US History UNIT 2 - CHAPTER 5 - Rise of Industry 2011-2012 UPLOAD

UNIT 2 - CHAPTER 5 - Rise of Industry : 

UNIT 2 - CHAPTER 5 - Rise of Industry U.S. History – 2011-2012

THE GROWTH OF AMERICAN INDUSTRY : 

THE GROWTH OF AMERICAN INDUSTRY 1860-1900 IN THE YEARS AFTER THE CIVIL WAR, NEW TECHNOLOGY CHANGED AMERICAN LIFE

What do we already know about CHANGE after the Civil War? : 

What do we already know about CHANGE after the Civil War?

Slide 4: 

CIVIL WAR AND THE GROWTH OF INDUSTRY STRONGER STEEL NEEDED FOR NEW WEAPONS GROWTH OF RAILROADS PROCESSED FOODS DEVELOPED TO FEED SOLDIERS COAL NEEDED FOR STEAM ENGINES RUBBER AND TEXTILES NEEDED FOR UNIFORMS AND EQUIPMENT OIL USED AS LUBRICANT

Industrial Revolution : 

Industrial Revolution WHAT: Shift from making goods by hand to making them with machines Shift from human and animal power to steam and electricity RESULT: More goods could be produced faster!

WHAT FACTORS DID THEY NEED FOR INDUSTRIAL GROWTH? : 

WHAT FACTORS DID THEY NEED FOR INDUSTRIAL GROWTH? FACTORS: natural resources new inventions new types of energy improved communications and transportation new business organizations cheap labor

The U.S. Industrializes : 

The U.S. Industrializes WHAT: Massive growth from 1865-1914! MEASURED BY: GNP – Gross National Product total value of all goods and services produced by a country RESULT: 8 times more GNP by 1914! Leading industrial country in the world!

NATURAL RESOURCES : 

NATURAL RESOURCES WHAT: Timber Iron Oil Coal Copper IF YOU GET THESE, WHAT DO YOU THINK HAPPENS?

Why was oil popular? : 

Why was oil popular? TRANSITION: Whale oil, kerosene, light bulb OIL = BLACK GOLD! Edwin Drake credited with being the first to drill for oil in the United States. drilled first oil well in Pennsylvania, 1859

Plenty of…CHEAP LABOR : 

Plenty of…CHEAP LABOR WHAT: From 1860-1910 the population basically tripled! WHY? Immigrants (17 million from 1870-1910) push/pull factors growth in families (more food, better conditions) FARMERS losing their jobs to machines (need work) WHERE? Most lived in industrial centers of Northeast and Midwest IMPACT – More people = need for more goods!

Cyrus Field : 

Cyrus Field WHAT: Trans-Atlantic telegraph cable, 1858 & 1866 RESULT Connected U.S. and Europe! HOW IS THIS A CHANGE??

New Inventions : 

New Inventions Alexander Graham Bell: Telephone LED TO: American Telephone & Telegraph Company (AT&T) Thomas Edison: Phonograph, Light bulb, Video Camera, General Electric (GE) over 1,000 patents to his name! Edison improved many early inventions! George Westinghouse: Airbrake (railroads), AC (alternating current), hydroelectric power

ELECTRICITY : 

ELECTRICITY EDISON INVENTED FIRST CENTRAL POWER STATIONS (1882) USED DIRECT CURRENT = DC EXPENSIVE WESTINGHOUSE DEVELOPED ALTERNATING CURRENT = AC CHEAPER USED TODAY

New Inventions…IMPACT? : 

New Inventions…IMPACT? IMPACT: improved productivity improved communication new industries and products Also…technology is cool!

