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Chapter 14
A New Industrial Age
New Inventions and Industry
•
Edwin L. Drake in 1859 used a steam
engine to drill for oil
•
Oil boom created, lead to a new
industry
•
Coal and Oil production increased
•
The Bessemer process was invented to
inject air and remove impurities and
carbon in iron (Iron is used for steel)
•
Uses for Steel
 Railroads
 New construction, Brooklyn Bridge
 Skyscrapers
Inventions Leads to Change
•
Thomas Edison invented the first
light bulb and first system to
distribute light
•
Electric power manned machines
time saving machines
•
Electric streetcars
•
Industry plants could go anywhere
not just near sources of power
•
Christopher Shoes invented the
typewriter
Alexander Graham Bell invents the
telephone
 Created new jobs for women
The South did not benefit much from
this, still recovering, had little money
•
The Railroads
•
Expanded migration, industry movement
•
First Transcontinental RR where the
Central Pacific and Union Pacific RR met
in Utah
Employed Chinese immigrants, Irish
workers, desperate Civil War veterans
 Poor working conditions with diseases
and accidents
United the Nation
C.F. Dowd created the four time zones we
have (Eastern, Central, Mountain and
Pacific)
Increased the iron, coal, lumber, and glass
industries
New towns and new markets (increased
trade)
•
Grangers vs. RR
•
Farmers did not like the RR or anyone involved because they
took up land and poorly regulated them
•
They passed Granger Laws which established max passenger
and freight rates
•
Munn v Illinois upheld the Granger Laws of RR regulation by
the states
Interstate Commerce Act
•
Later the Supreme Court ruled
that states could not set rates for
the RR (violated interstate
commerce)
•
Established an Interstate
Commerce Commission where
the federal government would
oversee the RR
•
Supreme Court then rules that
the ICC could not set rates for
the RR either
•
Not until 1906 did the ICC get
the power they needed to over
see the RR
•
Mismanagement of the RR led to
the Panic of 1893
Andrew Carnegie
•
1899 the Carnegie Steel Company was
created
•
Does Amazing
He creates vertical integration
 Where you buy all the suppliers to
create your product
 Coal fields, iron mines, ore freighters,
railroad lines
He creates horizontal integration
Buying other companies in the same
product as you
Monopolies develop
Holding Companies develop (companies
literally created to buy out others)
•
Horizontal and Vertical Integration
Social Darwinism
•
Charles Darwin's theory of biological
evolution in “theory of evolution”
•
Herbert Spencer uses Darwin's
biological evolution as an explanation
of human society
•
Economists used this idea to develop
that laissez faire is the way to go
(federal government does not regulate
the market)
•
Businesses die that don’t do well, poor
are poor because they don’t work, and
the rich are rich because they do work
John D. Rockefeller and Robber Barons
•
Rockefeller used trusts (same as
monopolies)
•
Rockefellers Standard Oil Company
produced 2-3$ of oil, and 90% of the
refining business
•
Received a lot of profits because his
employees were paid very low wages
•
Drove his competitors out of business
by selling under them, then increased
his prices
•
Called robber barons: was a
derogatory term used in social criticism
and applied to some wealthy and
powerful 19th-century American
businessmen, like Carnegie,
Rockefeller, and JP Morgan
Sherman Antitrust Act--stop
•
Government was concerned that free
competition was being stopped
•
The Act mad it illegal to form a trust
(monopoly) that interfered with free
trade
•
It was still hard to prosecute the
companies because the act did not
clarify what a “trust” was
•
Companies like the Standard Oil
would just separate into single
companies
Labor Unions Emerge
•
Did not exempt any race or
gender
•
Long hours, seven day workweek
•
Ex. Seamstresses worked 12hrs 6
days a week
•
NO vacation, workers
compensation, or sick leave
•
Dirty unventilated working
conditions
•
Sweatshops
•
Dangerous or faulty equipment,
little to no protective gear
•
Poor wages, very low considering
what they worked through
Early Labor Unions
•
1st large scale union was the National Labor Union (NLU)
•
They persuade Congress to legalize 8 hr. work days
•
Knights of Labor: open to all workers, supported 8hr work days,
equal pay, strikes were a last resort
•
American Federation of Labor (AFL) led by Samuel Gompers
•
They focused on negotiations between representatives of labor and
management
•
They also used strikes as a major tactic
Early Labor Unions
•
Socialism: government control of businesses and
equal distribution of wealth
•
Industrial Workers of the World (IWW) aka the
Wobblies
•
Led by Bill Haywood
•
Made of miners, lumber workers, and dock workers
•
Promoted Socialism
Strikes
Great Strike of 1877
 Baltimore and Ohio RR (B&O) workers protested their 2nd wage cut
 RR Traffic was stopped for over a week
 Federal Troops end the strike, workers were interfering with interstate
commerce
The Haymarket Affair
Gathering at Chicago's Haymarket Square to protest police brutality
A striker had been killed and some wounded at a McCormick Harvest Plant
The crowd was dispersing when police arrived
Someone tossed a bomb into the police line
Police fired at the workers, 7 police and some workers died
3 speakers and 5 protestors charged with inciting a riot
4 hanged and one committed suicide
Many turn against the labor movement after this
•
Homestead Strike
•
Homestead Strike
•
At Carnegie Steel Company Homestead
plant in PA
•
President Henry Clay Frick cuts wages
leading to the strike
•
Workers were working in terrible
conditions as well
•
Frick hires guards to protect the plant
•
3 detectives and 9 workers dead
•
The strike loses support and falls to the
company
Pullman Strike
•
Pullman Company created RR cars
•
Pullman Company laid off more than
3,000 and cut wages of 2,800 after
Panic of 1893
•
Wages were cut but the cost of
housing had not decreased
•
Pullman refused any negotiations
with the employees
•
Federal troops sent in
•
Most of the strikers fired
•
All others blacklisted and could never
get a job with the RR again
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