The Growth of Industry 1865 1914 Chapter 19

The Growth of Industry 1865 - 1914 { Chapter 19

Railroads Lead the Way { Chapter 19 – Section 1

By the 1890 s, five railway lines crossed the country Hundreds of smaller lines branched off from them The railroad system grew rapidly Workers sang work songs such as “I’ve Been Working on the Railroad” Expansion accompanied consolidation This is the practice of combining separate companies It also created railroad barons who controlled the nation’s rail traffic Railroad Expansion

{ • • • Cornelius Vanderbilt – gained control of the NY Central line and then made a fortune by consolidating several companies that stretched form NYC to the Great Lakes James J. Hill – built the Great Northern line between Minnesota and Washington State Collis P. Huntington & Leland Stanford – founded the Central Pacific which connected California & Utah Railroad Barons

Railroad systems carried raw materials such as iron ore, coal, and timber to factories There was a demand for iron tracks and locomotives But in 1880: companies asked the tracks to be made of steel; this increased the steal industry Railroads Stimulate the Economy

{ • • Different railroad lines used different gauges (widths) One line could not use another line’s tracks As companies consolidated, they adopted a standard gauge of 4 feet, 8. 4 inches as the width of the track This made shipment and transport a lot easier Improving the Railroads

4 developments of new technology arose AIR BRAKES CAR COUPLERS REFRIGERATED CARS PULLMAN SLEEPING CAR Railroad Technology

{ • • • These were developed by George Westinghouse They improved the system for stopping trains They made train travel safer Air Brakes

{ • • These were invented by Eli H. Janney They made it easier for railroad workers to link cars Car Couplers

{ • • These were developed by Gustavus Swift They allowed the railroads to ship meat and other perishable goods over long distances Refrigerated Cars

{ • • This was developed by George M. Pullman It provided a luxury railway car The seat converted into beds for overnight journeys Dining was also improved and raised train travel to a new level of comfort Pullman Sleeping Car

Networks expanded and companies competed for customers Large companies offered secret rebates (discounts) to their biggest customers Smaller companies couldn’t afford to offer rebates so they were forced out of business Competing for Customers – Rebates

Barons also made secret agreements among themselves known as pools They divided the railway business among their companies They set rates for each region No one competition in the region meant that a railroad could charge higher rates and earn greater profits Competing for Customers – Pools

Now American industry was expanding into the west Flour milling industry moved from Ohio to Minneapolis and then Kansas City Trains redistributed the population as they carried homesteaders into the Great Plains They made it easier for people to move from rural areas to the cities Railroads Change America

Now Americans are looking at time in a different way People began measuring distances by how many hours the trip would take rather than by the number of miles traveled Time Zones

Inventions { Chapter 19 – Section 2

1910: Americans drove cars through lit up streets They went to department stores Shopping was even done through mail or telephone The automobile, electric light, and telephone were invented after 1870 And they became part of everyday life for millions of people Communication Changes

{ • • • 1844: it was introduced by Samuel Morse 1860: thousands of miles of lines were controlled by the Western Union Tel. Co. Telegraph offices trained operators to transmit messages in Morse Code Telegraph

{ • • • Cyrus Field was determined to link the US & Europe by the use of this telegraph After several attempts he was finally able to lay this cable across the Atlantic Ocean It brought the US & Europe closer together Telegraph

{ • • • It was invented by Alexander Graham Bell and it, too, revolutionized communications further Bell was born & educated in Scotland but moved to the US and studied ways of teaching hearing-impaired people to speak 1876: he developed a device that transmitted speech – the telephone Telephone

• • { Telephone • • One day while Bell was preparing to test this new device of his, he accidentally spilled some battery acid on his clothes He called out to his assistant in the other room and said: “Mr. Watson, come here. I want you!” Watson heard Bell’s voice coming through the telephone This is how the device was invented and it became a success

1800 s saw a burst of inventions in the US 1860 – 1890: the government granted more than 400, 000 patents for new inventions Christopher Sholes invented the typewriter William Burroughs invented the adding machine George Eastman invents a small box camera (the Kodak) John Thurman developed a vacuum cleaner Genius of Invention

