1865 to 1890 = huge industrial growth › numerous discoveries and inventions that helped improve...
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1865 to 1890 = Huge industrial growth› Numerous discoveries and inventions that
helped improve manufacturing, transportation, and everyday life
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The Second revolution was because of steel › for machinery that mass produced goods
Built steel railways, bridges, and skyscrapers
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1850s, Henry Bessemer and William Kelly developed the Bessemer Process: › steelmaking that burned off the impurities
in molten iron with a blast of hot air
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Produce more steel in one day than the old ways could in a week› Alexander Holler improved the process
Produced 15,000 tons in 1865 and 28 million tons in 1910
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Made from Iron Ore› Iron Ore was shipped from the Midwest to
Gary, IN; Cleveland, OH; Pittsburgh, PA became big centers for steel manufacturing
Coal from PA and WV provided fuel to heat the Iron Ore
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Steel had widespread industrial use › steel rails, bridges, buildings, multistory
buildings, nails and wire
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Crude Oil has been around forever› In the mid 1800s, scientists began to
discover ways to refine oil – kerosene› First Oil well in Titusville, PA in 1859,
the oil boom “black gold”
› Oil discovered in Texas in 1901 the Texas Oil Boom
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1880 refiners discovered other petroleum products: waxes, lubricating oil for machines› McCoy’s lubricating cup - patent
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Massive expansion of the nations rail network in the late 1800s› more efficient travel
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Transcontinental Railroad in 1869 Promontory Point, UT› Trunk Lines: half dozen crossed the
country from the Great Plains to the West › Feeder or branch lines connected the
trunk lines to outlying areas
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New locomotives Westinghouse made the compressed-
air brake› All cars braking at once
Telegraph Double sets of tracks, standard gauge
or width in 1870s
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Increased Western Settlement Urban growth
› Towns and cities were built along the line Jobs
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Spurred growth of many other industries› Demand for locomotives, cars, and track
poured money into steel and railroad car industries
› Meatpacking Industry could ship farther thanks to refrigerated cars
› Products could be sold nationally
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Oil Refining led to the invention and development of motors and the horseless carriage
Self-propelled vehicle developed around 1770 Nicolas-Joseph Cugnot mounted a steam engine
to a 3 wheeled carriage Steam Power was too expensive and impractical
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Nikolaus A. Otto invented the first combustion engine powered by gasoline in 1876› 1880s designers in Europe and America tried
to use this engine in the horseless carriage› 1893 Charles and J. Frank Duryea built the first
practical motorcar Automobiles began to be used in the late
1800s to early 1900s. It was expensive and therefore uncommon
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Advances in Flight because of the Internal Combustion Engine
Orville and Wilbur Wright of Dayton, OH developed the first working airplanes
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First: They Experimented with gliders› December 17, 1903 near Kittyhawk, NC
Orville made the first flight: flew 12 seconds and 120 feet
Many related inventions and patents developed after this flight
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Communications brought people closer together and furthered the growth of industry› Morse invented the telegraph to send
electricity over wires to communicate 1837
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Using Morse Code you could send a message to a faraway location in minutes
1866 Western Union had 2000 telegraph offices, grew with the railroad
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Alexander Graham Bell patented this invention in march 1876 “talking telegraph”
Used for business By the late 1800s, 1 million telephones
had been installed in America Operators had to connect callers, gave
jobs to women
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Developed in 1867 by Christopher Sholes› Quickly produce legible documents
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Carbon paper allowed a person to make multiple copies at one time
Typing pools developed: groups of workers who typed documents; mainly women
Skilled profession for women Lillian Sholes was the first professional
typist He did it to benefit women who had to
work so hard
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Pioneer of Communications› Telegraph that could send four messages at one time› Electricity, lightbulbs, phonographs, motion pictures
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1869 patented an electric vote recorder
1876 opened an invention shop in Menlo Park, NJ with a team of researchers› Minor invention every 10 days and
something big every 6 months
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Phonograph in 1877, Lightbulb in 1879 Improved telephone with stronger
signal 1039 patents, the Wizard of Menlo Park It was a Team effort; Edison gets the
credit
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1882 opened one of the Worlds First Electrical Power Plants in New York (DC Current) only available to immediate area
George Westinghouse and Nikola Tesla made improvements in the late 1880s with an AC or alternate Current transformer over long distances for use in households and industry
Electric Lights in Cities Electrical Streetcars
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The economic system of the United States is Capitalism: private business run most of the industries and competition determines how much goods cost and workers are paid
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Late 1800s Entrepreneurs set out to make money by building industries that took advantage of technology
Many made enormous profits – led to changes in business
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Business leaders shared the idea of self-reliant individualism› American business leaders had success
because of their work ethic Horatio Alger Jr.
