Lecture 2.1 Chapter14

8/4/2019 Lecture 2.1 Chapter14

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Chapter 14 The Second Industrial Revolution

Section NotesIndustry and RailroadsThe Rise of Big BusinessWorkers OrganizeThe Age of Invention

ImagesVertical and Horizontal

IntegrationPolitical Cartoon: John D.

RockefellerChild Labor

Menlo Park Lab

Quick FactsVisual Summary: The Second

Industrial Revolution

MapsRailroads Built by 1910Railroads Transform Chicago


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Industry and Railroads

The Main Idea

During the late 1800s, new technology led to rapid industrialgrowth and the expansion of railroads.

Reading Focus

What new industries emerged in the late 1800s, and why werethey important?

Why did railroads expand, and what changes resulted?


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New Industries Emerge

New technologies

Electrical power replaced steam and waterpower.

Larger factories produced more and moregoods.

Faster transportation moved people andgoods more cheaply.

Dramatic industrial growth Period sometimes called the Second Industrial

Revolution


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New Industries Emerge

Making steel

The Bessemer process ofpurifying steel helped tomake America the worldstop producer andtransformed the U.S. into

a modern industrialeconomy.

Construction companiescould build bigger bridgesand taller buildings.

The low cost of steel madeordinary items affordable.

Oil industry begins

Oil was a key commodityas a fuel source and forlubrication.

Edwin L. Drake drilledthe first commercial oilwell. Oil prospectors, orWildcatters, looked foroil in other regions.

Major sources of energyfrom oil fueled a revolution

in transportation andindustry.


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Railroads expand

Laid tracks westward from Omaha, Nebraska

Prairie lands and gently rolling hills made forquick progress.

More tracks

Between 1865 and 1890, the number of miles ofrailroad track increased nearly fivefold. Aidingthe growth, the federal government gavethousands of acres of land to railroad companies.

Union Pacific

Tracks were laid eastward from Sacramento,California. Chinese workers laid tracks throughtougher terrain, crossing deserts and blastingthrough mountains.

Uniting the country physically and economically,the two rail lines met on May 18, 1869.

CentralPacific


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Important Effects

Creation of rail network promoted trade and provided jobs.Demand for rails and railcars boosted steel industry andtrain manufacturers.

Settlement of the West was easier, and sparsely populated

areas began to fill with residents. With railroads, new townswere founded and existing ones expanded.

Railroads led to the adoption of standard time. Before, eacharea had its own local time based on the position of thesun. Accurate timekeeping was needed for the trains to

keep to their schedule. C. F. Dowd proposed dividing theearth into time zones, setting the clocks alike in each zone.Railroad officials used this idea in 1883, and by 1918standard time was adopted for the nation as a whole.


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The Rise of Big Business

The Main Idea

Corporations run by powerful business leaders became adominant force in the American economy.

Reading Focus What conditions created a favorable climate for business during

the late 1800s?

How did business structures change?

Who were the leading industrial tycoons, and what did they

achieve?

How did mass marketing change the way goods were sold?


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A Favorable Climate for Business

Free markets

With capitalism, competition

determines prices and wages,and most industries are runby private businesses.

In the 1800s, businessleaders believed in laissez-faire capitalism with nogovernment intervention.

They believed governmentregulation would destroy self-reliance, reduce profits, andharm the economy.

Social Darwinism

Many thinkers believed that

inequalities were part of thenatural order.

Charles Darwin believed thatmembers of a speciescomplete for survival in anatural selection process.

Applied to society, strongerpeople, businesses, andnations would prosper, andweaker ones would fail in asurvival of the fittest.

The American ideal was one of self-reliant individualism. Astrong work ethic made one successful, and entrepreneursrisked their money and talents in new ventures.


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Business Structures Change

Proprietorships and partnerships

Small businesses were run by individual proprietors or had more thanone owner in a partnership. In either case, owners are personallyresponsible for all business debts and obligations.

Corporations As industries grew, the structure of ownership changed. Businesses

were owned by stockholders; decisions made by a board of directors,with day-to-day operations run by corporate officers. Investmentmoney was raised by selling stock, and investors were bound only bythe amount of their investment.

Trusts and Monopolies

Some companies merged and turned their stocks over to a board oftrustees who ran the group of companies as a single entity. Sometimesa trust gained a monopoly, having complete control of an industry.With no competition, prices could be raised or lowered at will.


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Industrial Tycoons

Andrew Carnegie rose from immigrant child tosteel magnate. He used profits from variousbusiness investments to found his own company.

