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A New Industrial Age
Reasons for the Industrial Boom1. Wealth of Natural Resources2. Government Support of Business3. Increasing Number of Inventions4. Growing Urban Population
The Expansion of Industry
“Black Gold”◦ Native Americans made fuel and medicine from
crude oil long before Europeans arrived◦ 1840s: Americans use kerosene to light lamps◦ 1859: Edwin L. Drake-successfully used steam
to drill for oil Led to oil boom –Kentucky, Ohio, Illinois, Indiana, Texas Refineries rose up in Cleveland & Pittsburgh transform
oil into kerosene
Natural Resources
U.S. rich with coal and iron◦ How do we harness it’s power???
Bessemer Steel Process (Henry Bessemer & William Kelly)◦ 1850s◦ Injecting air into molten iron to remove carbon & other
impurities ◦ Used to produce 90% of nation’s steel◦ Quicker and cheaper
Natural Resources
Railroads = biggest customer of steel
Steel
Transformed plains into the food producer of the nation
McCormick’s & Deere’s farm machines
Brooklyn Bridge
Skyscrapers
Christopher Sholes: invented typewriter (1867)
Alexander Graham Bell: Co-invented the telephone (1876)
Inventions That Changed Society
Typewriter & TelephoneCreated new jobs for women Clerical work (Secretary)
New machines revolutionized factory work◦ Clothing could be massed produced◦ Positives:
Freed workers from backbreaking labor Reduced workweek by 10 hours
◦ Negatives: Reduced human worker’s worth
Inventions That Changed Society
Electricity◦ 1876- Thomas Edison: established 1st research lab
& perfected incandescent light bulb
Inventions Promote Change
Funded mainly by J.P. Morgan, Jr.: business mogul, banker
Chapter 6 Section 2
The Age of Railroads
1. Identify the role of the railroads in unifying the country
2. List the positive and negative effects of railroads on the nation’s economy
3. Summarize reason’s for and outcomes of, the demand for railroad reform
I can….
Transcontinental Railroad: Rail way connecting the east with the west
As railroads spread across the country…
They gained power and influence.
They were given huge land grants by the government.
Sold for PROFIT. 1869 The transcontinental railroad was
completed
In 1860 30,000 miles of railroads
By 1890 6x that. (180,000).Like
Microsoft
and Google
Rail WorkersEast= Irish and Black
West= Chinese
Treacherous work
In 1888: 2,000 were killed and 20,000 were injured.
Chinese Railroad workers in the West
Irish Railroad workers from the East
Railroad time
Cities sprang up all along railways
Railways promoted trade and interdependence within/between cities◦ Specializing in different products
Ex: iron, coal, steel, lumber, glass
Railroads = Growth of Cities
The Pullman Company
Pullman◦ Factory and
Company town
Strict rules.◦ No drinking◦ No loitering
George Pullman: Built factory for manufacturing sleeper and other railcars
• Created town based around the factory
Cornelius Vanderbilt ◦ gained his fortune from shipping and railroad.◦ Net worth of US$105 million in 1877 ◦ Real value estimated somewhere between US$143 billion and US$178.4 billion (adjusted for the late 2000s ◦ Vanderbilt is one of the wealthiest Americans in the history of
the country.
Son: William Vanderbilt◦ Inherited $100 million from father◦ Took over father’s companies
Who controls the railroads…
Credit Mobilier Scandal◦ Owned by Pacific Union Railroad◦ Paid 3x the cost of
Abusive rail policies.◦ Fixed prices by railroad companies
The Grangers-farmers group◦ Demanded government control over the railroad industry.◦ The Granger Laws
Munn v. Illinois and the Interstate Commerce Act◦ Gave federal gov’t and states the right to regulate RR’s in
order to protect the public interest.
Railroad companies fall under financial problems◦ Lead to 1893 depression
600 banks closed 15,000 business failed 4 million people lost jobs
By 1900- 7 companies owned 2/3 of the nations RR’s.
Regulations lead to Failure
1. Identify the role of the railroads in unifying the country
2. List the positive and negative effects of railroads on the nation’s economy
3. Summarize reason’s for and outcomes of, the demand for railroad reform
I can….
Identify the key players during Industrialization
How did they positively and negatively affect our nation?
Captains of Industry….or Robber Barons??
Capitalism: economic system in which capital assets are privately owned◦ goods and services are produced for profit in a
market economy
U.S. Economy
Socialism: is an economic system characterized by social ownership of the means of production and co-operative management of the economy.
Economy
Immigrant – age 12, from Scotland
Mother mortgaged house in order for Andrew to buy his first stock
Entered steel business in 1873◦ By 1899 Carnegie Steel manufactured more steel
than all British factories combined
Andrew Carnegie
◦ Management practices◦ Make products better—cheaply◦ Vertical integration: buy out the suppliers◦ Horizontal integration: buy out competing
producers Limit competition + control of produce = $480 million
Andrew CarnegieWhy was he so successful?
Social Darwinism: some individuals flourish and pass traits onto next generation while the weak die off. (Natural selection)◦ Success and failure in business were governed by
natural law and not one had the right to intervene
Andrew Carnegie
“If you can’t beat ‘em, join ‘em.” ◦ Many industrialists merged together
Buy out all its competition=monopoly, complete control over its industry’s production, wages and prices
Example:◦ J.P. Morgan(United States Steel)
bought out Carnegie to become world’s largest business
Fewer Control More
Owner Standard Oil Company
Way to success = Join with competing companies into trusts
Controlled 90% of refining business◦ Paid employees very low wages◦ Sell oil at low price to drive out competition
Hike prices up Worth estimated $392 billion
◦ $663.4 billion in adjusted dollars
John D. Rockefeller
Carnegie donated 90% of wealth accumulated
Rockefeller donated over $500 million within his lifetime
Philanthropists
“It will be a great mistake for the
community to shoot the millionaires. For
they are the bees that make the most honey, and contribute most to
hive even after they have gorged
themselves full.” ~Andrew Carnegie
The "Andrew Carnegie Dictum":• To spend the first
third of one's life getting all the education one can.
• To spend the next third making all the money one can.
• To spend the last third giving it all away for worthwhile causes.
Sherman Antitrust Act: made it illegal to form trust that interfered with free trade between states or with other countries. (1890)
Sherman Antitrust Act
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