Unit 5 The Expansion of American Industry (1850-1900)

Unit 5

The Expansion of American Industry

(1850-1900)

SSUSH11.a Explain the impact of the railroads on other industries such as steel and on the organization of big business.

SSUSH11.b Describe the impact of the railroads in the development of the West, including the transcontinental railroad, and the use of Chinese labor.

SSUSH11.c Identify John D. Rockefeller and the Standard Oil Company and the rise of trusts and monopolies.

SSUSH11.d Describe the inventions of Thomas Edison, including the electric light bulb, motion pictures, & the phonograph, & their impact on American life

A Technological Revolution - FYI

Indoor electric lighting did not exist in 1865. Instead, the rising and setting of the sun dictated the rhythm of a day’s work.

After dark, people lit candles or oil lamps if they could afford them. If they could not they simply went to sleep, to rise at the first light of dawn.


Imagine summers without the benefits of refrigeration!

Ice was available in 1865, but only at great cost.

People sawed blocks of ice out of frozen ponds during the winter, packed them in sawdust, and stored them in icehouses for later use.


Communication was also very slow in those days.

Most mail from the East Coast took ten days to reach the Midwest and three weeks to get to the West. Think of email and texts today…

An immigrant living on the frontier would wait months for news from relatives in Europe.


By 1900, daily life had changed dramatically in the United States.

Between 1790 and 1860, the Patent and Trademark Office of the Federal Gov’t issued just 36,000 patents (licenses to make, use, or sell an invention).

In contrast, b/w 1860 and 1890, 500,000 patents were issued for inventions.

1. Telegraph – Samuel Morse

2. Telephone – Alexander G. Bell

3. Phonograph – Thomas Edison

4. Filament Light bulb – Thomas Edison

5. Motion Pictures – Thomas Edison

6. Central Power Station – Thomas Edison(direct current)

7. Transformer (alternating) – George Westinghouse

8. Bessemer Process – H. Bessemer1. Brooklyn Bridge & William Kelly

A technological revolution: 11.d Electric Power

Thomas A. Edison (“There is always a better way to do something, find it!”He patented over 1,000 inventions!

Helped to make electricity widely available. Improved stock ticker Phonograph, electric light bulb, motion pictures 1882, Central power station

Westinghouse 1885 George Westinghouse and alternating current. Use of transformer made use of electricity in homes

practical.

General Electric and Westinghouse Electric.

The Railroad gets connected! 11.A In 1850, steam powered ships still provided much of the nation’s

transportation.

Before the Civil War, most of the railroad tracks were in short lines that connected neighboring cities, mainly in the East.

There was no standard track width, or gauge, so each train could only travel on certain tracks.

As a result, goods and passengers often had to be moved to different trains, which caused costly delays.

To make matters worse, they were dangerous b/c trains could not communicate and brakes were unreliable….eeekkkk

The Transcontinental RR (11.B)

In 1862, a huge project began in Sacramento, CA by the Central Pacific RR company and in Omaha, NB by the Union Pacific RR company to connect one line.

On May 10, 1869, the project was complete with the final “Gold” spike being driven in by Leland Stanford at Promontory Point, Utah.

Most of the workers on the railroad were immigrants. Irish for the Union Pacific and Asian, especially Chinese, for the Central Pacific.

This railroad officially connected the east to the west.

Problems with the RR - FYI

Rails were not standardized, this caused a lack of mobility.

Trains were often noisy, dirty, and uncomfortable.

People feared for their safety and distrusted most trains.

And scheduling for the train to be “On Time” was a nightmare, b/c of the time differences from town to town. Each town set its time according to solar time.

Solutions for the RR 11.A Steel rails replaced iron rails (Bessemer Proc.) and signals and

track gauges became standardized.

George Westinghouse developed more effective air brakes and Granville Woods patented a telegraph system for communicating with moving trains, thus reducing the risk of collisions.

In 1883, the railroads adopted a national system of time zones to improve scheduling. As a result, clocks in broad regions of the country showed the same time.

Four time zones were used: Eastern, Central, Mountain, and Pacific (we still use these today)

Rapid Growth of Railroads

Gov’t reg. of private industry Grow of towns and cities

Creation of nationwide market

Greed and Corruption

Consolidation of RR

Changes brought forth by the RR (draw please)

The Growth of Big Business: 11.A The period of invention after the Civil War set

the stage for the great industrial growth.

