Chapter 6 A New Industrial Age (Photo: Laborers blasted tunnels and constructed tunnels through the rugged Sierra Nevada mountains)

Chapter 6 A New Industrial Age (Photo: Laborers blasted tunnels and constructed tunnels through the rugged Sierra Nevada mountains)

The Expansion of Industry Chapter 6 SecEon 1

Over View Main Idea: At the end of the 19 th Century, natural resources, creaeve ideas, and growing markets fueled an industrial boom Why it maners now: Technological developments of the late 19 th century paved the way for the conenued growth of American Industry

Natural Resources Fuel IndustrializaEon ARer Civil War the U.S. was largely agricultural, by the 1920s (just 60 years) the U.S. became the leading industrial power in the world. Due to: Wealth of natural resources Government support for business Growing urban populaeon

Natural Resources Fuel IndustrializaEon Black Gold NaEve Americans made fuel and medicine from crude oil long before Europeans arrived 1840s, Americans began using kerosene to light lamps 1859, Edward Drake used a steam engine to drill Titusville, Pennsylvania Removing oil from the earth s surface became pracecal Gasoline (byproduct of the refining process) is originally thrown out, unel the automobile became popular

August 27, 1859: The U.S. Oil Industry was born when Edwin L. Drake and his associates built the first oil well in Titusville, PA

Natural Resources Fuel IndustrializaEon Bessemer Steel Process U.S. has abundant deposits of coal and iron 1887, prospectors discover a deposit 100 miles long and 3 miles wide in Minnesota Steel is produced by removing carbon from iron 1850, the Bessemer Steel Process is widely used Involves injeceng air into molten iron to remove carbon By 1880, 90% of manufactures use this technique

Mining in the U.S. 1850-1900

Natural Resources Fuel IndustrializaEon New uses for steel Railroads became the biggest customers for steel Barbed wire (Glidden) Farm machines (Deere) Brooklyn Bridge 1883 1,595 feet from ManhaNan to Brooklyn over the E River The only man-made structures taller than the Brooklyn Bridge, were the ancient pyramids in Egypt

Brooklyn Bridge

InvenEons Promote Change Electricity 1876, Thomas Alva Edison established the first research facility in Menlo Park, NJ 1880, he patented the first incandescent light bulb 1890, electricity runs numerous machines, from fans to prineng presses Factories could be located anywhere (no longer need to be next to a river)

InvenEons Promote Change Typewriter 1867, Christopher Sholes Telephone 1876, Alexander Graham Bell and Thomas Watson Both inveneons affected office work and created new jobs for women 1870 = 5% of office staff are women 1910 = 40% of office staff are women

Expansion of Industry QuesEons Page 230-233 What natural resources were most important for IndustrializaEon? How did electricity change American Life? Do you think that consumers gained power as industry expanded in the late 19 th century? Why or why not? Which inveneon or development described in this seceon had the greatest impact on society? Why? What modern new inveneon or development is causing an industry to expand right now?

The Age of Railroads Ch. 6 Sec 2

Railroads Span Time and Space A NaEonal Network By 1856 railroads just went as far west as the Mississippi River By 1869 transconenental railroad met at Promontory, Utah By the start of the Civil War there were 30,000 miles of track By 1890 there were 180,000 miles of track

Railroads Span Time and Space Romance and Reality Dreams of available land, adventure and a fresh start Made possible by the harsh lives of the railroad workers Central Pacific employed Chinese immigrants Union Pacific employed Irish immigrants and out of work Civil War veterans In 1888, 2,000 railroad workers were killed from accidents and diseases. 20,000 were injured

Railroads Span Time and Space Railroad Time Each community along the railroad operated on its own Eme, noon in Boston is 12 minutes later than in New York Travelers from Maine to California might set their watches at least 20 Emes along their journey 1869, professor C.F. Dowd proposed that the Earth s surface should be divided into 24 Eme zones U.S. will have 4 Eme zones: Eastern, Central, Mountain and Pacific Railroad companies enthusiasecally endorsed Dowd s plan 1883, railroad crews and towns across their country synchronized their watches 1918, Congress adopt railroad Eme as the standard for the naeon

OpportuniEes and Opportunists New Towns and Markets prospered from selling large quaneees of their products Chicago became known for its stockyards Minneapolis became know for its grain industries CiEes would not exist without railroads Flagstaff, AZ Denver, CO SeaNle, WA

OpportuniEes and Opportunists Pullman 1880, George M. Pullman built a factory for manufacturing sleepers and other railroad cars Built the nearby town of Pullman Residents lived in clean, well constructed brick homes with at least 1 window in each room Services and faciliees such as Doctors offices, shops and an athleec field Residents were not allowed to loiter on their front door steps or to drink alcohol Pullman refused to lower rents arer cunng wages, led to a violent strike in 1894

Pullman, Illinois George M. Pullman designed a town for the employees of his railroad factory to live Too greatly restricted the residents Pullman employees had to follow the rules, which they had no say In October 1884, economist Richard Ely said The idea of Pullman is un-american

OpportuniEes and Opportunists Credit Mobilier Infamous Scheme 1864, ConstrucEon Company formed by stockholders in Union Pacific Railroad Stockholders gave this company 2 to 3 Emes the actual cost and pocketed the profits They gave 20 shares to representaeves in Congress in 1867 It was found by a congressional invesegaeon that they took up to $23 million in stocks, bonds and cash Implicated VP Colfax and Garfield, who later became president Tarnished the reputaeon of the Republican party

