1. Chapter 14
A New Industrial Age

2. New Inventions and Industry
Edwin L. Drake in 1859 used a steam engine to drill for oil
Oil boom created, lead to a new industry
Coal and Oil production increased
The Bessemer process was invented to inject air and remove impurities and carbon in iron (Iron is used for steel)
Uses for Steel
Railroads
New construction, Brooklyn Bridge
Skyscrapers

3. Inventions Leads to Change
Thomas Edison invented the first light bulb and first system to distribute light
Electric power manned machines time saving machines
Electric streetcars
Industry plants could go anywhere not just near sources of power
Christopher Shoes invented the typewriter
Alexander Graham Bell invents the telephone
Created new jobs for women
The South did not benefit much from this, still recovering, had little money

4. The Railroads Expanded migration, industry movement
First Transcontinental RR where the Central Pacific and Union Pacific RR met in Utah
Employed Chinese immigrants, Irish workers, desperate Civil War veterans
Poor working conditions with diseases and accidents
United the Nation
C.F. Dowd created the four time zones we have (Eastern, Central, Mountain and Pacific)
Increased the iron, coal, lumber, and glass industries
New towns and new markets (increased trade)

5. Grangers vs. RR
Farmers did not like the RR or anyone involved because they took up land and poorly regulated them
They passed Granger Laws which established max passenger and freight rates
Munn v Illinois upheld the Granger Laws of RR regulation by the states

6. Interstate Commerce Act
Later the Supreme Court ruled that states could not set rates for the RR (violated interstate commerce)
Established an Interstate Commerce Commission where the federal government would oversee the RR
Supreme Court then rules that the ICC could not set rates for the RR either
Not until 1906 did the ICC get the power they needed to over see the RR
Mismanagement of the RR led to the Panic of 1893

7. Andrew Carnegie 1899 the Carnegie Steel Company was created
Does Amazing
He creates vertical integration
Where you buy all the suppliers to create your product
Coal fields, iron mines, ore freighters, railroad lines
He creates horizontal integration
Buying other companies in the same product as you
Monopolies develop
Holding Companies develop (companies literally created to buy out others)

8. Horizontal and Vertical Integration

9. Social Darwinism
Charles Darwin's theory of biological evolution in “theory of evolution”
Herbert Spencer uses Darwin's biological evolution as an explanation of human society
Economists used this idea to develop that laissez faire is the way to go (federal government does not regulate the market)
Businesses die that don’t do well, poor are poor because they don’t work, and the rich are rich because they do work

10. John D. Rockefeller and Robber Barons
Rockefeller used trusts (same as monopolies)
Rockefellers Standard Oil Company produced 2-3$ of oil, and 90% of the refining business
Received a lot of profits because his employees were paid very low wages
Drove his competitors out of business by selling under them, then increased his prices
Called robber barons: was a derogatory term used in social criticism and applied to some wealthy and powerful 19th-century American businessmen, like Carnegie, Rockefeller, and JP Morgan

11. Sherman Antitrust Act--stop
Government was concerned that free competition was being stopped
The Act mad it illegal to form a trust (monopoly) that interfered with free trade
It was still hard to prosecute the companies because the act did not clarify what a “trust” was
Companies like the Standard Oil would just separate into single companies

17. Labor Unions Emerge Did not exempt any race or gender
Long hours, seven day workweek
Ex. Seamstresses worked 12hrs 6 days a week
NO vacation, workers compensation, or sick leave
Dirty unventilated working conditions
Sweatshops
Dangerous or faulty equipment, little to no protective gear
Poor wages, very low considering what they worked through

18. Early Labor Unions
1st large scale union was the National Labor Union (NLU)
They persuade Congress to legalize 8 hr. work days
Knights of Labor: open to all workers, supported 8hr work days, equal pay, strikes were a last resort
American Federation of Labor (AFL) led by Samuel Gompers
They focused on negotiations between representatives of labor and management
They also used strikes as a major tactic

19. Early Labor Unions
Socialism: government control of businesses and equal distribution of wealth
Industrial Workers of the World (IWW) aka the Wobblies
Led by Bill Haywood
Made of miners, lumber workers, and dock workers
Promoted Socialism

20. Strikes Great Strike of 1877
Baltimore and Ohio RR (B&O) workers protested their 2nd wage cut
RR Traffic was stopped for over a week
Federal Troops end the strike, workers were interfering with interstate commerce
The Haymarket Affair
Gathering at Chicago's Haymarket Square to protest police brutality
A striker had been killed and some wounded at a McCormick Harvest Plant
The crowd was dispersing when police arrived
Someone tossed a bomb into the police line
Police fired at the workers, 7 police and some workers died
3 speakers and 5 protestors charged with inciting a riot
4 hanged and one committed suicide
Many turn against the labor movement after this

21. Homestead Strike Homestead Strike
At Carnegie Steel Company Homestead plant in PA
President Henry Clay Frick cuts wages leading to the strike
Workers were working in terrible conditions as well
Frick hires guards to protect the plant
3 detectives and 9 workers dead
The strike loses support and falls to the company

22. Pullman Strike Pullman Company created RR cars
Pullman Company laid off more than 3,000 and cut wages of 2,800 after Panic of 1893
Wages were cut but the cost of housing had not decreased
Pullman refused any negotiations with the employees
Federal troops sent in
Most of the strikers fired
All others blacklisted and could never get a job with the RR again