Still, it would take more than technology to change the U.S., it would take entrepreneurial people to make the difference.

These individuals became known as “Robber Barons!”

Robber Barons (Captains of Industry) 11.A & C

Robber Baron implies that these individuals build their fortunes by stealing from the public, and in turn drained the natural resources.

Captains of Industry paints a more positive image of hard work and success in the building of the business world as we know it.

Andrew Carnegie:

Steel

John D. Rockefeller:

Oil Cornelius Vanderbilt:

Railroads

Big Business: draw in your notes

C ause and Effect: G row th of B ig B usiness

E ffe c tsS te e l a nd o il b e co m e g ian t ind u s trie s.M o n op o lies , ca rte ls, a n d tru sts d om in a te m a jo r in d u strie s.F a c to ry w o rke rs fa ce ha rsh w o rk ing a n d liv in g co n d it io n s.

G ro w th o f B ig B us in es

C a u sesR a ilroa d bo o m lo w e rs the cos t o f sh ipp in g .N e w in ven tio ns m ake bu s ine ss m o re e ff icie n t.N a tion h as rich su pp ly o f n a tu ra l re so urce s.

Big Business Problems 11.A & C

Monopoly: complete control of a product or service. Cartel: a loose association of business that make the same

product. Trust: managing companies as a single unit. Ex. Standard

Oil (John D. Rockefeller) Sherman Antitrust Act: law that prevents any combination of

companies that restrain interstate trade or commerce. Social Darwinism: Those who were more “fit” would “survive”

in the business world. (Carnegie really believed in this idea)

Methods of Industrial Control Horizontal consolidation (same type of business bought by

one company, ex. Rockefeller w/oil) Vertical consolidation(different type of business bought by

one company, ex. Carnegie w/steel; ex: t-shirts)

OKAY, THAT’S PRETTY MUCH ALL OF 11.A-D

“Industrialization and Workers”

The Growing Work Force

Immigration:

1860 – 1900 14 million immigrants to U.S. Contract Labor Act: 1864 law allowed

employers to enter into contracts with immigrants.

Similar to Indentured Servants. 8 – 9 million migrants entered the cities.

Immigration: Religious Persecution, Economic strife, and

the promise of a better life in America brought millions of European immigrants to the country in the late 1800’s.

B/t 1865-1920, over 30 million people came to USA. The population doubled!!!

The Journey With new steamships, journey

was one week. Most stayed in STEERAGE.

Large open area beneath ship’s deck.

Limited toilets, no privacy, poor food.

Cheap fare. From Europe?

Came to Ellis Island on East Coast, “The Golden Door.” (NY)

From Asia? Came to Angel Island on West

Coast. Most used to be from Germ, GB

(old). Now, they were from Eastern

Europe and the Middle East. Russia, Italy, Greece. (new)

Immigrants from Europe

1892, US Gov’t opened Ellis Island, with Statue of Liberty, to immigrants. Seen as a symbol of the US as a place of refuge

and hope. All immigrants had to have a physical.

If they had a contagious disease, went into quarantine.

Could be deported, like those with trachoma (eyes). Criminals waited on ports to trick immigrants

out of money with fake jobs/lodging. Went and settled in areas where previous

settlers of their homeland were (ghettos). Mostly in port of entry, only 2% went south.

Found jobs with less than average wages.

The Statue of Liberty

“Give me your tired, your poor, your huddled masses yearning to breathe free, the wretched refuse your teaming shore. Send these, the homeless tempest tossed to me. I lift my lamp beside the golden shore.”

Immigration On the West Coast, Asian immigrants found

America less tolerant than the east coast. Cultural differences made Asians the target of suspicion and hostility. Held at Angel Island for longer

Discrimination caused Chinese immigrants to settle together (Chinatown, etc…).

Labor Unions excluded the Chinese, as they drove wages down, and eventually, even the government discriminated, passing the Chinese Exclusion Act in 1882.

The Growing Cities

Not only were immigrants moving to the cities, Americans were migrating to

the cities to escape the economic problems facing farmers.

