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The Growth of US Industry 1865 to 1900
A. At the time of the Civil War, the US was still largely an agricultural country
B. By the early 1900s, the United States was the world’s leading industrial Power
Factors Leading to Industrialization A) Abundant natural resources (water, timber,
coal, iron, copper, oil)
B) Large Workforce (1860-1910 the population of the US tripled – roughly 20 million immigrants came to the US between 1870 and 1910).
C) Favorable Government Polices -- laissez-faire & high tariffs
INVENTORS AND INVENTIONS 1. 1876 – Invented the
telephone
2. By 1915 nine million phones were in use in the USA
3. Telephones made US industries efficient and competitive by allowing suppliers, producers and sellers to better communicate
Alexander Graham Bell
INVENTORS AND INVENTIONS Turned electricity from a scientific
curiosity into a practical source of power
1876 – opened invention factory in NJ (1st light bulb, phonograph, motion picture projector)
1882 -- 1st electrical power station and distribution system in NYC
By 1900 electricity was more efficiently powering factories and household items
Thomas Edison
INVENTORS AND INVENTIONS 1. Pioneer in the
automobile industry
2. Improved upon the assembly-line process, which made automobiles affordable to the middle class after WWI
Henry Ford
INVENTORS AND INVENTIONS 1. First successful
flight at Kitty Hawk, North Carolina
The Wright Brothers
INDUSTRIAL LEADERS 1. At the time of the
Civil War, the nation’s railroads ran on iron rails that wore out quickly
2. RR owners knew steel would last longer, but it was expensive
Andrew Carnegie
INDUSTRIAL LEADERS 3. In 1872 Andrew Carnegie, a Scottish
immigrant who built iron bridges for railroads, went to England to study a less expensive process to make steel – the Bessemer Process
4. Carnegie was so impressed by the process that he decided to bring it back with him to the USA.
5. “The day of iron has passed,” he announced, “Steel is king”.
INDUSTRIAL LEADERS 6. Carnegie was right. By the 1880s, steel
was replacing iron in rails, locomotives and bridges. Steel nails, needles and knives became common household items
INDUSTRIAL LEADERS 7. Many companies competed fiercely to
supply steel
8. In order to keep costs low Carnegie took various steps. The one we will focus on is “Vertical Integration”.
CARNEGIE & VERTICAL INTEGRATION
Instead of paying companies for coal, lime and iron, Carnegie’s company BOUGHT coal mines, limestone quarries and iron ore fields.
INDUSTRIAL LEADERS 1. Rockefeller invested in his
first oil refinery in 1862
2. To reduce competition, he did everything he could to drive his rivals out of business. Those companies he could not destroy, he bought
3. Rockefeller took Carnegie’s idea of vertical integration a step further with horizontal integration
John D. Rockefeller
INDUSTRIAL LEADERS JP Morgan….finance
Cornelius Vanderbilt…railroads
CORPORATIONS Big businesses such as railroads needed lots of capital.
After the Civil War, more and more businesses became corporations:
1) the businesses are able to raise a lot of cash (selling stock to stock holders)
2) stockholders have limited liability – if the company fails, stock holders only lose their investments
By the 1880s, thousands of corporations were doing business across the USA
INDUSTRIAL LEADERS A. By 1880, Rockefeller controlled 95% of the
nation’s oil refining
B. To prevent horizontal integration, many states passed laws that prevented one company from owning stock in another
C. In 1882 Standard Oil formed the first TRUST.
ROCKEFELLER’S OIL TRUST In trusts, stockholders of one
company act as trustees of another company.
Though they technically don’t OWN the company, they can control it, making their company bigger and more powerful
Trusts were unpopular with lots of American people because they feared monopolies
Trusts were popular with businessmen: Other businesses such as railroads, meatpacking, sugar, whiskey and tobacco all created trusts
How successful was organized labor in improving the conditions of workers from 1865 to 1900? Analyze the factors that contributed to the level of success achieved?
(2000 DBQ)