Smokestacks from factory in Pittsburgh, Pennsylvania (about 1890s).

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An Industrial Society,1860–1914

The growth of industry and big business changes the nation.

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SECTION 1

SECTION 2

SECTION 3

SECTION 4

The Growth of Industry

Railroads Transform the Nation

The Rise of Big Business

Workers Organize

An Industrial Society,1860–1914

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Section 1

The Growth of IndustryThe growth of industry during the years 1860 to 1914 transforms life in America.

The Industrial Revolution Continues

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The Growth of Industry

• Drilling for petroleum (oily liquid) spurs oil industry

1SECTION

• Several factors cause industry, factory production to spread in U.S.:- plentiful natural resources- growing population- improved transportation

Continued . . .

Chart

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1SECTION

• Several factors cause industry, factory production to spread in U.S.:- high immigration- new inventions- investment capital- government assistance

continued The Industrial Revolution Continues

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1SECTION

• Business cycle—period of good, bad times for industry, business

• U.S. experiences harsh depressions in 1873, 1893

• During bad times, called busts, people spend, invest less

• During good times, called booms, people buy, invest more

The Business Cycle

• Despite depressions, U.S. industry grows (1860–1900)

Chart

Steel: The Backbone of Industry

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1SECTION

• Bessemer steel process—new steel-making method, uses less coal

• Cuts cost of steel, U.S. steel output increases 500 times (1867–1900)

• Begin making many products, including rails for railroads, from steel

Edison and Electricity

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1SECTION

• Generators—machines that produce electric current

• Makes safe, steady light bulb, soon part of NYC has electric lighting

• Receives over 1,000 U.S. patents

• Thomas Edison opens lab (1876) invents devices that use electricity

Image

Bell and the Telephone

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1SECTION

• Samuel Morse develops the telegraph (1835)

• Shows telephone in Philadelphia at Centennial Exhibition, June (1876)

• Alexander Graham Bell invents the telephone (1876)

• Centennial Exhibition—exhibition celebrates 100th birthday of U.S.

Image

Inventions Change Industry

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1SECTION

• Telephone industry grows, 50,000 telephones sold by 1880

• Christopher Latham Sholes invents first practical typewriter (1867)

• Switchboard allows more people to connect into telephone networks

• Elias Howe invents sewing machine, increases store-bought clothes

• Granville T. Woods patents devices to improve telephone, telegraph

• Margaret Knight invents machines for packaging, shoemaking

Image

NEXT

The railroads tie the nation together, speeds industrial growth, and changes U.S. life.

Section 2

Railroads Transform the Nation

Deciding to Span the Continent

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2SECTION

• U.S. wants transcontinental railroad—spans entire continent

• Union Pacific lays first rail, July (1865)

• Railroad companies sell land given to them by government, raise money

• Two companies build transcontinental railroad:- Central Pacific builds railroad east from California- Union Pacific builds railroad west from Nebraska

Railroads Transform the Nation

Building the Railroad

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2SECTION

• Central Pacific hires thousands of Chinese to work railroad

• Union Pacific hires mostly former soldiers, freed slaves, immigrants

• Chinese are efficient, hard working, fearless, healthy

Railroads Tie the Nation Together

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2SECTION

• Central Pacific workers lay 690 miles of track

• Union Pacific-Central Pacific line 1st transcontinental railroad

• Central Pacific, Union Pacific railroads join (May 10, 1869)

• Union Pacific workers lay 1,086 miles of track

• By 1895, 4 more U.S. lines are built across the country

Image

Railroad Time

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2SECTION

• Before railroads, each community determines its own time

• Congress adopts standard time in 1918

• Problematic for people traveling by train across time zones

• Use “solar time” based on calculations about sun’s travels

• Railroad companies set up standard time—divides U.S. into 4 time zones

Map

Economic and Social Changes

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2SECTION

• Railroads change people’s lives in many ways:- links the economies of the West and East- help people settle the West- weakens the Native American hold on the West- gives people more control of the environment

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Business leaders guide industrial expansion and create new ways of doingbusiness.

