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Chapter 18 THE INDUSTRIAL SOCIETY

Chapter 18 THE INDUSTRIAL SOCIETY. America Past and Present. Industrial Development. Late nineteenth-century U.S. offers ideal conditions for rapid industrial growth Abundance of cheap natural resources Large pools of labor Largest free trade market in the world

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Chapter 18 THE INDUSTRIAL SOCIETY

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  1. Chapter 18THE INDUSTRIAL SOCIETY America Past and Present

  2. Industrial Development • Late nineteenth-century U.S. offers ideal conditions for rapid industrial growth • Abundance of cheap natural resources • Large pools of labor • Largest free trade market in the world • Capital, government support without regulation • Rapid growth 1865–1914 p.512

  3. An Empire on Rails • U.S. industrial economy based on expansion of the railroads • Steamships made Atlantic crossings twice as fast • The telegraph & telephone transformed communications 512-513

  4. Emblem of Motion & Power • Railroads transform American life • End rural isolation • Allow regional economic specialization • Make mass production, consumption possible • Lead to organization of modern corporation • Stimulate other industries • Railroads ~ Most significant technological innovation in the 19th century p.513

  5. Emblem of Motion & Power • 1865–1916: U.S. lays over 200k miles of track costing billions of dollars • Stagecoach = 50 mi/day; RR = 50 mi/hr • Went where rivers & canals could not go • Comfort & safety • Chicago supplied meat to the nation, Minneapolis supplied grain, St. Louis, beer p.513

  6. Building the Empire • At the end of the Civil War, the US had nearly as much railroad track as the rest of the world combined. • $4.5B invested by 1880 & only ½ complete • Federal govt loaned nearly $65M to a half dozen western railroads & donated millions of acres of public land • Cong required the railroads to carry govt freight, troops, & mail at reduced rates, saving $1B between 1850 & 1945 p.514-515

  7. Federal Land Grants to Railroads as of 1871 p.514

  8. Railroad Construction, 1830–1920 p.514

  9. Linking the Nation via Trunk Lines • No integrated rail system before Civil War • Rails different gauges • Small systems were not linked • After 1865, in a burst of consolidation, large companies swallowed small & integrated networks became a reality • East linked directly with Great Lakes, West • Integration took longer in the war damaged South, caught up by 1900 • Rail transportation becomes safer & faster than ever p.515-516

  10. Rails Across the Continent • 1862: Congress authorizes the transcontinental railroad • Union Pacific works westward from Nebraska using Irish laborers • Central Pacific works eastward using Chinese immigrants (not allowed in picture) • May 10, 1869: Tracks meet in Utah • By 1900, four more lines to Pacific p.519 p.516-518

  11. Railroads ~ 1870 & 1890 1883: American Railway Assoc divided the country into four times zones to help standardize schedules. Cong did not standardize the country until 1918. p.517

  12. Problems of Growth • Intense competition among railroads for passengers & freight • Some companies tried to arrange pooling agree-ments to control competition but were unsuccessful • Companies then tried to consolidate, but their systems collapsed in the Panic of 1893 • Needing $, railroads turned to bankers who impose order by consolidating to eliminate competition & increase efficiency • J. P. Morgan, most important figure in American finance, took the lead • In 1900, seven giant rail systems dominate p.518-519

  13. An Industrial Empire • Process developed by Henry Bessemer in England & Wm Kelly in the US made increased of production of quality steel possible • Longer bridges, taller buildings, heavier machinery, faster ships • Use of steel changes agriculture, manufacturing, transportation, architecture p.520

  14. Andrew Carnegie & Steel • Large-scale steel production requires • Access to iron ore deposits in Minnesota • Extensive transportation network • Requirements lead to “vertical integration” • Definition: A type of organization in which a single company owns & controls the entire process from obtaining raw materials to manufacture & sale of the finished product p.520

  15. Andrew Carnegie & Steel • 1872: Andrew Carnegie enters steel business • By 1901, Carnegie employs 20k & produces more steel than Great Britain • Sells out to J. P. Morgan • Morgan creates the United States Steel Corporation • Employed 168k people & produced 9M tons of iron & steel per year p.520-521

  16. Steel Production ~ 1880–1914 p.520

  17. Chapter 18THE INDUSTRIAL SOCIETY America Past and Present ½ Point

  18. Rockefeller & Oil • Petroleum profitable as kerosene for lighting & went on the lubricate the machines of the industrial age • Edwin L. Drake drilled the first oil well near Titusville in northwest Pennsylvania • 1863 ~ John D. Rockefeller organizes Standard Oil Company of Ohio • Rockefeller lowers costs, improves quality, establishes efficient marketing operation • 1879 ~ He controlled 90% of US oil refining capacity. Standard Oil Trust estab 1881 p.521-522