“laissez-faire” and FREE ENTERPRISE : 

“laissez-faire” and FREE ENTERPRISE WHAT: - “leave it alone” an economic idea No government interference in business HANDS OFF! - (other than protection) Leave business alone so people can make profits! supply and demand will regulate wages and prices NOT GOVERNMENT! Entrepreneurs people who risk their capital (money) to run a business Government supported big business They wanted business to grow! Tariffs – taxes on foreign goods Tariffs used for protection PROBLEM - Countries often retaliated

Railroads : 

Railroads Section 2

Post-Civil War Industrialization : 

Post-Civil War Industrialization Before Lincoln assassination 35,000 miles of tracks By 1900… 192,556 miles of tracks HOW DID THAT HAPPEN? Government supported big-business! Breaks for railroads Land grants 155,504,994 acres to build rail lines, free of charge! Liberal money loans Cheap for the government to get a transportation system

Pacific Railway Act, 1862 : 

Pacific Railway Act, 1862 WHAT: Provided funds and land to build a transcontinental railroad. 2 Companies Union Pacific Central Pacific railroads RESULT: Competition developed between the two! Trans-continental Railroad was completed in 1869!

Transcontinental Railroad : 

Transcontinental Railroad WHAT: Started in 1862…finished in 1869 Combination of 2 lines: Union Pacific Railroad Started in Omaha, Nebraska (worked westward) Headed by Grenville Dodge Irish “Paddies” helped lay track Central Pacific Railroad Started in Sacramento , CA (worked eastward) Leland Stanford – ex-governor of California helped organize it Used Chinese laborers – paid $1.00 per day - 6,000 (many died) Met at Promontory Point, UT in 1869! A golden spike and silver hammer finished the track EFFECT: Tied west coast to the Union and Asian trade Railroads allowed for towns to boom Major growth in the west Reduced shipping costs

4 other Rail lines… : 

4 other Rail lines… DIFFERENCE: DIDN”T RECEIVE MUCH HELP FROM THE GOVERNMENT! (got land grants) “Great Northern” - Duluth to Seattle James J. Hill Efficient and public minded Prosperity of railroad depended on prosperity of the area! Shipped goods east and west Was able to survive financial panics! Prosperity of railroad depends on prosperity of the area!

Boom Towns and Ghost Towns… : 

Boom Towns and Ghost Towns… The location of railroads turned towns into: Boom towns: Flourishing cities that had access to the railways OR Ghost towns: Forgotten towns that lost their livelihood because they weren’t connected to the railroads or resources played out!

COMMODORE CORNELIUS VANDERBILT : 

COMMODORE CORNELIUS VANDERBILT WHAT: Made a fortune in steamboats FAMOUS FOR: Railroad consolidation (New York Central) offered railway service at low rates used steel rail - safer and economical used standard gauge of track (width) $1 million contribution to found Vanderbilt University

Time Zones : 

Time Zones PROBLEM: cities had different times trains had difficult times keeping schedules and avoiding wrecks SOLUTION: time zones were established On November 18, 1883, the nation was divided into four time zones Eastern, Central, Mountain, Pacific

Problems… Credit Mobilier : 

Problems… Credit Mobilier WHEN: 1872 WHAT: Scandalous company created by Union Pacific railroad insiders It distributed shares of its stock to congressmen to avoid detection RESULTS: They were paid $94 million by congress for work worth $44 million! Evidence of corruption in the government!

New Innovations for Railroads : 

New Innovations for Railroads steel rail stronger than iron Vanderbilt replaced iron tracks with steel standard gauge eliminated transfers from one track to another Westinghouse air brake safer and efficient braking mechanism Pullman Palace Cars (1860s) “gorgeous traveling hotels” travel in comfort and style

Revolution by the Railroad : 

Revolution by the Railroad East and West connected created national markets raw materials manufactured goods farm products increased immigration faster way to ship goods lowered cost of production model for big business a maker of millionaires stimulated other industries mining (steel, coal, etc) agriculture

Big Business : 

Big Business Section 3

Increase in Mechanization : 

Increase in Mechanization 1860 4th place in the world 1894 1st place in the world WHY?