› wrote stories of Rags to Riches themes. Poor children improve their status through hard work and motivation
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Laissez-Faire Capitalism: › No government intervention in the
economy, business free from government regulation
Free Enterprise: › Supply, demand, and profit margin
determine what and how much businesses produce
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Critics of Capitalism and Rapid urbanization thought it was harmful to the workers› Karl Marx
protested argued against the inequalities of wealth, wanted to overthrow the Capitalist System
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Bourgeoisie takes advantage of the Proletariat› Communism: Companies, Capital, and the
means of production are owned by the people and everyone is equal
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Corporations developed:› Organizers raise money by selling shares of
stock stockholder receive percentage of the profit
known as dividends
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Idea proposed by Herbert Spencer› Society progresses through natural
competition The fittest people and businesses would
achieve wealth and the unfit would fail Helping the poor or less capable slows
progress
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Stockholders make profit, but usually have no say in the day to day operations of the corporation
Corporation can raise large sums of money by selling stock› limited liability –
stockholders aren’t responsible for the corporation’s debt,
not dependent on a particular person for existence,
more income from trading stock
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Trusts:› group of companies turn control of stock
over to a board of trustees; they run all companies as a single enterprise, reduces competition
Monopoly: › control of a complete industry – the price
and quality of a product
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Investor Iron and Steel business in the 1860s
› Hired the best people in the business › used the most modern machines
His success – reducing the production cost› Buy in bulk and produce mass quantities with lower
production cost and increase profits = economies of scale
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Vertical Integration : › bought companies that made goods he
needed for business, iron and coal mines, steamship lines, railroads
1899 organized the Carnegie Steel Company and dominated the industry
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Gospel of Wealth:› rich were morally obligated to manage
their wealth to benefit society; gave 350 million away, public libraries, schools, etc.
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Earned a small fortune in the food wholesale business
Entered Oil refining business in 1863 Rockefeller sought to control the industry
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Vertical Integration: › Acquired barrel factories, › oil fields, › oil storage facilities, › pipelines, and› railroad tanker cars.
Horizontal Integration: controlling companies that produce the same product
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Standard Oil tried to control the refineries it could not buy› Made deals with suppliers and transporters
to receive cheaper rates › Forced Rivals to sell out
1880 controlled 90% of refinery capacity
Gave $550 million to charities
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Before the Civil War ran a profitable shipping business
During the war he invested in railroads
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By 1869 Vanderbilt controlled the New York Central railroad and lines between Chicago, Cleveland, New York, and Toledo› Purchased smaller lines, › combined them to make direct routes to
large cities,› made more efficient service to meet the
demand for transportation
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1869 at age 23 George Westinghouse invented the Compressed-Air brake
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George Pullman designed and manufactured railroad cars that made long-distance travel more comfortable› Created sleeping cars, › dining cars› luxury cars
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Built a planned community or company town › to improve the conditions of life for the
workers› Strictly controlled daily life
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New ways of persuading consumers to purchase their products
Standard Oil set the “standard”› brightly colored packages, › unique logos
Advertising to promote products
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Consumer culture developed Advertising in local newspapers, mail-
order publications, catalogs Montgomery Ward and Sears-Roebuck
› Mail order catalog
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Stores sold a variety of goods to cater to the demand of the urban market› Bought products in bulk and could offer
low prices› Women would work and shop at the
Department Store
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Chain Stores: › stores with many branches in different
cities› bought goods in large quantities and
passed the savings onto the consumer: Woolworths
by1900 had 59 stores