chapter 18 the industrial society

Chapter 18Chapter 18THE INDUSTRIAL THE INDUSTRIAL

SOCIETYSOCIETY

America Past and PresentAmerica Past and Present

Industrial DevelopmentIndustrial Development

Late nineteenth-century U.S. offers ideal Late nineteenth-century U.S. offers ideal conditions for rapid industrial growth conditions for rapid industrial growth

Abundance of cheap natural resourcesAbundance of cheap natural resources Large pools of laborLarge pools of labor Largest free trade market in the worldLargest free trade market in the world Capital, government support without Capital, government support without

regulationregulation Rapid growth 1865–1914Rapid growth 1865–1914

p.512

An Empire on RailsAn Empire on Rails U.S. industrial economy based on U.S. industrial economy based on

expansion of the railroadsexpansion of the railroads

Steamships made Atlantic crossings twice Steamships made Atlantic crossings twice as fastas fast

The telegraph & telephone transformed The telegraph & telephone transformed communicationscommunications

512-513

Emblem of Motion & PowerEmblem of Motion & Power Railroads transform American lifeRailroads transform American life

End rural isolationEnd rural isolation Allow regional economic specializationAllow regional economic specialization Make mass production, consumption possibleMake mass production, consumption possible Lead to organization of modern corporation Lead to organization of modern corporation Stimulate other industriesStimulate other industries

Railroads ~ Most significant technological Railroads ~ Most significant technological innovation in the 19innovation in the 19thth century century

p.513

Emblem of Motion & PowerEmblem of Motion & Power

1865–1916: U.S. lays over 200k miles of 1865–1916: U.S. lays over 200k miles of track costing billions of dollarstrack costing billions of dollars Stagecoach = 50 mi/day; RR = 50 mi/hrStagecoach = 50 mi/day; RR = 50 mi/hr Went where rivers & canals could not goWent where rivers & canals could not go Comfort & safetyComfort & safety Chicago supplied meat to the nation, Chicago supplied meat to the nation,

Minneapolis supplied grain, St. Louis, beerMinneapolis supplied grain, St. Louis, beer

p.513

Building the EmpireBuilding the Empire At the end of the Civil War, the US had nearly At the end of the Civil War, the US had nearly

as much railroad track as the rest of the world as much railroad track as the rest of the world combined.combined. $4.5B invested by 1880 & only ½ complete$4.5B invested by 1880 & only ½ complete

Federal govt loaned nearly $65M to a half Federal govt loaned nearly $65M to a half dozen western railroads & donated millions of dozen western railroads & donated millions of acres of public landacres of public land

Cong required the railroads to carry govt Cong required the railroads to carry govt freight, troops, & mail at reduced rates, freight, troops, & mail at reduced rates, saving $1B between 1850 & 1945saving $1B between 1850 & 1945

p.514-515

Federal Land Grants to Railroads as of 1871Federal Land Grants to Railroads as of 1871

p.514

Railroad Construction, 1830–1920Railroad Construction, 1830–1920

p.514

Linking the Nation via Trunk LinesLinking the Nation via Trunk Lines No integrated rail system before Civil WarNo integrated rail system before Civil War

Rails different gaugesRails different gauges Small systems were not linkedSmall systems were not linked

After 1865, in a burst of consolidation, large After 1865, in a burst of consolidation, large companies swallowed small & integrated companies swallowed small & integrated networks became a realitynetworks became a reality

East linked directly with Great Lakes, WestEast linked directly with Great Lakes, West Integration took longer in the war damaged Integration took longer in the war damaged

South, caught up by 1900South, caught up by 1900 Rail transportation becomes safer & faster Rail transportation becomes safer & faster

than everthan everp.515-516

Rails Across the Rails Across the ContinentContinent

1862: Congress authorizes the 1862: Congress authorizes the transcontinental railroad transcontinental railroad

Union Pacific works westward from Union Pacific works westward from Nebraska using Irish laborersNebraska using Irish laborers