Growing Cities

The percentage of America’s population living on farms fell from 72% to 54%.

Technological advances reduced the need for farm labor.

Racial discrimination drove many African Americans out of the South.

The influx of people forced new construction, especially subways and skyscrapers.

Increasing Efficiency (FYI, background knowledge)

In 1881, Frederick Winslow Taylor set out to improve worker efficiency in the steel plant where he was chief engineer.

He began to study the workers, trying to see how much time it took to do various jobs.

Then he broke down each task into a # of steps and determined how long each step should take.

He wanted more productivity from less time.

The workers hated Taylor’s ideas, they feared that increased efficiency would result in layoffs or a lower rate of pay for each piece of work.

Frederick Winslow Taylor In 1911, he wrote, The

Principles of Scientific Management.

Many people continue to use this formula in their business.

Factory Work Factory workers were(are) ruled by the clock. When to start,

stop, or break.

Factory work changed “work” from the days of being a craftsman.

A craftsman would traditionally make a product from start to finish, which required a variety of tasks.

Factory workers performed only one small task, over and over, and rarely saw the finished product.

This concept became known as “Division of Labor.”

Life in a Factory

Workers called “Hands”

Discipline was strict

Fined for being late, talking back, or refusing to do a task

Work was boring

Loud, dark, and ventilation was poor

Many fires from: fatigue, faulty equip., & carelessness

Many deaths on the job

In 1882, average # killed was 675 a WEEK, today it is around 120 week

Working Families Because of low wages, everyone in the family had to

work.

Children left school at 12 or 13.

Mother’s worked in the factory.

Some boys after 13 stayed in school, but most girls went to work in the factory.

If a parent died, 6 – 7 year olds had to work. (no work, no food)

Social Darwinism = govt. aid did not exist.

Women & Children Women

No chance of advancement. No training. Excluded from higher paying jobs.

Children 1880’s 5% of working population. No child labor laws. Stunted growth. 1892 Jacob Riis wrote, Children of the Poor By the early 1900’s, child labor legislation was

implemented.

Section #4“The Great Strikes”

Rich vs. Poor1890 9% of pop. held 75% of nations wealth.

Socialism: economic and political philosophy that favors public (social) control of property and income.

Cooperate, not compete.

Karl Marx = “Communist Manifesto”

Labor UnionsTrade Unions

The Federal Society of Journeymen Cordwainers (shoemakers)

1806, Outlawed for engaging in strikes.

National Trades Union

Section #4 cont.

The American Federation of Labor (AFL)

Samuel Gompers

Only skilled workers.

Three main issues for unions:

Higher Wages

Shorter Working Hours

Safer Working Conditions

Collective Bargaining: group bargains with employer for changes

Samuel Gompers

Employers forbade union meetings and fired union organizers.

“Yellow Dog” contracts – workers promised not to join or strike

Refused collective bargaining if strikes occurred.

Refused to recognize unions as the workers’ legitimate representatives.

Four Major Strikes 1877-1894

1. Railroad Strike – 18772. Haymarket Strike – 18863. Homestead Strike – 18924. Pullman Strike - 1894

Railroad Strike – 1877 (FYI)

When the B&O RR announced a 10% wage cut in the midst of a depression, workers reacted with violence.

The rioting spread rapidly from Baltimore to Pittsburgh, Chicago, St. Louis, and other cities.

President Rutherford B. Hayes (1877-1881) sent in federal troops to put down the strike in W. Va.

Soldiers fired on the rioters, killing and wounding many. A crowd of 20,000 set fire to the RR company property.

From the 1877 strike on, employers relied on federal and state troops to repress labor unrest.

A new and violent era in labor relations had begun.

Haymarket Strike – 1886 (FYI)

May 1, 1886, groups of workers mounted a national demonstration for an eight-hour workday.

Their slogan was, “8 hrs. work, 8 hrs. rest, 8 hrs. for what we will!”

This led to fight at Chicago’s McCormick reaper factory between strikers and scabs.

Scabs are workers called in by an employer to replace striking laborers.

Several of the workers were killed when police tried to break it up.


Union leaders called for a protest rally on the evening of May 4 in Chicago’s Haymarket Square.

