1. Chapter 5 The Industrial Giant Arrives in Pennsylvania 18-Economics of the Industrial Revolution 19-Age of Big Business 20-New Industries Develop During the Age of Big Business 21-Problems Living in an Industrial Society

2. Economics – the study of the production, distribution, and consumption of goods and services Success in business – provide goods and services in demand – price to earn profits Economic system fueled the Industrial Revolution Capitalistic economy – encourages a competitive, open market Price is determined by supply and demand

3. Monopolistic market – when business can dominate industry – i.e. only motel for miles Until Civil War, agricultural society The Industrial Revolution

4. Condition needed – Adequate amount of labor and natural resources – Efficient transportation system – Sufficient $ to build factories – goods produced – Sufficient market to sell goods

5. Age of Big Business James Watt (1769) – patented steam engine Expanding industries – PA lumber industry – Williamsport – largest lumbering city in United States

6. Coke made from soft coal Henry Clay Frick – owned four of the five coke factories in the United States – Became business partner of Carnegie Henry Bessemer – invented a new process of blasting air through molten steel removing unwanted impurities – First steel production occurred at Steelton – Opened new mill in Pittsburgh

7. Andrew Carnegie – Steel industry – learned Bessemer process for making steel – Faster and less expensive – 1874, opened mill in Pittsburgh – Carnegie Steel Company – Business partner with Henry Clay Frick – 1901 sold company for nearly $500 million – Gave away $350 million to colleges, libraries, and worthy causes – http://www.youtube.com/watch?v=7aOygRjE7ag&feature =related http://www.youtube.com/watch?v=7aOygRjE7ag&feature =related

8. New Industries Develop During the Age of Big Business Charles Hall – discovered a new and cheaper method for making aluminum – Aluminum soon replaced iron in making kettles, pots, and pans Oil and Oil Refining – After civil war, 30 million barrels/year

9. Boom Town – town that grew quickly, mainly because of rapid growth of the oil industry John D. Rockefeller – “King of Oil” Standard Oil Company – Owned most of oil refineries in Philadelphia, Pittsburgh, Cleveland, and New York – By 1878, he owned 9 out of 10 oil refining businesses in entire United States – 1911, US Supreme Court divided company into smaller companies Claimed it was to big and powerful, monopoly http://www.youtube.com/watch?v=6MaJeW4XBxU

10. 300 railroad companies in PA Pennsylvania and Reading Railroads were two of the most powerful George Westinghouse – invented several devices for the railroads – Invented air brakes, not hand brakes anymore – Invented safety signals Cement – 1871, limestone ground and made into cement, monumental in construction Glass Industry – Pittsburgh, 1870 produced ½ of glass in United States

11. Problems Living in an Industrial Society Working conditions – Dirty and dangerous – Pay was low – Worked long hours – Poorly built houses – Stores charges high prices for food

12. Eastern PA – anthracite (hard) coal – Poisonous gases, floods, cave-ins, and explosions – Unions grew to fight working conditions – Strikes happened when many workers agreed to stop working and refused to return to work – Because of unions, working condition gradually improved – http://www.youtube.com/watch?v=SfVQBtrLXog& feature=related http://www.youtube.com/watch?v=SfVQBtrLXog& feature=related

13. Growth of Cities Emigrants/Immigrantsg brought to America from Europe because of factories needed workers – Eastern and southern Europe, Russia – Philadelphia – 1 million population by 1860 3 million by 1900 Stephen Smith – African-American who rose from slavery to great wealth – Wealthiest African-American in the U.S.

14. Henry J. Heinz – new food processing method of placing cooked food in tin cans and glass jars John Wanamaker – 1876, opened first department store Frank W. Woolworth – first “five and dime” store in Lancaster Centennial Exhibition – showed off new inventions, nations 100 years of independence – 8 million visitors

15. The Tragedy of Johnstown May 31, 1889, Johnstown was one of largest producers of iron and steel rails 14 miles away, heavy rains caused South Fork Dam to overflow – Earthen dam built in 1840 for Main Line Canal – Upkeep had been neglected over the years – 450 acre lake emptied in 36 minutes – 40 foot wave flooded valley, smashing town, factories, and big locomotives 2,200 killed, 1,000 missing, millions in damages http://www.youtube.com/watch?v=Q62vlcFLLlM

16. Clara Barton – founder of American Red Cross, set up first disaster relief canter in Johnstown http://www.youtube.com/watch?v=KHME_U2 -fvM&feature=related