Chapter 6: a new industrial age



Download 20.97 Kb.
Date13.05.2017
Size20.97 Kb.

CHAPTER 6: A NEW INDUSTRIAL AGE

  • LATE 19TH CENTURY AMERICA EXPERIENCED AN INDUSTRIAL BOOM

2nd Industrial Revolution

  • What was the 2nd Industrial Revolution?
  • A period in time starting in the late 1800’s where US industries, in major manufacturing goods, were expanding rapidly
  • Main features were new inventions and industries

Section 1:Causes

  • This enormous growth was due to many factors:
    • Lots of Natural Resources & Raw Materials
    • The Railroad
    • Governmental policy:
      • Laissez-Faire
      • Patent Laws
    • Population Growth & Urbanization
    • New Inventions, like cars

RAILROADS SPUR OTHER INDUSTRIES

  • The rapid growth of the railroad industry influenced the iron, coal, steel, lumber, and glass businesses as they tried to keep up with the railroads demand for materials
  • The spread of the railroads also led to the growth of towns, new markets, and opportunity for profiteers

RAILROADS LED TO GROWTH OF CITIES

  • Many of today’s major cities owe their legacy to the railroad
  • Chicago, Minneapolis, Denver, and Seattle all grew up thanks to the railroad
  • “MY KIND OF TOWN”

INVENTIONS SPUR INDUSTRY

Section 2: Features of the Modern Corporation

  • Stocks traded publicly in Wall Street
  • Limited liability
  • Scientific Management
  • Vertical Integration
  • Horizontal Integration

Stocks and Limited Liability

  • Stocks are shares of a company held by someone and traded publicly on the stock market.
  • Stocks allowed the possibility to raise large amounts of money to undertake great ventures.

Scientific Management

  • Taylorism
    • Reorganizing business by subdividing tasks to increase efficiency. What does that mean for the worker?
  • The moving Assembly Line

CARNEGIE’S VERTICAL INTEGRATION

  • Carnegie attempted to control as much of the steel industry as possible
  • How? Vertical integration; he bought out his suppliers (coal fields, iron mines, ore freighters, and rail lines) in order to control materials and transportation

Check for Understanding

HORIZONTAL INTEGRATION

  • Additionally, Carnegie bought up the competition through friendly and hostile takeovers
  • This is known as Horizontal Integration; buying companies that produce similar products – in this case other steel companies
  • MERGERS

Consolidation

4 Methods of Consolidation

  • Corporate Raiding and unscrupulous practices- Buyout competition to form a monopoly - complete control over industry.
  • Pooling arrangements – producers agree to set price
    • Problematic due to groups cheating
  • Mergers could result in a Trust
    • Stockholders transferred their stocks to small group of trustees in exchange for shares in the trust itself. Control was given only to very few people, the trustees
  • Holding Companies – A company created to exclusively buyout major producers in an industry

Example of Consolidation

  • In 1870, Rockefeller Standard Oil Company owned 2% of the country’s crude oil. By 1882 – it controlled 90% through
    • Intimidation 1870’s
    • Trust 1882
    • Holding Company 1899
  • CHICAGO’S STANDARD OIL BUILDING IS ONE OF THE WORLD’S TALLEST

Benefits and Cost of Consolidation

  • Benefits
    • The Industry can become more productive by reducing costs, creating standard product, pooling resources, avoiding replication, and sharing knowledge
  • Costs
    • reduces competition so higher prices
    • Placed power in the hands of very few people

Section 3: 1st and 2nd Industrial Revolution Comparison

      • 1st Industrial Revolution
    • Development of few products like textiles
    • limited transformative effect
    • Limited impact in society
    • New energy source: coal and steam
  • 2nd industrial Revolution
    • Developments of wide array of products
    • Transformation and synergy of the economy
    • Extensive impact on society
    • New energy sources: light and oil

Section 4: New Industries and Inventions

  • The growth and consolidation of the railroad industry influenced many facets of American life
  • However, the unchecked power of the railroad companies led to widespread abuses and then reforms

A NATIONAL NETWORK

  • By 1869, tracks had been laid across the continent (Golden Spike- Utah)
  • Immigrants from China and Ireland and out-of-work Civil War vets provided most of the difficult labor
  • Thousands lost their lives and tens of thousands were injured laying track
  • IMMIGRANTS FROM CHINA LAID TRACK

RAILROAD AND TIME

  • Before 1883, each community still operated on its own time
  • For example: Noon in Boston was 12 minutes later than noon in New York City
  • Indiana had dozens of different times
  • No standard time reference