Central Pacific works eastward using Central Pacific works eastward using Chinese immigrants Chinese immigrants (not allowed in picture)(not allowed in picture)

May 10, 1869: Tracks meet in UtahMay 10, 1869: Tracks meet in Utah By 1900, four more lines to PacificBy 1900, four more lines to Pacific

p.516-518

p.519

Railroads ~ 1870 & 1890Railroads ~ 1870 & 1890

1883: American Railway Assoc divided the country into four times zones to help standardize schedules. Cong did not standardize the country until 1918.

p.517

Problems of GrowthProblems of Growth Intense competition among railroads for Intense competition among railroads for

passengers & freightpassengers & freight Some companies tried to arrange pooling agree-Some companies tried to arrange pooling agree-

ments to control competition but were unsuccessfulments to control competition but were unsuccessful Companies then tried to consolidate, but their Companies then tried to consolidate, but their

systems collapsed in the Panic of 1893systems collapsed in the Panic of 1893 Needing $, railroads turned to bankers who Needing $, railroads turned to bankers who

impose order by consolidating to eliminate impose order by consolidating to eliminate competition & increase efficiencycompetition & increase efficiency J. P. Morgan, most important figure in American J. P. Morgan, most important figure in American

financefinance,, took the lead took the lead In 1900, seven giant rail systems dominateIn 1900, seven giant rail systems dominate

p.518-519

An Industrial EmpireAn Industrial Empire

Process developed by Process developed by Henry BessemerHenry Bessemer in in England & England & Wm KellyWm Kelly in the US in the US made made increased of production of quality increased of production of quality steelsteel possiblepossible Longer bridges, taller buildings, heavier Longer bridges, taller buildings, heavier

machinery, faster shipsmachinery, faster ships Use of steel changes agriculture, Use of steel changes agriculture,

manufacturing, transportation, architecturemanufacturing, transportation, architecture

p.520

Andrew Carnegie & Andrew Carnegie & SteelSteel

Large-scale steel production requiresLarge-scale steel production requires Access to iron ore deposits in Minnesota Access to iron ore deposits in Minnesota Extensive transportation networkExtensive transportation network

Requirements lead to “vertical integration”Requirements lead to “vertical integration” Definition: A type of organization in which a Definition: A type of organization in which a

single company owns & controls the entire single company owns & controls the entire process from obtaining raw materials to process from obtaining raw materials to manufacture & sale of the finished productmanufacture & sale of the finished product

p.520

Andrew Carnegie & Andrew Carnegie & SteelSteel

1872: Andrew Carnegie enters steel 1872: Andrew Carnegie enters steel businessbusiness

By 1901, Carnegie employs 20k & By 1901, Carnegie employs 20k & produces more steel than Great Britainproduces more steel than Great Britain

Sells out to J. P. MorganSells out to J. P. Morgan Morgan creates the United States Steel Morgan creates the United States Steel

CorporationCorporation Employed 168k people & produced 9M tons Employed 168k people & produced 9M tons

of iron & steel per year of iron & steel per year p.520-521

Steel Production ~ 1880–1914Steel Production ~ 1880–1914

p.520


SOCIETYSOCIETY


½ Point½ Point

Rockefeller & Rockefeller & OilOil

Petroleum profitable as kerosene for lighting & went Petroleum profitable as kerosene for lighting & went on the lubricate the machines of the industrial ageon the lubricate the machines of the industrial age

Edwin L. Drake drilled the first oil well near Edwin L. Drake drilled the first oil well near Titusville in northwest Pennsylvania Titusville in northwest Pennsylvania

1863 ~ John D. Rockefeller organizes Standard Oil 1863 ~ John D. Rockefeller organizes Standard Oil Company of OhioCompany of Ohio

Rockefeller lowers costs, improves quality, Rockefeller lowers costs, improves quality, establishes efficient marketing operationestablishes efficient marketing operation

1879 ~ He controlled 90% of US oil refining 1879 ~ He controlled 90% of US oil refining capacity. Standard Oil Trust estab 1881capacity. Standard Oil Trust estab 1881

p.521-522

The Business of InventionThe Business of Invention Late nineteenth-century Late nineteenth-century

industry leads to new industry leads to new American technologyAmerican technology

