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chapter-14-ppt 2

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
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
Alexander Graham Bell invents the
 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
Increased the iron, coal, lumber, and glass
New towns and new markets (increased
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
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
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
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
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
Labor Unions Emerge
Did not exempt any race or
Long hours, seven day workweek
Ex. Seamstresses worked 12hrs 6
days a week
NO vacation, workers
compensation, or sick leave
Dirty unventilated working
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
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
Led by Bill Haywood
Made of miners, lumber workers, and dock workers
Promoted Socialism
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
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
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