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Chapter 6 Chapter 6 Presentation Transcript

  • Chapter 6 A New Industrial Age
  • Chapter 6 Objective
    • To analyze the effects of various scientific discoveries and manufacturing innovations and the nature of work, the American labor movement, and businesses.
  • Sec. 1 – The Expansion of Industry
    • Main Idea: At the end of the 19 th century, natural resources, creative ideas, and growing markets fueled an industrial boom.
  • Natural Resources Fuel Industrialization
    • Post Civil War – mostly agriculture
    • By 1920s – America is leading industrial power in the world
      • Wealth of natural resources
      • Govt support for business
      • Growing urban population (cheap labor + more customers)
  • Black Gold
    • Kerosene
    • Edwin L. Drake – steam engine used to drill for oil (practical)  OIL BOOM (Kentucky, Ohio, Illinois, Indiana, and later… the Lone Star State baby!)
  • Black Gold
    • Refineries in Cleveland and Pittsburgh
      • Gasoline (a byproduct of the refining process) was originally thrown away… until cars.
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  • Bessemer Steel Process
    • Coal and Iron (lots of it in U.S.)
    • Steel – Iron minus carbon
    • Bessemer Process – technique that involved injecting air into molten iron to remove the carbon and other impurities (this process used to produce 90% of U.S. Steel by 1880)
    • Replaced later by the open-hearth process (better for scrap metal)
    • Uses for steel:
      • Railroads
      • Barbed wire
      • Farm machines (John Deere)
      • Brooklyn Bridge (Steel cables)
      • Skyscrapers
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  • The New Technology (late 1800s- early 1900s)
    • Alfred Nobel- dynamite (1866)
    • Electricity- dynamo machine that generates electricity
    • Henry Ford- assembly line to make cars (Model T)
    • Wright Brothers –first airplane
  • Yeah, I blow stuff up.
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  • Aieee! I am blowed up! Blast you, Nobel! Ha, ha… get it? BLAST you? Aieee!!!!
  • Electric dynamo
  • There was actually a big contest between alternating current and direct current: AC vs. DC. Did somebody say AC/DC?
  • Inventions Promote Change
    • Thomas Edison
      • 1 st research laboratory
      • Incandescent light bulb
      • System for producing and distributing power: AC vs. DC and roasting elephants.
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    • War of the Currents
      • Direct current has a number of limitations
        • It requires numerous local generating stations since it can ’t be transmitted over long distances, needs different sizes of wires for different voltages because it couldn’t be lowered, etc. But it would have meant big money for Edison.
      • Alternating current
        • Doesn ’t have all the disadvantages of DC.
        • Supported by George Westinghouse and Nikola Tesla.
    • War of the Currents
      • Edison played dirty, supporting AC as an electrocution method and even electrocuted an elephant.
        • Interestingly, Tesla was a former employee of Edison ’s.
        • Edison eventually lost after a deal harnessing the power of Niagara Falls and also getting the electrical rights to the 1893 World ’s Fair in Chicago (despite Edison not allowing Westinghouse and Tesla to use his light bulbs – they just invented new bulbs that didn’t use Edison’s patents).
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  • Between Westinghouse ’s muttonstache and Tesla’s hair, there was no way they could lose.
  • Also because Tesla did this sort of thing.
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  • Henry Ford and the Model T Inventor, Innovator, Industrialist, and an Incredible anti-Semite
  • We ’re flying, suckas! I can poop on your heads!
  • Cars? Planes? I can make those ‘splode! Know why?
  • Inventions Promote Change
    • Christopher Sholes
      • Typewriter
    • Alexander Graham Bell
      • Telephone
    • How did these inventions change the world?
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  • omg. dnt b a h8r. lulz!
  • Inventions Promote Change
    • Alexander Graham Bell
      • Telephone
    • How did these inventions change the world?
  • Yes, is Mr. Rotch there? His first name is Mike. Snicker… Uhhh.. Alex, you realize there ’s only two phones that exist, right?
  • Environmental Change
    • Haystacks to smokestacks
      • Late 19 th /early 20 th century many cities shift from rural pasts to industrial futures.
  • Environmental Change
    • Refining the landscape
      • Industries source of prosperity
      • However…pollution they produced becomes ongoing problem
  • Environmental Change
    • A river of fire
      • Pollution not only to air but to water
      • So much oil discharged into rivers, such as the Cuyahoga River, that they oftentimes caught fire.
