The Age of Big Business in PA

1. The Age of Big Business in PA Industrialization

2. The Age of Big Business in pa • Pennsylvania was the perfect setting for big businesses to emerge. We have a large variety of natural resources that allowed many industries to grow and flourish. • Also, at this time there are many new inventions and ideas that would lead to the industrialization that was experienced during this time.

3. Oil • The1860’s brought the oil boom to PA after Edwin Drake hit oil in Northwestern PA. • Until 1860 PA led the world in oil production. • Later oil would be refined and used for kerosene, oil lubricant, paint, grease, and wax.

4. Oil • John D. Rockefeller – Started Standard Oil Company • Standard Oil absorbed competitors and owned timberlands, wells, pipelines, oil tanker fleets, barrel and chemical plants, and refineries. This allowed them to control 90% of the oil refining ability of the United States. • He had a monopoly. A monopoly is when one business controls an industry and can set prices for that product. The government forced Rockefeller to break up his business. This is good for potential competitors and also for consumers.

5. Coal • Coal is formed when the ground is under a lot of pressure and there is plate movement for long periods of time. This means that mountains and volcanoes are excellent areas to find coal. • PA is perfect then because of the Appalachian Mountains.

6. Coal • Eastern PA contained 95% of the nation’s anthracite coal. Anthracite coal is primarily used for home heating. • Western PA held large amounts of bituminous coal. Bituminous coal is soft coal. It is often turned into coke. Coke is needed to help convert iron ore into a useable product to make steel.

7. Iron Ore • Iron Ore is a mineral taken from the ground. Early on the primary use of iron ore was to make iron products like tools, cooking utensils, machinery, and railroad tracks. • It was then discovered that iron ore could be used to make a stronger metal called steel. This then became the primary use of iron ore. • PA was #1 in mining iron ore until 1880, even then it continued to be a top producer of this important mineral.

8. Coke • Coke is made from soft coal. It is then used with iron ore to make steel. It’s job in the process is to help take the impurities out of the iron ore so that it can then be turned into steel. • Henry Clay Frick owned 4 out of 5 coke factories. He would later become Andrew Carnegie’s partner in Carnegie Steel. This partnership was formed to benefit their businesses since coke factories and steel mills depend upon each other for success.

9. Steel • Steel is made from primarily iron ore, coal turned into coke, and limestone. The iron ore is burned with the coke and limestone. The coke helps separate the impurities of the iron ore and the limestone absorbs them. The iron is then taken to an open hearth were heat and other chemicals are added turning it into steel. • Steel was used to make railroad tracks, locomotives, bridges, steamboats, and tools.

10. Steel • Andrew Carnegie was the master of the steel industry. Carnegie learned the new process for making steel that had been developed by Henry Bessemer. He started using that process here in the United States and he also started to buy up businesses that were related to his steel industry. This allowed Carnegie Steel to employ 20,000 people and become the largest company in the world at that time. • Carnegie became partners with Frick to help improve his steel business. Frick however, was rarely consulted by Carnegie on business matters. • In 1901 Carnegie sold Carnegie Steel to J.P. Morgan. Morgan joined that company with 200 others to form U.S. Steel.

11. Railroads • Railroads were used to carry natural resources to factories and mills and to carry finished products to market. • By 1900 there were 10,000 miles of railroad tracks. • ¾ of the total tons of freight that was hauled was coal! • George Westinghouse was important to the railroad industry. He created air brakes for locomotives; as well as, safety signals.

12. Aluminum • Charles Hall invented a new and cheaper method of producing aluminum. He founded Alcoa and began producing pots, pans, and kettles. • Hall needed to be able to compete with steel and wood materials so he needed to expand his production to drive down the price of the aluminum. • Andrew Mellon financed Alcoa’s expansion which helped to make aluminum cheaper. • During the World Wars Alcoa produced canteens and mess kits. They also started producing automotive and airplane parts.

13. Glass • Pennsylvania was a large producer of glass because of our resources and the number of rivers and railroads which could be used to transport the resources and finished products. • Pittsburgh Plate and Glass Company (PPG) is the 2nd largest glass company in the country. They produce glass for a variety of uses.

14. Glass • Washington, PA was home to two great glass producing companies. • Hazel Atlas had 2 plants in Washington. One is now the Chapman Corp. Offices on Main Street. The other is the large grey warehouse just past Exit 15 on I-70. The smokestack is still visible as well. Hazel Atlas produced jars which were used for canning in addition to other things such as Vaseline jars. This company went out of business in 1956 due to hard economic times.

