Section 1: The Expansion of Industry, Pages 228-251
A NEW INDUSTRIAL AGE
U.S. Industrialization,
1870-1900
 In the 1860s the U.S. lagged behind Great
Britain, France, and Germany in industrial
output.
 By 1900 the U.S. had moved so far into the
lead that factories in the U.S. produced more
than all THREE of the European leaders
combined?
 How and why did this rapid change occur?
Why did the U.S. industrialize so
rapidly between 1870 and 1900?
 1. America had abundant natural resources:
coal, iron ore, oil, timber, rivers
 2. Large and growing labor supply (workers)
 3. Widespread faith in capitalism
 4. Federal government and legal environment
promoted the growth of big business
5. A surge in technological innovation
6. The nation had a group of talented and ambitious
entrepreneurs along with a tradition of hard work and
an adventurous American spirit
7. An expanding domestic marketplace
Coal Miners
How did Edwin L. Drake
contribute to
industrialization?
 He was the first to use a steam engine to
drill for oil.
 Led to a boom in the oil business in the U.S.
 Oil was used for kerosene to light homes
and later for automobiles.
Oil Fields in Pennsylvania
Kerosene Lamp
What was the Bessemer
process?
 Bessemer process was a way to remove air
pockets from iron to produce steel.
 ***Steel was used for
Railroads
Bridges (Brooklyn Bridge)
First Skyscrapers (Cities grew)
Farm Machinery
Barbed wire (fenced in the West)
Small Appliances
Steel
Vide0: Steel and Skyscrapers
 Story of Us , Disc 2
 Cities
 12:30, Edison at 35:00
 http://www.cleanvideosearch.com/media/acti
on/yt/watch?videoId=1Lw9Px59gsY&name=A
merica%3A+The+Story+of+Us+-+E07++Cities&uploadUsername=reuptakes&hitCou
nt=2788
What inventions of the time
changed the way people lived
and worked?
 Light bulb
 Electricity
 Telephone
 Typewriter
 Refrigerated railroad cars
EalexanA
Thomas
Edison
What contributions did
Thomas Edison make?
 1. He perfected the light bulb
 2. He set up the first research lab at Menlo
Park
 3. He helped design a system to distribute
electricity
GE: Revenue: $168.3 billion
No. of employees: 300,000
How did the light bulb and
electricity transform
American life?
 Americans no longer worked by the sun
 Factories and businesses can operate 24 hours a
day
 Electric street cars allowed people to travel
faster
 Factories could produce goods faster and
cheaper
Video
Thomas Edison
 Story of US
 Disc 2
 Cities
 34:00
What led to a revolution in
communication in the U.S.?
 Alexander Graham Bell invented the
telephone
 Americans could communicate faster and
over longer distances
 Led to a worldwide communications
network that changed the way people
worked and lived
Alexander Graham Bell (1876)
U. S. Patents Granted
1790s  276 patents issued.
1990s  1,119,220 patents issued.
Technology and New
Inventions included….
 Ice Machine
 Refrigerated railroad car
 Automated loom
 Mass produced shoes
Standard sizes were developed from
measurements taken from Union soldiers
during the Civil War.
Next:
The Age of
Railroads
THE AGE OF THE
RAILROADS
 CHAPTER 6, SECTION 2
 Page 236-240
 Question: What name would you give to
the present age?
What was the Transcontinental
Railroad?
• A Railroad that connected the
West to the East
• Central Pacific (began in CA)
Union Pacific railroads connected at
Promontory Point, Utah
• Completed 1869
1 Foot a day
How did Railroad Expansion
Change American Life?
 Cities and towns grew, the West was settled
 Business corruption led to government




regulation of railroads
Standardized time—times zones were set up
Better diets and cheaper goods for Americans
Industry (factories) spread across the nation
Americans traveled more
LINKING THE NATION
Standardized time (Time
Zones) 1883
 Railroad companies set up time
zones to manage the train
schedule
 4 time zones in the U.S.
 Quickly adopted by other
businesses
 ***Americans began to work
and live by the clock
Pullman Company
 Manufactured sleeper cars
for trains
 Owned by George Pullman
 Pullman, Illinois was a town
built to house company
workers
Luxury Travel
Tourism in the West
Reasons for Government
Regulation of Businesses
(1870-1900s)
 Some businessmen were corrupt
 Railroads impacted the entire
economy
 Monopolies hurt the consumer
(higher prices)
What was the Credit Mobilier
Scandal?
Construction Company hired
to lay tracks
-Purpose: to steal railroad
money for its shareholders
-Stole $23 million
-An Example of corrupt
business practices of some
companies
Which laws were adopted to
give the government more
power to regulate the
railroads? (1870-1900
 Granger Laws –to set
railroad fares
 Munn v Illinois court case
 Sherman Antitrust Act
 Interstate Commerce Act
Cornelius Vanderbilt Takes on His
Competitors: 9:00-19:00
What was Munn v Illinois,
1877?
 Supreme Court case
 States won the right to regulate
the railroads
 Farmers and other consumers
benefitted from regulation of
fares
What was the Interstate
Commerce Act, 1887?
