nc goal #5 the new american society and the economy

The Gilded Age: A New American Society and Economy

What made industrialization possible?

What advances were made during this period?

Were the entrepreneurs captains or barons?

Six Sources of Industrial Growth•Abundant raw materials•Large and growing labor supply•Surge in technological innovations•Emergence of a talented and often

ruthless group of entrepreneurs•Federal government eager to assist the

growth of business•Expanding domestic market for the

products of manufacturing

Natural Resources

•Coal•Iron•Timber•Petroleum•Water

Abundant Labor Force• Old farming families• Immigrants arrive

▫ Italians▫ Chinese▫ Irish▫ Central European

• Total population was 76 million in 1914▫ 7 million immigrants

between 1870-1890▫ 15 million between 1890

and 1914

Improvements in Transportation• Steamships

▫Can cross Atlantic Ocean in half the time

▫Can transport on Hudson River, Ohio River, and Erie Canal

• Railroads▫By horse- 50 miles a

day▫By rail- 50 miles an

hour

Why railroads?• Direct routes• Speed• Safety• Comfort

▫ Pullman sleep car• Brought in outside

products• Dependable schedule

▫ Time zones are established

• Encouraged specialization

The Railroads

Improvements in Communication•Bell’s Telephone

•Edison’s Phonograph

•Typewriter

Improvements in Manufacturing•Refining petroleum•Bessemer process•Cash register•Singer’s Electric

sewing machine•Automatic looms•Eastman’s Kodak

camera

Improvements in Food industry•Refrigerator car

▫Cattle from Texas▫Fruit from

California and Florida

•Beer•Packaged cereal•Canned meat•Swift’s “Disassembly

factories”

A new light

•Edison’s lightbulb▫Light within 2 mile radius

•Westinghouse converts electrical power to mechanical power▫Light to all

Cornelius Vanderbilt• Shipping and railroad magnate• 1810 - Purchased first ship • 1846 – Self-made millionaire• 1849 – Vanderbilt Accessory

Transit Company• 1869 – Consolidated the Hudson

River Railroad and New York Central Railroad

• 1873 – Was able to offer rail service between New York and Chicago

• Constructed Grand Central Terminal

Collis P. Huntington• Railroad magnate• Became wealthy as a

merchant• 1861 – Joined with the “Big

Four” to incorporate the Central Pacific Railroad

• 1865 – Constructed lines from southern California to New Orleans

• 1890 – President of the Southern Pacific-Central Pacific rail system

Andrew Carnegie• Steel• Pittsburg• J Edgar Thomson Steel

Company▫ Named after President of

Pennsylvania Railroad• Won contract for Brooklyn

Bridge, Golden Gate Bridge, and Empire State building

• Sold more steel than Great Britain

J. Pierpont Morgan• A banker• Refinanced railroads• Bought Carnegie Steel

▫ Merged with his company Federal Steel

▫ Named United States Steel Corporation

• Financed Edison Illuminating Company

John D. Rockefeller• Oil• Standard Oil Company• Kerosene• Refineries began in

Cleveland and Pittsburg• Concept of trust

▫ Vertical alignment Wells Chemical plants Refineries Warehouses pipelines

• Concept of the holding company

Alexander Graham Bell• The telephone• American Telephone and

Telegraph Company• Holding company

▫ 100 separate Telephone companies in local areas

Cyrus W. Field• Financier• 1854 – Founded the

New York, Newfoundland and London Telegraph Company

• 1856 – Helped to organize the Atlantic Telegraph Company

• 1866 – Successfully laid the first transatlantic telegraph cable

Captains of Industry or Robber Barrons: The Emergence of Entrepreneurs• Captain of Industry

▫ Self made▫ Entrepreneur▫ Witty

• Robber Barron▫ Didn’t care about labor▫ Felt it was best to control

industry

Bringing Products to ConsumersDepartment Stores Mail Order Catalogs

• City• Macy’s- New York• Marshall Field’s- Chicago• Higbee’s- Cleveland• A&P Grocery stores

• Rural• Buy from catalog• Based on consumer trust• Importance of

advertisements• Sears and Roebucks• Montgomery Ward