the expansion of industry section 14-3 pp. 436-439
TRANSCRIPT
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The Expansion of Industry
Section 14-3 pp. 436-439
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Preview Questions
• What were American’s important natural resources?
• How did new inventions change Americans’ way of life?
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Natural Resources Fuel Industrialization
• Three Causes of Technological Advances– Large supply of natural resources – New inventions – Growing urban population that demanded new
products
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Natural Resources Fuel Industrialization
• America’s Abundant Natural Resources– Oil: • Used for kerosene and gasoline• Edwin L. Drake: Stem Engine Drill
– Coal– Iron: • Bessemer process (W. Kelly) turned iron into steel • Used for RR’s, farm tools, cans, skyscrapers (W.
Jenney), bridges
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Inventions Promote Change
• Electricity– Thomas Edison’s light bulb – George Westinghouse – cheap, safe electricity
• Typewriter– Christopher Sholes
• Telephone – Alexander Graham Bell
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Inventions Promote Change
• Changes in American Life – More women work in offices – Work done in factories – Poor conditions for employees– Increased time for leisure – New products
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The Age of the Railroads
Section 14-2 pp. 442-446
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Preview Questions
• How did the railroads change the way Americans told time?
• How did the growth of railroads affect the nation?
• Why did the farmers fight the railroads?
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RR’s Span Time and Space
• Transcontinental Railroad– Completed in Promontory Point, Utah in 1869
– Work completed by Irish and Chinese immigrants and Civil War veterans
– United the nation
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RR’s Span Time and Space
• RR Workers Faced Challenges – Life threatening working conditions – Low pay – Discrimination
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RR’s Span Time and Space
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Opportunities and Opportunists
• Benefits of Railroad Growth – Easier to travel long distances – Iron, Steel, Coal, Lumber, Glass industries grow– Increased trade – Growth of many communities • Pullman’s Town
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Opportunities and Opportunists
• Drawbacks of RR Growth – Abuse of Power – Corruption
• Credit Mobilier Scandal– Inflated costs of building RR– Bribed members of government
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The Grange and the RRs
• Farmers Challenge Railroads – Upset over large land grants and high shipping
prices – Many states began to pass laws regulating RRs– Munn v. Illinois• Supreme Court declared government had authority to
regulate RRs
– Interstate Commerce Commission created to supervise RRs – not effective
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Big Business and Labor
Section 14-3pp. 447 – 455
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Preview Questions
• How did Carnegie take control of the steel industry?
• How did entrepreneurs try to control competition?
• What were the two major types of unions?
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Carnegie’s Innovations
• Industrial mogul who made his fortune in steel companies
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Carnegie’s Innovations
• Vertical Integration: – Company buys out its suppliers– Control quality and cost of product– Created monopolies
• Horizontal Integration: – Company merges with similar companies– Created monopolies
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Social Darwinism
• Theory that taught “only the strong survive”
• Promoted competition, hard work, and responsibility
• Used as justification for exploitation of workers and immense wealth
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Fewer Control More
• Monopoly: – Complete control over an industry’s production,
quality, wages, and prices– Eliminated competition and increased profits
• Holding Company:– Corporation that did nothing but by the stock of
other companies. – Ex: John D. Rockefeller and Standard Oil
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Fewer Control More
• Trusts: – A large corporation made
up of many companies that receive dividends on profits earned by all the companies combines
– Helped to create monopolies
– Ex: John D. Rockefeller and Standard Oil
– “Robber Barons”
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Fewer Control More
• Sherman Antitrust Act– Made it illegal to form trusts– Not effective
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Labor Unions
• National Labor Union– Won 8 hour work days in
1868
• Knights of Labor – Open to all workers – Promoted negotiation
over strikes
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Union Movements Diverge
• American Federation of Labor – Led by Samuel Gompers – Used strikes and collective bargaining
• Industrial Workers of the World – Based on the work of Eugene Debs – Made up of Socialists and political radicals – Wanted to include skilled and unskilled workers
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Strikes Turn Violent
• Strike Breakthroughs – Great Strike of 1877 – President Hayes used
federal troops to break up the strike
– Haymarket Square Riot – Caused public opinion to turn against workers and strikes
– Pullman Strikes - After strikers turned violent, President Cleveland sent in troops.
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Strikes Turn Violent
• Trends in Labor Organization – Women began to
organize – Employers refused to
recognize union leaders – “Yellow Dog” Contracts
forbid union membership
– Government break-ups of strikes