{ • • Thomas Edison was called “dull” by his teachers because of his poor hearing which gave him trouble in school So his mother started to homeschool him and found out that he loved anything related to science She allowed Thomas to set up a chemistry lab in the family basement When he was 12, he got a job working for the railroad where he set up his new lab in a freight car The Wizard of Menlo Park

• { • • • One day, Edison saved the life of a child who fell onto the tracks of an oncoming train The child’s father took an interest in Edison and taught him to use the telegraph Edison’s first invention was a gadget that sent automatic telegraph signals He pretty much invented this so he could sleep on the job The Wizard of Menlo Park

In his 20’s Edison decided to go into the “invention business” 1876: he sets up a workshop in Menlo Park, NJ From his laboratory, he invented the phonograph, the motion picture projector, the telephone transmitter, and the storage battery However, his most important invention was the electric light bulb The Wizard of Menlo Park

The first workable light bulb was developed and then he designed power plants that could produce electric power and distribute it to light bulbs The Wizard of Menlo Park

1880: on Christmas, Edison used 40 bulbs to light up Menlo Park People flocked to see the “light of the future” He built to the first central electric power plant in NYC, illuminating 85 buildings Christmas Day

George Westinghouse took Edison’s ideas further 1885: he developed and built transformers that could send electric power more cheaply over longer distances They were used to power factories, trolleys, streetlights, and lamps George Westinghouse

Lewis Howard Latimer: developed and improved filament for the light bulb Granville Woods: patented dozens of inventions such as an electric incubator and made railroad improvements such as an electromagnetic brake and an automatic circuit breaker Elijah Mc. Coy: invented a mechanism for oiling machinery Jan E. Matzeliger: developed a shoe-making machine that which revolutionized the shoe industry African American Inventors

{ Lewis Howard Latimer { Granville Woods African American Inventors

{ Elijah Mc. Coy { Jan E. Matzeliger African American Inventors

Ford wanted to build an inexpensive car that would last a lifetime He worked as an engineer in Detroit, Michigan 1903: he established an automaking company and began designing cars Henry Ford’s Automobile

He worked with Charles Sorenson on the Model T They built the car and tested it on rough roads 1908: the Model T was introduced to the public Sorenson described it as, “a car which anyone could afford to buy, which anyone could drive anywhere, and which almost anyone could keep in repair” Model T

Ford Model T

After selling 15 million Model T’s, Ford went on to invent a less expensive way to manufacture cars It was the assembly line and on it each worker performed an assigned task again and again at a certain stage in the production of the automobile The Assembly Line

The assembly line enabled manufacturers to produce large quantities of goods more quickly This was known as mass production and it decreased manufacturing costs, so products could be sold more cheaply Mass Production

Merchants also sold good by mail whereas before service was only to post offices 1890 s: the US Post Office had expanded its delivery service in rural areas This allowed companies like Sears to publish catalogs that offered goods from shoes to farm equipment Catalogs introduced rural families to a variety of goods not found in country stores Selling Goods

{ • • • Selling Goods • • Chain stores grew rapidly – stores with identical branches in many places F. W. Woolworth’s “five-and-ten-cent stores” By 1911: there were more than a thousand Woolworth’s in operation The Woolworth Building, erected in 1913, stood at 794 feet tall It was the tallest building in the world at the time

An Age of Big Business { Chapter 19 – Section 3

Hills of Western Pennsylvania: people find this stick black substance called petroleum At first they sell it as medicine Then they figure out that by burning it, you can produce heat and smoke-free light, lubricate machinery, and other things Suddenly this oil becomes very valuable Edwin L. Drake believes that by digging, you can find this petroleum; they call him crazy Boy were they wrong; pools of oil did exist underground Foundations of Growth

The end of the Civil War to 1900: new methods in technology & business The US had the resources to go from an agricultural to industrial economy Factors of Production: land, labor, and capital – these were the most important resources Factors of Production

{ Land • • • Not just the land itself Also all of the natural resources Variety of natural resources in the US were useful for industrial production

{ • • Labor Larger numbers of workers to turn raw materials into goods Rapid growth of population

