CHAPTER 15 THE SECOND INDUSTRIAL REVOLUTION

1. CHAPTER 15THE SECOND INDUSTRIAL REVOLUTION SECTION 1 THE AGE OF INVENTION

2. INDUSTRIAL INNOVATIONS • Second Industrial Revolution – 1865-1905 • Began with inventions and innovations • Changed everyday life for Americans

3. So, What Changed? • Focus shifted from agriculture to industry • Fueled by: • Capitalism • New Inventions • Captains of Industry • Cheap labor

4. STEEL • Invented by: • Henry Bessemer (GB) & William Kelly (US) • Effect: • Bessemer process • New, more effective method of producing steel • Production increased from 15,000 tons in 1865 to 28 million tons by 1910 • Other notes: • Used to build railroads, bridges and larger buildings (skyscrapers), everyday items • Cities in Midwest become industrial centers

5. OIL • Invented by: Edwin L. Drake • Effect: • Could be used to make kerosene for lamps or fuel • Created another “gold rush”-type situation in PA, OH and WV • Texas oil boom began at Spindletop near Beaumont in 1901 • Terms/People • Wildcatters – oil prospectors • “Black gold” – nickname for oil, also “Texas tea” • Patent – protection for an inventor’s rights

7. Technology and Travel • By 1900, Electric streetcars or trolleys powered by overhead electrical wires replaced horse-drawn streetcars • First subway opened in Boston – 1897 • Automobiles (Duryea brothers), 1893 • Airplanes (Wright brothers), 1903

8. RAILROAD • Invented/Improved by: George Westinghouse, George Pullman, Cornelius Vanderbilt, et al • Effect: • Railroad lines went national instead of small, local lines (17 line changes btw. NYC and Chicago in 1860) • Increased western expansion and urban growth • Huge economic impact spurred growth of other industries directly and indirectly • Led to creation of time zones • Trunk lines and feeder lines

9. The Era of the Railroad • Civil War proved how important railroads were becoming. • 1862: Congress charters two transcontinental rail lines. (by 1890 167,000 miles) • Along with railroad expansion came increased telegraph service. • Growth of railroads triggered a revolution in the iron and steel industry. • The demand for steel created the demand for coal.

10. The Transcontinental Railroad • In 1869, the east and west rails met in Promontory, Utah built by immigrants. Marked a significant moment in American socio-economic history. • What were some of the intended consequences? • Improve commerce, populate distant lands, encourage expansion, unite the nation, • What were some of the unintended consequences? • Effect on Native Americans, influx of immigrant workers Andrew J. Russell, JOINING THE TRACKS FOR THE FIRST TRANSCONTINENTAL RAILROAD, PROMONTORY, UTAH, TERR.(1869). Courtesy National Archives and Records Administration.

11. HORSELESS CARRIAGE • Invented/Improved by: Duryea brothers (1893) • Effect: • Became a mode of transportation, mostly for wealthy in early stages • Quickly developed into a sizeable industry, later evolved into automobiles

12. AIRPLANES • Invented/Improved by: Orville & Wilbur Wright • Effect: • Received little public attention at first, later used in World War I and then commercial air travel • Combined glider designs with a gas engine • Originally used a propeller, jet engines developed during and after WWII • Other Notes: • First flight – December 17, 1903 at Kitty Hawk, NC; lasted 12 seconds and went 120 feet

14. TELEGRAPH • Invented/Improved by: Samuel F.B. Morse • Effect: • People could send messages or business orders to distant locations within minutes • Telegraphs usually developed along with railroads • Sent information for businesses, government, newspapers and private citizens • Other Notes: • Morse Code – system of dots and dashes for sending messages through electric wires • Western Union – leading company had over 2,000 offices by 1866

15. TELEPHONE • Invented/Improved by: • Alexander Graham Bell • Effect: • Quickly became indispensable for people and businesses • By end of 1880s, more than 1 million telephones installed in USA • Women took jobs as operators connecting calls

16. TYPEWRITER • Invented by: Christopher Sholes in 1867 • Effect: • Allowed people to easily produce legible documents • Women took jobs as typists • Led to invention of carbon paper • Sholes sold patent to Remington Company in 1873 • Other Notes: • Keyboard developed by Sholes still in use today with a few changes

17. THOMAS EDISON • “Wizard of Menlo Park” • Born in Ohio in 1847 • Had little formal education • Moved around a lot as a young adult • First inventions – electric vote recorder and telegraphic stock ticker in 1869 • Received almost 1,100 patents • Moved from Newark to Menlo Park in 1876, then to West Orange in 1887 • Work was a team effort, employed more than 10,000 people during World War I

19. THOMAS EDISON • Invention: Phonograph (record player) – 1877 • Effect: • Allowed people to record and play back sounds including letters, music and much more • Other Notes: • Edison actually stopped work on phonograph for several years to concentrate on light bulb