Section 3

The Rise of Big Business

The Growth of Corporations

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3SECTION

• Corporation—investors own part of business through shares of stock

The Rise of Big Business

• A corporation has many advantages over privately owned businesses:- raise a lot of money by selling stock- has special legal status, banks more likely to

loan money- limits risks to investors

• Few U.S. laws regulate corporations, a few big corporations dominate

The Oil and Steel Industries

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3SECTION

• John D. Rockefeller dominates the oil industry• Andrew Carnegie controls the steel industry• Rockefeller creates monopoly—wipes out

competitors, controls industry• Creates trust—legal body, has stock in companies,

often in 1 industry• Trusts formed in other industries, government slow

to regulate• Rockefeller seen as robber baron—dishonest

business leader

Continued . . .

Map

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3SECTION

• Andrew Carnegie beats competition by making better, cheaper steel

• Rockefeller, Carnegie are philanthropists—give much money to charities

• Buys mines that supply his iron ore, buys ships, railroads that ship ore

continued The Oil and Steel Industries

The Gilded Age

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3SECTION

• Success of multimillionaires makes others believe they can grow rich

• For rich, late 1800s was a time of fabulous wealth

• In reality, most people who make millions start with advantages

• Horatio Alger writes stories about poor boys becoming successful

• Writers name era the Gilded Age:- age has surface glimmer of wealth- hides societies’ problems

The South Remains Agricultural

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3SECTION

• In South, industry grows in certain areas

• South remains mostly agricultural, often land rented to sharecroppers

• Birmingham, Alabama, develops iron, steel production

• Sharecroppers make little money, struggle to break free of debt

• Cotton mills open from southern Virginia to Alabama

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Section 4

Workers OrganizeTo increase their ability to bargain with management, workers formed laborunions.

Workers Face Hardships

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4SECTION

Workers Organize

• Use sweatshops—places where workers labor long hours, low pay

• Factory, sweatshop work boring, barely earn enough to pay debts

• Business owners run factories as cheaply as possible:- some require workers to buy own tools, bring

coal to heat factories- others refuse to buy safety equipment

• Labor unions—groups of workers negotiate for better conditions, pay

Image

NEXT

4SECTION

• Knights of Labor—federation of workers from different trades

Early Unions

• West Virginia railroad workers strike with no union (1877)

• U.S. has economic depression (1873), many workers take pay cuts

• Workers in many cities, other industries join strike, mob violence

• Strike ends in 2 weeks, workers take pay cuts• Railroad workers, Knights of Labor strike

(1884–1885), win

Union Setbacks

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4SECTION

• Socialism—all members of society are equal owners of all businesses

• Try to break unions, hire strikebreakers, replace striking union members

• Business, government fear unions spread socialism, anarchy

• Anarchists—want to abolish all governments

• Haymarket affair—union leaders, police clash, several are killed

• Many union leaders, socialists, anarchists are arrested

Image

The Homestead and Pullman Strikes

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4SECTION

• Andrew Carnegie reduces pay in steel mills, Homestead, Pennsylvania

• Union president Eugene V. Debs starts Pullman Strike

• Pullman Company cuts pay, does not reduce rent for workers’ housing

• Union workers strike, fight with guards, 10 dead, strike collapses

• Pullman Strike—workers do not handle Pullman cars

• Rail traffic halts, U.S. troops end strike, Debs is jailed

Image

Gompers Founds the AFL

NEXT

4SECTION

• Procter & Gamble gives workers more time off, starts profit-sharing

• Organization of unions is called American Federation of Labor (AFL)

• Union leader Samuel Gompers helps start organization of unions (1886)

• Using strikes, negotiations, AFL wins better working hours, pay

NEXT

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