6.1

1. 6.1 The Expansion of Industry At the end of the 19th century, natural resources, creative ideas, and growing markets fuel an industrial boom.

2. Natural Resources Fuel Industrialization • The Growth of Industry • 1920s:U.S. leading industrial power • Wealth of natural resources • Government support for business • Increased urban population • Black Gold • 1859: Edwin L. Drakeuses steam engine to drill for oil • kerosene, then gasoline • Bessemer Steel Process • Abundant deposits of coal, iron spur industry—Bessemer process • Iron into steel by injecting air an removing carbon • Replaced by open-hearth process • New Uses for Steel • railroads, barbed wire, farm machines • construction: • Brooklyn Bridge • steel-framed skyscrapers

3. Inventions Promote Change • The Power of Electricity • 1876: Thomas Alva Edison first research laboratory • 1880: patents incandescent light bulb • system for electrical production, distribution • Impact in Industrialization • manufacturers can locate plants anywhere; industry grows • available in homes; encourages invention of appliances • Inventions Change Lifestyles • 1867: Christopher Sholes—typewriter • 1876:Alexander Graham Bell—telephone • Impact on Industrialization • Women in workforce • 1910: 40% of clerical workers are women • clothing factories • improves standard of living • 1890:average workweek 10 hours shorter • as consumers, workers regain power in market • Dissent: mechanization reduces value of human worker

4. 6.2 The Age of the Railroads The growth &consolidation of railroads benefits the nation but also leads to corruption that would require government regulation.

5. Railroads Span Time and Space Railroads Encourage Growth •local transit and westward expansion •Govn’t: land grants, loans to railroads to settle West • A National Network • 1859: railroads extend west of Missouri River • 1869: first transcontinental railroad, spans the nation

6. Romance and Reality • offer land, adventure, fresh start • Railroads built under harsh conditions: • Central Pacific: Chinese immigrants • Union Pacific: Irish immigrants, Civil War vets • Accidents & disease • 1888: 2,000 killed; 20,000 injured • Railroad Time • Lack of uniform schedules • 1869: C. F. Dowd proposes 24 time zones • 1883: U.S. railroads, towns adopt time zones • internat’l conference sets world zones via railroad time • 1918: Congress adopts railroad time

7. Opportunities and Opportunists • New Towns and Markets • Iron, coal, steel, lumber, glass industries↑ • RR link towns, promote trade; interdependence • Nationwide network of suppliers, markets • specialization • Pullman, Illinois • 1880: George M. Pullman builds railcar factory • Provides: housing, doctors, shops, sports field • Company controls residents → stable work force • CréditMobilier • 1864: Union Pacific stockholders form construction co.—CréditMobilier • overpay for laying track, pocket profits • Republican politicians implicated; party tarnished

8. The Grange and the Railroads • Grange—farmer’s organization • angry over perceived railroad corruption • Land grants, fixed prices, different rates • Granger Laws • •Press for laws to protect farmers’ interests • •Munn v. Illinois—upholds states’ right to regulate RR • Fed. government can regulate private industry • Interstate Commerce Act • 1886: Court rules states cannot set rates on interstate commerce • 1887: Interstate Commerce Act • fed. govn’t supervise railroads • est. Interstate Commerce Commission (ICC) NEXT

9. Panic and Consolidation • Abuses, mismanagement, competition bankrupt many railroads • Panic of 1893 • 1894: 25% railroads taken over by financial companies

10. 6.3 Big Business and Labor The expansion of industry results in the growth of big business and prompts laborers to form unions to better their lives.

11. Carnegie’s Innovations • New Business Strategies • GOAL: make better products more cheaply • Hires talented staff; offers company stock; promotes competition • vertical integration—buys out suppliers; control materials • horizontal integration merges with competetion • Carnegie controls almost entire steel industry NEXT

12. Social Darwinism and Business • Principles of Social Darwinism • theory of biological evolution applied to society: Social Darwinism • Natural selection • Economists use to justify doctrine of laissez faire • A New Definition of Success • success of the most capable appeals to wealthy • individual responsibility follows Protestant ethic • riches as sign of God’s favor • poor must be lazy, inferior NEXT

13. Fewer Control More • Growth and Consolidation • Mergers: buy out competitors • Monopolies: control production, wages, prices • Holding companies: buy stock of other companies • John D. Rockefellerand Standard Oil Company • trust; trustees run separate companies as if one • Rockefeller and the “Robber Barons” • Profits: • low wages and underselling • control market → raise prices • Robber barons as philanthropists NEXT

14. Sherman Antitrust Act Government concern: expanding corporations stifle free competition Sherman Antitrust Act: trust illegal if interferes with free trade • Business Boom Bypasses the South • North owns 90% of stock in RR, most profitable Southern businesses • Business problems: high transport cost, tariffs, few skilled workers NEXT

15. Labor Unions Emerge • Long Hours and Danger • Exploitation, unsafe conditions unite workers • 1882: 675 workers killed each week • 12-hour days, 6 day/week; repetitive tasks • no vacation, sick leave, or injury compensation • Women and children: sweatshops • require few skills; lowest wages • Early Labor Organizing • National Labor Union (NLU) • Local chapters reject blacks; CNLU forms • 1868: Congress legalizes 8-hour day to civil servants • Noble Order of the Knights of Labor, Uriah Stephens • Open to all races, genders, degrees of skill • 8-hour day, equal pay, arbitration • Strikes as last resort

16. Union Movements Diverge • Craft Unionism: skilled workers from one or more trades • Samuel Gompers and the American Federation of Labor (AFL) • collective bargaining for better wages, hours, conditions • strike successfully, wins higher pay, shorter workweek • Industrial Unionism: skilled&unskilled workers in an industry • Eugene V. Debs forms American Railway Union (ARU); strikes • Socialism and the IWW • Socialism • factors of production owned and operated by the people • equal distribution of wealth • 1905: Industrial Workers of the World (IWW or Wobblies) • radical unionists, socialists; include African Americans • Industrial unions give unskilled workers dignity, solidarity NEXT

17. Strikes Turn Violent • The Great Strike of 1877 • B&O Railroad strike spreads—50,000 miles • impeding interstate commerce; federal troops intervene • The Haymarket Affair • 3,000 gather at Chicago’s Haymarket Square, protest police brutality • Violence ensues; 8 charged with inciting riot, convicted • Public opinion turns against labor movement • The Homestead Strike • 1892, Carnegie Steel workers strike over pay cuts • Win battle against Pinkertons; National Guard reopens plant • Steelworkers do not remobilize for 45 years • The Pullman Company Strike • lays off 3,000, cuts wages but not rents; workers strike • Pullman refuses arbitration; violence ensues; federal troops sent • Debs jailed, most workers fired, many blacklisted NEXT

18. Women Organize • Women barred from many unions • Mary Harris Jones: United Mine Workers • 1903: leads children’s march to Roosevelt’s home • Pauline Newman—International Ladies’ Garment Workers 1911: Triangle Shirtwaist factory fire • Management and Government Pressure Unions • Employers forbid unions; turn Sherman Antitrust Act against labor • Legal limitations cripple unions, but membership rises NEXT