A group of anarchists, radicals who violently oppose all gov’t, joined the strikers.

That evening someone threw a bomb into a police formation, killing seven officers.

A riot followed and over a dozen were killed.

Investigators never found the bomber, yet eight anarchists were tried for conspiracy to commit murder.


Four were hanged, another committed suicide.

Governor John P. Altgeld of Illinois decided later there was not enough evidence so he pardoned the remaining three.

To many unionists, the anarchists who took part in the Haymarket Riot forever would be heroes.

To employers, however, they remained vicious criminals determined to undermine law and order.

Much of the American public came to associate unions in general w/violence and radical ideas.

Homestead Strike – 1892 (FYI)

Summer of 1892, while Andrew Carnegie was in Europe, his partner Henry Frick tried to cut workers’ wages at Carnegie Steel.

The union at the Carnegie plant in Homestead, PA called a strike.

Frick intended to crush the strike and he hired a private police force to do the job.

Again, several people were killed and many Americans were angry with the steel company, until…..

Homestead Strike – 1892 (FYI)

Anarchist Alexander Berkman tried and failed to assassinate Frick.

Berkman was not associated w/the union, but the public connected him anyway.

This led to a huge distrust of unions in many Americans’ eyes.

Pullman Strike – 1894 ***

This strike involving the RR marked a shift in the Federal Government’s involvement with labor-employer relations.

Sleeping-car maker, George Pullman considered himself a caring industrialist.

He donated money to build schools, banks, and utilities in his hometown of Chicago.

But, when the economy took a nose dive in 1893, he had to lay off workers and cut wages.

A small group tried to protest to him and he fired them on the spot, causing the local union to go on strike.

Pullman Strike - 1894

Pullman refused to bargain and shut down the plant.

The American Railway Union, lead by popular labor organizer Eugene V. Debs, called for a boycott of Pullman cars throughout the country.

By June of ’94 over 120,000 RR workers joined in the strike.

The strike got out of hand and the fed. Gov. was brought in to help.

The strike broke the Sherman Antitrust Act

On July 4, 1894 President Grover Cleveland(1885-89 & 1893-97) sent in 2,500 federal troops to enforce the law.

Pullman Strike - 1894

The Pullman strike and its outcome set an important pattern.

In the years ahead, factory owners appealed frequently for court orders vs. unions.

The Fed. Gov. regularly approved these appeals and helped to limit the growth of unions for the next 30 years.

Moving West (FYI)

Why did they want to go west?

1.) Explore! The Great Plains, the Pacific Northwest, & the

Southwest. 2.) New Beginnings!

In life, opportunity, etc. 3.) Be own Boss!

Can own their own farm. 4.) Overpopulated!

East is way too crowded.

Moving West: FYI

Big Business owned land. RR companies profited as settlers moved.

Land next to RR especially popular.

Morrill Land Grant Act Created to support state colleges.

Fed Gov’t gave land to state gov’t, they sold it to fund agricultural land-grant colleges.

Homestead Act (signed by Pres. Lincoln) Fed Gov’t gave land directly to settlers!

It’s a “hard knock life” for settlers: FYI

Water was scarce, used buckets to collect rain. This carried “Prairie fever” or typhoid.

Working prairie sod was back-breaking labor.

Women made soap, clothing, candles, and preserved food.

Families cooperated in raising houses/barns, sewing quilts, husking corn, etc.

Conflict with Native Americans

Remember… Clearing the East of Indians; President Jackson; Trail

of Tears; Reservations; Assimilation; War.

Clashes of Culture! Indians and settlers looked at the world differently. Settlers felt that the resources were there to be used.

Settlers used large scale hunting, mining, and farming.

Plains Indians used only the resources they needed for their actual needs.

They saw the white settlers as being greedy and destructive.

Fighting begins, with the Sioux Little Bighorn The Black Hills of South

Dakota had been set aside for the Sioux and Northern Cheyenne

1874 - U.S. Army exploring party found gold Settlers went looking Gov. tried to buy the

Black Hills for gold (Sioux considered land sacred)

1875 and 1876 - Sioux warrior left their reservations and united under the leadership of Sioux chief, Sitting Bull

Massacre at Wounded Knee

After Sitting Bull died, some American soldiers tried to arrest some Indians who left their reservation.

