Chapter 9 Industrialization

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Chapter 9Industrialization

• Section 1
• The Rise of Industry

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11-4-2010 TAKS Warm Up

• Write the Question and Answer
• What was the Homestead Act of 1862 and what was
  its impact?
• What was the Dawes Act and what was its purpose?

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The US Industrializes

• Natural Resources
• Lots of raw materials water, timber, coal, iron
  and copper. Many of these resources were located
  in the West. The settlement after the Civil War
  helped to accelerate Industrialization
• A new resource petroleum was just beginning to
  be tapped. (Kerosene)
• Edwin Drake 1859 drilled the first oil well
  near Titusville, Pennsylvania. As oil production
  increased, it fueled economic expansion.

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Edwin Drake
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The US Industrializes

• A Large Workforce
• Between 1860 and 1910 the population nearly
  tripled.
• Increased workforce and demand for consumer
  goods.
• Large families and massive immigration
• Conditions in China and Eastern Europe were not
  good.
• 1860-1910 20 million immigrants

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Free Enterprise

• Americans embraced the idea of laissez-faire
  which means let do a French phrase that means
  let people do as they choose Lack of
  government control.
• Relies on supply and demand
• Low taxes and low government debt
• Entrepreneurs people who risk their capital in
  organizing and running a business.

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Governments Role in Industrialism

• For the most part the government stayed out of
  the way. This policy produced results other than
  what had been intended.
• Sectional tensions between North and South early
  1800s
• North high tariffs and subsides
• South low tariffs and promote trade
• The Civil War ended this debate
• Republicans passed the Morrill Tariff (raised
  tariffs)
• High tariffs stayed even though they werent part
  of Laissez-Faire. Felt they were needed.

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New Inventions

• Bell and the Telephone
• Alexander Graham Bell invented the telephone.
  Revolutionized communications. Created the Bell
  Telephone company and later became the American
  Telephone and Telegraph Company (ATT)
• Edison and Electricity
• Thomas Alva Edison worked to invent new
  products
• Invented the Phonograph, lightbulb, electric
  generator, battery, dictaphone, mimeograph and
  the motion picture.
• 1882 Edison Electric Illuminating Company new
  industry providing electric power to New York
  City.
• Several of Edison companies merged into the
  Edison General Electric Company, which is known
  today as GE

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Bell
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New Inventions

• Technologys Impact
• Technology became a part of most everyones life.
• Thaddeus Lowe invented the ice machine basis of
  the refrigerator. Gustavus Swift and the
  refrigerated railroad car fresh meat delivery.
• Technology changed the shoe and clothing
  industries as well.

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Warm-UPRemember from Section 1

• Describe the concept of laissez-faire.
• What is an entrepreneur? Give two examples of
  entrepreneurs. Who are they and what did they do?

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The Railroads

• Chapter 9 Section 2

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Linking the Nation

• By 1900 the U.S. had over 200,000 miles of rail
  road.
• The railroad boom began in 1862 when the Pacific
  Railway Act was signed.
• What was the name of the 2 railroads that built
  the transcontinental railroad?
• Union Pacific the Central Pacific
• 10,000 workers
• 10,000 animals

1 mile of track
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• Four merchants known as the Big Four invested
  in the Central Pacific Railroad.
• Leland Stanford.(grocer)
• Charley Crocker (shop owner)
• Collins P. Huntington and Mark Hopkins (Hardware
  store owners)

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Leland Stanford

• Gov. of CA
• U.S. Senator
• 1885 Founded Stanford Univ.
• Headed the Central Pacific railroad
• Employed tons of Chinese

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Transcontinental railroad

• Spurred Industrial growth by linking
• The Nation
• Railroads increased the size of markets for many
  products
• Stimulated the economy by spending lots of money
  on steel, coal, timber

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Cornelius Vanderbilt

• Famous Railroad Consolidator
• Had built the largest steam boat fleet in America
  
• 1869 was able to offer the 1st direct rail
  service between New York City Chicago

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Time Zones

• Before the 1880s, regions set their clocks by the
  suns position in the sky.
• To make rail service more safe, in 1883 the
  American Railway Association divided the country
  into 4 time zones.
• What are these time zones called?

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Land Grant System

• To encourage railroad constructions the federal
  government gave land grants to many railroad
  companies. A land grant is a piece of land that
  is given to someone.
• Railroad companies made most of their money by
  selling government land grants.

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Robber Barons

• Scandals created the impression that railroad
  entrepreneurs were robber barons, or people who
  looted an industry and gave nothing back.
• Jay Gould practiced insider trading.
• He used information he received as a railroad
  owner to manipulate stock prices to his benefit.
• James J Hill (Was NOT a robber Baron) built
  operated the Great Northern railroad from St.
  Paul MN to WA

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Credit Mobilier 1872

• A construction company set up by several
  stockholders of the Union Pacific.
• Scandal included many government officials.

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Section 3 Big Business

• By 1900Big Business dominates the economy
• Would be possible w/o the Corporation, the people
  who own the Corporation are called the
  Stockholders
• Why Because they own ownership of that company
  (AKA Stock)
• When people invest in these companies they are
  able to sale more and produce goods more rapidly

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• Even though falling prices help consumers they
  hurt business so . . .they pulled t/g to form
  POOLS AKA agreements to maintain prices at a
  certain level.
• These were generally unpopular did not last long

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Andrew Carnegie Steel

• Born in Scotland
• Started as a railroad Superv.
• 1875 opened a steel comp. in Pittsburgh, PA
• 1st to use the Bessemer Process a new process
  of making steel easy cheaply
• Known for Vertical Integration owns all of the
  factors of production for its business

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Vertical Integration
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Horizontal Integration

• John D Rockefeller is an example
• Combining many firms in the same type of business
  (this can limit competition)
• 1880 John D. R owned 90 of the oil refining
  industry
• When a company receive control over the entire
  market than it becomes a Monopoly
• Americans dont like this why? . . .

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• 1882 Standard Oil formed the first TRUST
• Trust - A new way of merging businesses that did
  not violate the laws a/g owning other companies
• Holding companies does not produce anything
  itself , it owns stock in the companies that do
  produce goods
• Selling the Product Advertising (90 mill per
  yr) flyers, magazines, bill boards, newspapers
• Department Stores emerged by 1877 most
  popular was Woolworths, later came Macy's,
  Marshall Fields