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Smokestacks from factory in Pittsburgh, Pennsylvania (about 1890s).
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An Industrial Society,1860–1914
The growth of industry and big business changes the nation.
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SECTION 1
SECTION 2
SECTION 3
SECTION 4
The Growth of Industry
Railroads Transform the Nation
The Rise of Big Business
Workers Organize
An Industrial Society,1860–1914
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Section 1
The Growth of IndustryThe growth of industry during the years 1860 to 1914 transforms life in America.
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The Industrial Revolution Continues
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The Growth of Industry
• Drilling for petroleum (oily liquid) spurs oil industry
1SECTION
• Several factors cause industry, factory production to spread in U.S.:- plentiful natural resources- growing population- improved transportation
Continued . . .
Chart
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• Several factors cause industry, factory production to spread in U.S.:- high immigration- new inventions- investment capital- government assistance
continued The Industrial Revolution Continues
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• Business cycle—period of good, bad times for industry, business
• U.S. experiences harsh depressions in 1873, 1893
• During bad times, called busts, people spend, invest less
• During good times, called booms, people buy, invest more
The Business Cycle
• Despite depressions, U.S. industry grows (1860–1900)
Chart
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Steel: The Backbone of Industry
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• Bessemer steel process—new steel-making method, uses less coal
• Cuts cost of steel, U.S. steel output increases 500 times (1867–1900)
• Begin making many products, including rails for railroads, from steel
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Edison and Electricity
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• Generators—machines that produce electric current
• Makes safe, steady light bulb, soon part of NYC has electric lighting
• Receives over 1,000 U.S. patents
• Thomas Edison opens lab (1876) invents devices that use electricity
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Bell and the Telephone
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• Samuel Morse develops the telegraph (1835)
• Shows telephone in Philadelphia at Centennial Exhibition, June (1876)
• Alexander Graham Bell invents the telephone (1876)
• Centennial Exhibition—exhibition celebrates 100th birthday of U.S.
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Inventions Change Industry
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• Telephone industry grows, 50,000 telephones sold by 1880
• Christopher Latham Sholes invents first practical typewriter (1867)
• Switchboard allows more people to connect into telephone networks
• Elias Howe invents sewing machine, increases store-bought clothes
• Granville T. Woods patents devices to improve telephone, telegraph
• Margaret Knight invents machines for packaging, shoemaking
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The railroads tie the nation together, speeds industrial growth, and changes U.S. life.
Section 2
Railroads Transform the Nation
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Deciding to Span the Continent
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• U.S. wants transcontinental railroad—spans entire continent
• Union Pacific lays first rail, July (1865)
• Railroad companies sell land given to them by government, raise money
• Two companies build transcontinental railroad:- Central Pacific builds railroad east from California- Union Pacific builds railroad west from Nebraska
Railroads Transform the Nation
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Building the Railroad
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• Central Pacific hires thousands of Chinese to work railroad
• Union Pacific hires mostly former soldiers, freed slaves, immigrants
• Chinese are efficient, hard working, fearless, healthy
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Railroads Tie the Nation Together
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• Central Pacific workers lay 690 miles of track
• Union Pacific-Central Pacific line 1st transcontinental railroad
• Central Pacific, Union Pacific railroads join (May 10, 1869)
• Union Pacific workers lay 1,086 miles of track
• By 1895, 4 more U.S. lines are built across the country
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Railroad Time
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• Before railroads, each community determines its own time
• Congress adopts standard time in 1918
• Problematic for people traveling by train across time zones
• Use “solar time” based on calculations about sun’s travels
• Railroad companies set up standard time—divides U.S. into 4 time zones
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Economic and Social Changes
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• Railroads change people’s lives in many ways:- links the economies of the West and East- help people settle the West- weakens the Native American hold on the West- gives people more control of the environment
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Business leaders guide industrial expansion and create new ways of doingbusiness.
Section 3
The Rise of Big Business
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The Growth of Corporations
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• Corporation—investors own part of business through shares of stock
The Rise of Big Business
• A corporation has many advantages over privately owned businesses:- raise a lot of money by selling stock- has special legal status, banks more likely to
loan money- limits risks to investors
• Few U.S. laws regulate corporations, a few big corporations dominate
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The Oil and Steel Industries
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• John D. Rockefeller dominates the oil industry• Andrew Carnegie controls the steel industry• Rockefeller creates monopoly—wipes out
competitors, controls industry• Creates trust—legal body, has stock in companies,
often in 1 industry• Trusts formed in other industries, government slow
to regulate• Rockefeller seen as robber baron—dishonest
business leader
Continued . . .
Map
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• Andrew Carnegie beats competition by making better, cheaper steel
• Rockefeller, Carnegie are philanthropists—give much money to charities
• Buys mines that supply his iron ore, buys ships, railroads that ship ore
continued The Oil and Steel Industries
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The Gilded Age
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• Success of multimillionaires makes others believe they can grow rich
• For rich, late 1800s was a time of fabulous wealth
• In reality, most people who make millions start with advantages
• Horatio Alger writes stories about poor boys becoming successful
• Writers name era the Gilded Age:- age has surface glimmer of wealth- hides societies’ problems
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The South Remains Agricultural
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• In South, industry grows in certain areas
• South remains mostly agricultural, often land rented to sharecroppers
• Birmingham, Alabama, develops iron, steel production
• Sharecroppers make little money, struggle to break free of debt
• Cotton mills open from southern Virginia to Alabama
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Section 4
Workers OrganizeTo increase their ability to bargain with management, workers formed laborunions.
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Workers Face Hardships
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Workers Organize
• Use sweatshops—places where workers labor long hours, low pay
• Factory, sweatshop work boring, barely earn enough to pay debts
• Business owners run factories as cheaply as possible:- some require workers to buy own tools, bring
coal to heat factories- others refuse to buy safety equipment
• Labor unions—groups of workers negotiate for better conditions, pay
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• Knights of Labor—federation of workers from different trades
Early Unions
• West Virginia railroad workers strike with no union (1877)
• U.S. has economic depression (1873), many workers take pay cuts
• Workers in many cities, other industries join strike, mob violence
• Strike ends in 2 weeks, workers take pay cuts• Railroad workers, Knights of Labor strike
(1884–1885), win
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Union Setbacks
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• Socialism—all members of society are equal owners of all businesses
• Try to break unions, hire strikebreakers, replace striking union members
• Business, government fear unions spread socialism, anarchy
• Anarchists—want to abolish all governments
• Haymarket affair—union leaders, police clash, several are killed
• Many union leaders, socialists, anarchists are arrested
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The Homestead and Pullman Strikes
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• Andrew Carnegie reduces pay in steel mills, Homestead, Pennsylvania
• Union president Eugene V. Debs starts Pullman Strike
• Pullman Company cuts pay, does not reduce rent for workers’ housing
• Union workers strike, fight with guards, 10 dead, strike collapses
• Pullman Strike—workers do not handle Pullman cars
• Rail traffic halts, U.S. troops end strike, Debs is jailed
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Gompers Founds the AFL
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• Procter & Gamble gives workers more time off, starts profit-sharing
• Organization of unions is called American Federation of Labor (AFL)
• Union leader Samuel Gompers helps start organization of unions (1886)
• Using strikes, negotiations, AFL wins better working hours, pay
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