Chapter 13
Triumph of Industry
1865-1914
Page 434
Section 1
Technology and Industrial Growth
• OBJ: Analyze Factors that led to
Industrialization of the U.S.
• Explain how inventions and innovations
changed American lives
• Describe the impact of industrialization in the
late 1800’s
A. Industrial Growth
• Mass goods were needed during the Civil war
• Fuels of industrial Growth:
– Natural resources- coal, forests, rivers, oil- Edwin
Drake and the first oil drill in Titusville Pen.
– Growing workforce- immigration and people
moving to cities
– Capitalism- Horatio Alger and rags to riches stories
• Entrepreneurs- trying to make money- fueled society
with jobs and ideas
– Government- Protective Tariffs and laissez-faire
policies
B. Innovations
• Patent: _____________________
• Thomas Edison- applied for over a 1,000
patents
• Perfected the light bulb
• Designs for power plants to power cities
• George Westinghouse- developed ways to
transport energy over long distances.
• Communication
– Samuel Morse- invented telegraph and Morse
code
– Alexander Gram Bell- invented telephone
• Steel
– Bessemer Process- invented by Henry Bessemerbetter way to produce steel
– Skyscrapers and suspension bridges now possible
– Better railroads with steel
– Brooklyn bridge- at time longest bridge in world1883
• Railroads
– Trains expanded all over the country
– TCR finished in 1869
– By 1883- 3 TCR’s
– Led to development of time zones
– New transportation allowed people to live farther
from work
• Electric rail cars, subways
• 1903- first successful flight by Orville and
Wilbur Wright
• Spiral Growth
– Industry increases industry???
– Example, more railroads means more production
of railways, rail road cars.
– More railroads means more goods transported,
which means more consumers, which means
more goods can be produced
– GET IT
– Leads to Mass Production
C. Impact
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World Markets Linked
Jobs becoming mechanized
Jobs becoming unskilled
More goods produced
People move to cities
Cities grow
Immigration increases
More jobs
Environmental impact
Peoples lives transformed
Section 2
Rise of Big Business
• Businesses now were corporations
– Created by the gov’t to a group of people with the
right to sell shares
– Why would people buy shares? Dividends?
• Advantage of Corporation
– Raise capital
– Limited liability
– Not dependent on fate of owner
Standard Oil
• John D. Rockefeller got into oil business in
1862
• Wanted to simplify the production process
• Gained control of all steps of Production
• What is this called?
• Put others out of business and created a
monopoly
U.S. Steel
• Andrew Carnegie revolutionized the steel
industry
• Spent millions on steel research
• Could produce steel cheaper than competition
• Purchased or put out all competitors
– What is this called
• Created a monopoly and made billions
• Donated millions towards the end of his life
Government and Business
• Should government play a role in business?
• Laissez faire?
– Government should “let people do what they
choose”
• Social Darwinism- survival of the fittestapplied to business. Best companies will
survive
• Use to justify bad business practices and great
wealth
Robber Barron vs. Captains of Industry
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How should these business men be viewed
Small businesses were squeezed out
But jobs were provided
Prices were lowered
But monopolies led to less competition and
higher prices.
• What do you think??
Improvements by Gov’t
• Morrill Act of 1862:
– Gave each state federally land in order to establish
institutes of higher education. IE UNL
• Postal Reform was undertaken in 1860’s and
on
• Began to deliver right to houses
• RFD started in 1896
• By 1913 mail was circulated throughout
nation. Great for businesses
• Cartels and Trusts
– Cartel- several companies decided to limit
competition among themselves and share the
market. Result?
– Trusts: Several companies controlled by one
board. Result?
Government Starts to Act
• Interstate Commerce Commission
– Wanted to make railroad rates fair
– Gave gov’t power to regulate interstate commerce
• Sherman Antitrust Act
– Break up Monopolies
• Were not enforced or were avoided
Section 3
Organized Labor Movement
• OBJ: Asses workers problems
• Compare goals and strategies of different
unions
• Analyze cause and effects of different strikes
A. Hardships for Workers
• Wealth and higher standard of living for many
because of I.R.
• However, not for workers in factories
• 12 hour days, 6 days a week, in dark, dirty,
hot, and cramp factories.
• Very dangerous- Sweat shops
• If you got injured, you were fired
• Low wages- demand set wages??
B. Labor Unions Form
• Collective Bargaining:
• Could lead to strikes
• Some workers attracted to socialism- why?
• Knights of Labor: included both skilled and
unskilled labor
• Focused on social reform and replacing
capitalism with workers coops
• Disappeared after failed strikes
• American Federation of Labor: AFL: Samuel
Gompers
– Only allowed skilled workers
– Focused on very specific work place reforms
– Did not gain as much membership as Knights
C. Haymarket Riot
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May 1 1886 in Chicago
Knights went on strike at McCormic Company
Peaceful
200 police summoned and after bomb
exploded among them, they fired into the
crowd
• 11 were killed and over a hundred wounded
• Gave bad name to strikes, brought end to KOL
D. Homestead Strike
• 1892 with the Carnegie Steel Company
• Union contract coming to an end and Henry
Frick, plant manager, saw a chance to break
union
• Cut wages
• All workers decided to strike
• Hired scabs and Pinkerton guards to protect
the plant
• 8,000 troops called in and strike put down
E. The Pullman Strike
• Built Pullman cars
• George Pullman built actual town for his
workers
• 1893 laid off almost half of his workers and
the rest received wage cuts
• Workers went on strike
• Pullman attached mail cars to all Pullman cars
• U.S. gov’t put end to the strike, could not stop
the mail
F. Effects of Strikes
• Courts and government often ruled against
strikes
• Was a time when gov’t usually sided with
business owners over workers.