Presentation on theme: "Chapter 14 Industrialization"— Presentation transcript:
1 Chapter 14 Industrialization Section 1The Rise of Industry
2 Causes of Industrialization Natural Resources/ Raw MaterialsWater, Timber, Coal, Iron, Copper, OilEdwin Drake-Penn st Oil DrillingLarge WorkforceLarge FamiliesImmigrantsLaissez-Faire system (hands-off)New InventionsRailroadsFormation of Corporations
3 Effects of Industrialization Drained resources/Pollution increasesSteel and Oil become giant industriesFactory workers face harsh living and working conditionsNo limits on immigrationNo regulation of trade across countryTariffs and metallic standards become political issues
4 Tariff IssueNorthern Leaders-high tariffs, protect American industry from foreign competitionSouthern Leaders-low tariffs to provide trade and keep manufactured import prices low
5 Morill Tariff Passed when south seceded Tripled tariffs Gave land and money to railroadsSold public lands with mineral resources at low cost to businessesHigh Tariff backfired: other countries raised tariffs and it hurt farmers
6 New Inventions Alexander Graham Bell: 1876-Telephone 1877: Bell Telephone Company became American Telephone and Telegraph CompanyThomas Edison: 1877-phonograph, 1879-practical light bulb, electric generator, battery, motion picture1889: Edison General Electric Company (GE) began supplying power to NYC
7 Other Inventions Ice Machine Refrigerated railroad cars Standard Sizes Power Driven Sewing MachineMass Produced ShoesTelegraph Cable Across Atlantic (1886)RadioCarAirplane
9 Pacific Railway Act: 1862 Lincoln: Transcontinental Railroad Union Pacific Railroad: workers included Civil War veterans, immigrants from Ireland, miners, farmers, cooks, adventurers, and ex convictsCentral Pacific Railroad: workers included Mexicans, Native Americans, and once reached California 10,000 laborers came from China
10 Transcontinental Railroad 1869Tied smaller lines togetherTime Zones were created in 1883 to coordinate schedules and were permanent in 1918
11 Government Land Grants to Railroads Investors did not always have the $ to develop rail linesGov’t saw it would benefit nat’l economyGave land grants to rail companiesRail Companies: sold land along railroad lines to settlers, real estate companies, and other businesses to raise $ to build railroadsOver 128 million acres given to rail companies
12 Chapter 14 Industrialization Section 3Big Business
13 Robber Barons Jay Gould-insider trading, embezzled from own company Built fortunes from stealing from the publicDrained country of resourcesDrove competition out of workExploited immigrants and paid low wages
14 Captains of IndustryJames J. Hill-Great Northern Railroad-No gov’t grants, lowered fares to settlersServed the nation in a positive wayIncreased American supply of goodsCreated jobs for AmericansExpanded markets
15 Credit Mobilier Scandal Convinced most Americans that business and politicians were Robber BaronsInvolved Union Pacific stockholders who created a new construction company (Credit Mobilier)CM overcharged UP on supplies, but UP paid them. CM GOT RICH!!!!UP almost bankrupt, so Congress gave more grants to UP to keep it going (These congressional members who pushed for new grants received discounted shares in UP stock)SCANDAL WAS EXPOSED!!!
16 CorporationsAn organization owned by many people but treated by law as though it were a single personStock holders: people who own the corporationsStock: Shares of ownership (allow corp to raise $ to expand, increase tech., hire larger workforce, make goods faster and cheaper)
17 Business CostsFixed costs: Costs a business has to pay whether or not it is operatingOperating Costs: costs when running a businessCorporations always had advantage over small businessWHY??
