1. Industrial Revolution
Chapter 4

2. The Second Industrial Revolution
Timeline:
Key Terms: Second Industrial Revolution, Bessemer process, Thomas Edison, patents, Alexander Graham Bell, Henry Ford, Wilbur and Orville Wright
Main Ideas: Breakthroughs in steel processing led to a boom in railroad construction. Advances in the use of oil and electricity improved communications and transportation. A rush of inventions changed Americans’ lives.

3. Factors Affecting Industrial Growth
Large amount of natural resources (water, trees, minerals, etc)
Growing population to provide workers
Transportation advancements
Rising immigration
Inventions and innovations
Increased business investments
Government policies assisting businesses
Ex: Hyundai in Montgomery, AL

4. Steel Processing
Industrial revolution is a period of rapid growth in US manufacturing
By 1890s the US had become the world’s industrial leader
Steel is iron and carbon combined in heat
Henry Bessemer (Bessemer Process) invented a way to make steel quickly and cheaply- a days work turned into minutes- increased steel production (77K tons to 1M tons)
More steel=steel price dropped (supply & demand) so more railroads were built
Railroad and shipping increased meant more people were needed to work

5. Oil as Power Oil was used as a power source in the late 1800s
Chemists invented a way to convert unprocessed oil into fuel called kerosene which can be used to cook, heat, and light
High demand on oil increased price of oil-oil became a big business
Edwin Drake proved oil can be pumped from the ground so people began to drill-workers hired
Refineries were built to make kerosene-workers hired
Major oil states: Ohio, Pennsylvania, and West Virginia
Watch Men That Built America-Rockefeller

6. Electricity Spreads
Thomas Edison had over 1000 patents from his New Jersey research center
Patents allow inventions from being manufactured by others
1878 Edison announced he would produce electric light (threatened oil investments that provided light)
Edison light bulb (show example) produced in 1879
Edison built power plant to supply electricity to New York City but could not send it long distances-provided to major cities only
George Westinghouse built power stations to send electricity many miles
Two men competed as electricity spread rapidly

7. Advances in Communication
Telegraph wires connecting East to West only carried written messages and was difficult for untrained people
Alexander Graham Bell patented the telephone
Companies raced to lay miles of phone lines – workers hired
Increased phone owners from to 1.5 million by 1900 (supply & demand)

8. Automobiles
Engine powered by gasoline (made from oil) invented in 1876
Many cars began to be made – workers hired
Wealthy owned cars until Henry Ford introduced Model T (photos)
Ford was FIRST to implement the moving assembly line to manufacture
Benefits: reduce cost of product making cars more affordable
Watch Men That Built America-Henry Ford

9. Planes
Wilbur and Orville Wright built a lightweight airplane using a small gas powered engine
FIRST flight in Kitty Hawk, N Carolina in 1903
Changed the way Americans traveled and increased demand for oil production

10. Big Business
Key Terms: corporations, Andrew Carnegie, vertical integration, John D Rockefeller, horizontal integration, trust, Leland Stanford, social Darwinism, monopoly, Sherman Antitrust Act
Main Ideas: The rise of corporations and powerful business leaders led to the dominance of big business in the US. People and the government began to question the methods of big business.

11. Dominance of Big Business
Corporation is a business that sells portions of ownership called stock shares
Entrepreneurs formed first corporations in the late 1800s
Leaders of corporations very respected social and political leaders
Praised for hard work, talent, risk taking, and success

12. Corporations generate wealth
Corporations rewarded the founders and the investors (stockholders)
Stockholders get % of profits based on the amount of stock they purchased
Stockholders are not responsible for the business debt since they do not run the business but they can lose their money with bad decisions (risky)
Stockholders can sell and exchange stocks
By 1900 more than 100M shares per year were traded on the New York Stock Exchange

13. Business Leaders
Andrew Carnegie-Most admired business people of time due to building steel factories to make railroads-expanded business by purchasing competitors businesses
Succeeded due to vertical integration-ownership of business involved in each step of manufacturing processing-he bought mines, coalfields, and railroads needed to supply and support his steel mills
Watch Men That Built America - Carnegie

