Chapter 13Triumph of Industry

1865-1914Page 434

Section 1Technology and Industrial Growth

• OBJ: Analyze Factors that led to Industrialization of the U.S.

• Explain how inventions and innovations changed American lives

• Describe the impact of industrialization in the late 1800’s

A. Industrial Growth • Mass goods were needed during the Civil war

• Fuels of industrial Growth:– Natural resources- coal, forests, rivers, oil- Edwin

Drake and the first oil drill in Titusville Pen. – Growing workforce- immigration and people

moving to cities– Capitalism- Horatio Alger and rags to riches stories • Entrepreneurs- trying to make money- fueled society

with jobs and ideas

– Government- Protective Tariffs and laissez-faire policies

B. Innovations • Patent: _____________________

• Thomas Edison- applied for over a 1,000 patents

• Perfected the light bulb• Designs for power plants to power cities• George Westinghouse- developed ways to

transport energy over long distances.

• Communication– Samuel Morse- invented telegraph and Morse

code– Alexander Gram Bell- invented telephone

• Steel– Bessemer Process- invented by Henry Bessemer-

better way to produce steel– Skyscrapers and suspension bridges now possible– Better railroads with steel – Brooklyn bridge- at time longest bridge in world-

1883

• Railroads– Trains expanded all over the country – TCR finished in 1869– By 1883- 3 TCR’s – Led to development of time zones– New transportation allowed people to live farther

from work• Electric rail cars, subways

• 1903- first successful flight by Orville and Wilbur Wright

• Spiral Growth– Industry increases industry???

– Example, more railroads means more production of railways, rail road cars.

– More railroads means more goods transported, which means more consumers, which means more goods can be produced

– GET IT – Leads to Mass Production

C. Impact

• World Markets Linked • Jobs becoming mechanized • Jobs becoming unskilled• More goods produced • People move to cities • Cities grow• Immigration increases• More jobs• Environmental impact • Peoples lives transformed

Section 2Rise of Big Business

• Businesses now were corporations– Created by the gov’t to a group of people with the

right to sell shares– Why would people buy shares? Dividends?

• Advantage of Corporation– Raise capital– Limited liability– Not dependent on fate of owner

Standard Oil

• John D. Rockefeller got into oil business in 1862

• Wanted to simplify the production process• Gained control of all steps of Production• What is this called?

• Put others out of business and created a monopoly

U.S. Steel

• Andrew Carnegie revolutionized the steel industry

• Spent millions on steel research• Could produce steel cheaper than competition• Purchased or put out all competitors– What is this called

• Created a monopoly and made billions• Donated millions towards the end of his life

Government and Business

• Should government play a role in business?• Laissez faire?– Government should “let people do what they

choose”• Social Darwinism- survival of the fittest-

applied to business. Best companies will survive

• Use to justify bad business practices and great wealth

Robber Barron vs. Captains of Industry

• How should these business men be viewed• Small businesses were squeezed out• But jobs were provided• Prices were lowered• But monopolies led to less competition and

higher prices.

• What do you think??

Improvements by Gov’t

• Morrill Act of 1862: – Gave each state federally land in order to establish

institutes of higher education. IE UNL• Postal Reform was undertaken in 1860’s and

on• Began to deliver right to houses• RFD started in 1896• By 1913 mail was circulated throughout

nation. Great for businesses

• Cartels and Trusts– Cartel- several companies decided to limit

competition among themselves and share the market. Result?

– Trusts: Several companies controlled by one board. Result?

Government Starts to Act

• Interstate Commerce Commission – Wanted to make railroad rates fair– Gave gov’t power to regulate interstate commerce

• Sherman Antitrust Act– Break up Monopolies

• Were not enforced or were avoided

Section 3Organized Labor Movement

• OBJ: Asses workers problems• Compare goals and strategies of different

unions• Analyze cause and effects of different strikes

A. Hardships for Workers

• Wealth and higher standard of living for many because of I.R.

• However, not for workers in factories• 12 hour days, 6 days a week, in dark, dirty,

hot, and cramp factories. • Very dangerous- Sweat shops• If you got injured, you were fired • Low wages- demand set wages??

B. Labor Unions Form

• Collective Bargaining: • Could lead to strikes• Some workers attracted to socialism- why?

• Knights of Labor: included both skilled and unskilled labor

• Focused on social reform and replacing capitalism with workers coops

• Disappeared after failed strikes

• American Federation of Labor: AFL: Samuel Gompers– Only allowed skilled workers– Focused on very specific work place reforms – Did not gain as much membership as Knights

C. Haymarket Riot

• May 1 1886 in Chicago• Knights went on strike at McCormic Company• Peaceful• 200 police summoned and after bomb

exploded among them, they fired into the crowd

• 11 were killed and over a hundred wounded• Gave bad name to strikes, brought end to KOL

D. Homestead Strike

• 1892 with the Carnegie Steel Company• Union contract coming to an end and Henry

Frick, plant manager, saw a chance to break union

• Cut wages• All workers decided to strike• Hired scabs and Pinkerton guards to protect

the plant• 8,000 troops called in and strike put down

E. The Pullman Strike

• Built Pullman cars• George Pullman built actual town for his

workers• 1893 laid off almost half of his workers and

the rest received wage cuts• Workers went on strike• Pullman attached mail cars to all Pullman cars• U.S. gov’t put end to the strike, could not stop

the mail

F. Effects of Strikes

• Courts and government often ruled against strikes

• Was a time when gov’t usually sided with business owners over workers.