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Chapter Seventeen:Industrial Supremacy
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• Industrial TechnologiesIndustrial Technologies• America was expanding at
a rapid pace• Was becoming the true
industrial power in the world
• Alexander Graham BellAlexander Graham Bell• Thomas Edison and electric Thomas Edison and electric
powerpower• Impact of Electric PowerImpact of Electric Power
• Generators and power Generators and power gridsgrids
By the turn of the century, electricity was everywhere!Railways, elevators, factories, homes
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• Iron was taking over America• More than 40,000 mile of RR track had
been laid
• Bessemer Process• What was it?• What did it do?
• Steel began in Pittsburgh
• Close relationship with the RRs
• Rise of the Petroleum Industry
Pioneer Oil Run, 1865 (Library of Congress)
© 2011, The McGraw-Hill Companies, Inc. All Rights Reserved. 5
© 2011, The McGraw-Hill Companies, Inc. All Rights Reserved. 6
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• Creation of gasoline and internal combustion engines opened up new opportunities
• Henry Ford• Creates the first car• 1895 – 4 automobiles• 1917 – 5 million automobiles
• The Wright Brothers• 1899 – invented the first airplane• 1904 – could fly 23 miles!• 1915 – National advisory Committee on
Aeronautics is created
The Wright Brothers (Library of Congress)
© 2011, The McGraw-Hill Companies, Inc. All Rights Reserved. 8
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• Research and DevelopmentResearch and Development• Corporate Research and Corporate Research and
DevelopmentDevelopment
• Scientific v. Practical progressScientific v. Practical progress
Thomas Edison (Library of Congress)
•“Taylorism”• Subdivide tasks• Made workers
replaceable
• Assembly Line• Both a place and a
concept What is the
concept of an assembly line?
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Railroad was largely responsible for the increase of business Why?
1860 – 30,000 miles of track 1900 – 193,000 miles of track
Corporations What is a corporation?
Limited Liability Why does this make it easier for
businessmen and investors alike?
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© 2011, The McGraw-Hill Companies, Inc. All Rights Reserved. 14
Railroads, 1870-1890
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1. Profiteering from the Civil War gives rise to millionaire class
2. Millionaires capitalize on Transcontinental railroad, mechanization, industrialization, & expansion of markets
3. Surplus of raw materials, cheap labor, foreign investment ENCOURAGE CAPITALISM
4. Inventions = Industrialization More Inventions More
Industrialization
ALL OF THIS GIVES RISE TO TYCOONS
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Steel is King : US pouring out 1/3 of world’s steel by 1890’s
Carnegie uses vertical integration to make more profit• Controls all means of production, eliminates
middle man
Also uses horizontal integration to eliminate competition.
Sells to JP Morgan for 450 million
Becomes a philanthropist
How do horizontal integration and vertical integration help business??
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Builds financial empire through railroads, banks, and holding companies
Buys out Carnegie and enters steel business
Uses trusts and holding companies to consolidate wealth and power• What are trusts and holding companies?
Forms US Steel Corporation – 1st ever corporation worth more than $1 billion!
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Kerosene and then Automobiles drive up US oil consumption
Rockefeller ruthlessly uses horizontal consolidation to create largest monopoly
1877 controls 95% of US’s oil refineries
Robber Baron’s Baron
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Standard Oil MonopolyBelieving that Rockefeller's Standard Oil monopoly was exercising dangerous power, this political cartoonist depicts the trust as a greedy octopus whose sprawling tentacles already ensnare Congress, state legislatures, and the taxpayer, and are reaching for the White House. (Library of Congress)
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J.P. Morgan - $139 BILLION
Andrew Carnegie - $189.6 BILLION
John D. Rockefeller - $262 BILLION
COMPARE:
Bill Gates - $56 BILLION
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Monopoly = a firm that completely controls an industry
Vertical integration = combining all phases of manufacturing in to one organization (Carnegie)
Horizontal consolidation = allying with competitors to monopolize a market (Rockefeller)
Trust = a board of directors/stockholders that coordinates companies within an industry to avoid competition
Holding company = a corporation composed of various competing enterprises within one industry (JP Morgan’s US Steel)
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Old Rich displaced by rule of the “new rich”
Gospel of Wealth – discourages helping the poor by state
Laissez faire = “let it be”
Justified by Social Darwinism – survival of the fittest
Poor are poor due to lack of initiative
Horatio Alger• What did Alger do to justify this?
Socialist Labor Party
Henry George’s “Single Tax”• Claimed that increase in land value was not
earned• These were products of societal progress• Land needs to be taxed, would destroy
monopolies• Would “redistribute wealth”
Looking Backward• Edward Bellamy• Dreamed of a world in 2000 • “fraternal cooperation” replaced competition
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o Economic Concentration Challengedo Gained momentum in societyo Complaints that they could
charge whatever they wantedo Contributed to instability
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Rapidly Expanding Working Class Where are they coming from?
Labor Contract Law What is this?
Growing Ethnic Tensions
Inspection room at Ellis Island, NY (Library of Congress)
© 2011, The McGraw-Hill Companies, Inc. All Rights Reserved. 27
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Urbanization
Long Work Hours and Dangerous Jobs
Children work too
Women’s roles change• Delayed marriages• Smaller families
Accentuated class division• 1900: 1/10 of US owns 9/10 of US’s wealth• 1900: 2/3 of Americans are “wage slaves”
Workers’ lives increasingly precarious
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Factories took the skill out of many positions
VERY dangerous• 1882 – 675 laborers
killed• RRs – 1 in 300
Many women and children worked to make ends meet
Children sacrificed their education
1899 – women earned $269 a year/men earned $498• That same year
Carnegie made $23 million!!