By the end of the century the Carnegie SteelCompany dominated the U.S. steel industry.

After retiring, Carnegie devoted his time to charity,supporting education and building public libraries.

Rockefellerand oil

Starting with an oil refinery and superb businesssense, John D. Rockefeller used both vertical andhorizontal integration to capture 90 percent ofthe U.S. oil refinery business by 1879.

Rockefeller gave away over half of his fortune tocharity. He donated millions to education and good

works through his Rockefeller Foundation.

Carnegieand steel


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Industrial Tycoons

George Pullman made his fortune designing andbuilding sleeper cars that made long-distancetravel more comfortable. He built a town south ofChicago to house workers in relative comfort,

believing happy workers were more productive.

The Pullman Company controlled aspects of life inthe town, and criticism was not tolerated.

CorneliusVanderbilt

Vanderbilt began investing in railroads during theCivil War. By 1872, he owned the New York CentralRailroad. At the height of his career he controlled4,500 miles of track.

He supported few charities, but gave money towhat would come to be Vanderbilt University. He

died leaving an estate of $100 million.

GeorgePullman


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A Mixed Legacy

Critics

Business tycoons were robber barons whoprofited unfairly by squeezing out competitors.

They lived lavish lifestyles from their ill-gottenrewards.

Proponents

Business tycoons were captains of industry

who used their business skills to make theAmerican economy more productive. That inturn made the American economy stronger.


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Mass Marketing

Retailers looked for new ways to maximize their profits.

Household goods were targeted toward women, who mademost of those purchasing decisions. Wholesome images

were used to convey a sense of purity. Brand names helpedcustomers remember products. The convenient departmentstore emerged, providing a variety of goods. The storesbought in bulk, passing the savings on to the customers.

Mail-order companies gave rural dwellers access to a hugevariety of goods. The Sears, Roebuck and Company catalogwas 507 pages. Customers made their selections, sent inthe payments, and waited for the merchandise to arrive.


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Workers Organize

The Main Idea

Grim working conditions in many industries led workers toform unions and stage labor strikes.

Reading Focus

What was the relationship between government and business inthe late 1800s?

What were working conditions like for industrial workers?

How did workers seek change?


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Government and Business

Hands-off policy

Government did not interfere with business in the late 1800s,but as corporations expanded and gained power, that policybegan to change.

Controlling the giants

The Sherman Antitrust Act was passed in 1890, making itillegal to form trusts that interfered with free trade. Itprohibited monopolies and activities hindering competition.

The law was vague, however, and it was seldom enforced.

Workers

The government paid less attention to workers, who scraped byon small wages. By 1890, 10 percent of the populationcontrolled 75 percent of the nations wealth. The rich were veryrich, and many industrial workers made less than $500 peryear.


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Industrial Workers

The workforce

Many factory workers wereimmigrants or ruralAmericans moving to thecities for jobs.

The best jobs went tonative-born whites orEuropean immigrants.

Less well-paying jobs wereopen to African Americans,as household help orlaborers.

By 1900, one in sixchildren between the agesof 10 and 15 held factoryjobs.

Working conditions

Most unskilled laborersworked 10-hour days, sixdays a week.

They had no paid vacationand no sick leave.

Speed of production led toterrible accidents. Injuredworkers were replaced.

Sweatshops werecommon. These crampedworkshops set up in

shabby tenement buildingswere common in thegarment industry.


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Workers Seek Change

After the Civil War, things changed. The Knights ofLabor formed in 1869. Under the leadership ofTerence V. Powderly in the 1880s, they began toaccept unskilled workers, women, and AfricanAmericans as members. They campaigned forreforms, such as eight-hour workdays and the endof child labor through boycotts and negotiations.

Earlyorganizing

In 1794, Philadelphia shoemakers formed a tradeunion. Over decades, unions formed for skilledtrade workers, but they remained small and local.

NationUnions

After wage cuts, the first railroad strike occurred in

1877. Initial strikes quickly spread, and statemilitias were called out. Violence ensued, liveswere lost, and costly damage was done. The arrivalof U.S. Army troops put an end to the strike.

The GreatRailroad

Strike


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Strikes and Turmoil

The Haymarket Riot

1886 was a difficult year forlabor.

One of the worst clashes was atHaymarket Square in Chicago. Abomb was thrown in a crowdgathered to protest violent policeaction. Gunshots rang out, andeleven people were killed and

hundreds injured before it wasover.

Foreign-born unionists wereblamed for the violence, and thepress fanned xenophobia.