Corporations : 

Corporations WHAT: business owned by many investors (stockholders) who buy shares of stock and risk only the amount of their investment. WHY: Businesses are expensive to start and maintain! Reduce the potential loss if a business fails! TYPES BEFORE: Sole proprietorship Partnership

Stock : 

Stock WHAT: A share of ownership in a business

BUSINESS METHODS : 

BUSINESS METHODS MONOPOLY One company controls an entire industry TRUSTS business organization meant to control act like a monopoly One company controls the stock of a majority of other companies in the same industry That one company then makes all decisions for that industry CARTELS A group of independent producers whose goal it is to fix prices, to limit supply and to limit competition POOL – hurt consumers! An agreement to divide the business in a given area and share the profits Rail lines would not waste money competing against one another so they could concentrate on other areas INTERLOCKING DIRECTORATES Practice of members of corporate board of directors serving on the boards of multiple corporations.

Holding Company : 

Holding Company WHAT: a form of business which does not create anything itself WHAT DOES IT DO: it owns stock of companies that do produce goods EXAMPLE: GE RCA, NBC, MSNBC, Universal Pictures and Studios

ROBBER BARONS OR CAPTAINS OF INDUSTRY : 

ROBBER BARONS OR CAPTAINS OF INDUSTRY TWO TERMS TO DESCRIBE THE WEALTHY MEN WHO BUILT THE NATIONS FIRST NATIONAL COMPANIES

ROBBER BARONS? : 

ROBBER BARONS? Built their fortunes by stealing from the public Drained natural resources Abused and mistreated workers Rockefeller, Vanderbilt, Carnegie, etc

CAPTAINS OF INDUSTRY? : 

CAPTAINS OF INDUSTRY? Helped make the country better Built businesses Provided jobs Founded museums and universities Rockefeller, Vanderbilt, Carnegie, etc

BESSEMER AND STEEL : 

BESSEMER AND STEEL BESSEMER Process: Henry Bessemer developed a new process to make steel removed impurities from iron by shooting hot air through it lighter, stronger, cheaper steel made mass production possible William Kelly (Kentucky) came up with it a few years earlier cheap steel Began new age of construction U.S. had plenty of coal, iron, and business know how!

CARNEGIE STEEL : 

CARNEGIE STEEL Andrew Carnegie Poor boy from Scotland made a $1.20 a week Largest steel maker produced ¼ of nations steel Company brought in $40 million a year Carnegie got $25 million Business model: Vertical consolidation combined all phases of manufacturing a product from start to finish mine the ore ship the ore in his ships deliver the ore on his railroads turn the iron ore into steel in his steel mills LATER LIFE: became a philanthropist and gave millions of dollars away Sold his company to J.P. Morgan in 1900 for $400 million Gospel of Wealth Carnegie Libraries (over 2,500)

J. P. Morgan : 

J. P. Morgan WHAT: wealthy Wall Street banker saved federal government in 1895 by loaning the Treasury more than $60 million U.S. Steel Corporation Morgan purchased Andrew Carnegie’s steel company for nearly $400 million used it to form the U.S. Steel Corporation in 1901. First billion dollar corporation (1.4 billion)

STANDARD OIL : 

STANDARD OIL FORMED BY: John D. Rockefeller WHAT: Trust Rockefeller formed an oil trust when smaller oil companies turned over their stock to the board of directors of Standard Oil controlled the oil refinery business Business Model: Horizontal consolidation one company allies itself with other companies in the same industry to control that industry LATER LIFE: Became a philanthropist

DUPONT CHEMICALS : 

DUPONT CHEMICALS WHAT: Monopoly that controlled… Explosives Gun powder Dynamite

OTHER IMPORTANT BUSINESS LEADERS : 

OTHER IMPORTANT BUSINESS LEADERS Cyrus McCormick mechanical reapers George Pullman designed Pullman sleeping car for r&r Milton Hershey Chocolate gave much to charities Gustavus F. Swift and Philip Armour meat packers

Slide 42: 

ROBBER BARON OR CAPTAIN OF INDUSTRY?

