Tim Cantrell

1
Rise of Industry-1865-1900
LCC

• Tim Cantrell

2
Statistics-1860-1890

• of Farms-1860-2,000,000
  1890-4,500,000 (1990-2,100,000- Max. was
  1930-6,545,000)
• of Factories-1860-140,000
  1890-355,000
• of Industrial Workers-1860-1,300,000
  1890-4,200,000
• Patents-1790-1865-62,000
  1865-1900-638,000

3
Major Inventions

• Bessmer Process-1864
• Typewriter-1867
• Air Brake-1872
• Refrigerator Car-1875
• Telephone-1876
• Motion Picture-1883
• Record Player-1888

4
Major Inventions, Contd

• Electric Railroad-1870
• Gasoline Vehicle-1903-Duryea Brothers (Charles
  Frank)-Founders of General Motors
• Cash Register-1879
• Adding Machine-1891

5
Population Growth

• 1860-31,000,000
• 1890-63,000,000
• 1920-105,000,000(Majority Urban for the first
  time
• 1960-179,000,000
• 1990-249,000,000
• 2000-280,000,000

6
Reasons for the Rise of Industry

• Peaceful Period
• Plentiful Raw Materials-coal-iron
  ore-petroleum-water
• Available Capital
• Available Labor-14,000,000 immigrants from
  1860-1900
• Productivity of the American Farmer-18fold from
  1830-1900
• Advanced Technology-inventions

7
Reasons for Rise, Contd

• Expanded Markets
• Favorable Government(laissez faire)
• Leadership by the Captains of Industry
• Specific Industries Steel- Age of Steel begins
  with the development of the Bessmer Process-Iron
  Mines in Minnesota-Ore over Great Lakes to Erie
  and on to Pittsburgh to the Carnegie Steel
  Company-2/3 of the Nations steel was produced
  here.

8
Specific Industries cont'd

• Steel-contd-Carnegie was an immigrant from
  Scotland. Sold his company to J.P. Morgan and
  Elbert Gary in 1900, and they formed U.S. Steel.
  He made 250 million dollars in profit. Gave it
  away.
• Railroads-Mileage increased from 35,000 in 1865
  to 192,000 in 1900. By 1900 we had built 5
  Transcontinentals, starting with the Union
  Pacific-Central Pacific-1869

9
Railroads contd

• Consolidations and Monopolies By 1900, Six men
  controlled the majority of the RailroadsEdward
  Harriman-20,245 Miles Vanderbilt Family-19,317-
  J.P. Morgan-19,073-J. Edgar Thompson-18,220-
  Jay Gould-16,074- James J. Hill-10,373- These
  guys were ruthless in their methods and drove
  competitors out of business. This brought on
  business regulation.

10
Specific Industries, contd

• Petroleum-Early uses for medicine. Benjamin
  Silliman, a Yale chemist did experiments and John
  D. Rockefeller had Drake drill the first
  commercial well in PA in 1859. 19th Century use
  for Petroleum was for lights and lubrication.
  The 20th Century brought gasoline and diesel. By
  the 1880s, the Standard Oil Trust controlled 94
  of the industry. This caused regulation of
  Trusts.

11
Other Industries, contd

• Meatpacking-Gustavus Swift
• Flour Milling-Charles A. Pillsbury
• Agricultural Machinery-McCormick Family
• Telephone and Electrical Equipment-General
  Electric and Westinghouse
• Regulations Interstate Commerce Act, 1887-Formed
  Interstate Commerce Commission-Reasonable Rates
  required for railroads.-Little immediate impact

12
Legislation, contd

• Sherman Anti-Trust Act, 1890-1. Any business
  operating in restraint of trade was illegal. 2.
  Threefold recovery 3. Fine for violators. Little
  immediate impact. In 1895, the E.C. Knight
  Company was not in restraint of trade even though
  they had 98 of the sugar business in the country.

13
Conclusion

• The U.S. became the Worlds leading industrial
  nation.
• Mal-distribution of wealth.
• Sweeping political and social changes resulted in
  the 20th century.
• The government had to abandon laissez faire and
  step in to prevent monopoly and insure fair
  competition.