Eight men were charged withconspiracy, but no evidence

connected them to the crime. All eight were convicted and

sentenced to death. After fourhangings and one suicide, thelast three were pardoned.

The American Federation of

Labor Employers struck back at

organized labor, forcingemployees to sign documentssaying they would not join aunion.

Blacklists of people deemedtroublemakers were made andshared by employers, whorefused to hire anyone listed.

Striking workers were replacedwith scabs, or strikebreakers.

Samuel Gompers led a group ofskilled workers to form theAmerican Federation of Labor in

1886. Using strikes and other tactics,

the AFL did win wage increasesand shorter workweeks.


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The Homestead Strike

Unions made some gains, but conflicts continued. Carnegie

Steel workers in Homestead, Pennsylvania, refused to workfaster, and the manager tried to lock them out. The workersseized the plant. Gunfire erupted when private guards hired bythe company tried to take control. After a 14-hour battle andfourteen deaths, the governor called out the state militia. Thesteelworkers union withered within months.

After laying off a third of its employees in 1893, the PullmanCompany cut the wages of remaining workers by 25 percentwithout lowering their rents. Workers went on strike with thesupport ofEugene V. Debs, the leader of the AmericanRailway Union. The government ordered the strike be calledoff, but the union refused. President Grover Cleveland calledin federal troops, and the strike collapsed. The late 1800swould remain an era of big business.

The Pullman Strike


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The Age of Invention

The Main Idea

Important innovations in transportation and communicationoccurred during the Second Industrial Revolution.

Reading Focus

What advances in transportation were made in the late 1800s?

What inventions led to a communications revolution?

How did Thomas Edison help shape the modern world?


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Advances in Transportation

Streetcars were horse-drawn vehicles placed onrails on the street to make the ride smoother.Streetcars needed more power than horses couldprovide, and cable cars were invented in SanFrancisco to get cars up the steep hills there. Thecars latched on to a moving cable underground.

Subways developed as a result of increasedtraffic from horses and electric streetcars

competing for space. Boston built the first subwayline in 1897, with New York City following in1904.


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Advances in Transportation

Automobilesinventors were experimentingwith vehicles for personal use as well. Abreakthrough came with the invention of theinternal combustion engine in 1867. The firstpractical motorcar in the U.S. was built in 1893.Automobiles were only for the wealthy; a new carcost about $2,500.

AirplanesOhio bicycle makers Wilbur and

Orville Wright were the first to successfully flyan airplanefor 12 seconds in 1903. They followedthis success with even longer flights.


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Communications Revolution

The telegraph

Samuel F. B. Morse patentedhis method of communicatingby sending messages overwires with electricity, callingit the telegraph.

Operators tapped outpatterns of long and shortmessages that stood forletters of the alphabet. Thesystem was known as Morsecode.

After the Civil War, thetelegraph grew with therailroads. Telegraph wireswere strung along the tracks,and train stations hadtelegraph offices in them.

The telephone

Two men were working ondevices that could transmitvoices using electricity.

Alexander Graham Bellpatented his device hoursbefore his competitor, and hegets the credit for theinvention of the telephone in1876.

Companies found thetelephone to be an essentialbusiness tool. People wantedto have them in their homesas well.

By 1900, more than a milliontelephones had been installedacross the nation.


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The Typewriter

Inventors in many nations made attempts to create awriting machine.

Christopher Latham Sholes, a Milwaukee printer, developedthe first practical typewriter in 1867. He later improvedupon his machine by designing the QWERTY keyboard, stillthe standard on keyboards today. The most frequently usedletters were placed far apart so they would not jam whenthey were struck.

The typewriter could produce legible documents veryquickly. Businesses began to hire women as typists tomanage company correspondence, opening up new jobopportunities for women.


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Thomas Edison

Obsessed with progress As a child, Thomas Edison was curious about everything. Nearly

deaf by twelve, he declared himself an inventor by age twenty-two. In 1886, he opened his own research laboratory in MenloPark, N.J.

Hard work

Edison said, Genius is 1 percent inspiration, 99 percentperspiration. He worked alongside his assistants and spent longhours tinkering with designs. Inventions poured out of the lab,and Edison became known as the Wizard of Menlo Park.

Electric lighting

Edison developed the practical electric lighting. With theincandescent bulb came the need for widely available electricity.Edison would bring electricity to New York City, designing andproducing all of the parts necessary for an electricity network.Electric power plants spread across the country.

Over his lifetime, Edison earned over 1,000 U.S. patents.


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Lecture 2.1 Chapter14

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