The Expansion of Industry by wuyunqing



Chapter 9
I. Technology Revolution

  Daily Life in 1865:
 -no indoor electricity – used candles or oil
 -no refrigeration – ice from frozen ponds
   stored in icehouses – expensive
 -slow communication
I. Technology Revolution

  Daily Life in 1900:
 -1790-1860: only 36,000 patents issued
   (license to make, use, or sell an
 -1860-1890: 500,000 patents issued
 -by 1900, the standard of living in the U.S.
   was the highest in the world
I. Technology Revolution

  Railroads Improve Transportation:
 -before the Civil War: most tracks were
   short and didn’t connect major cities
      -there was also no standard width, or
      gauge, of tracks – very expensive to
      move goods
I. Technology Revolution

 -1st Transcontinental Railroad: completed
   in 1869
       -coast to coast
       -Central Pacific built eastward
       -Union Pacific built westward
       -met at Promontory Point, UT
            Opened up the West
I. Technology Revolution

 -problems: noisy, dirty, uncomfortable
 -improvements: steel rails replaced iron
   rails (more durable), standard gauges,
   improved safety (ex: better brakes)
 -another problem was scheduling: early
   1800s each town set their own clock –
   national time zones were created in 1883
   by the railroad industry
I. Technology Revolution

  Advances in Communication:
 -telegraph – perfected by Samuel Morse –
   used the Morse Code to send electrical
 -Western Union Telegraph Company –
   formed after the C.W. – laid 100,000s of
   telegraph cable (1870: 100,000 miles
   1900: 900,000 miles)
I. Technology Revolution

 -telephone – invented by Alexander
   Graham Bell in 1876 – teacher of the
   deaf in Boston – from Scotland
I. Technology Revolution

  Electric Power:
 -Thomas Edison – made electricity more
   widely available
      -also invented the phonograph
      -set up shop in Menlo Park, NJ
      -greatest inventor of the day
      -developed light bulb in 1880
I. Technology Revolution

 -George Westinghouse – developed a new
   current that could be transmitted cheaper
   in 1885

 -Electricity’s Impact: made refrigeration
   possible, created new jobs (ex: electric
   sewing machine allowed clothes to be
   mass produced) – rural areas did not
   benefit at first
I. Technology Revolution

  The Bessemer Process:
 -1850s – Henry Bessemer made it easier
   and cheaper to mass produce steel – led
   to a new age of building – ex:
   skyscrapers, bridges, etc.
II. The Growth of Big
  It took a lot of money to build factories
   and develop these new inventions
        – business leaders often combined
          their funds to form large companies
II. The Growth of Big
  2 views of the business leaders of this
   era: Were they…

 1) “Robber Barons” – implies that business
   leaders built their fortunes by “stealing”
   from the public – eliminate competition =
   higher prices
II. The Growth of Big
 2) “Captains of Industry” – implies that
     business leaders served their country in
     a positive way by increasing the quality
     and quantity of goods and creating new
II. The Growth of Big
  Andrew Carnegie:
 -born in Scotland – settled in Pittsburgh
 -made $50,000 a year in 1865
 -created the Carnegie Steel Company in
 -created a monopoly, or complete
   dominance of an industry by one
   company, on the steel industry
II. The Growth of Big
 -believed in the “gospel of wealth” – people
   should be free to make as much money
   as they can as long as they give some of
   it away
 -gave away $350 million by the time of his
   death in 1919
II. The Growth of Big
  Social Darwinism – the idea that strong
   businesses survive and the weak die –
   the rich used this to justify their wealth

  Edwin L. (E.L.) Drake – developed and
   used the first oil well – Titusville, PA –
   nicknamed “Drake’s Folly” (people
   thought he was crazy)
II. The Growth of Big
 John D. Rockefeller:
-formed the Standard Oil Company in 1863
-created a monopoly on the oil industry by
  underselling (cut throat) his competition
-created a trust, or group of several
  companies managed by one board, in
  1882 (40 companies)
II. The Growth of Big
 -net worth in 1910: $310 billion in today’s
   money (2x’s as much as Bill Gates,
   Warren Buffett, and Sam Walton

 *Sherman Anti-Trust Act: 1890 – outlawed
   any combination of companies that
   created a monopoly – not enforced
III. Industrialization and
  1860-1900: 14 million immigrated to the
   U.S. for new opportunities (i.e. jobs)
  Late 1800s: 8-9 million moved to the
   cities looking for jobs
  Every family member worked because
   wages were low – children at ages 12 or
   13 worked – no unemployment insurance
III. Industrialization and
  Factory workers often worked 12 hrs. a
   day, 6 or 7 days a week
   -they were paid by production not by the
   hour (piecework) – i.e. those that worked
   the fastest made the most money
  Women were excluded from the high-
   paying jobs and had no chance to
Industrialization and
  1882: average of 675 workers killed a
  No vacation, sick leave, unemployment
  20% of boys and 10% of girls under the
   age of 15 worked – including some as
   young as 5
  1899 wages: women - $267 a year, men
   - $498 – Carnegie - $25 million
IV. The Great Strikes

  Labor unions emerged during the late
   1800s – wanted higher wages, fewer
   hours, and better working conditions

  Knights of Labor – formed in 1869 – led
   by Terrence Powderly – united all skilled
   and non-skilled workers – little success
IV. The Great Strikes

  American Federation of Labor – formed
   in 1886 – led by Samuel Gompers –
   organized only skilled workers

  Industrial Workers of the World –
   nicknamed “Wobblies” – group in
   Chicago who opposed the AFL – focused
   on non-skilled workers
IV. The Great Strikes

  Reaction of Employers:
 -hated unions – tried to stop their influence
       1) firing union organizers
       2) forbidding union meetings
       3) forcing new workers to agree not
             to join a union
       4) refusing to recognize unions
IV. The Great Strikes

  Railroad Strike of 1877 – 1st major strike
   in the U.S. – railroad companies cut
   wages and violence erupted across the
   country – federal troops put down the

  1881-1900: 24,000 strikes in the U.S.
IV. The Great Strikes

  Haymarket Riot – 1886
   - workers wanted an 8 hr. work day
   - fight broke out between the strikers and
   scabs at the Chicago McCormick Reaper
   - bomb thrown by someone in Haymarket
   Square killed 7 police officers
   - riot followed with dozens killed on both
IV. The Great Strikes

  Homestead Strike – 1892 – wages cut by
   Carnegie Steel – strike began in
   Homestead, PA – several killed

  Pullman Strike – 1894 – the last of the
   great strikes
   -sleeping car maker George Pullman cut
   wages by 25% and laid off several
IV. The Great Strikes

 -120,000 railroad workers eventually joined
    the strike
 -federal gov’t ended the strike because the
    mail had to get through
 -increased federal involvement in labor

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