Try to “Corner the Market”… : 

Try to “Corner the Market”…

Unions : 

Unions Section 4

Working in the U.S. : 

Working in the U.S. STAT: 1900 – average worker made 22 cents/hour and worked 59 hours a week! PROBLEMS: Terrible conditions long hours, low pay, dangerous working conditions, few safety mechanisms, no health care or benefits FEAR - machines might replaced them No power against the bosses! Company towns kept workers in debt paid with store credit

Unions : 

Unions WHAT: organization of workers seeking to improve their wages, working conditions, and benefits. EXAMPLES: National Labor Union, 1866 Colored National Labor Union, 1866 Knights of Labor, 1869 AFL – American Federation of Labor, 1886

Tactics used against unions! : 

Tactics used against unions! TACTICS: strikebreakers/scabs lockout close the factory to stop organizing workers blacklists lists of those who tried to organize so they wouldn't be hired yellow dog contracts an agreement not to become join unions private guards Pinkertons (think rent-a-cop) and state militia court injunctions (orders to end strikes)

Labor Unions : 

Labor Unions National Labor Union (1866) – 1st attempt to organize all workers (skilled/unskilled), higher wages, 8 hour day Knights of Labor (1869) – Led by Terence Powderly Included skilled and unskilled workers, African Americans, & women Used boycotts and arbitration (negotiating with help) Haymarket Square Incident (1886) – labor violence in Chicago over McCormick Harvester plant, a bomb killed 7 police officers RESULT: Knights of Labor blamed and lost membership American Federation of Labor (1886)- Led by Samuel Gompers skilled workers only wanted higher wages and improved working conditions, used strikes, collective bargaining, and closed shops (Businesses who could only employ unionized labor)

Strikes - EXAMPLES: : 

Strikes - EXAMPLES: Great Railroad Strike (1877) – caused by cut wages, shut down 2/3 of railroads, Rutherford B. Hayes sent in federal troops to end the strike over 100 dead Homestead Strike (1892) – Carnegie Steel plant near Pittsburgh Henry Frick (manager) cut wages by 20 percent in 1892 Frick used lockout, Pinkertons, and scabs to break the strike, major setback for union movement Pullman Strike (1894) - 1894 wage cut and firing of workers who attempted to bargain workers went on strike, railroad owners linked Pullman Palace cars to mail trains, ended by a federal court injunction! Eugene V. Debs - head of American Railway Union - imprisoned for 6 months, turned to socialism RESULT by 1900, only 3 percent of American workers belonged to unions!

In re Debs (1895) : 

In re Debs (1895) WHAT: Supreme Court case that backed the use of court injunctions against strikes!

Other Unions - IWW : 

Other Unions - IWW IWW – Industrial Workers of the World Called the “Wobblies” Goal unite all workers (skilled/unskilled) in an industry ONE BIG UNION

Women and unions : 

Women and unions WOMEN: 1/3 domestic servants 1/3 teachers, nurses, sales clerks 1/3 industrial workers PROBLEM: women paid less than ½ of men couldn’t join unions! Mother Jones: Mary Harris Jones – great speaker and organizer “the most dangerous woman in America”

Impacts of Industrialization : 

Impacts of Industrialization WHAT: standard of living rose cities grew agriculture declined from independence to dependence (on wages) lives dominated by factory whistle women affected by new industry new opportunities and discrimination greater class division rich get richer… Growth of the middle class

So in the end… : 

So in the end…

FACTORS FOR INDUSTRIAL GROWTH : 

FACTORS FOR INDUSTRIAL GROWTH LARGEST MARKET U.S. is largest market for industrial goods LIQUID CAPITAL money for investment in American industry was available CHEAP LABOR Immigration allowed for plenty of unskilled labor NEW TECHNOLOGY “American Ingenuity” - mass production and inventiveness ABUNDANT NATURAL RESOURCES coal, oil, and iron ore were abundantly available for fuel and steel BETTER COMMUNICATIONS Telegraph, telephone, railroads NEW BUSINESS ORGANIZATIONS Corporations, trusts, horizontal and vertical integration FRIENDLY GOVERNMENT POLICIES Subsidies, land grants, loans, protective tariffs