Chapter 19 Growth Of Industry

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Growth of Industry in America
Middle School American History
Grades 6-8

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  • Chapter 19 Growth Of Industry

    1. 1. MONEY, MONEY, MONEY CHAPTER 19 THE GROWTH OF INDUSTRY
    2. 2. Section1 <ul><li>East and West coasts are connected </li></ul><ul><li>Plains areas are populated </li></ul><ul><li>trade moving N, S, E, W and overseas </li></ul><ul><li>What was once a “chopped up” nation—now whole </li></ul>
    3. 3. <ul><li>More people—more stuff </li></ul><ul><li>Supply/Demand </li></ul><ul><li>Who could get it quicker, cheaper, more economical and in bigger quantities –the challenge </li></ul>
    4. 4. <ul><li>Set up our nation on a wild ride </li></ul><ul><li>THE INDUSTRIAL REVOLUTION </li></ul>
    5. 5. RAILROAD EXPANSION <ul><li>1890’s five Railway lines crossed the country </li></ul><ul><li>thousands of miles of new track laid </li></ul><ul><li>Larger railroad companies bought smaller ones—consolidation </li></ul><ul><li>known as railroad barons </li></ul>
    6. 6. Railroad Barons <ul><li>Cornelius Vanderbilt—New York </li></ul><ul><li>Leland Stanford--California </li></ul>
    7. 7. Railroad stimulates the Economy <ul><li>carried raw materials </li></ul><ul><ul><li>iron ore </li></ul></ul><ul><ul><li>coal </li></ul></ul><ul><ul><li>timber </li></ul></ul><ul><li>carried manufactured goods from factories to market </li></ul><ul><li>carried produce from farms to cities </li></ul>
    8. 8. <ul><li>helped iron mining </li></ul><ul><ul><li>need for tracks </li></ul></ul><ul><ul><li>need for locomotives </li></ul></ul><ul><li>1900 started using steel </li></ul><ul><ul><li>stronger than iron </li></ul></ul><ul><ul><li>add carbon & other elements to iron </li></ul></ul><ul><li>helped other industry </li></ul><ul><ul><li>lumber industry: supplied wood for RR ties </li></ul></ul><ul><ul><li>coal: fuel for locomotives </li></ul></ul><ul><ul><li>labor: people had to do all this stuff! </li></ul></ul>
    9. 9. Improving the Railroads <ul><li>Each R/R built it’s tracks to its own specs </li></ul><ul><li>no unified code </li></ul><ul><li>tracks not interchangeable </li></ul><ul><li>made travel inefficient </li></ul><ul><li>adopted a standard gauge </li></ul>
    10. 10. Railroad Technology <ul><li>4 major technological developments </li></ul><ul><li>1. Air brakes-Westinghouse </li></ul><ul><li>2. Janney car coupler—Janney </li></ul><ul><li>3. Refrigerator Cars— Gustavus Swift </li></ul><ul><li>4. Pullman sleeping car—George Pullman </li></ul><ul><li>next </li></ul>
    11. 11. Westinghouse Air Brake
    12. 13. Refrigerator Car
    13. 15. Competition <ul><li>Big companies—breed competition </li></ul><ul><li>offered discounts to lure customers </li></ul><ul><li>discounted money had to come from somewhere! </li></ul>
    14. 16. Railroads change America <ul><li>Eastern business started moving West </li></ul><ul><li>Redistributed the population </li></ul><ul><li>Changed the way people thought of time </li></ul><ul><li>How far is it to Tallahassee? </li></ul><ul><li>Orlando? </li></ul><ul><li>Mobile? </li></ul><ul><li>Opened up the United States to economic growth; united different regions of the nation </li></ul>
    15. 17. Section 2 Inventions
    16. 18. http://www.youtube.com/watch?v=z0gZHkO1IJA <ul><li>The Telegraph </li></ul><ul><li>Samuel F.B. Morse </li></ul><ul><li>Introduced 1844 </li></ul><ul><li>Western Union Telegraph Company </li></ul><ul><li>US and Europe connected </li></ul>
    17. 19. Ring, Ring, Ring… <ul><li>Alexander Graham Bell </li></ul><ul><li>Born in Scotland </li></ul><ul><li>1876 developed the telephone </li></ul><ul><li>“ Mr. Watson, come here. I want you” </li></ul><ul><li>Formed Bell Telephone Company </li></ul><ul><li>1890 sold 500,000 phones </li></ul>
