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What do all of these have in common?. Typewriter Rubber bicycle tires Carburetor Diesel engine X-ray Radio Cold cereal Aspirin Magnetic tape recorder Rubber heel (for shoe/boot) Movie projector Wireless radio telegraph Photoelectric cell Milk safety test
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What do all of these have in common? Typewriter Rubber bicycle tires Carburetor Diesel engine X-ray Radio Cold cereal Aspirin Magnetic tape recorder Rubber heel (for shoe/boot) Movie projector Wireless radio telegraph Photoelectric cell Milk safety test Thermite (industrial material) Self-powered model airplane Bolt action rifle Motion picture camera Data processing machine Photocopying machine Bridle bit (for horse) Desk top pencil sharpener Dust pan Fountain pen Golf tee Dry cell battery (Ever Ready) Steel-framed skyscraper American Express Travelers Cheques Book matches Hershey chocolate bar Cathode-ray tube Jell-o Roll film Vacuum cleaner The “T” Cracker Jack Peanut agricultural science Dirgible Dixie cup (paper cup) Dishwasher Peep show Escalator Gasoline powered car Player piano Submarine Double-edge safety razor
Did you say… • They are all major inventions of the 1890s? • You win a prize!
American Innovation, Invention & Industry at the Turn of the Century Content Question #1: What were the most important causes of industrial development in the US from the Civil War to World War I (1865-1914)?
Inventors / Innovators • Thomas Alva Edison • Menlo Park – first research & development • Test 1000s of materials for light bulb filament • First practical incandescent light bulb (1879) • First electrical power station built in 1882 NYC • His team invented generators, regulators, meters, switches, light sockets, fuse boxes, underground electric cables • Electricity to homes, stores, factories • Alexander Graham Bell • The telephone invented 1876 • Opens way for worldwide communications network
Natural Resources • Oil (black gold) • Refined into kerosene, and later gasoline • First drill invented by Edwin Drake in 1859 –wells pump oil to surface • Vast deposits of iron & coal discovered • 1860 = 14 mil. tons coal mined • 1884 = 100 million tons • Steel • The Bessemer process takes carbon out of iron ore to create lighter, more flexible, rust-resistant metal • Before Civil War steel could be made 3-5 tons/day, now the same could be made in 15 minutes • By 1880, 1 million tons produced • By 1910, 25 million tons
The Skyscraper Home Insurance Building Ames Building Flatiron Building Chicago, 1884 (the first) Boston, 1893 (Washington St.) New York, 1903
Productivity • Electricity • allows manufacturers to build factories anywhere • Demand for labor-saving household electric appliances • Electric street cars – cities will spread • Industry will grow as never before
Productivity • Agricultural / Transportation Advances • Before Civil War, 61 hours labor to produce acre of wheat • By 1900, 3 hours 19 min. • Manufactured ice & meatpacking • 193,000 miles railroad Tractors towed and powered new planters, cultivators, reapers, pickers, threshers, combine harvesters, mowers, and balers
The Railroad • Transcontinental Railroad completed 1869
The Railroad • Creation of standard time and time zones
Economic Innovations & Inventions • Economies of Scale – the more you make, the cheaper it costs • Corporation: a business that is owned by many investors • legal entity separate from owners • Raise large amounts of capital and limit liability • Stock – partial ownership in a company (held by a shareholder) • Bond – an IOU (set period of time, w/ interest) • Capital – Assets (money and/or machinery) • Monopoly, holding company, trust (from HW)
George M. Pullman • Town of Pullman, Illinois • Designed for employees of his railcar co. • Strictly controlled lives of employees
Richard Ely on Pullman, IL “The wholesome, cheerful surroundings enable the men to work more constantly and more efficiently. The healthy condition of the residents is a matter of general comment.” “Very gratifying is the impression of the visitor who passes hurriedly through Pullman… What is seen in a walk or drive through the streets is so pleasing to the eye that a woman's first exclamation is certain to be, ‘Perfectly lovely!’”
but… “individual initiative, even in affairs which concern the residents alone, is repressed. Once several of the men wanted to form a kind of mutual insurance association to insure themselves against loss of time in case of accident, but it was frowned down by the authorities, and nothing further has been heard of the matter. A lady attempted to found a permanent charitable organization to look after the poor and needy, but this likewise was discouraged, because it was feared that the impression might get abroad that there was pauperism in Pullman.”
And so… The worker is “surrounded by constant restraint and restriction, and everything is done for him, nothing by him.” (no free discussion, civic responsibility) “laborers at Pullman have not been allowed to acquire any real property in the place… There is a repression of any individuality. Everything tends to stamp upon residents, as upon the town, the character expressed in ‘machine made’." “the idea of Pullman is un-American.”
New Business Strategies • VERTICAL INTEGRATION • Control all stages from resources, to manufacturing, to distribution • Ex: Carnegie bought out coal fields, iron mines, freighters and rail lines • HORIZONTAL INTEGRATION • Control all manufacturing/production in an industry • Ex: By 1880 Rockefeller controlled 95% of oil refining (Standard Oil Trust)
“Titans of Industry” J.P. Morgan Andrew Carnegie John D. Rockefeller