The Expansion of Industry Main Idea At the end of the 19th century, natural resources, creative ideas, and growing markets fueled an industrial boom Why it matters now Technological developments of the late 19th century paved the way for the continued growth of American Industry
Natural Resources Fueled Industrialization • What led to the nation’s industrial boom? • Wealth of natural resources, government support for business/new inventions, and a growing urban population that provided cheap labor.
Natural Resources • Texas oil boom • Spindletop, near Beaumont, TX. • Petroleum Refining • Oil to Kerosene • Oil to Gasoline
Inventions Promote Change • How did new inventions and products affect people at home and at work? • Helped improve people’s standard of living. Freed people from backbreaking work. Factories could mass produce items.
The Age of Railroads Main Idea The growth and consolidation of railroads benefited the nation but also led to corruption and required government regulation Why it Matters Now Railroads made possible the expansion of industry across the United States
Railroads Span Time and Space • How did the government facilitate the expansion of the railroads? • Government made huge land grants and loans to the railroad companies and set time zones to be set.
Railroads Span Time and Space • National Network • Union Pacific and Central Pacific Railroads • Promontory, Utah on May 10, 1869 • Transcontinental Railroad • Romance and Reality • Central Pacific- Chinese immigrants • Union Pacific- Irish immigrants & Civil War veterans • Harsh life;1888-2,000 killed,20,000 injured • Railroad Time • 1869-C.F. Dowd- 24 time zones • 4 time zones in the U.S. • Eastern, Central, Mountain, Pacific • Nov. 18,1883- Synchronized time across country
Opportunities and Opportunities • How would the growth of railroad lines promote the growth of cities and trade? • It helped establish new markets, and offered rich opportunities for both visionaries and profiteers.
Opportunities and Opportunities • The growth of railroads influenced the industries and businesses in which Americans worked. Iron, coal, steel, lumber, and glass industries grew rapidly.
The Grange and the Railroads • How would Granger laws help farmers? • Congress passed laws that would protect their interests. It established maximum freight and passenger rates and prohibit discrimination.
The Grange and the Railroads • Farmers were especially affected by corruption in the railroads. • The Grangers began demanding governmental control over the railroad industry.
Big Business and Labor Main Idea The expansion of Industry resulted in the growth of big business and prompted laborers to form unions to better their lives Why it Matters Now Many of the strategies used today in Industry and in the labor movement, such as consolidation and the strike, have their origins in the late 19th century
Carnegie’s Innovations • What business did Andrew Carnegie dominate? • Steel Business. 1899-The Carnegie Steel Company.
Carnegie’s Innovations • Earned his money first by buying stock in the Pennsylvania Railroads • 1899- Carnegie Steel Company • New Business Strategies • Make better products more cheaply • Attracted talented people by offering them stocks in the company. He encouraged competition. • Carnegie looked to control as much of the steel industry • Vertical Integration- process in which he bought out his suppliers. Control materials. • Horizontal Integration- companies producing similar products merge. Limited competition.
Horizontal Integration Vertical Integration Production Process Raw Materials: Coal and Iron Mines Carnegie Owns Owner X Manufacturing the Steel: Steel Mills Carnegie Owns Owner Y Transportation to and From mill: Railroads Carnegie Owns Owner Z
Social Darwinism • What does the theory of Social Darwinism advocate? • The strongest will survive. • What methods did ruthless business operators use to eliminate their competition? • Big businesses form monopolies. They merged small companies into larger ones. They could fix their prices and wages to their advantage.
Social Darwinism and Business • Andrew Carnegie explained his extraordinary success by pointing to his hard work, shrewd business investments, and innovative business practices.
“Robber Barons” • 1880-Standard Oil controlled 90% of the refining business. • Paid employees low wages and drove competitors out of business by lowering the price it cost to produce it. • “Robber Barons” • He eventually gave away over $500 million • University of Chicago, Rockefeller Foundation, and Medical Foundation.
Fewer Control More • Sherman Antitrust Act • Made it illegal to form a trust that interfered with free trade between states or with other countries. • Didn’t have much of an impact • How did economic factors limit the industrialization in the South? • The South had a devastated economy from the Civil War. It was at the mercy of the Northern railroad companies for transporting goods to markets. • Business Boom Bypasses the South • South still trying to recover from the Civil War. • People didn’t want to take the risk.
Labor Unions Emerge • What conditions did many factory workers face in the late 19th century? • Long hours(12), poor working conditions, No vacations, sick days. Worked six days a week.
Early Labor Organizing • National Labor Union(NLU)- 1st large union 1866 • William H. Sylvis • 8 Hour workdays • Colored National Labor Union(CNLU) • Knights of Labor-Uriah Stephens • “An injury to one is the concern of all.” • Open to all workers • Equal pay for equal work for both men and women • 8 hour workday • Strikes would be a last resort
Union Movements Diverge • Two major types of unions made great gains under forceful leaders
Leader Characteristics Union 8 hour work day. No blacks William Sylvis NLU 8 hour work day. Isaac Meyers CNLU Individual workers. Open to All. Uriah Stephens Knights of Labor Collective bargaining or negotiation AFL Samuel Gompers Higher wages, skilled & unskilled workers Eugene V. Debs ARU Better working conditions; miners, dock workers, lumberers. IWW William “Big Bill” Haywood
Strikes Turn Violent • Women Organize • Mary Harris Jones • UMW- United Mine Workers • Child Labor • Pauline Newman-16 yrs. old • International Ladies’ Garment Workers’ Union (ILGWU) • Triangle Shirtwaist Factory-NY City, March 28, 1911 • Management & Government Pressure Unions • “Yellow-Dog Contracts”