The Expansion of Industry

Section 14-3 pp. 436-439

Preview Questions

• What were American’s important natural resources?

• How did new inventions change Americans’ way of life?

Natural Resources Fuel Industrialization

• Three Causes of Technological Advances– Large supply of natural resources – New inventions – Growing urban population that demanded new

products

Natural Resources Fuel Industrialization

• America’s Abundant Natural Resources– Oil: • Used for kerosene and gasoline• Edwin L. Drake: Stem Engine Drill

– Coal– Iron: • Bessemer process (W. Kelly) turned iron into steel • Used for RR’s, farm tools, cans, skyscrapers (W.

Jenney), bridges

Inventions Promote Change

• Electricity– Thomas Edison’s light bulb – George Westinghouse – cheap, safe electricity

• Typewriter– Christopher Sholes

• Telephone – Alexander Graham Bell

Inventions Promote Change

• Changes in American Life – More women work in offices – Work done in factories – Poor conditions for employees– Increased time for leisure – New products

The Age of the Railroads

Section 14-2 pp. 442-446

Preview Questions

• How did the railroads change the way Americans told time?

• How did the growth of railroads affect the nation?

• Why did the farmers fight the railroads?

RR’s Span Time and Space

• Transcontinental Railroad– Completed in Promontory Point, Utah in 1869

– Work completed by Irish and Chinese immigrants and Civil War veterans

– United the nation

RR’s Span Time and Space

• RR Workers Faced Challenges – Life threatening working conditions – Low pay – Discrimination

RR’s Span Time and Space

Opportunities and Opportunists

• Benefits of Railroad Growth – Easier to travel long distances – Iron, Steel, Coal, Lumber, Glass industries grow– Increased trade – Growth of many communities • Pullman’s Town

Opportunities and Opportunists

• Drawbacks of RR Growth – Abuse of Power – Corruption

• Credit Mobilier Scandal– Inflated costs of building RR– Bribed members of government

The Grange and the RRs

• Farmers Challenge Railroads – Upset over large land grants and high shipping

prices – Many states began to pass laws regulating RRs– Munn v. Illinois• Supreme Court declared government had authority to

regulate RRs

– Interstate Commerce Commission created to supervise RRs – not effective

Big Business and Labor

Section 14-3pp. 447 – 455

Preview Questions

• How did Carnegie take control of the steel industry?

• How did entrepreneurs try to control competition?

• What were the two major types of unions?

Carnegie’s Innovations

• Industrial mogul who made his fortune in steel companies

Carnegie’s Innovations

• Vertical Integration: – Company buys out its suppliers– Control quality and cost of product– Created monopolies

• Horizontal Integration: – Company merges with similar companies– Created monopolies

Social Darwinism

• Theory that taught “only the strong survive”

• Promoted competition, hard work, and responsibility

• Used as justification for exploitation of workers and immense wealth

Fewer Control More

• Monopoly: – Complete control over an industry’s production,

quality, wages, and prices– Eliminated competition and increased profits

• Holding Company:– Corporation that did nothing but by the stock of

other companies. – Ex: John D. Rockefeller and Standard Oil

Fewer Control More

• Trusts: – A large corporation made

up of many companies that receive dividends on profits earned by all the companies combines

– Helped to create monopolies

– Ex: John D. Rockefeller and Standard Oil

– “Robber Barons”

Fewer Control More

• Sherman Antitrust Act– Made it illegal to form trusts– Not effective

Labor Unions

• National Labor Union– Won 8 hour work days in

1868

• Knights of Labor – Open to all workers – Promoted negotiation

over strikes

Union Movements Diverge

• American Federation of Labor – Led by Samuel Gompers – Used strikes and collective bargaining

• Industrial Workers of the World – Based on the work of Eugene Debs – Made up of Socialists and political radicals – Wanted to include skilled and unskilled workers

Strikes Turn Violent

• Strike Breakthroughs – Great Strike of 1877 – President Hayes used

federal troops to break up the strike

– Haymarket Square Riot – Caused public opinion to turn against workers and strikes

– Pullman Strikes - After strikers turned violent, President Cleveland sent in troops.

Strikes Turn Violent

• Trends in Labor Organization – Women began to

organize – Employers refused to

recognize union leaders – “Yellow Dog” Contracts

forbid union membership

– Government break-ups of strikes