18 Could sell more stock to meet costs in hard times, produce goods faster and cheaper
19 Making business more efficient Vertical integration: owns all different businesses it depends on for operationHorizontal Integration: combining many firms engaged in the same type of business into 1 large business
20 Monopolies Positive: Keep prices low b/c no competition Negative: Can charge any price b/c no competition
21 Trusts Began forming to avoid anti-monopoly laws Allows a person to manage another person’s property, a trustee manages the stock but does not own any himself so it violates no lawsDoes receive shares of the profitIllegal today
22 Changes in Selling the Product Large Ads in NewspapersDepartment StoresMail Order Catalogues
24 The work force and working conditions Low wages resulted in whole family working, children dropped out of school to helpOrphaned children (ages 6 and up), used in mines and factoriesJacob Riis-Children of the Poor-book exposed child laborNo unemployment, workers comp, health or life insurancesAverage worker: .22/hour, hours a day
25 Many paid by Piecework (by product not by hour) Discipline very strict (could be fired for being late, talking, resting)Poor working conditionsMonotonous tasks, poorly lit, no ventilation, no heat/ac, lint, dust, toxic fumes, firesIn 1882 avg.: 675 workers killed on the job each week
26 Early Unions Most employers saw unions as illegitimate conspiracies Trade Unions: limited to people with a specific skillIndustrial Unions: United all craft workers and common laborers in a particular industry
27 Companies tried to stop unions Forbade union meetings on company groundsFired and blacklisted union organizersForced workers to sign contracts agreeing to never join unionsLockouts, Strikebreakers, ScabsRefused to recognize existing unions
28 Political and Social Opposition to Unions No laws giving workers the right to organizeCourts ruled in favor of employers, workers fired or jailed, issued injunctionsMarxism, Socialism, Communismb/c of uneven distribution of wealth in AmericaEconomic and political philosophies that favor public control of property and incomeKarl Marx: workers of the world unite and throw off chains of oppression, dissolve current gov’t systemsAnarchy: No gov’t (These ideas had spread in Europe, U.S. feared immigrants would bring radical ideas here)
29 Most Americans opposed these ideas Wealthy saw it as a threat to fortunesPoliticians saw it as a threat to public orderWorkers saw it as a threat to “American Dream”
30 Labor Unions1869: Knights of Labor-all working men and women, skilled and unskilled laborers, and minorities were allowed into unionGoals: 8 hr work day, gov’t labor board, equal pay for women, end to child laborInitially opposed strikes, used boycotts and arbitrationBy 1885: 700,000 MEMBERS!!!!!!
31 1886: American Federation of Labor- Only skilled, white male workers allowed Samuel Gompers tried to reassure public and gov’t that unions were not interested in politics or socialist ideasGOALS: higher wages, better working conditions, 8 hr work dayWilling to strike but preferred to negotiateBy 1900 there were 500,000 members
32 Women and Unions Seen as unfit and incapable of “man’s work” Mostly domestic servants, nurses, teachers, sales clerks, secretariesPaid less for same work (assumed had a man supporting her, so didn’t need to be paid as much, saved money for male workers)
33 1903: Women’s Trade UnionMary O’Sullivan, Lenora O’Reilly, Jane Addams, and Lillian WardGOALS: 8 hr work day, creation of minimum wage, end to child laborSTILL BY 1900, MOST WORKERS REMAINED UNORGANIZED, AND UNIONS WERE WEAK!!!!!!!
34 Great Railroad Strike of 1877 1873: recession hits, wages cut1877: wages cut againWorkers began rioting, walked off the job, blocked tracksOver 800,000 railroad workers in 11 states, 2/3 nation’s railways affectedPres. Hayes called in federal troops to restore order (1st time in history)Over 100 people died in this strike
35 Haymarket RiotMay 1886: Knights of Labor called for nationwide strike to draw attention to issue of 8 hr work dayConflict between strikers and police left one striker deadHaymarket Square, Chicago: about 3000 people met to listen to anarchists speeches about labor
36 Police entered square, a bomb was thrown, police opened fire, 7 police officers and 4 workers dead 8 arrested on weak evidence, all 8 convicted, 4 sentenced to death (1 was a K of L, hurt the union)
37 Pullman Strike 1893: depression hits, wages cut Pullman Co. required workers to live in Company houses and buy from company stores, did not cut these prices with wage cutsWorkers protested, blocked railroadsPullman Co. attached mail cars to own Co. cars, now strikers were interfering with mail, which is a federal offensePres. Cleveland sent in troops, courts issued injuctions
38 Strikes became more violent and employers began to rely on federal troops to restore order!!!!
39 The End! Glue Study Guide on next left side page Answer the study guide on right side.We will be working on this tomorrow as well.TEST TUESDAY!!!!!