A NEW INDUSTRIAL AGE

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1 A NEW INDUSTRIAL AGE

2 EXPANSION OF INDUSTRY New innovations and inventions lead to the growth of industry and changes in the American economy.

3 I. Expansion of Industry After the Civil War, the United States economy was largely agriculture 1920: United States leading industrial power in the world Why? 1. Natural Resources 2. Government Support 3. Urbanization

4 II. Oil Boom 1859 Oil discovered in the Pennslyvania Edwin Drake Process: Transform oil into kerosene By-product is Gasoline The production of oil leads to other industries in the late 1800s

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11 III. Steel Production Steel production begins in the 1880s Adding air to molten Iron Steel: Lighter, flexible, and rust resistance compound Bessemer Process

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15 IV. New Uses for Steel

16 IV. New Uses for Steel

17 IV. New Uses for Steel

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19 V. Other New Inventions The use of electricity impacts industry in the 1800s Other inventions of the late 1800s: 1867-Typewriter 1876-Lightbulb 1876-Telephone

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23 Review Oil Steel Communications General Industrial and Technological Advances Transportation Railroads Aviation Automobiles

24 THE AGE OF RAILROADS The growth and consolidation of the railroads benefit the nation but lead to corruption and regulation.

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28 I. Transcontinental Railroad

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33 II. Railroad Time The introduction of railroads leads to standard time zones in the United States was as the world Professor C.F. Dowd proposes 24 hour time zones for the world U.S. would be divided into 4 time zones 1884 Officially recognized around the world

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36 III. Railroad Scandals and Strikes 1860s-1890s problems Credit Mobilier Scandal Pacific Railroad Company Pullman Strikes Workers living in company town stage violent strikes to protest lower wages

37 IV. Interstate Commerce Act 1887 Congress passes Interstate Commerce Act Aimed to regulate the railroads Required publishing of Railroad rates Sets up a 5 member commission (ICC) to review and regulate railroad activities The act required that railroad rates be "reasonable and just First law to regulate private industry

38 BIG BUSINESS EMERGES The late 1800s saw the emergence of giant enterprises that controlled vast materials and human resources. Big business produced staggering wealth for its owners and for the country. It also produced controversy and concern over its methods.

39 I. Andrew Carnegie Carnegie Steel Factory 1899: Company produced more steel then all of the steel factories in England Business Innovations Created accounting department Stock benefits for employees Vertical Integration

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43 II. Vertical Integration

44 III. Horizontal Integration

45 IV. John D. Rockefeller Standard Oil Company Monopolies/Trusts A Monopoly is complete control over an industry 1870 Standard Oil controlled 2% of crude oil in the U.S %

46 V. Robber Barons Alarmed at the cut-throat tactics of industrialists, critics began to call them Robber Barons Famous Robber Barons included:

47 VI. Gospel of Wealth Theory Introduced by Carnegie Argued that wealthy had to prove themselves morally responsible and engage in philanthropy Herbert Spencer and William Graham Proposed survival of the fittest theory Social Darwinism

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51 Horatio Alger

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53 VII. Robber Barons Net Worth Today Net worth today adjusted for inflation: John D Rockefeller (Oil) 340 Billion Andrew Carnegie (Steel) 310 Billion Cornelius Vanderbilt (Railroad & Shipping) 185 Billion JP Morgan (Banking) 41 Billion For reference: Bill Gates 82 Billion Warren Buffett 64 Billion

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56 VIII. Reigning in Big Business (1886) Wabash Case: Ruled states could not regulate interstate commerce (1890) Sherman Anti Trust Act Law that made it illegal to form monopolies Very difficult law to enforce Companies changed their names or consolidated under different entities.

57 IX. Labor Movement Begins 1866 National Labor Union 1886 Samuel Gompers Cigar Maker s International Union AFL (American Federation of Labor) 1893 Focused on wages, working conditions, and labor hours Eugene Debs American Railway Union Industrial Workers of the World (IWW) Wobblies

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59 X. Labor Strikes The Great Railroad Strike of 1877 Haymarket Affair, 1888 Homestead Strikes, 1892 Pullman Strikes, 1894

60 XII. Impact of the Industrial Revolution Increased national wealth and higher standard of living Rapid urbanization, booming immigration Declining agriculture Government intervention in economy Women more economic opportunities Accentuated class divisions Pressure for foreign trade

61 A New Industrial Age Review Inventions and Industrialization Age of Railroads Big Business Emerges Labor Movement Begins

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