Goal 5: Industrialization

Goal 5: IndustrializationIndustrial Development Industrial World Leaders By 1880, U.S. is worlds leading producer of goods Reasons why? Unlimited labor force Abundant coal supply Iron mining Discovery of oil Railroad development Public Support Laissez-faire government policiesGovernment was hands off in the market place Unlimited immigration supplied laborNativist fearsNo competition for labor decrease pay High tariff protected American business But farmers suffered Public financing of railroads Regulating prices Entreprenuers and InnovationsLate 1800s saw and explosion of innovationTelephone Graham Bell Light Bulb Edison Electric Power Edison (made it work long distances) Bessemer Process made possible the mass production of steel Typewriter Sholes Modern Media made possible because of electricity, telephone and the typewriterEntreprenuers and Innovations Photography Wolcott Phonograph Edison Motion Picture LemiereRadio Tesla (Marconi) Retail Stores Middle class, brought catalogs and window shopping Canned Food Appert Entrprenuers Rockefeller Oil Carnegie Steel Morgan Financial Vanderbuilt Railroads and Shipping Dupont corporation Duke Tobacco Westinghouse air brake and switch tracks for RailroadsRailroads Lead the Way ironhorse slow initially but with new technological advances became more efficient Leading consumer or goodsThe main transit choice for all farmers and producers Trancontinental, 1869 Promotory Point Standardization of time1884 created 24 time zones to standardize train schedules Railroad Prosperity Growth of urban areas Development of Company Towns people worked and lived in the same town/factory (make money and spent money from same person) Pullman Illinois makes Railroad cars Cut salary and wouldnt cut rates Clean towns Railroad scandalsCredit Moblier Pacific RailroadGovt land grants Grange and RailroadRailroad Abuses Long haul vs. short haulRebates and Drawbacks Granger Laws Enacted to set maximum rates for shipping and storageSupreme Court RulingsWabash and Munn Interstate Commerce Act, 1887 Attempt to regulate business Created the Interstate Commerce CommissionThe Rise of Big BusinessTypes of Businesses:Monopolies: company wipes out its competitors and controls the industry.John D. Rockefeller: OILCreated trusts to eliminate competition (trust is a legal body created to hold stock in many companies, often the same industry)Andrew Carnegie: STEELCorporations: business owned by investors who buy part of the company through shares of stock e.g. Walmart, Best BuyVery few laws to regulate corporationsOil and steel industries dominated as corporations.

Labor UnionsWorkers faced many hardshipsBusiness owners wanted to keep their profits highWorkers had to buy their own tools or bring coal to heat the factoriesWorkers (both adults & children) labored long hours under poor conditions for low wages.Workers discontent with their job formed labor unionsOrganizationsKnights of LaborAmerican Federation of Labor (AFL)Federation of Workers from all different trades.Allowed women and African Americans members.Focused on improving working conditions. By using strikes, boycotts, and negotiation, the AFL won shorter working hours and better pay for workers. Strikes & Union SetbackEventWhat happen?ResultsRailroad Strike of 1877Wages were cutTwo-week strikeDozens of people killedNothing the companies still cut the workers wagesMcCormick Harvester CompanyLocked out striking union members and hired strikebreakers to replace them.Nothing positive for the workers.

Police scheduled a meeting with the workers.A person through a bomb in the crowd. Killed several police and wounded about 60called the Haymarket AffairHomestead & Pullman Strike1892 Carnegie reduced wages at his steel mills. Union refused to accept the cuts.The company locked out the workers and hired nonunion member workers. A battle broke out between the former workers and the company.After 4 months the strike collapse.

Pullman Strike:Strike on the rail industry in 1894.Nothingthe workers lost another battle.

The Federal government stepped in to end the strike.