An Age of InventionAn Age of Invention Telegraph, camera, Telegraph, camera,

processed foods, processed foods, telephone, phonograph, telephone, phonograph, incandescent lampincandescent lamp

Electricity in growing use Electricity in growing use by 1900by 1900

p.523-527

The Business of InventionThe Business of Invention

Thomas EdisonThomas Edison (1847-1931)(1847-1931) 1,093 US patents & many 1,093 US patents & many

in UK, France & Germanyin UK, France & Germany Greatest inventor of the Greatest inventor of the

late 19late 19thth century century

p.523-527


George EastmanGeorge Eastman (1854-1932)(1854-1932) Patented a process for Patented a process for

coating gelatin on coating gelatin on photographic plates that photographic plates that led to celluloid film & led to celluloid film & motion picturesmotion pictures

p.523-527


Alexander Graham Bell Alexander Graham Bell (1847-1922)(1847-1922) 1878 ~ Phone installed in 1878 ~ Phone installed in

the White & first phone the White & first phone exchange opened in New exchange opened in New Haven, CNHaven, CN

1895 ~ 310k phones1895 ~ 310k phones 1905 ~ 10M phones1905 ~ 10M phones

p.523-527

Patents by Decade ~ 1850–1899Patents by Decade ~ 1850–1899

p.523

The SellersThe Sellers

Marketing becomes a science in late Marketing becomes a science in late 1800s1800s

Advertising becomes commonAdvertising becomes common Development of chain stores, brand Development of chain stores, brand

name, & mail-order houses provided name, & mail-order houses provided convenience & standardizationconvenience & standardization

Americans become a community of Americans become a community of consumersconsumers

p.527-529

The Wage EarnersThe Wage Earners

The labor of millions of men and women The labor of millions of men and women built the new industrial societybuilt the new industrial society

1875–1900 real wages rose, working 1875–1900 real wages rose, working conditions improved, and workers’ conditions improved, and workers’ national influence increasednational influence increased

Health & educational services expanded Health & educational services expanded benefiting workersbenefiting workers

Better but not “great”Better but not “great”

p.529

Working Men, Working Women, Working Men, Working Women, Working ChildrenWorking Children

Chronically low wagesChronically low wages Average wages: $400-500 per yearAverage wages: $400-500 per year Salary required for decent living: $600 per Salary required for decent living: $600 per

yearyear Dangerous working conditionsDangerous working conditions

Railroad injury rate: 1 in 26, death rate 1 in Railroad injury rate: 1 in 26, death rate 1 in 399399

Factory workers suffer chronic illness from Factory workers suffer chronic illness from pollutantspollutants

p.529-530


Composition of the labor force by 1900Composition of the labor force by 1900 20% women 20% women Women represented in 296 of 303 Women represented in 296 of 303

occupationsoccupations 10% of girls employed, 20% of boys 10% of girls employed, 20% of boys

Working childrenWorking children ““Child labor” means under 14Child labor” means under 14 All children poorly paidAll children poorly paid Girls receive much lower wage than boysGirls receive much lower wage than boys

p.530


Working women’s characteristicsWorking women’s characteristics Most young and singleMost young and single 25% of married African American women work in 25% of married African American women work in

19001900

Working women’s jobsWorking women’s jobs Many move into clerical positionsMany move into clerical positions A few occupy professional positionsA few occupy professional positions

Working women’s earnings unequal to men’sWorking women’s earnings unequal to men’s

p.530


Discriminatory wage structureDiscriminatory wage structure Adults earn more than childrenAdults earn more than children Men earn nearly twice as much as womenMen earn nearly twice as much as women Whites earn more than blacks or AsiansWhites earn more than blacks or Asians Protestants earn more than Catholics or JewsProtestants earn more than Catholics or Jews Black workers earn less at every level and skillBlack workers earn less at every level and skill

