1. Industrialization

2. The Rise of Industry Natural Resources an abundance of raw materials was one reason for the nations industrial success timber, coal, iron and copper Petroleum was in high demand because it could be turned into kerosene

3. Rise of Industry Oil would be the 1st industry Edwin Drake would drill the 1st oil well in Titusville, Pennsylvania in 1859

4. Rise of Industry Between 1860 and 1910 population in U.S. tripled Population growth stemmed from: large families and immigration 1. better living conditions 2. social and economic conditions in Europe and China convinced many to search for a better life 3. escape oppressive governments and religious persecution Between 1870 and 1910 more than 17 million arrived in U.S.

5. Alexander Graham Bell 1876 invites the telephone New Inventions

6. Thomas Alva Edison by the time he died he held 1,000 patents 1877 invented the phonograph 2 years later perfected the electric generator and light bulb http://www.history.co.uk/shows/the-men-who-built-america/videos

8. George Westinghouse an air brake system for railroads the Alternating Current (AC) system New Inventions

9. Rise of Industry Thaddeus Lowe invented the ice machine Gustavus Swift hired an engineer to develop a refrigerated railroad car

10. The Northrop automatic loom allowed cloth to be made at a much faster rate Rise of Industry

11.  Cyrus Field laid a telegraph cable across the Atlantic Ocean in 1886

12. Rise of Industry Another reason U.S. able to industrialized rapidly was its free enterprise system Americans embraced the idea of laissez-faire meaning " let people do as they choose ” relies on supply and demand Entrepreneurs - were attracted by the prospect of making money in manufacturing and transportation Congress passed the Morrill Tariff which greatly increased tariff rates other countries began to increase their tariffs on trade - which would hurt American trade

13. The Railroads The Transcontinental Railroad railroad boom began in 1862, when President Lincoln signed the Pacific Railroad Act 2 railroad corporations competed with one another and raced to obtain as much land and money as possible The Union Pacific engineer Grenville Dodge pushed westward from Omaha, Nebraska in 1865 The Central Pacific engineer Theodore Judah hired workers from China

14. Railroad  Completed in 4 yrs Central pacific laid 688 miles of track Union Pacific laid 1,086 miles of track May 19, 1869 - Promontory Summit, Utah  Railroads linked nation and increased markets spurring American industrial growth huge spending amount of money on steel, coal, timber, and other materials

16. Railroad 7 railroad systems Cornelius Vanderbuilt - most successful railroad consolidator American Railway Association divided country into four time zones in 1883 help with scheduling and prevent trains colliding with one another

17. Railroads  Government gave land grants to many railroad companies railroads then sold the land to settlers, real estate companies, and other businesses to raise money to build the railroad bribery and corruption would consume railroad entrepreneurs Jay Gould most notorious corrupt railroad owner

18. Railroads Railroad industry corruption became public in 1872 Credit Mobilier scandal construction company set up stockholders of the Union Pacific Railroad Credit Mobilier overcharged Union Pacific http://www.history.co.uk/shows/the-men-who-built- america/videos/the-men-who-built-america- cornelius-vanderbil

19. Big Business 1900 - vast complexes of factories, warehouses, and distribution facilities Corporation ran big business Stockholders – owners of corporation Called this because they own shares of ownership called stocks

20. Big Business Money raised went to new technologies to increase efficiency could achieve economies of scale Business has two kinds of costs - fixed and operating costs fixed - costs a company has to pay whether or not it is operating operating - costs that occur when running a company

21. Consolidating Industry There was much competition between business and competitive prices cut into profits Pools were organized to keep prices at a certain level did not last long because they were not legally supported by Legislature competition left only a few larger and highly efficient corporations

22. Consolidating Industry Andrew Carnegie invested in companies that served the railroad industry Opened steel company in Pittsburgh in 1875 used the vertical integration to help save money and enabled many companies to become even bigger

23. Consolidating Industry John D Rockefeller Used horizontal integration Standard Oil - company he started By 1880 the company controlled about 90% of the oil refining industry in the U.S. this would be classified as a monopoly

24. New Business Organizations Monopolies - charge whatever for its products Many states made it illegal for one company to own stock in another company 1882 Standard Oil formed 1st trust new way of merging businesses that did not violate such laws holding company - it owns the stock of companies that do produce goods Manages the companies it owns, effectively merging them into one large enterprise

25. New Business Organizations Most famous and successful investment banker - J.P. Morgan Formed the United States Steel Company

26. New Business Organizations With all these new products retailers were trying to find new ways to attract consumers N. W. Ayer and Son - 1st advertising company Created large illustrations ads Department stores - chain stores - issue mail - catalogs order

27. Unions Work was difficult perform dull, repetitive tasks in unhealthy and dangerous working conditions Division between income 1900 average industrial worker made 22 cents per/hr and worked 59 hours a week Deflation between 1865-1897 caused prices to fall, which increased the buying power of workers wages 2 types of industrial workers craft workers and common laborers craft workers formed trade unions

29. Unions Employers often had to negotiate with trade unions because they represented whose skills they needed Business leaders opposed industrial unions Companies tried to stop workers from forming unions workers who tried to organize unions were put on a black list workers who formed union, companies used "lock outs” if a union called a strike, employers would hire replacements unions could be broke because there were no laws giving workers the right to form unions

30. Unions Panic of 1873 – recession - companies to cut wages Railroads cut wages in 1877 workers walked off job and blocked the tracks Gun battles between state militia and strikers Took federal troops 12 days, 100 dead, $10 million in damage

31. Unions Knights of Labor founded 1869 Leader Terrence Powderly opposed strikes preferred boycotts called for 8 hr workdays, equal pay for women, abolition of child labor, creation of worker-owned factories

32. Unions Haymarket Riot –Chicago – 1886 supports of 8 hr workdays called for nationwide strike on May 1 st members marched across city May 3, police intervened to stop fight at McCormick Harvesting Machine Company turned violent killing 4

33. Strikes Homestead Strike – 1892 Homestead, Pennsylvania workers belonged to a craft union manager proposed to cut wages when workers contracts were to expire and blocked workers from entering the mill state militia ordered to protect replacement workers. Strike collapsed after 4 months

35. Strikes The Pullman Strike Pullman Palace Car Company owner of the company required workers to live in the town he built and buy goods from the company stores cut wages which made it difficult to afford living there strike began boycott tied up railroads and threatened the economy to break strike, railroad managers arranged for U.S. mail cars to be attached to Pullman cars if strikers refused to handle the Pullman cars would be interfering with U.S. mail, a violation of federal law federal court issued an injunction