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A New Industrial Age The Expansion of Industry

A New Industrial Age The Expansion of Industry. At the end of the 19 th century, natural resources , creative ideas, and growing markets fueled an industrial boom. Section 1 Goals and Objectives. Upon completion, students should be able to:

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A New Industrial Age The Expansion of Industry

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  1. A New Industrial AgeThe Expansion of Industry At the end of the 19th century, natural resources , creative ideas, and growing markets fueled an industrial boom.

  2. Section 1 Goals and Objectives • Upon completion, students should be able to: • Explain how the abundance of natural resources, new recovery and refining methods and new used led to extensive industrialization. • Identify new inventions at the end of the 19th century as well as their impact on American life.

  3. INDUSTRIALIZATION • The aggregate (sum) of manufacturing or technically productive enterprise in a particular field.

  4. Entrepreneur • A person who organizes, operates, and assumes the risk of a business adventure.

  5. Industrialization Factors • Unskilled and semi-skilled labor in abundance • New, talented entrepreneurs • Oil, Steel, Coal • Inventions • New technology that allows mass production • Railroads • Changes in business strategy • Vertical Integration & Horizontal Consolidation • Social Darwinism

  6. Edwin L. Drake > In 1859, he successfully used a steam engine to drill for oil from beneath the earth’s surface.

  7. The Bessemer Process • Henry Bessemer was a British manufacturer • This technique injected air into molten iron to remove the carbon and other impurities. Circa (approximately) 1850

  8. Thomas Edison • 1876, Inventor who pioneered the first research laboratory in New Jersey. He perfected the first incandescent (giving off visible light as a result of being heated) and later invented the entire system of producing and distributing electricity.

  9. Christopher Sholes • Invented the typewriter in 1867 and forever changed the world of work • Provided more jobs for women

  10. Alexander Graham Bell • Invented the telephone that opened communications worldwide. • The telephones in offices created new jobs for women • Office jobs for women went from 5% in 1870 to 40% by 1910

  11. Section 2 Goals and Objectives: • Upon completion, students should be able to: • Identify the role of the railroads in unifying the country. • List positive and negative effects of railroads on the nation’s economy. • Summarize reasons for and outcomes of the demand for railroad reform.

  12. Transcontinental Railroad • Means passing or extending across a continent. • TRANSCONTINENTAL RAILROAD • 1869 the Central Pacific and Union Pacific Railroads met at Promontory, Utah

  13. Building the 1st Transcontinental Railroad • Pacific Railway Act of 1862 – U.S. Government hired Union Pacific and Central Pacific Railway Company to extend railways across the United States. • Central Pacific – Started in Sacramento, CA • Union Pacific – Started in Omaha, NE • The 2 railroad companies met in Promontory, Utah to drive the “Golden Spike” on May 10, 1869

  14. Transcontinental Railroad Map

  15. The Birth of the railroads

  16. How did the Railroad influence life in American? • Rapid growth of industry and businesses • Once isolated cities were not linked • Rapid shipment of cattle, grains, and other goods • Rapid travel for passengers

  17. Who did the Railroad Impact Continued • Native Americans (called it the Iron Horse) had land taken for the RR • Helped Westward expansion • Made trade much easier • Hurt the farmers economically because of the higher costs for farmers • They made deals with wealthy businessmen (became corrupt) • Became crucial to the U.S. economy

  18. Who Built the Railroads? • The Central Pacific Railroad hired thousands of Chinese immigrants • The Union Pacific Railroad hired Irish immigrants and desperate, out of work Civil War veterans • All these workers faced disease, Indian attacks, harsh winters, accidents, and less pay than white workers

  19. Railroad Laborers Chinese Immigrants Irish Immigrants

  20. C.F. Dowd • He proposed a remedy for the time zone problems. Based on the fact that the earth was divided into 24 time zones, one for each hour of the day, the U.S. would contain 4 time zones: • Eastern, Central, Mountain, Pacific • 10:00 9:00 8:00 7:00