 Purpose: to lower railroad rates
 Stated the federal government
had the right to regulate
businesses (railroads)
 Set up the Interstate Commerce
Commission (ICC)
Advantages of Railroad
Expansion (1877-1890)
 Travel across the country was faster and




safer
Goods traveled faster and cheaper to
consumers
Connected markets and spurred
settlement of the West
Supported economic growth
Time zones were established
Disadvantages of Railroads
(1877-1890)
 Farmers resented railroad companies
because they controlled shipping fees
 Some railroad owners were corrupt in
abusing their power
 Workers were sometimes overworked and
underpaid
 Carried more settlers West and led to decline
of Plains Indians
Stanford University (Leland
Stanford)
Vanderbilt
Chapter 6 A New Industrial Age , Section 3, Pages 241-249
SECTION 3: THE RISE OF BIG
BUSINESS
Bill Gates, Harvard drop out,
tech genius, and founder of
Microsoft. Can a corporation
have too much power and control
in one industry?
4 Industrialists of the late
1800s
 Andrew Carnegie—steel
 John D. Rockefeller –oil
 J.P. Morgan—banking and
U.S. Steel
 Cornelius Vanderbilt—
railroads
Video Series on History
Channel: Men Who Built
America
http://www.history.com/shows/men-whobuilt-america/videos/the-men-who-builtamerica-andrew-carnegie
Andrew Carnegie
 “Rags to Riches” story
 Grew up poor in Scotland
 Became rich in steel industry
 He used vertical and horizontal integration to
increase profits
 He built one of the largest steel companies in
the world
 Carnegie believed he should give most of his
fortune to society . He gave away 90% of his
money before he died to libraries, education
foundations, and research
Carnegie Mellon University
Carnegie Hall
What are 2 Ways to Organize
a Business for Higher
Profits?
 1. Horizontal Integration –combining many
firms engaged in the same type of
business into one large corporation
 2. Vertical Integration-a company owns all the
different businesses on which it
depends including resources,
manufacturing, and distribution
(page 242)
Draw examples of vertical
and horizontal integration
in your notes
Why were some men so
successful? Ask Charles
Darwin
What was the philosophy
of Social Darwinism?
1. Argument the wealthy used to
explain their success
2. Based on the research of Charles
Darwin: On the Origin of Species
3. Survival of the Fittest in nature
and in business—the best, the
strongest will survive and be
successful
John D. Rockefeller
 In 1913 he became
world’s first billionaire.
 He was ruthless, but
also a great
philanthropist.
 He gave over $531
million to medical
research, black
educational
institutions, and the
University of Chicago.
J.P. Morgan
 Made a fortune in
banking
 Bought Andrew
Carnegie’s steel
business
 Formed U.S. Steel
Cornelius Vanderbilt
 After the Panic of
1893, railroads will
undergo
consolidation.
 By 1890 seven
companies controlled
most of the country’s
railroads.
MOVIE
Cornelius Vanderbilt home in New York City
Vanderbilt Mansion
NOTES!!!!
JP Morgan Bank Still a force in the industry
How did industrialists gain
more control over their
industries and limit
competition?
 Formed Trusts
 Set up Holding Company
 Set up Corporations
 Created Monopolies
 Trust-one person controls another
person’s property. Business owners
formed trusts because monopolies
were illegal.
Monopoly
 When one company
achieves control of the
entire market
Advantages of Monopolies
 Economies of scale--large efficient
businesses could make produce goods
faster and at a cheaper cost
Disadvantages of Monopolies
 Too much power to control and industry and
set costs and control supply
TODAY = OPEC
(Organization of Petroleum Producing
Countries)
What is a Corporation?
 An organization owned by many
people but treated by law as
though it were a single person.
 Stockholders own the corporation
 Corporations can raise money for
large projects while limiting risk
U. S. Corporate Mergers
New York Stock Exchange,
1792
New York Stock Exchange
WSJ: Establish in 1882 to
spread financial news
How did they sell new
products in the late 1800s?
 1. Advertising
Magazines and newspapers
 2. Mail order Catalogs
Sears
Montgomery Ward
 3. Department stores and chain stores
Woolworth’s
Department Store
Oldest continuously running
department store in the
South.
CHAPTER 6
SECTION 3:
INDUSTRIALIZATION
THE RISE OF UNIONS
Share of World
Manufacturing
Essential Question
Industrialization
increased the standard
of living and the
opportunities of most
Americans,
but at what cost?
Sherman Antitrust Act (1890)
 Government declared trusts illegal
 The government was trying to rein in the
power of big business
 The law was hard to enforce
In the late 1800s, frustrated
workers organized unions
Working Conditions, 18701900
 Machines replaced skilled workers
 Workers performed same task over
and over
 Workplace was dangerous and dirty
 Children and women worked for low
wages
Breaker Boys photographed by Lewis Hine
MOVIE
Bobbin Boys photographed by Lewis Hine
Boys on the Street photographed by Lewis Hine
Girl in Factory by Lewis Hine
FACTS
 Children sometimes worked 14 hours a day for less
than 50 cents a day.
