Industrialization Chapter 5
Was Edison a failure?
The Rise of Industry Industrial Revolution started in the early 1800s in the U.S. By the late 1800s, the U.S. was the world s leader in industry Gross national product (GNP): the total value of all goods and services that a country produce
Natural Resources Abundant amount of natural resources Timber Coal Iron Copper Petroleum: used to make kerosene Transportation (railroad) Transported materials and increased demand in materials Population growth created a large workforce Large families Immigration
New Inventions Alexander Graham Bell Telephone (1876) Organized Bell Telephone Company which eventually became AT&T (1877) Thomas A. Edison Over 1000 patents Phonograph Perfected electric generator and lightbulb
Phonograph First Telephone
New Inventions George Westinghouse Air-brake system for railroads Hydroelectric power Developed alternating current system to deliver electricity, powered street cars and electric lights in cities AC/DC Band - Rivalry w/edison Lewis Latimer Designed many inventions, including an improved railroad car bathroom and an early air conditioning unit Worked as a partner with Bell to draft the patent for the telephone and Edison with a new design for the light bulb
Edison / Westinghouse Rivalry
New Inventions Judy Reed 1884, designed a Dough Kneader and Roller, an improvement to existing dough kneaders. Considered to be the first African American woman to receive a United States patent. JK Rowling Victor Ochoa Mexican-American inventor Received patents for adjustable wrenches, a rail magnetic brake for street cars, a windmill, and an early design for a plane
Free Enterprise Laissez-faire: government should not interfere in the economy Only to protect private property Supply and Demand sets up prices Keep prices and taxes low Entrepreneurs Organize and run their own business Morrill Tariff Passed by Congress, nearly tripled tariff rates by 1865 Place high tariffs on foreign goods to protect American made items Went against laissez-faire ideas
Exit Journal Using the ACES strategy, write a paragraph explaining which technological advancements of the American Industrial Revolution have made the most impact on your lives today. How would your life be different if these inventors did not make advancements in new technology?
The Railroads 35,000 miles of track (1865) 200,000 miles of track (1900) Pacific Railway Act (1862) Signed by Abraham Lincoln Two corporations The Union Pacific The Central Pacific Competition for land and money
The Union Pacific Grenville Dodge Westward from Omaha, Nebraska Recruited Irish immigrants Camp life Rough, dirt and dangerous
The Central Pacific Leland Standford Started in California and went East Hired about 10,000 Chinese workers for $1.00 a day The Last Spike May 10, 1869, Promontory Summit, Utah 1,774 miles of track
Railroads Spur Growth Impact from growth of railroads Stimulated the economy Selling of steel, coal, timber Time Zones To make rail services safer and reliable Government helped finance railroad construction Investors Land grants
Railroad Tycoons Cornelius Vanderbilt One of the most successful railroad consolidators Purchased and merged railroads from New York to Chicago Vanderbilt James J. Hill Built Great Northern Railroad without any land grants Offered low fares to settlers His railroad was the most successful transcontinental railroad Hill
Robber Barons What was a Robber Baron Robber Baron was a term applied to a businessman in the 19th century who: small number of businessmen who had control over industries took advantage of employees underpay harsh working conditions known for political corruption amassed enormous wealth
Robber Barons Jay Gould Notoriously corrupt railroad owner Filed false reports Manipulated prices Bribery occurred often Investors could make more money by getting land grants than running a railroads To get grants, investors bribed members of Congress Gould
The Credit Mobilier Scandal (1872) A construction company owned by stockholders Investors signed contracts with themselves Overcharged Union Pacific To make money, Congressional member were sold land shares Nothing was done!
What images or symbols in the cartoon give you information on the artist's opinion?
Big Business Corporation Business owned by many but treated as one Stockholders invested in the business Stocks Stock equals ownership Money raised from selling stocks used to: Invest in new technology Hire large workforce Purchase new machines
What are stocks? What are stocks? 1 share of Apple today; $165 5.165 Billion shares of Apple are in the stock market today How does the stock market work?
Big Business Advantages Produce more goods cheaply and efficiently Cut prices to increase sales Rebates from the railroad Created competition Disadvantages? pushes small business out people lose jobs
Consolidating Industry Pools: Agreements to keep prices at a certain level failed Vertical Integration: owns all different businesses to run an operation Andrew Carnegie: steel company Horizontal Integration: combining firms in the same business into one large corporation John D. Rockefeller: oil industry
Vertical/Horizontal Integration
Titans of Industry Rockefeller (Standard Oil) Used horizontal integration to control 90% of the nations oil refiners by 1880 Known for ruthless tactics to get better prices on railroad shipping and new oil refineries Later in life, donated much of his wealth to fund colleges and universities Andrew Carnegie (Carnegie Steel) Used vertical integration to buy coal, lime, and iron mines to control steel industry Considered a robber baron because he felt it wasteful to increase employee wages Later in life, donated much of his wealth to fund public libraries (including two in Waterloo)
New Business Organizations Monopoly: when one company controls the entire market Many states started to make this illegal American's feared monopolies. New laws make it illegal for one company to own stock in another Led to trusts, holding companies, and investment banking Trusts: Merging businesses legally. One manages the others property Holding companies: Owning stock in other businesses; then merging them
Investment Banking/ J.P. Morgan Investment Banking Bankers buying holding companies to make profits J.P. Morgan Most famous and successful investment banker of the era Bought out Carnegie Steel, merged it with other steel companies This created the first billion dollar company
Selling the Product Advertisement Selling of goods Department stores Provided a huge selection of products Chain stores: Woolworth s (1879) offered low prices Mail-order retailers Montgomery Ward Sears, Roebuck and Co.
Early Unions Two types of workers Craft workers: special skills and training Common laborers: few skills and lower wages Trade unions: craft workers organized Industry Opposes Unions Conspiracies that interfered with trade unions Blacklists: list of troublemakers lockouts: workers locked out
Political and Social Opposition No laws to protect unions Perception they were un-american Karl Marx Believed in a class struggle Laborers will win
Struggling to Organize The Great Railroad Strike Wages were cut a 3rd time 80,000 workers went on strike Confrontation between workers and military President Hayes called for a National Emergency
The Knights of Labor Terrence Powderly Early Success Equal Pay Arbitration The Haymarket Riot (1866) McCormick Harvesting Machine Company Wanted an 8 hour day Police maintained order Anarchist disrupted the protests; resulting in multiple deaths
The Homestead Strike Henry Clay Fick Worked for Andrew Carnegie Cut wages by 20% Hired strike breakers and Pinkerton Detectives Gun battle erupted on the banks Military came in to quell the violence
The Pullman Strike Eugene V. Debs Organized the American Railway Union Pullman Palace Car Company Cut wages and made workers to buy from there company A boycott took place To break that boycott they placed Pullman cars on U.S. mail cars Debs went to jail
New Unions Emerge American Federation of Labor (AFL) 3 main goals Get companies to recognize unions Hire only union members 8 hour workday The IWW Radical philosophy Controversial strikes Samuel Gompers
Female workers Mary Harris Famous labor leader Called the most dangerous woman in America by Rockefeller Female workers By 1900, women made up more than 18% of the labor force About 1/3 of female labor force worked in textile or food processing factories