Chinese suffer periodic discriminationChinese suffer periodic discrimination 1879: California constitution forbids corporations to 1879: California constitution forbids corporations to

hire Chinesehire Chinese 1882: Federal Chinese Exclusion Act prohibits 1882: Federal Chinese Exclusion Act prohibits

Chinese immigration for 10 yearsChinese immigration for 10 yearsp.530-531

Culture of WorkCulture of Work

Factory work habits demand adjustments Factory work habits demand adjustments for immigrants, rural folk for immigrants, rural folk

Many adjust well enough to advanceMany adjust well enough to advance Many more see children advance to better Many more see children advance to better

jobsjobs

p.531-532

Labor UnionsLabor Unions 1870s: 1870s: Knights of LaborKnights of Labor started as a secret order. started as a secret order.

Terence Powderly, new Grand Master, ended secrecy & Terence Powderly, new Grand Master, ended secrecy & opened membership to all who “toil” regardless of race, opened membership to all who “toil” regardless of race, creed, color, sex, skillcreed, color, sex, skill

Excluded only nonproducers: bankers, lawyers, liquid Excluded only nonproducers: bankers, lawyers, liquid dealers & gamblersdealers & gamblers

Successful for many years, but failed in late 1900s Successful for many years, but failed in late 1900s

1886: Samuel Gompers founds American 1886: Samuel Gompers founds American Federation of LaborFederation of Labor A.F.L. seeks practical improvements for wages, working A.F.L. seeks practical improvements for wages, working

conditionsconditions Focus on skilled workersFocus on skilled workers Ignores women, African AmericansIgnores women, African Americans

p.532-533

Labor UnrestLabor Unrest Crossed purposesCrossed purposes

Employees seek to humanize the factory Employees seek to humanize the factory Employers try to apply strict laws of the Employers try to apply strict laws of the

market market Courts come down on side of owners Courts come down on side of owners

with injunctions against strikeswith injunctions against strikes An era of strikesAn era of strikes

1877: Rail strikes nearly shut down system, 1877: Rail strikes nearly shut down system, over 100 workers killed in suppressing itover 100 workers killed in suppressing it

1880–1900: 23,000 strikes1880–1900: 23,000 strikesp.533-535

Labor UnrestLabor Unrest 1886: 1886: Haymarket Square riotHaymarket Square riot prompts fears prompts fears

of anarchist uprising of anarchist uprising (McCormick Harvester Works ~ (McCormick Harvester Works ~ Chicago)Chicago) Labor demonstrators threw a dynamite bomb Labor demonstrators threw a dynamite bomb

that killed 7 police officers. Police fired into crowd that killed 7 police officers. Police fired into crowd & killed 4 workers ~ & killed 4 workers ~ Natl Labor mvmt weakenedNatl Labor mvmt weakened

1892: Homestead Steel Strike1892: Homestead Steel Strike Pinkerton detectives as strikebreaking armyPinkerton detectives as strikebreaking army Pinkertons in gun battle with strikersPinkertons in gun battle with strikers State militia called into restore orderState militia called into restore order

1894: Geo Pullman Strike1894: Geo Pullman Strike Town of PullmanTown of Pullman

• Reduced wages but not rentReduced wages but not rent p.535-536

Labor Strikes, 1870–1890Labor Strikes, 1870–1890

p.534

Industrialization’sIndustrialization’sBenefits and CostsBenefits and Costs

Benefits of rapid industrializationBenefits of rapid industrialization Rise in national power and wealth Rise in national power and wealth Improving standard of livingImproving standard of living

Human cost of industrializationHuman cost of industrialization ExploitationExploitation Social unrestSocial unrest Growing disparity between rich and poorGrowing disparity between rich and poor Increasing power of giant corporationsIncreasing power of giant corporations

p.536


SOCIETYSOCIETY


EndEnd

chapter 18 the industrial society

Documents

rail transportation

industrial economy

industrial empireprocess

railroad track

half dozen western railroads

american finance

industrial societyamerica

giant rail systems dominatep