  19. The Business of Invention • Late nineteenth-century industry leads to new American technology • An Age of Invention • Telegraph, camera, processed foods, telephone, phonograph, incandescent lamp • Electricity in growing use by 1900 p.523-527

  20. The Business of Invention • Thomas Edison • (1847-1931) • 1,093 US patents & many in UK, France & Germany • Greatest inventor of the late 19th century p.523-527

  21. The Business of Invention • George Eastman • (1854-1932) • Patented a process for coating gelatin on photographic plates that led to celluloid film & motion pictures p.523-527

  22. The Business of Invention • George Eastman • (1854-1932) • Patented a process for coating gelatin on photographic plates that led to celluloid film & motion pictures p.523-527

  23. The Business of Invention • Alexander Graham Bell (1847-1922) • 1878 ~ Phone installed in the White & first phone exchange opened in New Haven, CN • 1895 ~ 310k phones • 1905 ~ 10M phones p.523-527

  24. Patents by Decade ~ 1850–1899 p.523

  25. The Sellers • Marketing becomes a science in late 1800s • Advertising becomes common • Development of chain stores, brand name, & mail-order houses provided convenience & standardization • Americans become a community of consumers p.527-529

  26. The Wage Earners • The labor of millions of men and women built the new industrial society • 1875–1900 real wages rose, working conditions improved, and workers’ national influence increased • Health & educational services expanded benefiting workers • Better but not “great” p.529

  27. Working Men, Working Women, Working Children • Chronically low wages • Average wages: $400-500 per year • Salary required for decent living: $600 per year • Dangerous working conditions • Railroad injury rate: 1 in 26, death rate 1 in 399 • Factory workers suffer chronic illness from pollutants p.529-530

  28. Working Men, Working Women, Working Children • Composition of the labor force by 1900 • 20% women • Women represented in 296 of 303 occupations • 10% of girls employed, 20% of boys • Working children • “Child labor” means under 14 • All children poorly paid • Girls receive much lower wage than boys p.530

  29. Working Men, Working Women, Working Children • Working women’s characteristics • Most young and single • 25% of married African American women work in 1900 • Working women’s jobs • Many move into clerical positions • A few occupy professional positions • Working women’s earnings unequal to men’s p.530

  30. Working Men, Working Women, Working Children • Discriminatory wage structure • Adults earn more than children • Men earn nearly twice as much as women • Whites earn more than blacks or Asians • Protestants earn more than Catholics or Jews • Black workers earn less at every level and skill • Chinese suffer periodic discrimination • 1879: California constitution forbids corporations to hire Chinese • 1882: Federal Chinese Exclusion Act prohibits Chinese immigration for 10 years p.530-531

  31. Culture of Work • Factory work habits demand adjustments for immigrants, rural folk • Many adjust well enough to advance • Many more see children advance to better jobs p.531-532

  32. Labor Unions • 1870s: Knights of Labor started as a secret order. • Terence Powderly, new Grand Master, ended secrecy & opened membership to all who “toil” regardless of race, creed, color, sex, skill • Excluded only nonproducers: bankers, lawyers, liquid dealers & gamblers • Successful for many years, but failed in late 1900s • 1886: Samuel Gompers founds American Federation of Labor • A.F.L. seeks practical improvements for wages, working conditions • Focus on skilled workers • Ignores women, African Americans p.532-533

  33. Labor Unrest • Crossed purposes • Employees seek to humanize the factory • Employers try to apply strict laws of the market • Courts come down on side of owners with injunctions against strikes • An era of strikes • 1877: Rail strikes nearly shut down system, over 100 workers killed in suppressing it • 1880–1900: 23,000 strikes p.533-535

  34. Labor Unrest • 1886: Haymarket Square riot prompts fears of anarchist uprising (McCormick Harvester Works ~ Chicago) • Labor demonstrators threw a dynamite bomb that killed 7 police officers. Police fired into crowd & killed 4 workers ~ Natl Labor mvmt weakened • 1892: Homestead Steel Strike • Pinkerton detectives as strikebreaking army • Pinkertons in gun battle with strikers • State militia called into restore order • 1894: Geo Pullman Strike • Town of Pullman • Reduced wages but not rent p.535-536

  35. Labor Strikes, 1870–1890 p.534

  36. Industrialization’sBenefits and Costs • Benefits of rapid industrialization • Rise in national power and wealth • Improving standard of living • Human cost of industrialization • Exploitation • Social unrest • Growing disparity between rich and poor • Increasing power of giant corporations p.536

  37. Chapter 18THE INDUSTRIAL SOCIETY America Past and Present End

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