Shots were fired and more than 200 unarmed Sioux (women & children) were killed.

Indians way of life destroyed: FYI

Whites killed buffalo Indians depended on buffalo to survive (how?)

As conditions grew worse and Indians were forced onto reservations, many whites wanted to help & an Indian Rights Movement began. Helen Jackson wrote, A Century of Dishonor and said, “It

makes little difference…where one opens the record of the history of the Indians; every page and every year has its dark stain.”

Some felt Indians should be more “civilized” What does this mean? How can this happen?

Assimilation: FYI Many white though that only

solution was to make the Indians become more like the whites

- Assimilation - to adopt the culture of the people around you

Dawes Act (1887) Intended to make Indians give

up their traditions and accept White customs

Reservation lands were divided up in farm plots for families and individuals (40 to 160 acres)

Any remaining land was sold to white settlers

Profits used to pay for Indian schools

Indians who accepted the plots of land could become citizens for the 1st time

Dawes Act failed Many western Indians didn't

want to settle down as farmers Lacked tools and training Many sold their plots to white

settlers cheap

End 1800's - situation of the American Indians was tragic 20th century U.S. government

finally realizes importance of Indian way of life

What happened with Indian Territory? FYI

70 Indian Nations forced onto Reservations. After the Civil War, many settlers began to

enter their government-given land. Due to large amount of settlers Gov’t opened

up 2 million acres of Indian Territory, that hadn’t been assigned yet, to the settlers.

These settlers, “Boomers”, staked off hundreds of claims within a few hours.

Oklahoma City had 10,000 resident at the end of the 1st day.

Some settlers, “Sooners”, had already sneaked past the gov’t to stake a claim.

Cause and Effect: Westward Expansion

Causes: Big Business put Western

land up for sale. Morrill Land Grant Act

provides state gov’ts with millions or acres to sell.

Homestead Act gives land to settlers willing to farm.

European immigrants, people seeking opportunity, and people fleeing racial prejudice in the East seek land in the West.

California Gold Rush draws thousands of fortune seekers.

Effects: Violence erupts between

settlers and Native Americans. Many Native American groups

are destroyed or displaced. Challenges of prairie farming

lead to increased mechanization.

Bonanza farms and cattle ranching industries develop.

Frontier myths influence national identify.

The Presidents: Write it all =) 20.) James Garfield

Assassinated

21.) Chester Arthur Est. civil service exams

22.) Grover Cleveland Indiscretions…. Tried to lower tariffs

23.) Benjamin Harrison Created huge debt; highest tariffs

24.) Grover Cleveland Used troops in Pullman strike

The Gilded Age

Coined by Mark Twain. Gilded – “covered in a thin layer of gold”.

Means a thin but glittering layer of prosperity covered the poverty and corruption of much of society.

Golden time for industrialists. So much that it covered:

The immigrants poverty Abuse of power in business and gov’t.

So… what’s Gilded??????

THE REST OF THIS IS JUST FYI…..

Populism Farmer’s Complaints

Crop prices were dropping, big business and the gov’t wouldn’t help.

Farmer’s and Tariffs: Tariffs helped farmers by:

Protecting them against competition from farm imports.

Tariffs hunt farmers by: Raising the prices of manufactured goods. Preventing foreigners from earning the American

currency they needed to buy American crops. Reduced the international market for American farm

products.

Mo’ Money Mo’ Problems

More $ the Fed Gov’t puts out – inflation Helps people who sell things.

If Gov’t reduces $ supply – deflation Helps people who lend money, interest. Dollar is greater, drop in prices of goods.

Post Civil War, Americans had a Deflation. Monetary Policy

The Fed Gov’t plan for makeup and quantity of the nation’s money supply, thus emerged as a major political issue.

Supporters of inflation and deflation begins to speak out.

Gold Standard vs. Free Silver

Supporters: Gold Bugs: bankers and

wealthy industrialists.

Position: A Gold Standard would

limit the amount of money in circulation and deflate prices.

Benefits: The economy would be

more stable. The wealthy would have protection for their money.

Supporters: Silverites: silver miner,

farmers, and debtors.