21. THOMAS EDISON • Invention: Incandescent light bulb (1879) • Effect: • Original filament was made of bamboo fiber and lasted 600 hours (eventually upgraded to tungsten) • Allowed people to light up indoors and later outdoors

22. THOMAS EDISON • Invention: Electric Power Plant (1882) • Effect: • Delivered electricity by direct current (DC) to neighboring homes and businesses in New York City • Electric lights replace gaslights, electric streetcars • Improvements: • Alternating current (AC) transformer – developed by Westinghouse and Nikola Tesla • Other Notes: • White City – display of outdoor lights at 1893 World’s Fair in Chicago

23. THOMAS EDISON • Invention: Motion pictures (1893) • Effect: • Began what is now a multi-billion dollar and worldwide business • Other Notes: • Black Maria – first motion picture studio – named after police wagons of the time • The Great Train Robbery (1903) – first narrative movie – 14 scenes, about 10 minutes

25. Changes in Production • Mass production of goods • Sped up manufacturing = increasing quantity of goods produced. • Increased investor’s profits. • Increased demand for unskilled labor. • Increased demand for raw materials. • Resulted in lower prices on goods for the consumer.

26. CHAPTER 15THE SECOND INDUSTRIAL REVOLUTION SECTION 2 THE RISE OF BIG BUSINESS

27. Reasons for the Rise as an Industrial Giant The spread of railroads New Inventions Capitalism Captains of Industry Cheap labor

28. ECONOMIC SYSTEMS • Capitalism – • Industry controlled by private business, competition determines costs and wages • Entrepreneurs • Laissez-faire economics – no government intervention in the economy • Communism (also called Marxism) • Definition – community owns all property and means of production • Karl Marx – believed the rich took advantage of working class • Social Darwinism – “Survival of the Fittest”

30. TYPES OF OWNERSHIP • Traditional forms of ownership • New form of ownership – Corporations • Organizers raise money by selling shares of stock • Advantages of corporations • Raise more $$, limited liability, more stability • Disadvantages of corporations • Wild swings in prices • Trust – several companies work as one to set prices and control competition • Monopoly – See next page • Holding company – does nothing but buy out other companies

31. Monopolies Companies that controlled all the business in an industry in order to eliminate the competition and then raise its own prices. $ X Competition

32. BARONS OF BIG BUSINESS The People who controlled these monopolies are: Andrew Carnegie – Steel John D. Rockefeller – Oil Cornelius Vanderbilt, George Westinghouse, and George Pullman - Railroads

33. Captains of Industry How did the captains of industry create and maintain control of United States industry?

34. What is a Captain of Industry?! A business leader whose way of achieving personal fortune contributes positively to the country in some way. Providing Jobs This can be through: Increasing Production Philanthropy

35. Someone who makes large charitable donations ($$) to improve the well-being of others. What is a Philanthropist?! Schools/ Universities This is often to: Hospitals/ Medicine Libraries

36. A business man who dominated their industry and made huge fortunes through unfair business practices. What is a Robber Baron?! This was done by: Holding all of the power in their company Sometimes used illegal business practices Eliminating smaller/weaker businesses

37. Andrew Carnegie: Controlled the steel Industry Sold Carnegie Steel to J.P. Morgan for $500 mil in 1901.

38. Andrew Carnegie: Used vertical integration to be successful. Vertical Integration = Owning all aspects of production for a certain product. As a result the owner makes all the profit (money). Gospel of Wealth – Carnegie’s belief that the rich were morally obligated to help others

39. John D. Rockefeller Owned the Standard Oil Trust • Had a reputation as a Robber Baron

40. John D. Rockefeller Tried to control all businesses in the oil industry • Gave away more than $500 million during his lifetime

41. “The only time I ever saw John Rockefeller enthusiastic was when a report came in from the creek that his buyer had secured a cargo of oil at a figure much below the market price. He hounded from his chair with a shout of joy, danced up and down, hugged me, threw up his hat, acted so like a mad man that I have never forgotten it . . .”

42. Cornelius Vanderbilt Built a huge railroad empire through ruthless business tactics • Had a reputation as a robber baron

43. Cornelius Vanderbilt Left $1 million to Vanderbilt University after his death. He is the 2nd wealthiest person in U.S. History

44. RAILROAD GIANTS • George Westinghouse • George Pullman • Company town – Pullman built a town next to his factory in the 1880s that allowed him to strictly control daily lives of employees, in and out of work

45. MASS MARKETING • Marketing products • Use of brand names and packaging • Ads in magazines, newspapers and billboards • Helped create a new age of consumerism in the U.S. • New ways to shop • Department stores • Chain stores