15. Glass • Duncan Miller was another glass company here in Washington, PA. They were well known for their handmade glass products. Their plant was on Jefferson Ave. It went out of business in 1955. The cause of their closing was their glass products were deemed uneconomical in a period of hard times. A year after going out of business their building was destroyed by fire.

16. Other Industries • Trees provided the raw material that allowed PA to lead the nation in lumber production. • Cement was another important industry of PA. The Leigh Valley of PA was #1 in cement production during this time and today is #3. Cement was being used for roads, bridges, and buildings.

17. Population Increase with Industrialization • In 1880 1 in 7 people were born in Europe. • 1870-1910 The African American population increased by 126,000. In 1910 the African American population was 191,000! • Many people would follow the jobs and follow an industry. They would create what we call a “boom town”. This is a town that experiences rapid population growth. When the jobs and industry are gone, the people will leave that area too. This then creates a “ghost town”. Ghost towns are towns that fail often due to economic issues.

18. Problems that arise from Industrialization • Low Pay • Long Hours • Hot • Crowded • Dirty • Cave Ins • Dangerous Gasses • Floods in the Mines • Dark • Air Pollution • Crime • Water Pollution

19. Children in the Workplace • Children were used in mines and factories because of their short stature and little hands. They could fit into the tight spots that adults could not. • Children work 12 hours a day. For generally about $132 a year! • Pennsylvania led the nation in child laborers.

20. Workers Fight Back • Groups of workers joined together to try and improve their conditions. These groups were called Unions. • The reasoning behind Unions was that as a single person you don’t have much power but in a group you could make a difference. • Unions would use Strikes to improve their conditions. A strike is when workers agree to stop working and refuse to return to work until their demands are met. Companies can’t afford to replace workers and they can’t afford to lose money. Companies will then meet the demands of the workers to end the strike. This means that they can get back to work and back to making money!

21. Homestead Strike • Wages were cut for the employees at Carnegie Steel’s Homestead Mill. • Henry Clay Frick made this decision while Carnegie was in Scotland on vacation. However, letters from Carnegie to Frick show that he supported Frick’s actions. • Employees voted to go on strike and Frick closed down the mill. • The Pinkerton Agency was called in by Frick as strikebreakers and a large fence with barbed wire was placed around the mill. The employees called it “Frick’s Fort”. Scabs were brought in to take the place of the striking workers. • A fight broke out between Pinkerton’s Agents and the strikers. 10 men died – 3 Agents and 7 Striking Employees. • PA militia was called in to restore order. • This was a big loss for Unionism • Non Union workers went back to work • Union workers were blacklisted and couldn’t find work • Wages were cut even more than proposed • The work day was lengthened

22. Achievements of Unions • 8 hr Work Day/ 38 hr. Work Week • Eliminated Child Labor • Safer Work Conditions • Better and Equal Pay • Paid Holidays and Vacation • Retirement

23. Meeting The Needs of The People • H.J. Heinz – Canned Cooked Foods (Preserved it Longer) • People who work all day cannot grow food. Grocery stores start to become more popular. • Helped workers by offering clean and pleasant working conditions. • Fought for legislation banning false food labels. • “The Good Provider” • Milton Hershey- Affordable Chocolate • Also helped his workers by providing health and life insurance, retirement, and helped workers buy homes.

24. Meeting The Needs of The People • John Wanamaker- Opened the first department store • 1876/Philadelphia • In a time when people spend most of their day working they like the department store because it saved time to have everything in one store. • Frank Woolworth- Opened the first “Five and Dime” store • Low Prices would benefit the many workers who had low wages

25. Centennial Exhibition • Celebrating 100 Years of Independence in America • Proud of Past – Hopeful for the Future. • A time to show off new inventions. • Lasted from May to Nov. • 8 Million Visitors • Hall of Machinery – • Telephone • Typewriter • Electric Lights • Women’s Building– • Women operating machines • Printing women’s rights pamphlets

26. Johnstown Flood • Johnstown, PA • South Fork Dam created for the Main Line Canal, flooded. It had been transformed into a lake for fishing by the South Fork Fishing and Hunting Club. This club was for the rich and elite industrialist of the time, including Frick, Mellon, and Carnegie. • The upkeep of the dam was not maintained which contributed to the flooding of the dam. • The 450 acre lake emptied in 36 minutes! There was a 40 ft. wave that wiped out towns, killing 2,200 people. 1,000 people were missing and there were millions of dollars in damage. • Clara Barton created the 1st Red Cross Relief Center to help the people of Johnstown.