{ • • Capital • • This includes the machinery, buildings, and tools used in production Land & labor are needed to produce capital goods These goods are essential for the production of consumer goods Capital also means “money for investment” One source was selling of stock by corporations Also by investing a portion of the earnings in better equipment

After the Civil War, businesses looked for ways to expand They needed to raise capital and the way to do this was to buy raw materials and equipment, to pay workers, and to cover shipping and advertising costs Raising Capital

Becoming a corporation – a company that sells shares (stock) of its business to the public The people who invest in the corporation by buying stock are its shareholders Or partial owners Ways to Raise Capital

{ • • Good times: shareholders earn dividends – cash payments from the corporation’s profits Late 1800 s: hundreds of thousands of people shared in corporate profits by buying and selling stocks in special markets called the stock exchange Ways to Raise Capital

Railroads formed the first corporations It helped fuel America’s industrial expansion Banks played a major role, too Businesses borrowed money from them to start or expand their operations Banks made profit on the loans they gave out Growth of Corporations

Because of Edwin Drake, prospectors and investors rushed to western Pennsylvania Oil towns sprang overnight: Oil City & Petroleum Center It expanded as oil was also struck in Ohio & West Virginia The Oil Business

1839: born in Richford, NY who made a fortune from oil At 26 years old, along with 4 partners, he set up an oil refinery in Cleveland, Ohio 1870: he organized the Standard Oil Company of Ohio Most of the oil he acquired were in Cleveland John D. Rockefeller

One of his methods to build his oil empire was horizontal integration It meant combining competing firms into one corporation They produced their own tank cars, pipelines, and even its own wooden barrels Horizontal Integration

Rockefeller lowered his prices to drive his competitors out of business He also pressured customers not to deal with rival oil companies Then he persuaded the railroads to grant him rebates in exchange for his business Being Competitive

1882: he forms a trust – a group of companies managed by the same board of directors 1 st: he acquires stock in many different oil companies 2 nd: the shareholders traded their stock for Standard Oil stock, which paid high dividends This gave the BOD ownership of the other companies’ stock Rockefeller created a monopoly – total control by a single producer Standard Oil Trust

It also became big because it was strong and long-lasting Previously it wasn’t used because it was so expensive However with the development of new manufacturing techniques, the problem was solved Steel Business

2 methods of making steel Bessemer Process Open-hearth Process These helped mills produce steel at an affordable price and in large quantities Pittsburgh, PA became the steel capital of the US because of its large sources of iron ore Steel Industry Grows

He was a leading figure in the steel industry He started as a telegraph operator and soon made his way up to manager of the Pennsylvania Railroad After learning about the Bessemer Process, he builds a steel plant near Pittsburgh The plant was named the J. Edgar Thompson Steel Works This was his biggest customer in the PA Railroad Andrew Carnegie

Carnegie became powerful through vertical integration This means to acquire companies that provided the equipment and services needed for yours He bought iron and coal mines, warehouses, ore ships, and railroads 1900: all of these were combined into the Carnegie Steel Company It produced 1/3 of the country’s steel Vertical Integration

1901: Morgan bought Carnegie Steel He was a banker who combined the Carnegie company with other businesses to form the US Steel Corporation It was the world’s first billion-dollar corporation J. Pierpont Morgan

Rockefeller, Carnegie, and other millionaires grew interested in philanthropy – the use of money to benefit the community They founded schools, universities, and other institutions across the US Philanthropists

Carnegie: donated $350 million to organizations He built Carnegie Hall in NYC, which is one of the world’s most famous concert halls He also founded the Carnegie Foundation for the Advancement of Teaching Finally he also built more than 2, 000 libraries worldwide Philanthropists

Rockefeller: established the University of Chicago He also established New York’s Rockefeller Institute for Medical Research Philanthropists

1889: NJ encourages monopolies by allowing holding companies to obtain charters This was banned in some states Holding companies would buy controlling interests in the stock of other companies instead of purchasing the companies outright Other states passed laws to make mergers easier – the combination of companies Corporations Grow Larger

