The Growth of Industry 1865 - 1914

1. The Growth of Industry 1865 - 1914 Chapter 19

2. Railroads Lead the Way Chapter 19 – Section 1

3. By the 1890s, 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

4. 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

5. 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

6. 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

7. 4 developments of new technology arose • AIR BRAKES • CAR COUPLERS • REFRIGERATED CARS • PULLMAN SLEEPING CAR Railroad Technology

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

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

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

11. 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

12. 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

13. 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

14. 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

15. 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

16. Inventions Chapter 19 – Section 2

17. 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

18. 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

19. 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

20. 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

21. 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 Telephone

22. 1800s 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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 McCoy: invented a mechanism for oiling machinery • Jan E. Matzeliger: developed a shoe-making machine that which revolutionized the shoe industry African American Inventors

30. Lewis Howard Latimer Granville Woods African American Inventors

31. Elijah McCoy Jan E. Matzeliger African American Inventors

32. 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

33. 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

34. Ford Model T

35. 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

36. 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

37. Merchants also sold good by mail whereas before service was only to post offices • 1890s: 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

38. 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 Selling Goods

39. An Age of Big Business Chapter 19 – Section 3

40. 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

41. 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

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

43. Larger numbers of workers to turn raw materials into goods Rapid growth of population Labor

44. 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 Capital

45. 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

46. 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

47. Good times: shareholders earn dividends – cash payments from the corporation’s profits Late 1800s: 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

48. 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

49. 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

50. 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