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NBC Learn VIDEO“Rise of Labor Unions”
What did the Knights of Labor do that was different from other groups?
What did the AFL focus on?
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Collective effort needed to counter trusts
“An injury to one is an injury to all”
Founded as a secret society in 1869. Why?
Inclusive and Diverse: • men and women• white and black• skilled and unskilled
Broad (utopian? Socialist?) goals
HURT by Haymarket Square riot, 1886, Chicago
Knights of LaborBlack delegate Frank J. Farrell introduces Terence V. Powderly, head of the Knights of Labor, at the organization's 1886 convention. The Knights were unusual in accepting both black and female workers. (Library of Congress)
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Skilled workers split from Knights of Labor 1886
AFL was elitist, narrow in goals – not utopian
Led by Samuel Gompers Avoided politics and focused on
union goals:• Better wages• Eight-hour day• Better working conditions
AFL successful in many of its strikes and in meeting many of its goals
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1. The Knights of Labor were weakened by
a. Its refusal to endorse social reform and the 8 hour day
b. Stiff competition from the National Labor Union
c. Its association in the public mind with the Haymarket riot
d. Its inclusion of both skilled and unskilled workers
38http://www.edteck.com/dbq/dbquest/quest11.htm
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HOMESTEAD STRIKE
1892
HAYMARKET AFFAIR
1886PULLMAN STRIKE
1893
GREAT STRIKE OF 1877
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HOMESTEAD STRIKE
1892
STEEL STRIKEProtest work
& living conditions
Pinkerton Detectives
protect scabs,Several deaths
US troops end it
WEAKENS LABOR
HAYMARKET BOMBING
1886
Labor marchBomb thrownSeveral deaths
8 Anarchists arrested
4 hanged, 1 suicide
PUBLIC TURNS AGAINST
LABOR
PULLMAN STRIKE1893
Pullman Comp. cuts wages
during Panic of 1893
Does not raise after ends
Workers strike
US troops end it
Debs arrestedWorkers
BlacklistedLABOR WEAK
RAILROAD STRIKE OF 1877
Railroad strikeParalyzed rail & commerce
Pres. Hayes Sent US troops
to end it
CHINESE EXCLUSION ACT
*Pullman Strike – NBC Learn video
Wages barely went up Won some legislative victories
• But most of them were not even enforced!• Most workers had LESS power than they used to
Why?• Division in the workforce• Many workers on the move• Corp. usually had state, local or fed. Help
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The Age of the City
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Total Immigration, 1861-1900
46 © 2011, The McGraw-Hill Companies, Inc. All Rights Reserved.
Urbanization• 1850: 3.5 million
in urban areas
• 1900: 30.2 million in urban areas
Baltimore 1850 Baltimore 1910
The Diverse Immigrant Populations Lived in ghettos together Why did this make it easier
to adjust?
Importance of Ethnic Ties Felt more comfortable Continued traditions Advanced in society
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Assimilation Encouraged Mainly English Stores sold American food and clothing
Immigration Restriction League Screen immigrants through literacy tests “desirable” and “undesirable” What was the benefit to so much
immigration?
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“Immigration Under Attack,” 1903
(New York Public Library. Astor, Lenox and Tilden Foundations)51
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© 2011, The McGraw-Hill Companies, Inc. All Rights Reserved.
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The Mall in Central Park, 1902 (Library of Congress)55
• Built to represent something different than a city• Libraries, parks, theaters• Who supported the construction of these projects?
Railroad Suburbs What is a
railroad suburb?
Jacob Riis What impact did
Riis have on society?
56Attic tenement house (Library of Congress)
© 2011, The McGraw-Hill Companies, Inc. All Rights Reserved.
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Fire• Began to build fireproof
buildings• Many new skyscrapers
were built b/c of fires
Disease• Typhoid fever and cholera• No sophisticated toilet
system
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Great Chicago fire of 1871
Air pollution
Sewage Disposal Systems
Poverty• “deserving” v. “undeserving”• Private organizations
Violence• 1880 – 25 murders for every 100
people• 1900 – 100 murders for every 100
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How did the political machine help immigrants?
Often were vehicles for making money
“Boss” Tweed
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Incomes rise throughout the late 19th century• Whose income rose the most?
Ready-made clothing
Buying then preparing food• Tin cans, refrigerated railroad cars
Women were becoming more into fashion Chain stores, dept. stores, and mail-order
catalogs were increasing in popularity
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With shorter hours and higher wages, people were enjoying their leisure time
Baseball becomes popular after the Civil War• Cincinnati Red Stockings were first pro team
1891 – James Naismith invents basketball
1869 - First football game: Princeton v. Rutgers
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Music, Theatre and Movies
Vaudeville
D.W. Griffith• Birth of a Nation
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Hammerstein Theatre, NYC
Coney Island• Why were people so attracted
to amusement parks?
Dime Novels
Newspaper popularity• William Randolph Hearst
Telephones• At first they were impractical• Switchboard• Mostly owned by businesses
Coney Island, NY
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What is Darwinism? How did it impact city/rural lives?
Pragmatism• Society should rely on science, not religion
This sparked new ideas on schooling (democratic method), economic impacts on society and anthropology
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Public schooling gained added importance
Universities grew through donations• Many schools began to focus on discoveries
in agriculture, mechanics, and medicine
Medical Advancements X-ray Identifying infections Blood transfusions
• What did this do? Germ Theory Accepted
• How did this change medicine?
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