14. Business Leaders
John D Rockefeller started an oil refinery at age 21and consolidated businesses to make Standard Oil Company-FIRST corporation and largest oil refinery
Used vertical integration along with horizontal integration-owning all businesses in a certain field
Controlled 90% of U.S. oil
Formed a trust-legal arrangement grouping together a number of companies under a single board of directors to get rid of competition
Rockefeller Center in NYC named after John D Rockefeller
Watch Men That Built America - Rockefeller

15. Business Leaders
Leland Stanford, Governor of California made fortune selling equipment to miners
Also owned Central Pacific Railroad (built half of transcontinental railroad) and founded Stanford University
Argued that industries should be owned and managed cooperatively by workers to fulfill democracy (government by the people)

16. Questioning Big Business
Many people saw big business as a problem-child labor, low wages, poor working conditions
Darwin’s “survival of the fittest” was adopted to determine who would succeed in business
Carnegie, Rockefeller, and Stanford were considered philanthropist-gave money to charities, aid the poor
Example: Carnegie gave over $350M and over $60M built public libraries

17. Antitrust Movement
People argued that leaders of big business earned fortune through unfair business practices-believed competition in a free market economy kept prices low and quality of goods and services high
People worried about political power of large corporations
Large corporations typically used their size and strength to drive smaller competitors out of business
Trust gained monopolies-total ownership or a product (oil, steel, etc)
1890 Sherman Antitrust Act passed by Congress making it illegal to create monopolies or trusts that restrained trade-very difficult to enforce due to wording so corporations and trusts continued to grow

18. What about you?
If you could create a new corporation, what would it be?
How would you do it?
Read p. 123
Why are these three men important figures in U.S. history?

19. Industrial Workers
Key Terms: Frederick W Taylor, Knights of Labor, Terence V Powderly, American Federation of Labor, Samuel Gompers, collective bargaining, Mary Harris Jones, Haymarket Riot, Homestead strike, Pullman strike
Main Ideas: The desire to maximize profits and become more efficient led to poor working conditions. Workers began to organize and demand improvements in working conditions and pay. Labor strikes often turned violent and failed to accomplish their goals.

20. Maximize Profits & Efficiency
Machines began to replace skilled workers
Factories focused on specialization-doing same task daily-production increased and costs decreased-tiring and boring
Frederick W Taylor, efficiency engineer, published book that encouraged managers to view workers as interchangeable parts of the production process
Managers paid less attention to working conditions which increased injuries
Is maximizing profits and efficiency still important?

21. Workers Organize
Labor unions formed to get better wages and working conditions
Knights of Labor-FIRST national labor union that operated in secret- encouraged 8 hour workday, equal pay for equal work, and ending child labor
Terence V Powderly led the Knights and ended all secrecy
American Federation of Labor (AFL)-organized individual national labor unions (steelworkers, mineworkers, etc)-encouraged better wages, hours and conditions for skilled workers
Samuel Gompers led AFL
Collective bargaining was popular with unions-all workers act together so they had a much greater chance of success in negotiating
Mary Harris Jones worked to educate workers and organize strikes

22. Labor Strikes
FIRST major labor strike was in Chicago (major city) in 1886 to demand an 8 hour workday
Haymarket Riot-in rebellion to workers killed by police during strike, someone threw bomb at officers and killed eight-police fired back wounding and killing strikers
Others not attending strike were arrested and accused of conspiracy-one was a member of Knights of Labor so membership dropped quickly
Homestead Strike was in Carnegie’s steel factory in Pennsylvania-over buying machines to replace workers-workers were locked out and unable to perform job or get paid-Union defeated
Pullman Strike stopped railroad traffic until courts ordered workers to return to work-Union defeated
Analyze map p. 126

23. Test time Study notes-especially key terms and main ideas
Chapter Review p
Make an A! 