Check for Understanding

PROFESSOR DOWD CREATES TIME ZONES

  • In 1869, to remedy this problem, Professor C.F. Dowd proposed dividing the earth into 24 time zones
  • The U.S. would be divided into 4 zones: the eastern, Central, Mountain, and Pacific
  • 1883 – Railroads synchronized their watches across U.S.
  • 1884 – International Conference adopts zones
  • PROFESSOR DOWD EXPLAINS HIS TIME ZONES
  • THE WORLD IS DIVIDED INTO 24 TIME ZONES
  • THE UNITED STATES IS DIVIDED INTO 4 TIME ZONES

BLACK GOLD

  • In 1859, Edwin Drake used a steam engine to drill for oil
  • This breakthrough started an oil boom in the Midwest and later Texas
  • At first the process was limited to transforming the oil into kerosene and throwing out the gasoline -- a by-product of the process
  • Later, the gasoline was used for cars
  • EDWIN DRAKE PICTURED WITH BARRELS OF OIL

BESSEMER STEEL PROCESS

  • Oil was not the only valuable natural resource
  • Coal and iron were plentiful within the U.S.
  • When you removed the carbon from iron, the result was a lighter, more flexible and rust resistant compound – Steel
  • The Bessemer process did just did (Henry Bessemer & William Kelly)
  • BESSEMER CONVERTOR CIRCA 1880

NEW USES FOR STEEL

  • The railroads, with thousands of miles of track, were the biggest customers for steel
  • Other uses emerged: barbed wire, farm equipment, bridge construction (Brooklyn Bridge- 1883),and the first skyscrapers
  • BROOKLYN BRIDGE SPANS 1595 FEET IN NYC

ELECTRICITY

  • 1876- Thomas Alva Edison established the world’s first research lab in New Jersey
  • There Edison perfected the incandescent light bulb in 1880
  • Later he invented an entire system for producing and distributing electricity
  • By 1890, electricity powered numerous machines
  • EDISON

THE TYPEWRITER

  • Christopher Sholes invented the typewriter in 1867
  • His invention forever affected office work and paperwork
  • It also opened many new jobs for women
  • 1870: Women made up less than 5% of workforce 1910: They made up 40%

THE TELEPHONE

  • Another important invention of the late 19th century was the telephone
  • Alexander Graham Bell and Thomas Watson unveiled their invention in 1876
  • BELL AND HIS PHONE

Check for Understanding

PULLMAN: A FACTORY & TOWN

  • In 1880, George Pullman built a factory for manufacturing sleepers and other railroad cars in Illinois
  • The nearby town Pullman built for his employees was modeled after early industrial European towns
  • Pullman workers felt his puritanical town was too strict
  • When he lowered wages but not rent – it led to a violent strike in 1894
  • THE TOWN
  • GEORGE PULLMAN

CREDIT MOBILIER SCANDAL

  • Stockholders of Union Pacific Railroad formed a construction company in 1864
  • Stockholders then gave contracts to the company to lay track at 3 times the actual costs and pocketed the difference
  • They donated shares of the stock to 20 Republican members of Congress in 1867
  • POSTER FOR BOGUS CONSTRUCTION COMPANY

THE GRANGE AND THE RAILROADS

  • Farmers were especially affected by corruption in the railroad industry
  • Grangers (a farmers organization) protested land deals, price fixing, and charging different rates to different customers
  • Granger Laws were then passed protecting farmers
  • States were given regulation control of railroads by the Courts
  • GRANGERS PUT A STOP TO RAILROAD CORRUPTION

SECTION 4: BIG BUSINESS AND LABOR

ROBBER BARONS

  • Alarmed at the cut-throat tactics of industrialists, critics began to call them “Robber Barons”
  • Famous “Robber Barons” included Carnegie, Rockefeller, Vanderbilt, Stanford, and J.P. Morgan
  • J.P MORGAN IN PHOTO AND CARTOON

John Rockefeller

  • American business Entrepreneur
  • He founded the Standard Oil Company that dominated the oil industry and was the first great U.S. business trust.

Andrew Carnegie

  • ANDREW CARNEGIE 1835 -1919
  • Andrew Carnegie was one of the first industrial moguls
  • He entered the steel industry in 1873
  • By 1899, the Carnegie Steel Company manufactured more steel than all the factories in Great Britain combined

Henry Flagler

  • American industrialist and a founder of Standard Oil.
  • founder of what became the Florida East Coast Railway
  • Responsible for the development of South Florida

Check for Understanding

ROBBER BARONS WERE GENEROUS, TOO

  • Despite being labeled as greedy barons, rich industrialists did have a generous side
  • When very rich people give away lots of money it is called “Philanthropy”
  • Carnegie built libraries, Rockefeller, Leland Stanford, and Cornelius Vanderbilt built schools
  • ROCKEFELLER CHAPEL – UNIVERSITY OF CHICAGO

SOCIAL DARWINISM

  • The philosophy known as Social Darwinism has its origins in Darwin’s theory of evolution
  • Darwin theorized that some individuals in a species flourish and pass their traits on while others do not
  • Social Darwinists (like Herbert Spencer) believed riches was a sign of God’s favor, and being poor was a sign of inferiority and laziness
  • DARWIN (RIGHT) LIMITED HIS FINDINGS TO THE ANIMAL WORLD
  • SPENCER WAS THE ONE WHO COINED THE PHRASE “SURVIVAL OF THE FITTEST

CARNEGIE’S GOSPEL OF WEALTH

  • The Gospel According to Andrew:
    • In his essay “Wealth,” published in North American Review in 1889, the industrialist Andrew Carnegie argued that individual capitalists were duty bound to play a broader cultural and social role and thus improve the world.