Position: The unlimited coinage of

silver would increase the money supply and inflate prices.

Benefits: The economy would be

stimulated. Farmers would get more money for their goods; debtors would more easily repay loans.

Gold Bugs

1873 – supporters to tight money won.

$ was on a bimetallic standard. Currency consisted of gold or silver coins or US treasury notes

that could be traded in for gold or silver.

1873 – To ensure economic stability, Congress put the nation’s currency on a gold standardy.

Reduced amount of money in circulation because the money supply would be limited by the amount of gold held by the gov’t.

Conservative Gold Bugs were pleased. Many were big lenders who liked the idea of being paid back in

money backed by the gold standard.

Silverites

Mostly silver-mining interests and western farmers, were furious at the nation’s move to a gold standard.

Claimed the end of silver as a monetary standard would depress the prices of farm produce.

Called for free silver – unlimited coining of silver dollars as a means of increasing the money supply.

Silverites & Bland-Allison Act

The Bland-Allison Act (1878) Huge victory for Silverites. Required the Fed Gov’t to purchase and coin

more silver, increasing the money supply and causing inflation.

Passed by Congress, vetoed by President Hayes, and Congress overrode veto.

Treasury Dept. did not follow through.

Organizing Farmer Protest

The Grange Helped form farming cooperatives.

Where farmers saved money by buying goods in large quantities.

Pressured state legislatures to regulate business on which farmers depended.

Grain elevators that stored crops and RR that shipped them.

Was popular, but Farmers wanted more options…

Farmer’s Alliances

Wanted: Federal regulation of RR More $ in circulation Creation of state departments of agriculture Farm credit

Women served as chief officers Mary Elizabeth Lease said, “raise less corn, and

more hell!” African Americans had their own “Colored

Farmer’s Alliance.” Natural disasters fueled these alliances.

How would the Federal Gov’t help?

An Inactive Gov’t

In all elections, 1876-1892, no candidate won a popular vote. So, Presidents lacked power of bold action.

Many were friends of big business, that weren’t friends with farmers.

G. Cleveland signed Interstate Commerce Act, in 1887. Response to many complaints against RR.

Regulated prices that RR charged to move freight b/t states, requiring rates to be in proportion to distance traveled.

Illegal to give certain rates to certain customers. Said Congress could regulate the RR.

In 1890 – Sherman Anti-trust Act was passed. But enforcement was lax.

The Populist Party

1880's - Several political parties combined Populism - movement of the people

Populist Party wants reforms Economic: increase money supply, graduated income

tax (more on the wealthy), & federal loans Political: Senate elected by popular vote, secret ballot

& 8-hour day

1892 - Populist candidates elected at different levels of government

Democratic Party eventually adopted platform

The Populist Party (cont.)

Wanted to unit African American and White Farmers.

They generated a lot of buzz for the 1892 election, but only got about one million votes. Nominated James Weaver.

Cleveland won again, and alienated labor by putting down the Pullman strike. Made farmers mad by backing a gold standard,

and he tried to lower the tariff. The farmers became even more known and

American added “hayseed Socialist” to their list of scary unified peoples.

Panic of 1893

Railroads expanded faster than markets

- Some went bankrupt Government’s gold

supply became depleted

- Led to rush on banks

- Businesses, banks collapse

- Panic became depression

Bryan’s “Cross of Gold” 1896 – Republicans nominated

William McKinley. 1896 – William Jennings Bryan,

captured Democratic nomination by arguing for free silver. “You shall not crucify mankind upon

a cross of gold!” He was so good that the Populists

loved him too! Bryan lost, despite best efforts.

He actually campaigned modern day style.

McKinley stayed at home, campaigning was undignified.

Urban and Industrial Midwest and Northern states feared free silver would eat away the buying power of their wages.

Urban American defeated Rural America.

Is it the end of Populism?

It could not bridge the divided b/t America’s farms and cities.

Nor could it slow America’s transition from an agricultural nation to an industrial nation.

From 1900-1920, the nation’s gold standard actually allowed crop prices to slowly rise. The silver movement died, as did Populism.

The goals live on…

Unit 5 The Expansion of American Industry (1850-1900)

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Transcript of Unit 5 The Expansion of American Industry (1850-1900)