  21. George Pullman:Sleeper Railroad CarsPullman Town • Comfort for his travelers and control for his employees

  22. Pullman Cars A Pullman porter

  23. A “CompanyTown”: Pullman, IL

  24. New Uses For SteelFrom Inventors • Railroads • Barbed Wire • Deere Farm Machines • Bridges • Skyscrapers

  25. Credit Mobilier • A corrupt construction company formed by Union Pacific Railroad stockholders. • RESULTS: • Gave their own company contracts to lay track for 2-3 times the actual cost • Pocketed the profits. Over $23 million

  26. The Grangea.k.a. The Patrons of Husbandry • Grangers (social and educational organization), were farmers who faced low crop prices, high cost loans, and high RR shipping charges. Founded in 1867 • Purpose: To stop railroad corruption • Misuse of government land grants which RR workers sold to other businesses rather than to settlers • Stop fixed prices that kept farmers in debt • Non-consistent pricing for hauling

  27. The Grange

  28. Grangers Demand Reform • 1871, Illinois legislators established maximum freight and passenger rates and prohibited discrimination • The Railroad fought back. In the case to MUNN V. ILLINOIS, the Supreme Court upheld the Granger Laws

  29. Interstate Commerceand theInterstate Commerce Commission • Act passed by Congress in 1886 to stop the railroads from setting their own rates for interstate travel • The Federal government can now supervise railroad activities • Interstate Commerce Commission was lead by a five member team who had trouble regulating due to long legal process from railroad resistance

  30. Expansion of Industry Resulted in Big Business and Labor • Andrew Carnegie – steel industry • John D. Rockefeller – oil industry • J. P. Morgan - banker Were they Robber Barons Or Captains of Industry

  31. Section 3 Goals and Objectives: • Upon completion, students should be able to: • Identify management and business strategies that contributed to the success of business tycoons such as Andrew Carnegie • Explain Social Darwinism and its effects on society. • Summarize the emergence and growth of labor unions • Explain the reactions by American society to labor unions.

  32. The “Robber Barons”

  33. Big Business Strategies VERTICAL INTEGRATION • A process in which one person buys out all his suppliers: mines, freighters, railroad lines. This process controls all materials and transportation systems.

  34. Vertical Integration Example • What companies can you think of that have total control from the ground up. • Material • Produce • Distribute • Ship • Absorb all profits

  35. Big Business Strategies Continued HORIZONTAL INTEGRATION • A process when one person attempts to buy out all competing producers of their product. This will give control over suppliers and limit competition. • Merge

  36. Horizontal Integration Example • What are some companies that have bought out or merged with competing companies to gain control?

  37. Charles Darwinand Social Darwinism • English naturalist with a theory on evolution which was “natural selection” • ONLY THE STRONG SURVIVE: he observed that some generations flourish and pass the traits down and some do not • Laissez Faire = French term meaning “allow to do”

  38. Monopoly • Horizontal Integration in the form of mergers • Mergers are when one company buys out the stock of another

  39. Philanthropist • A person who uses his wealth for the common good of other or “do gooders” • Examples: building libraries to promote education, donations to charities

  40. Sherman Antitrust Act • The Sherman Antitrust Act was an attempt by the government to stop the expanding corporations from stifling the free competition

  41. Labor UnionsWhat, Who, When, Where • WHAT: Organizations formed by laborers to improve wages and conditions • WHO: Skilled, unskilled, male, female, black, and white workers • WHEN: Union movements developed in the late 1800s • WHERE: Workers for Big Businesses

  42. WHAT Unions Did

  43. WHOwere part of the unions >

  44. Child Labor

  45. WHEN and WHERE > They met at homes, barns, churches, or where ever they could gather

  46. WHY • Long hours for little pay (12=14 hours each day, no vacations or sick leave. • Unsanitary conditions that promoted disease and illness. • Dangerous conditions. No payment for on the job injuries that were frequent. • Wages were so low everyone in the family worked, including children.

  47. Samuel Gompersand the American Federation of Labor • Gompers: President of the AFL from 1850-1924 • Craft Union (skilled workers) • Open to skilled, WHITE men only • Advocated higher wages and shorter work weeks. • Focused on bargaining and negotiations • Used strikes as major tactic

  48. Homestead Steel Strike (1892) • Steelworkers strike due to cut in wages by president, Clay Frick. • Frick hires guards to protect the plant so he could hire scabs continue operations. • Violence and deaths

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