1865

1
Chapter 6

• 1865 1905
• The Second Industrial Revolution

2
6.1 Objectives

• How did the development of steel and oil refining
  affect U.S. industry?
• What innovations were made in transportation?
• How did innovations in communications technology
  change business practices and daily life in the
  United States?
• How did Thomas Edisons research laboratory
  change American life?

3
Steel refining

• Results
• provided a strong, cheap source of building
  material
• allowed expansion of the railroad industry
• allowed construction of more complex machines and
  taller buildings
• Facts
• Bessemer Process Blast Furnace

4
Oil refining

• Results
• resulted in the production of kerosene for fuel
  and light
• allowed the manufacturing of other petroleum
  products
• helped machinery operate
• Important Facts
• Edwin L. Drake steam engine to drill
• Elijah McCoy lubricating cup

5
Transportation innovations

• Results
• Railroads promoted western settlement, urban
  growth, and economic prosperity.
• Automobiles became a substantial industry.
• Airplanes introduced new possibilities.
• Important Facts
• Horseless Carriage
• Transcontinental Railroad
• George Westinghouse Air Brake
• George Pullman Railroad Sleeping Car

6
Communications innovations

• Results
• The telegraph allowed businesses to place
  long-distance orders quickly.
• The telephone brought both businesses and
  individuals together.
• The typewriter allowed the quick production of
  legible documents.
• Facts
• Morse Morse code
• Bell Telephone
• Christopher Sholes - Typewriter

7
Thomas Edisons research laboratory

• Results
• the light bulb
• the phonograph
• early motion-picture camera
• Facts
• Menlo Park
• Held more that 1000 patients
• Electric Power Plant in NYC

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6.2 Objectives

• What arguments did business leaders and social
  critics make about the role of government in
  business?
• How did business strategies change during the
  Second Industrial Revolution?
• How did entrepreneurs take advantage of changes
  in business organization?
• How did new methods of marketing products change
  American life?

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Concerning governments role in business

• Business leaders
• Individuals should be self-reliant.
• Businesses prosper most without government
  interference.
• Government interference reduces self-reliance.
• Capitalism private business and competition
  determine costs
• Laissez-faire let the people doo as they
  choose, no government intervention
• Free Enterprise supply and demand determine
  prices

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Concerning governments role in business

• Social critics
• Factory life and poor working conditions harm
  workers.
• All citizens should own all means of production.
• Government assistance would prevent the best
  businesses from rising to the top.
• Communism no individual ownership of property,
  means of production should be owned by everyone
• Social Darwinism the fittest people or
  businesses would rise to the top

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New business strategies

• Corporation sell a percentage, or Share of a
  company
• Vertical integration acquiring companies that
  provide material and services that the primary
  company depends on
• Horizontal integration on companies control of
  other companies producing the same things
• Technological innovation

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The Corporation

• Trust a group of companies turn control over to
  a board of trustees
• Monopoly when a trust gains exclusive control
  with little to no other competition left

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Entrepreneurs take advantage

• Carnegie created corporations and used vertical
  integration to dominate the steel industry.
• Rockefeller created corporations and used
  horizontal integration to dominate the oil
  industry.
• Vanderbilt bought and consolidated many railroad
  lines.
• Westinghouse and Pullman introduced and
  controlled new railroad technologies.

14
New marketing methods

• use of brand names and special packaging
• advertising
• department stores
• catalogs
• chain stores

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6.3 Objectives

• Why did some Americans want trusts to be banned,
  and how did the government respond?
• What types of working conditions did laborers
  face in the new age of rapid industrialization?
• How did the Knights of Labor attempt to address
  the needs of many workers?
• How did businesses react to strikes in the late
  1800s, and how did this affect unions?

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The banning of trusts

• desired because of belief that without
  competition, large monopolies would have no
  reason to maintain quality or keep prices low
• not accomplished despite passage of the Sherman
  Antitrust Act

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Working conditions

• Workers
• African Americans
• Women and Children
• Working Conditions
• low pay
• long hours
• unsafe environments
• possibility of racial discrimination

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The Knights of Labor

• included both skilled and unskilled workers
• included women and, later, African Americans
• organized strikes, marches, and demonstrations
• educated and organized workers
• Facts
• Terence V Powderly 1st leader of KOL
• Mary Harris Jones organized strikes, marches,
  and demonstrations

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The Great Upheaval

• 1886 saw a year of intense strikes and violent
  labor confrontations
• Haymarket Riot
• May of 1886 40,000 Chicago workers strike
• May 3 confrontation results in 2 deaths
• May 4 a peaceful rally was breaking up when 200
  police showed up, bombs and gunfire opened 60
  police wounded
• American Federation of Labor Samuel Gompers
  organized independent craft unions

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Strikes in the late 1800s

• Businesses responded with blacklists, yellow-dog
  contracts, lockouts, and violence.
• Business tactics hurt many unions and caused
  skilled workers to break away from unskilled
  ones.
• Other Strikes
• Homestead Strike steel
• Pullman sleeping car factory