1880 s: several states passed laws restricting business combinations The public pressured for a federal law to prohibit trusts and monopolies 1890: Congress passes the Sherman Antitrust Act It sought to “protect trade and commerce against unlawful restraint and monopoly” But it did not clearly define “trusts” or “monopolies” Government Regulation

Industrial Workers { Chapter 19 – Section 4

Industrial growth also brought a growth in the standard of living Luxuries and necessities were more available and affordable Factories had been small workplaces where the workers knew one another Now they became larger and less personal Working Conditions

{ • • • Workers worked 10 – 12 hours a day, 6 days a week They could be fired for any reason and many lost their jobs during downturns Or were replaced by immigrants who worked for lower pay Working Conditions

Accidents were common Steel workers: burns from hot steel Coal miners: died in cave-ins, effects of gas and coal dust Textile workers: damaged lungs by airborne lint Garment workers: ruined eyesight form sewing in poor light Sweatshops – crowded urban factories Working Conditions

Steel Workers

Coal Miners

Textile Workers

Sweatshops

{ • • • The majority worked as domestic servants but they also worked in the industries Textile was very popular for women workers Now laws regulated workers’ salaries so women were receiving about ½ of what men earned Women Workers

{ • • • Hundreds of children under 16 worked in factories However social groups brought this to the attention of their state legislature Laws were passed which stated that children had to be at least 12 years old and should not work more than 10 hours a day Companies still ignored these laws The laws didn’t even apply to agriculture which employed about 1 million children Child Labor

Angry workers organized into groups to demand better pay and working conditions These were called labor unions Unfortunately trade unions had little influence because each one represented only one trade Labor Unions Form

1869: these garment cutters in Philadelphia founded the Noble and Holy Order of the Knights of Labor Workers were fired if they joined these unions so the Knights met secretly and used special handshakes to identify each other They were led by Terrence V. Powderly and they even recruited women, African Americans, immigrants, and unskilled workers Knights of Labor

1881: group of national trade unions formed a federation that later one became known as the American Federation of Labor They represented skilled workers in various crafts and they were led by Samuel Gompers They asked for higher wages, shorter hours, better working conditions, and the right to bargain collectively with employers AFL

In this system, unions represent workers in bargaining with management Collective Bargaining

Many unions would not admit women workers so some of them founded their own unions Marry Harris Jones (Mother Mary) – spent 50 years fighting for workers’ rights Women & the Unions

1911: a fire broke out in a sweatshop in NYC The workers were mostly young women and they could not escape from the building because the company had locked the doors to prevent workers from leaving early Nearly 150 workers died in the fire Triangle Shirtwaist Co.

1870 s/1880 s depression led companies to fire workers and lower wages They also forced workers to take pay cuts Angry union workers staged strikes which sometimes turned violent Union Acts

{ • • July 1877: angry strikers burned rail yards, ripped up track, and destroyed railroad property These companies hired strikebreakers who were responsible to replace these strikers Union Acts

May 1886: Haymarket Square, Chicago 4 strikers had been killed The next day, other strikers gather around to protest Police arrive at the scene to break up the protest An unidentified person throws a bomb which kills 1 officer After this day many Americans associated labor movement with terrorism & disorder Haymarket Riot

1892: strike occurs in Andrew Carnegie’s steel plant in Homestead, Pennsylvania Managers had cut workers’ wages in a way to weaken the steelworker’s union The union called for a strike and the managers hired nonunion workers and brought in 300 armed guards to protect them A fight broke out killing 10 people After it was reopened the nonunion workers returned under the protection of the armed guards; the union failed Homestead Strike

May 1894: workers from George Pullman’s railway-car plant went on strike near Chicago Pullman responded by closing the plant and 1 month later workers in the American Railway Union supported the strikers They refused to handle Pullman cars which paralyzed (brought a stop) to rail traffic Pullman Strike

Pullman and railroad owners fought back and they persuaded the US Attorney General to obtain an injunction – court order – to stop the union The workers were led by Eugene V. Debs who refused to end the strike and was sent to jail Pullman’s Strike

{ • • • President Grover Cleveland sent federal troops to Chicago The strike was soon over This dealt another blow to the union movement but despite these setbacks workers continued to organize to work for better wages and working conditions Pullman’s Strike