  • Section 1 Summary
    • Abundant natural resources
    • New ways to process those resources
    • New inventions that made life go faster
    • All fueled an growth in industry that made the U.S. the #1 industrial giant by the 1920s
    • Next up: The Changing Labor Force (Interpreting Text and Visuals)
  • Sec. 2 – The Age of the Railroads
    • Main Ideas: The growth and consolidation of railroads benefited the nation but also led to corruption and required government regulation.
  • Railroads Span Time and Space
    • Local transit reliable
    • Westward expansion possible
    • Lots of govt. support
    • Transcontinental Railroad
      • 1861 (30,000 miles of track)
      • 1890 (6 x above)
    • Romance vs. Reality – available land, riches, and a fresh start BUT building RRs not easy (accidents, diseases – 1888 = 2,000 killed, 20,000 injured)
    • Time Zones created because of RRs (officially adopted by Congress in 1918)
  • Opportunities and Opportunists
    • RRs a plus for industries and new towns
    • Pullman Town by George M. Pullman
      • Provided brick houses, doctors, shops, and athletic field
      • Under Company control though
      • In 1894 Pullman refused to lower rents after he cut wages  violent strike
    • Credit Mobilier Scandal
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  • More Opportunist: Cr é dit Mobilier
      • Stockholders in the Union Pacific RR formed a construction company called Cr é dit Mobilier
      • CM got a contract from the stockholders to lay track at two or three times the actual cost - and pocketed the profits.
      • 1867 – donated shares of stock to reps in Congress
      • Republican Party name tarnished when it was published in the New York Sun that the VP and Congressman James Garfield (later to be president) had taken bribes
  • The Grange and the RRs
    • Railroad Abuses
      • Selling land meant for settlers
      • Agreements to fix prices
      • Different customers, different rates
    • Granger Laws
      • Supported candidates that would pass laws for them
      • 1871 – Illinois authorized a commission to “establish maximum freight and passenger rates and prohibit discrimination” (this law and others like became known as Granger Laws)
      • RRs fought back (i.e. Munn v. Illinois) and the Supreme Court upheld the Granger Laws by a vote of 7-2  states could regulate RRs to benefit farmers and consumers
      • Established the idea: the federal govt ’s right to regulate private industry to serve the public interest.
  • Interstate Commerce Act
    • Short-lived triumph for Grangers
      • 1886 – Supreme Court ruled that states could not set rates for “interstate commerce”
    • 1887 – Interstate Commerce Act  the right of the Fed. Govt to supervise RR activities and established a 5 member Interstate Commerce Commission (ICC)
      • ICC had a tough time – RRs were not giving in easily, in 1897 Supreme Court ruled the ICC could not set maximum RR rates
    • 1906 – under leadership of T.R. – ICC gets power to be effective
  • Panic and Consolidation
    • 1893 Economic Collapse led to RRs being taken over by financial companies
    • Investment Firms (J.P. Morgan & Co.)
      • Bought RRs
      • Reorganized them
    • By 1900, 7 powerful companies held sway over 2/3 of the nation ’s RR track
  • Section 2 Summary
    • RRs provide opportunity and excitement
    • RRs companies, like Pullman, and scandals like Credit Mobilier, hurt the reputation of RRs and even elected officials
    • The Grange pushes laws to stop the abuses by the RRs and they get close
    • The real power lies in the hands of just a few…
  • Section 3 – Big Business & Labor
    • Main Idea: The expansion of industry resulted in the growth of big business and prompted laborers to form unions to better their lives.
  • BIG Business Overview
    • Andrew Carnegie (horizontal and vertical integration)
    • Social Darwinism
    • Mergers, Monopolies, Holding Companies, and Trusts
    • John D. Rockefeller (Standard Oil Co.)
    • Philanthropist vs. Robber Baron ??
    • Sherman Antitrust Act
  • Andrew Carnegie
    • Immigrant, came to US at 12
    • Rags to riches, stock market
    • Entered steel business
    • Success due to business strategies
      • Vertical Integration – A Co. taking over its suppliers and distributors etc., to gain total control over it ’s products).
      • Horizontal Integration – Merging of companies that make similar products.
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  • Social Darwinism
    • Loosely based on Darwin ’s theory of natural selection
    • Unrestrained competition = the survival of the fittest
    • Therefore….hardest working, most capable get rich…poor people must be lazy or inferior
  • Social Darwinism
    • Two different types, really: Active and Passive.