 In 1899, women averaged $267 a year, men $498
year and Andrew Carnegie made $23 million with
no income tax.
 “It will be a great mistake for the community to
shoot the millionaires, for they are the bees that
make the most honey, and contribute most to the
hive even after they have gorged themselves full.”
---Andrew Carnegie
Labor Unions 1860s-1900s
 Workers organized for better working
conditions and higher wages
 Craft unions(trade unions) included skilled
workers
 Industrial unions
Plumbers joined the Knights of Labor
Haymarket Riot, 1886
 Riot in Chicago in 1886
 A bomb was thrown, shots were fired, 7
policemen and 4 workers were killed
 Anarchists were blamed and 8 were arrested
and 4 hanged
 One of the men arrested was a member of
the Knights of Labor
Great Strike of 1877
(Railroads)
 80,000 workers strike across the
country
 Destroyed millions of dollars in
property
 President Hays sent in federal troops
(military) to end the strike
 Over 100 people died
American Federation of Labor




AFL, wanted 8 hour day
Trade union of skilled workers
Leader –Samuel Gompers
Wanted a shorter work week and higher
pay
 Closed shops—where companies could
only hire union members
Samuel Gompers
 Leader of the American Federation of Labor
 Focused on collective bargaining—
negotiations between labor (workers) and
management to reach an agreement
International Workers of the
World
 IWW or “Wobblies”
 Made up of radical unionists and socialists
Iron & Steel Production
Eugene V. Debs
 Ran the American Railway Union and ran for
president as a socialist
 Socialist-an economic and political system
based on government control of business and
property and equal distribution of wealth
Pullman Strike, Illinois,
1893
 American Railway Union
 Leader—Eugene V. Debs
 Pullman Company –Pullman rail cars
 Economic depression of 1893—wage cuts
 Attached U.S. mail cars to Pullman cars to
break up the strike. It was a federal offense to
stop delivery of the mail.
Homestead Strike
Carnegie Steel –Pittsburg
Pullman Strike
BR: Labor Day Holiday
MOVIE
 In September 1892, union workers in New
York City took an unpaid day off and
gathered in Union Square to support the
holiday.
 1894 - President Cleveland made a
campaign promise to enact the holiday to
win votes and he followed through with his
promise.
 Should we honor U.S. workers with a
holiday? Why or why not?
Triangle Shirtwaist Fire
 Fire in in New York City where 146 female
workers died
 Led to changes in local labor laws for women
and children
 Video: The Story of Us
What is Marxism?
 Karl Marx, German
philosopher
 Das Kapital
 The Communist
Manifesto , 1848
 Government
ownership of property
 Wealth and property
evenly divided
What is anarchism?
 Anarchists believe government is not needed
 Some believed in violence to overthrow the
government .
From 1865- 1897 the United
States experienced DEFLATION
 What is deflation?
 Deflation: a rise in the value of money. Prices
of goods fall.
 In other words, you can buy MORE GOODS
with the same amount of money.
 Companies cut wages BUT you could buy
more with your money…..so workers were
better off, BUT they did not think so…….
Working Women
 Women’s Trade Union League–
the first national association
dedicated to promoting women’s
labor issues.
Ways companies tried to
prevent unionization:
1. Workers had to promise not to join
unions “yellow dog contracts”
2. Fired striking workers
3. Placed names of union organizers on
a “black list.”
4. Used Lockouts and strikebreakers
Why Were Some Americans
opposed Unions?
 1. Fear of Marxism
 2. Rise of Anarchism in Europe
 3. Unions grow in Europe
 4. European immigrants brought
some of these ideas with them to
America
 5. Nativism-anti-immigrant feelings
Why was it hard to form a
union?
1. Only a small number of workers
belonged to unions
2. There were no laws to protect workers
3. Workers did not agree on goals
4. Government sided with business
5. Violence turned public opinion against
unions
6. Workers moved often
BIG QUESTIONS…SO WHAT????
 1. Should the government take an active role in
regulating business and industry?
 2. What are the rights of workers and how far
should the government go to protect those
rights?
 3. Which economic system best promotes
prosperity and national health? Capitalism?
Socialism? Communism?
 4. Do individuals and businesses have a moral
obligation to promote the good of society as a
whole??
CHAPTER 10 URBANIZATION
THE RISE OF
CITIES
The automobile transformed American life
1932 New York City
Photograph by Lewis Hine
Wright Brothers
TRADE UNIONS
 As industrialization spread, craft
workers formed TRADE UNIONS .
 TRADE UNIONS were limited to
people with specific skills .
INDUSTRIAL UNIONS
 United ALL workers –both skilled
and unskilled– to ask for higher
wages and better working
conditions.
 Owners of large corporations
opposed these unions
The Knights of Labor
 First nationwide industrial union
 Accepted all workers including
women and African Americans, skilled
and unskilled
 Leader—Terence Powderly
 Declined after the Haymarket Riot in
1886
Andrew Carnegie
Richest man in the world in 1901. He sold his steel company, which would later become US Steel,
and spent the rest of his life giving away $350 million to fund public libraries, education,
technology , and promote world peace.
Story of Us
 Cities
 Steel production