INTERSTATE COMMERCE ACT

  • In 1887, the Federal government re-established their control over railroad activities
  • Congress passed the Interstate Commerce Act and established a 5-member Interstate Commerce Commission (ICC)
  • The ICC struggled to gain power until 1906
  • 1887 – CONGRESS PASSED THE ICA

SHERMAN ANTI-TRUST ACT

  • In 1890, the Sherman Anti-Trust Act made it illegal to form a monopoly (Trust)
  • Prosecuting companies under the Act was not easy – a business would simply reorganize into single companies to avoid prosecution
  • Seven of eight cases brought before the Supreme Court were thrown out

(REAL TRUST)

WORKERS HAD POOR CONDITIONS

  • Workers routinely worked 6 or 7 days a week, had no vacations, no sick leave, and no compensation for injuries
  • Injuries were common – In 1882, an average of 675 workers were killed PER WEEK on the job

LABOR UNIONS EMERGE

  • As conditions for laborers worsened, workers realized they needed to organize
  • The first large-scale national organization of workers was the National Labor Union in 1866
  • The Colored National Labor Union followed

CRAFT UNIONS

  • Craft Unions were unions of workers in a skilled trade
  • Samuel Gompers led the Cigar Makers’ International Union to join with other craft unions in 1886
  • Gompers became president of the American Federation of Labor (AFL)
  • He focused on collective bargaining to improve conditions, wages and hours

INDUSTRIAL UNIONISM

  • Some unions were formed with workers within a specific industry
  • Eugene Debs attempted this Industrial Union with the railway workers
  • In 1894, the new union won a strike for higher wages and at its peak had 150,000 members
  • EUGENE DEBS

SOCIALISM AND THE IWW

  • Some unionists (including Debs) turned to a socialism – an economic and political system based on government control of business and property and an equal distribution of wealth among all citizens
  • The International Workers of the World (IWW) or Wobblies, was one such socialist union
  • PROMOTIONAL POSTER FOR THE IWW

STRIKES TURN VIOLENT

  • Several strikes turned deadly in the late 19th century as workers and owners clashed
  • The Great Strike of 1877: Workers for the Baltimore and Ohio Railroad struck to protest wage cuts
  • Other rail workers across the country struck in sympathy
  • Federal troops were called in to end the strike

THE HAYMARKET AFFAIR

  • Labor leaders continued to push for change – and on May 4, 1886 3,000 people gathered at Chicago’s Haymarket Square to protest police treatment of striking workers
  • A bomb exploded near the police line – killing 7 cops and several workers
  • Radicals were rounded up and executed for the crime

THE HOMESTEAD STRIKE

  • Even Andrew Carnegie could not escape a workers strike
  • Conditions and wages were not satisfactory in his Steel plant in Pennsylvania and workers struck in 1892
  • Carnegie hired Pinkerton Detectives to guard the plant and allow scabs to work
  • Detectives and strikers clashed – 3 detectives and 9 strikers died
  • The National guard restored order – workers returned to work

THE PULLMAN STRIKE

  • After the Pullman Company laid off thousands of workers and cut wages, the workers went on strike in the spring of 1894
  • Eugene Debs (American Railroad Union) tried to settle dispute which turned violent
  • Pullman hired scabs and fired the strikers – Federal troops were brought in
  • Debs was jailed

Check for Understanding

WOMEN ORGANIZE

  • Although women were barred from most unions, they did organize behind powerful leaders such as Mary Harris Jones
  • She organized the United Mine Workers of America
  • Mine workers gave her the nickname, “Mother Jones”
  • Pauline Newman organized the International Ladies Garment Workers Union at the age of 16

EMPLOYERS FIGHT UNIONS

  • The more powerful the unions became, the more employers came to fear them
  • Employers often forbade union meetings and refused to recognize unions
  • Employers forced new workers to sign “Yellow Dog Contracts,” swearing that they would never join a union
  • Despite those efforts, the AFL had over 2 million members by 1914


Download 20.97 Kb.

Share with your friends:




The database is protected by copyright ©sckool.org 2020
send message

    Main page