      • Passive were laissez-faire, let competition and nature take their natural course without interference (still plenty of room for charity).
        • Carnegie, Spencer, Sumner
      • Active were interferers. Don’t wait for nature when it’s within our power to shape the human race.
        • Eugenics, forced sterilization, birth control, abortion.
        • Buck v. Bell, Sanger
  • Social Darwinism
    • The term was actually meant to be insulting.
      • From the active to the passive guys.
      • Idea was that they were Social Darwinists in that they were willing to allow chaos and competition to advance the race when it was within humanity’s power to improve its race.
  • Few Control the Many
    • Mergers- “If you can’t beat ‘em, join ‘em”
      • One corporation buys stock of another
    • Monopoly occurs when…
      • A Co. has control over its industry ’s production, wages, & prices
    • Holding Companies
      • Co. buys stocks of other co.s (i.e. JP Morgan)
    • Trusts- Companys join with competing co. in agreements = large corporations run by trustees = Co.s get dividends on returns
  • Philanthropists or Robber Barons?
    • John D. Rockefeller (1839-1937)
      • Standard Oil- 1870 3% of oil -1880 90%
      • Huge profits by low wages & low costs, this drove competitors out of business
      • After, market control & huge price increases
    • Are Carnegie and Rockefeller Ps of RBs?
      • Carnegie left 90% of fortune to foundations, schools, and the arts (The Gospel of Wealth).
      • Rockefeller kept most, gave away $500 million
  • Standard Oil "King of the World" A political cartoon by C.J. Taylor entitled "King of the World" depicts John D. Rockefeller and the monopoly held by Standard Oil. A monopoly is a company that is the only firm supplying a product or service to a market. Monopolies have no competitors, allowing them to set prices and terms without any constraints. Symbols? Message? Supporters of that message? [Bettmann/Corbis]
  • Sherman Antitrust Act
    • Made it illegal to form a trust that interfered with free trade between states or with other countries.
    • But…….
      • Prosecution under SAA is difficult
      • Not clearly defined
      • Businesses evade by reorganizing
      • S.C. throws out most cases & govt gives up
    • First used against the union in the Pullman Strike.
  • Labor Unions Emerge
    • WHY?
      • Long Hours (12+)
      • No vacation, sick leave, reimbursement for injuries suffered on the job
      • Sweatshops & “sweaters”
      • Unsafe conditions – in 1882, 675 killed a week
      • Child labor – some made 27 cents a day for 14 hr days,
    • Labor union- when workers, skilled & un-skilled, join together & fight for better conditions & wages
  • Types of the Unions
    • 1 st large scale union form in 1866 (National Labor Union)  racism within the union led to the creation of the Colored National Labor Union (eventually got 8 hour work day from Congress)
    • Other unions
      • Knights of Labor (1869)
      • Craft Unionism - Samuel Gompers led the American Federation of Labor (AFL) in 1886 (collective bargaining)
      • Industrial Unionism – Eugene V. Debs (i.e. American Railway Union)
      • Socialism – Industrial Workers of the World (IWW) also known as Wobblies included miners, lumberers, cannery and dock workers
      • Other – immigrant groups organize and strike
  • Strikes Turn Violent
    • The Great Strike of 1877 – Baltimore and Ohio RR for wages – federal troops had to intervene (interstate commerce)
    • The Haymarket Affair (1886) – protest police brutality in Chicago – turned violent when a bomb was thrown at police and they defended themselves
    • The Homestead Strike – at Carnegie Steel over working conditions and wages (Pinkertons hired to protect plant – hire scabs or stirkebreakers) – several died and it took the PA National Guard to end it! Carnegie Steel “won”
    • The Pullman Company Strike (1893) – wages vs. rents – almost had a deal until strikebreakers got involved, then it turned violent – federal government got involved again (Pullman “won”)
    • Mother (Ma) Mary Harris Jones (child labor laws) – Great Strike of 1877
  • Section 3 Summary
    • Robber Barron like Carnegie and Rockefeller dominate big business to the expense of their workers (the South gets left out)
    • Social Darwinism explains why some succeed and others do not
    • Sherman Antitrust Act attempted to regulate big business if it interfered with free trade
    • Unions organize and work to make working conditions and wages appropriate and fair – some attempts turn violent
  • Get ready for Thursday…
    • Andrew Carnegie and his ideas on wealth
    • What is the responsibility of the wealthy?
    • Be ready to discuss Thursday with your classmates