The Grange and the Railroads Grange, a farmers organizaeon founded in 1867, demanded government control over the railroad industry Railroad abuses Farmers were upset about the misuse of govt land grants, which the RR sold to other companies and not to senlers, as the govt intended Price fixing, which kept farmers in debt Granger Laws Grangers took poliecal aceon sponsored candidates 1871, Illinois established maximum RR rates and discouraged discriminaeon RR fought back, 1877 Munn v Illinois Supreme court upheld Granger Laws States won the right to regulate RR for the benefit of farmers and consumers Established Federal Govt s right to regulate private industry to serve public interest

The Grange and the Railroads Interstate Commerce Act 1886, Supreme court ruled that states could not set rates on interstate commerce Granges triumph was short lived by this 1887, Interstate Commerce Act is passed Due to public outrage Established the right of the Federal govt to supervise RR aceviees 1897, Supreme Court ruled it could not set maximum RR rates 1906, With Teddy Roosevelt as President the Interstate Commerce Commission gains the power needed to be effeceve

The Grange and the Railroads Panic and ConsolidaEon ICC pushes RR to bankruptcy These financial problems played a major role in a naeonwide economic collapse Panic of 1893 Worst depression up to that Eme 600 banks and 15,000 businesses failed 4 million people became unemployed By 1894 ¼ of the RR had been taken over by financial companies J.P Morgan reorganized the RR

Age of Railroads QuesEons pages 236-240 What were the effects of the Railroad expansion? How many Eme zones are there in the conenental U.S.? What are there names? How did the railroads affect the ciees How did owners use Credit Mobilier to make huge, undeserved profits? How did the Grangers, who were largely poor farmers, do banle with the giant railroad companies? The federal government gave land and made loans to the railroad companies. Why was the government so eager to promote the growth of railroads? Would you like to live in a Pullman type of community? Why?

Big Business and Labor Ch. 6 Sec 3

Overview Main idea: The expansion of industry resulted in the growth of big business and prompted laborers to form unions to bener their lives Why it maners now: Many of the strategies used today in industry and in the labor movement, such as consolidaeon and the strike, have their origins on the late 19 th century

Carnegie s InnovaEons 1873, arer witnessing the Bessemer process first hand at a BriEsh steel mill he brought this innovaeon to his factory in the U.S. New Business strategies VerEcal IntegraEon bought out suppliers )coal fields and iron mines and railroad lines. Total control of raw materials Horizontal IntegraEon bought out compeeng steel producers

Social Darwinism and Business Used Darwin s biological theory from the 1859 book On the origins of species Natural SelecEon, some individuals of a species flourish and pass traits to next generaeon Economists jusefied the doctrine of the Laissez Faire (French term: let do or let the people do as they please i.e. government should NOT interfere with business) Riches were a sign of God s favor, and therefore the poor must be lazy or inferior who deserved their lot in life

Fewer Control More Growth and consolidaeon If you can t beat them join them Horizontal IntegraEon, mergers to achieve a Monopoly John D. Rockefeller used joined compeeng firms in trust agreements to form a large corporaeon which paid out dividends to parecipants Not a legal mergers, however Rockefeller used a trust to gain control of the oil industry in the US

Fewer Control More Rockefeller and the Robber Barons From 1870 to 1880 he controls 90% of oil from just 2-3% He hiked prices once he could Philanthropist gave away $500 million, establishing the Rockefeller FoundaEon Provided funds to funds the Univ. of Chicago Created a medical facility which cured yellow fever It would be a great mistake for the community to shoot the millionaires, for they are the bees that make the most honey and contribute most to the hive even arer they have gorged themselves full

Fewer Control More Business boom bypasses the south SEll recovering from the Civil War, lack of capital Remained mostly agricultural, with farmers at the mercy of the railroad rates High tariffs on imported raw materials Lack of skilled workers

Labor Unions Emerge Since business owners merged their forces it was necessary for workers to do the same Long hours and danger Steel mills 7 day work weeks Factory workers 6 days a week, 12-14 hours per day No vacaeon, sick leave, unemployment compensaeon or reimbursement for injuries 1882, an average of 675 laborers were killed working per week 1899, women earned $267/year, men earned $498/year. Carnegie made $23,000,000

Sweatshops

Strikes turn violent The great strike of 1877 Workers at B&O (BalEmore and Ohio) Railroad protest their 2 nd wage cut in 2 months Freight and passenger travel was stopped for over a week President Rutherford Hayes says the strikes were impeding interstate commerce, federal troops ended the strike

Strikes turn violent The Haymarket Affair 1886 People gathered at Chicago s Haymarket Square to protest police brutality arer a striker was killed and several other wounded the day before Someone tossed a bomb into police line (no one knows who actually threw the bomb) Police fired on the workers 7 police officers died and several workers died in the chaos ARer the Haymarket Affair the public began to turn against the labor movement

Haymarket Square Riot

Strikes turn violent Pullman Company Strike 1894 During Panic of 1893, Pullman laid off more than 3,000 of the 5,800 employees Cut wages by 25 to 50% Did not cut the cost of its employees housing ARU (American Railway Union) began boyconng Pullman trains Pullman hired strikebreakers making the strike become violent President Grover Cleveland sent in Federal Troops Pullman fired most of the strikers Eugene Debs (Union negoeator) was jailed Most strikers were put on list so they would never work in RR

Big Business QuesEons pages 241-249 What were Andrew Carnegie s management and business strategies? What strategies enabled big business to eliminate compeeeon? Do you agree with Carnegie s defense of millionaires? Why or why not? Do you think the tycoons of the late 19 th century are best described as ruthless robber barons or as effeceve captains of industry? Why? How did economic factors limit industrializaeon in the South? How did industrial working condieons contribute to the growth of the labor movement? How did the strike of 1877 and Haymarket cause the public to resent labor movement? What factors limited the success of unions? If employees at your local grocery store were on strike would you cross the picket line to go into the store or would you go to another store? Why?