The Expansion of Industry

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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

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Natural Resources Fueled Industrialization

• What led to the nations industrial boom?
• Wealth of natural resources, government support
  for business/new inventions, and a growing urban
  population that provided cheap labor.

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Video- Oil Industry
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Natural Resources

• Texas oil boom
• Spindletop, near Beaumont, TX.
• Petroleum Refining
• Oil to Kerosene
• Oil to Gasoline

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Video- Steel Industry
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Inventions Promote Change

• How did new inventions and products affect people
  at home and at work?
• Helped improve peoples standard of living.
  Freed people from backbreaking work. Factories
  could mass produce items.

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Video- Railroads
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Inventions Change
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Taking Notes
Resources, Ideas, Markets Impact
Oil Drill Oil Boom, Wealth
Bessemer Process Bridge Construction, more Railroads
Steel Frame buildings
Electrical Power Artificial light widely available
Telephone Faster communications
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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

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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.

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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 life1888-2,000 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

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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.

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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.

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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.

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The Grange and the Railroads

• Farmers were especially affected by corruption in
  the railroads.
• The Grangers began demanding governmental control
  over the railroad industry.

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Taking Notes
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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

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Carnegies Innovations

• What business did Andrew Carnegie dominate?
• Steel Business. 1899-The Carnegie Steel Company.

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Carnegies 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.

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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
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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.

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Social Darwinism and Business

• Andrew Carnegie explained his extraordinary
  success by pointing to his hard work, shrewd
  business investments, and innovative business
  practices.

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Fewer Control More
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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.

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Fewer Control More

• Sherman Antitrust Act
• Made it illegal to form a trust that interfered
  with free trade between states or with other
  countries.
• Didnt 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 didnt want to take the risk.

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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.

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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

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Union Movements Diverge

• Two major types of unions made great gains under
  forceful leaders

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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
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Strikes Turn Violent
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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