. Members were a part of a secret society of tailors  Included all workers regardless of race, gender, or degree of skill.  Wanted better working conditions: eight hour work week, abolition of child labor  Equal pay for equal work for all  Advocated Arbitration instead of strikes.

55 Knights of Labor Terence V. Powderly An injury to one is the concern of all!

56 American Railway Union Eugene V. Debs > Majority of members were unskilled but welcomed skilled workers as members EXCEPT African Americans

57 The Socialists Eugene V. Debs

58 Industrial Workers of the World  AKA Wobblies, W. “ Big Bill: Haywood  Unlike the ARU, they did welcome African Americans as members  Were radical and socialists

59 The Great Strike of 1877  Baltimore and Ohio railroad worker went on strike after their 2 nd wage cut with in two months  Affected railroad traffic covering 50,000 miles of tract

60 Mother Jones: “The Miner’s Angel”  Mary Harris.  Organizer for the United Mine Workers.  Founded the Social Democratic Party in  One of the founding members of the I. W. W. in 1905.

61 Mary Harris Jones  United behind powerful leaders  Demanded equal pay for equal work  End child labor. Exposed the cruelties of child labor when she led 80 children, many with hideous injuries, to the home of President Theodore Roosevelt