1. Ch. 16 – The Rise of Industrial America

2. Essential Question:
How did the “Second Industrial Revolution” transform the U.S. during the Gilded Age?
Lesson Plan for Monday, November 24, 2008: Warm-up question, The Rise of Industry & Urbanization Notes

3. Gilded Age Industrialization
During the Gilded Age, American businesses were transformed:
Massive corporations replaced small, family businesses
New technology, transportation, marketing, labor relations, & efficient mass-production
By 1900, the U.S. was the most industrialized country in the world

4. The Business of Invention
19th-century inventors led to an “Age of Invention”:
Cyrus Field’s telegraph cable
Business typewriters, cash registers, adding machines
High-speed textile spindles, auto looms, sewing machines
George Eastman’s Kodak camera
Alexander G. Bell’s telephone
By 1905, 10 million Americans had phones; (Bell Telephone Co became AT&T) 13

5. The Business of Invention
Thomas Edison, the “Wizard of Menlo Park,” created the 1st research lab in New York
Edison Illuminating Co was the to 1st use electric light in 1882
Tesla’s alternating current (AC) allowed electricity to travel over longer distances & to power streetcars & factories

6. Patents Issued ( )

7. The Business of Invention
New technologies allowed for increased industrial production
New machines were incorporated into the first assembly lines which allowed for continuous & faster production of goods
The railroad linked every region of America & allowed for a mass consumption of goods 13

8. Chicago Meatpackers: The 1st “Disassembly Line”

9. The Midwest Made Meat for America
A new-and-improved “market revolution”: More regional specialization made mass production & mass consumption possible
(Chicago→meat, St Louis→beer, & Minneapolis→grain)

10. New Methods of Marketing
Marketing became a “science”:
Advertising firms boomed
Department stores like Macy’s & Marshall Field’s allowed customers to browse & buy
Chain stores like A&P Grocery & Woolworth’s “Five & Ten”
Mail-order catalogues, like Montgomery Ward sold to all parts of America 14

11. New Forms of Business Organization
“Trusts” use a board of trustees to manage a company
“Holding companies” oversee & manage other subsidiary companies
New types of business organization were used to increase profits:
“Trusts” & “holding companies” integrated various businesses under 1 board of directors
Vertical & horizontal integration maximized corporate profits
Frederick Taylor’s “scientific management” emphasized time efficiency & mid-level managers
Led to monopolists like Carnegie, J.P. Morgan, & Rockefeller 13

12. Vertical & Horizontal Integration
U. S. Corporate Mergers
By 1900, 1% of U.S. companies controlled 33% of all industry

13. New Forms of Business Organization
Business leaders used a variety of ideas to justify their wealth:
The “Gospel of Wealth” argued that it is God's will that some men attained great wealth
Social Darwinism taught that natural competition weeds out the weak & the strong survive
Were monopolists “captains of industry” or “robber barons”? 14

14. The “Robber Barons” of the Past