6.1 The Expansion of Industry At the end of the 19 th century, natural resources, creative ideas,...
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Transcript of 6.1 The Expansion of Industry At the end of the 19 th century, natural resources, creative ideas,...
6.1
The Expansion of Industry
At the end of the 19th century, natural resources, creative ideas, and growing markets fuel an industrial boom.
Natural Resources Fuel Industrialization
The Growth of Industry1920s: U.S. leading industrial power
•Wealth of natural resources•Government support for business•Increased urban population
Black Gold1859: Edwin L. Drake uses steam engine to drill for oil
•kerosene, then gasoline
Bessemer Steel ProcessAbundant deposits of coal, iron spur industry—Bessemer process
•Iron into steel by injecting air an removing carbon•Replaced by open-hearth process
New Uses for Steel• railroads, barbed wire, farm machines• construction:
•Brooklyn Bridge•steel-framed skyscrapers
Inventions Promote Change
The Power of Electricity1876: Thomas Alva Edison first research laboratory
•1880: patents incandescent light bulb•system for electrical production, distribution
Impact in Industrialization•manufacturers can locate plants anywhere; industry grows•available in homes; encourages invention of appliances
Inventions Change Lifestyles1867: Christopher Sholes—typewriter 1876: Alexander Graham Bell—telephone
Impact on Industrialization• Women in workforce
•1910: 40% of clerical workers are women•clothing factories
• improves standard of living•1890: average workweek 10 hours shorter
• as consumers, workers regain power in market
Dissent: mechanization reduces value of human worker
The growth &consolidation of railroads benefits the nation but also leads to corruption that would
require government regulation.
6.2
The Age of the Railroads
Railroads Span Time and Space
Railroads Encourage Growth•local transit and westward expansion •Govn’t: land grants, loans to railroads to settle West
A National Network•1859: railroads extend west of Missouri River•1869: first transcontinental railroad, spans the nation
Romance and Reality•offer land, adventure, fresh start•Railroads built under harsh conditions:
•Central Pacific: Chinese immigrants•Union Pacific: Irish immigrants, Civil War vets•Accidents & disease
•1888: 2,000 killed; 20,000 injured
Railroad Time•Lack of uniform schedules•1869: C. F. Dowd proposes 24 time zones•1883: U.S. railroads, towns adopt time zones
•internat’l conference sets world zones via railroad time•1918: Congress adopts railroad time
Opportunities and Opportunists
New Towns and Markets• Iron, coal, steel, lumber, glass industries ↑• RR link towns, promote trade; interdependence• Nationwide network of suppliers, markets
•specialization
Pullman, Illinois•1880: George M. Pullman builds railcar factory•Provides: housing, doctors, shops, sports field•Company controls residents → stable work force
Crédit Mobilier• 1864: Union Pacific stockholders form construction co.—Crédit
Mobilier •overpay for laying track, pocket profits
• Republican politicians implicated; party tarnished
The Grange and the Railroads
Grange—farmer’s organization•angry over perceived railroad corruption
•Land grants, fixed prices, different rates
NEXT
Granger Laws•Press for laws to protect farmers’ interests•Munn v. Illinois—upholds states’ right to regulate RR
•Fed. government can regulate private industry
Interstate Commerce Act1886: Court rules states cannot set rates on interstate
commerce
1887: Interstate Commerce Act •fed. govn’t supervise railroads•est. Interstate Commerce Commission (ICC)
Panic and Consolidation• Abuses, mismanagement, competition bankrupt many railroads• Panic of 1893 • 1894: 25% railroads taken over by financial companies
The expansion of industry results in the growth of big business and prompts laborers to form unions to better their lives.
6.3
Big Business and Labor
NEXT
Carnegie’s Innovations
New Business StrategiesGOAL: make better products more cheaply
•Hires talented staff; offers company stock; promotes competition•vertical integration—buys out suppliers; control materials•horizontal integration merges with competition
Carnegie controls almost entire steel industry
NEXT
Social Darwinism and Business
Principles of Social Darwinismtheory of biological evolution applied to society: Social Darwinism
•Natural selection•Economists use to justify doctrine of laissez faire
A New Definition of Success•success of the most capable appeals to wealthy•individual responsibility follows Protestant ethic
•riches as sign of God’s favor•poor must be lazy, inferior
NEXT
Growth and ConsolidationMergers: buy out competitorsMonopolies: control production, wages, prices
•Holding companies: buy stock of other companies
John D. Rockefeller and Standard Oil Company•trust; trustees run separate companies as if one
Fewer Control More
Rockefeller and the “Robber Barons”Profits:•low wages and underselling•control market → raise prices
Robber barons as philanthropists
NEXT
Sherman Antitrust ActGovernment concern: expanding corporations stifle free competitionSherman Antitrust Act: trust illegal if interferes with free trade
Business Boom Bypasses the South•North owns 90% of stock in RR, most profitable Southern businesses •Business problems: high transport cost, tariffs, few skilled workers
Labor Unions Emerge
Long Hours and Danger•Exploitation, unsafe conditions unite workers
•1882: 675 workers killed each week•12-hour days, 6 day/week; repetitive tasks•no vacation, sick leave, or injury compensation
•Women and children: sweatshops•require few skills; lowest wages
Early Labor Organizing•National Labor Union (NLU)
•Local chapters reject blacks; CNLU forms•1868: Congress legalizes 8-hour day to civil servants
•Noble Order of the Knights of Labor, Uriah Stephens •Open to all races, genders, degrees of skill•8-hour day, equal pay, arbitration•Strikes as last resort
NEXT
Union Movements Diverge
Craft Unionism: skilled workers from one or more tradesSamuel Gompers and the American Federation of Labor (AFL)
•collective bargaining for better wages, hours, conditions•strike successfully, wins higher pay, shorter workweek
Industrial Unionism: skilled & unskilled workers in an industry•Eugene V. Debs forms American Railway Union (ARU); strikes
Socialism and the IWWSocialism
•factors of production owned and operated by the people• equal distribution of wealth
1905: Industrial Workers of the World (IWW or Wobblies)•radical unionists, socialists; include African Americans•Industrial unions give unskilled workers dignity, solidarity
NEXT
Strikes Turn Violent
The Great Strike of 1877•B&O Railroad strike spreads—50,000 miles•impeding interstate commerce; federal troops intervene
The Haymarket Affair•3,000 gather at Chicago’s Haymarket Square, protest police brutality•Violence ensues; 8 charged with inciting riot, convicted•Public opinion turns against labor movement
The Homestead Strike•1892, Carnegie Steel workers strike over pay cuts•Win battle against Pinkertons; National Guard reopens plant•Steelworkers do not remobilize for 45 years
The Pullman Company Strike•lays off 3,000, cuts wages but not rents; workers strike•Pullman refuses arbitration; violence ensues; federal troops sent•Debs jailed, most workers fired, many blacklisted
NEXT
Women OrganizeWomen barred from many unionsMary Harris Jones: United Mine Workers
•1903: leads children’s march to Roosevelt’s homePauline Newman—International Ladies’ Garment Workers
Management and Government Pressure Unions•Employers forbid unions; turn Sherman Antitrust Act against labor•Legal limitations cripple unions, but membership rises
1911: Triangle Shirtwaist factory fire