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INDUSTRIALIZATION 1865 - 1901

INDUSTRIALIZATION 1865 - 1901. `. Samuel Gompers. J. P. Morgan. Thomas Edison . Andrew Carnegie. John D. Rockefeller. Cornelius Vanderbilt . Causes of Industrialization. National Resources (Raw Materials) Water, timber, coal, iron, copper Needs helped settle the West - RR Oil Kerosene

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INDUSTRIALIZATION 1865 - 1901

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  1. INDUSTRIALIZATION1865 - 1901

  2. ` Samuel Gompers J. P. Morgan Thomas Edison Andrew Carnegie John D. Rockefeller Cornelius Vanderbilt

  3. Causes of Industrialization • National Resources (Raw Materials) • Water, timber, coal, iron, copper • Needs helped settle the West - RR • Oil • Kerosene • 1859 - Edwin Drake 1st oil well, Titusville, Pa. • Population Increase – Large workforce • 1860 – 1910, tripled due to immigration • Free Enterprise • Laissez –faire • Entrepreneurs

  4. New Inventions • Alexander Graham Bell • 1876, Telephone (AT&T) • Thomas Alva Edison • 1877, Phonograph • 1879, Light Bulb • 1889, Edison General Electric Company (GE) • Textile Industry • Northrup Automatic Loom • Standard Sizing • Power-driven Sewing Machine • Mass production of Shoes

  5. Linking the Nation 1865, 35,000 miles 1900, 200,000 miles Transcontinental Railroad 1862, Pres. Lincoln, Pacific Railway Act Union Pacific – Irish immigrants Central Pacific – Chinese immigrants Railroads

  6. Railroads cont. • Spurring Growth • Increased markets & desire for raw materials • Consolidation of smaller lines (Vanderbilt) • American Railway Association - 1883 • Time Zones, safer more reliable • Air Brakes, pull longer, heavier trains • Standard Gauge, unite all lines • Land Grant System • Gave RR companies land in the unsettled West • Sold land for $$ to finance rail construction

  7. Refrigerated Railroad Car made it possible to ship meat from slaughterhouses to cities Gustavas Swift - meatpacking

  8. Scandals • Robber Barons • RR Entrepreneurs • Built fortunes by swindling taxpayers, bribing govt. officials, & cheating on contracts • Credit Mobilier Scandal – 1872 • Construction company of Union Pacific stockholders • Overcharged RR, investors kept extra $$ • Used up federal $$, sold stock to congressmen in exchange for more federal $$

  9. Big Business • Corporation • Produces more goods cheaper • Continue to operate in poor economic times • Can negotiate rebates from RR – lowers operating costs • Drives out smaller competitors Pools • Companies agree to maintain prices of certain products

  10. Monopoly Single company achieves control of an entire market Many states begin outlawing Trusts Legal maneuver allowing trustee to control several companies & run them as one Holding Companies Produce no product Controls several companies, merging into one large enterprise Business Practices

  11. Trust Busting

  12. Selling the Product • Advertising • New ways to market • 1900 - $90 million in ads • Department Stores • Shopping becomes a past time (fun) • Everything under one roof (Macy’s) • Chain Stores • Group of similar stores owned by same company • Lower prices instead of elaborate service (Woolworth’s) • Mail Order • Catalogue buying (Sears)

  13. Working in the U.S. • Workers • Machines replacing skilled labor • Working conditions unhealthy & dangerous • $.22 per hour, 59 hours per week • Skilled craft workers – higher wages • Laborers – few skills, lower wages • To improve conditions – organize into Unions

  14. Early Unions • Trade Unions • Limited to workers with skills • Industrial Unions • United craft workers & common laborers in a particular industry • Anti-Union Methods • Contracts to not join a union • Blacklist – not hire suspected Union organizers • Lockout – locked workers out & refused to pay them • Strikebreakers – replace workers during strikes (Scab)

  15. Union Problems • No laws protecting the right to organize • Courts ruled strikes were “conspiracies that interfered with trade” • Perception that unions threatened American Institutions • Marxist, Anarchists, or Revolutionaries • Rarely successful

  16. Cut wages Nation’s 1st labor protest 80,000 workers, 11 states President Hayes sends troops to regain order 100 killed, millions in damages Failure led to organization of Knights of Labor The Great Railroad Strike of 1877

  17. Knights of Labor • 1st nationwide industrial union • 8 hr. work day • Govt. bureau of labor stats • Equal pay for women • Abolition of child labor • Creation of worker owned factories • Use of arbitration – 3rd party negotiators

  18. Haymarket Riot of 1886 8 hr. day Clash between police & workers Anarchists set off bomb – police open fire 7 cops, 4 workers die 8 arrested, 4 executed (only 1 a Knight) Knights of Labor membership declines Carnegie Steel Works during the 'Battle of Homestead

  19. Pullman Strike George Pullman • American Railway Union (ARU) • Eugene V. Debs • Cut wages (depression) • ARU stopped handling Pullman cars • Paralyzed U.S. economy • Attached mail cars • Detach Pullman cars = detach mail cars • Violation of federal law, interfering with U.S. mail

  20. American Federation of Labor (AFL) • 1881, Samuel Gompers • Politics • Reject socialist/communistic ideas • Fight for small gains • Strike only if negotiations fail • Goals • Companies to recognize unions & collective bargaining • Closed shops – hire only union workers • 8 hr. work day

  21. Working Women • Domestic servants, teachers, nurses, secretaries • Paid less for same job • Excluded from unions • Women’s Trade Union League (WTUL) • 8 hr. work day • No evening work • No child labor • Collected funds to help striking women

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