Goal 5: IndustrializationIndustrial Development

Industrial World Leaders By 1880, U.S. is world’s leading

producer of goods • Reasons why?

Unlimited labor force Abundant coal supply Iron mining Discovery of oil Railroad development

Public Support Laissez-faire government policies

• Government was hands off in the market place

Unlimited immigration supplied labor• Nativist fears• No competition for labor – decrease pay

High tariff protected American business • But farmers suffered

Public financing of railroads • Regulating prices

Entreprenuers and Innovations Late 1800s saw and explosion of innovation Telephone – 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 typewriter

Entreprenuers and Innovations

Photography – Wolcott Phonograph – Edison Motion Picture – Lemiere Radio – 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 Railroads

Railroads Lead the Way “ironhorse” – slow initially but with new

technological advances became more efficient

Leading consumer or goods• The main transit choice for all farmers and

producers Trancontinental, 1869

• Promotory Point Standardization of time

• 1884 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 wouldn’t cut rates • Clean towns

Railroad scandals• Credit Moblier – Pacific Railroad• Gov’t land grants

Grange and Railroad Railroad Abuses

• Long haul vs. short haul• Rebates and Drawbacks

Granger Laws • Enacted to set maximum rates for shipping and

storage Supreme Court Rulings

• Wabash and Munn Interstate Commerce Act, 1887

• Attempt to regulate business • Created the Interstate Commerce Commission

The Rise of Big Business Types of Businesses:

• Monopolies: company wipes out its competitors and controls the industry.

John D. Rockefeller: OIL Created trusts to eliminate competition (trust is a legal

body created to hold stock in many companies, often the same industry)

Andrew Carnegie: STEEL

• Corporations: business owned by investors who buy part of the company through shares of stock e.g. Walmart, Best Buy

Very few laws to regulate corporations Oil and steel industries dominated as corporations.

Labor Unions Workers faced many hardships

• Business owners wanted to keep their profits high

• Workers had to buy their own tools or bring coal to heat the factories

• Workers (both adults & children) labored long hours under poor conditions for low wages.

Workers discontent with their job formed labor unions

OrganizationsKnights of Labor American 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 SetbackEvent What happen? Results

Railroad Strike of 1877 Wages were cutTwo-week strikeDozens of people killed

Nothing the companies still cut the workers wages

McCormick Harvester Company

Locked 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 60—called the Haymarket Affair

Homestead & Pullman Strike 1892 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.

Nothing—the workers lost another battle.

The Federal government stepped in to end the strike.