1. The Rise of Industrialization
Chapter 12
The Rise of Industrialization
(Sec. 1)

2. The Rise of Industrialization
American business and industry grew rapidly after the end of the Civil War.
Industrialization and new technology changed the way people lived.
Most Americans still lived on farms after the Civil War but with industry expanding in both the North and south, many left the farms for jobs in the cities.
By the late 1800’s the United States was the world’s leading industrial nation.

3. The Rise of Industrialization
There was an abundance of natural resources in the U.S. such as timber, coal, iron and copper.
Many of the resources were located in the West and the expansion into this area made the resources more available.
The human resources in America were as important as the natural resources and enabled the nation to industrialize quickly.
Between 1860 and 1910, the population of America more than tripled and provided an abundant workforce while also helping to create the demand for the goods produced. Most of the population growth came from large families or immigration.

4. The Rise of Industrialization
New inventions and technologies emerged that increased the nations productivity, improved transportation and communications.(name some)
Alexander Graham Bell invents the Telephone
Thomas Edison invents the phonograph, perfects the electrical generator and the light bulb and starts a company that is the first to supply electrical power to the city and the homes. He is also credited with the invention of the motion pictures.
George Westinghouse invents the air brake system for railcars that would allow the trains to now travel at higher speeds with safety.

5. The Rise of Industrialization
Technology would change the way people lived.
Before the 1900’s the gasoline powered car, the airplane, refrigerated boxcars, ice machines, hand held cameras, sewing machines and a transcontinental telegraph line would become part of the American landscape.
Government would change to reflect the surge in business. The government would stay out of business adopting a laissez-faire attitude staying out of regulating the economy. They believed that business would take care of any issues that were bad for the economy.
This attitude provided motive for taking economic risk for reward and those willing to do so were referred to as Entrepreneurs (businessmen risking their money to create businesses).

6. Industrialization
Chapter 12
The Railroads
(Sec. 2)

7. The Railroads
Major railroads including the transcontinental railroad were constructed rapidly after the Civil War ended. The construction of these railroads required large amounts of money and land grants from the government.
Unfortunately with the large amounts of money being made and spent corruption was widespread in the railroad business.
In 1865 (end of the Civil War) there was about 35,000 miles of track almost totally east of the Mississippi River. By 1900 there would be over 200,000 miles throughout the nation.
Railroads would be responsible for the development of the West

8. The Railroads
The railroad boom began in 1862 with the start of the transcontinental railroad.
The transcontinental railroad was to be built by two corporations and to make its construction as quick as possible, the U.S. government gave each company land adjacent to the railroad (right-of-way) which made each company work quickly to obtain as much free land as possible.
The two companies were the Union Pacific which started building the railroad in Omaha, Nebraska pushing west toward California and the Central Pacific

9. The Railroads
The Central Pacific was started by four men, one of which was a grocer that would go on to become governor or California and founder of Stanford University.
Because of a shortage of workers in California they hired about 10,000 Chinese workers. By the 1860s Chinese were immigrating to the U.S. to work on the transcontinental railroad.
They started in Sacramento, CA and met
up with the Union Pacific at Promontory
Summit, Utah to join the two to create the transcontinental railroad.

10. The Railroads
More track was built connecting major cities and soon the question of train scheduling came up. Due to many local times zones it was nearly impossible to figure out when trains departed and arrived.
To make rail service more safe and reliable, the American Railway Association divided the country into four standard time zones in 1883 and they remain that way today.
This enable the trains to set times were
everyone could understand when they
were to depart and arrive anywhere
across America.

11. The Railroads
The building of railroads was very expensive and required more money than most private investors could raise.
To finance the railroads, the companies would sell the land that the federal government had granted them when they built the railroads.
Many of the owners were accused or bribery, and corruption to get necessary grants and contracts.
Not all of the owners were corrupt. The Great Northern Railroad made money because its owner was honest and made good business decisions.

12. The Rise of Big Business
Industrialization
Chapter 12
The Rise of Big Business
(Sec. 3)

13. The Rise of Big Business
Following the civil War large corporations developed
that could produce goods more efficiently which
allowed for the rise of big business.
Corporations are seen by law as if they were a person. This creates a situation were investors in a corporation are not liable if it goes bankrupt. This encourages people to buy stock in the company and for it to flourish.
Large business came from this and big business owners such as Andrew Carnegie and John D. Rockefeller became very rich and very powerful.

14. The Rise of Big Business
John Rockefeller made his money in oil. He owned Standard Oil.
Rockefeller became very wealthy because he not only owned his company, but because he bought the companies of most of his competitors and had no competition.
By 1880 his company Standard Oil control about 90% of the oil refining industries in the U.S.
When a single company achieves control of an entire market it is called a monopoly.
In 1882 Standard Oil formed the 1st trust which was a means for controlling other companies without outright owning them. This was to avoid the anti-monopoly laws.

15. Industrialization
Chapter 12
Unions (Sec. 4)

16. Unions
Workers tried to form unions in the late 1800’s hoping to improve wages, hours and working conditions. Big business owners were largely unsupportive which led to strikes and violence.
Socialism and Marxism came from this time era when those who felt cheated by the capitalistic industrial society were easily swayed by their arguments for a society without class struggles.
Many unions were formed both by those with skilled trades and the common workers too. Striking (stopping work) and boycotting became tools used so that arbitration ( a 3rd party helps workers and owners reach an agreement) could occur.

17. Unions
1894 Pullman Strike
In 1893 the American Railway Union (ARU) formed to organize all the workers in the railroad industry.
Among them were the workers at the Pullman Car Company (rail cars). Their wages had been cut and they had been forced to buy their goods from a company store that overcharged them
Once they lost wages they were unable to repay the debts they had occurred at the company store. When the company refused to hear their grievances (issues), they went on strike in Others in support boycotted their rail cars.
The cars which carried the U.S. mail were important to the U.S. which sent in troops and ordered the strike to end.

18. Unions
The dominant union in the U.S. during the time was the American Federation of Labor (AFL) which was comprised of several national trade unions.
Samuel Gompers served as the first President of the AFL. While other unions got involved in politics he stayed focused on the issues that needed tending to such as wages, working hours, and working conditions.
He pushed for union recognition, collective bargaining, for closed shops (companies could only hire union workers) and an 8-hour work day.