    18. 20. The race was on… <ul><li>400,000 new patents from 1860 – 1890 </li></ul><ul><li>What is a patent? </li></ul><ul><li>New inventions: </li></ul><ul><ul><li>typewriter-1868 </li></ul></ul><ul><ul><li>adding machine-1888 </li></ul></ul><ul><ul><li>camera-1888 (George Eastman) </li></ul></ul><ul><ul><li>vacuum cleaner-1889 </li></ul></ul>
    19. 21. Somebody turn the light on! <ul><li>Thomas Alva Edison </li></ul><ul><li>goal: invention a minor invention every 10 days; a major invention every 6 months </li></ul><ul><li>received 1000 patents </li></ul><ul><li>phonograph </li></ul><ul><li>motion picture projector </li></ul><ul><li>telephone transmitter </li></ul><ul><li>storage battery </li></ul><ul><li>dictating machine </li></ul><ul><li>light bulb </li></ul>
    20. 22. <ul><li>power plant production </li></ul><ul><ul><li>designed them to produce electric power to deliver it to his lightbulbs </li></ul></ul><ul><ul><li>1 st power plant built in 1882 </li></ul></ul><ul><ul><ul><li>illuminated 85 buildings in New York City </li></ul></ul></ul><ul><li>George Westinghouse-1885 </li></ul><ul><ul><li>built transformers </li></ul></ul><ul><ul><ul><li>send electric power cheaper and to places farther away </li></ul></ul></ul>
    21. 23. African American Inventors/Engineers <ul><li>Lewis Howard Latimer- filament for the lightbulb </li></ul><ul><li>Granville Woods- electric incubator & electromagnetic brake; automatic circuit breaker </li></ul><ul><li>Elijah McCoy- mechanism for oiling machinery </li></ul><ul><li>Jan E. Matzeliger- shoemaking machine </li></ul>
    22. 24. Transportation <ul><li>Two new modes of transportation </li></ul><ul><ul><li>by land and by air </li></ul></ul><ul><li>Henry Ford </li></ul><ul><li>1908- Model T is born </li></ul><ul><li>Assembly Line </li></ul><ul><li>mass production </li></ul>
    23. 25. It’s a bird, It’s a plane… <ul><li>Orville and Wilbur Wright – 1903 </li></ul><ul><li>1 st plane- wood/canvas with 12 hp engine </li></ul>
    24. 26. Section 3 <ul><li>An Age of Big Business </li></ul>1850 - 1900
    25. 27. The Timeline <ul><li>1859- Oil Discovered in Titusville, PA </li></ul><ul><li>1870- Rockerfeller organizes the Standard Oil Company </li></ul><ul><li>1890- Sherman Antitrust Act Prohibits monopolies </li></ul><ul><li>1900- Andrew Carnegie rules the steel industry </li></ul>
    26. 28. Economics <ul><li>What was this sticky substance? </li></ul><ul><li>OIL </li></ul><ul><li>Edwin L. Drake- beginning of the petroleum industry </li></ul>
    27. 29. Economics <ul><li>Companies need cash to survive </li></ul><ul><li>Cash = Capital </li></ul><ul><li>How to raise capital= corporation </li></ul><ul><li>Corporation= shares/stocks </li></ul><ul><li>stock=sold to public </li></ul><ul><li>public= shareholders </li></ul><ul><li>shareholders=partial owners </li></ul>
    28. 30. <ul><li>partial owner=earned dividends </li></ul><ul><li>company prospered=stock rose in value </li></ul><ul><li>high stock value = sell for a profit </li></ul><ul><li>company failed = stock fell in value </li></ul><ul><li>low stock value = lost investment </li></ul><ul><li>buying/selling of stocks on the market is the stock exchange </li></ul>
    29. 31. <ul><li>Railroads 1 st to form corporations </li></ul><ul><li>manufacturing firms next </li></ul><ul><li>others fell into place </li></ul><ul><li>growth of corporations feeds the industrial expansion of America </li></ul>
    30. 32. Where did the $$ come from? <ul><li>Businesses borrowed money from banks </li></ul><ul><li>Banks made money from profits on loans </li></ul>
    31. 33. The Oil Business <ul><li>Late 1800’s Titusville well produced 15 barrels a day </li></ul><ul><li>Like the gold rush, an oil rush began in the East—Pennsylvania, Ohio, West Virginia </li></ul><ul><li>One of the 1 st big names in Oil </li></ul><ul><li>John D. Rockefeller </li></ul>
    32. 34. John D. Rockefeller <ul><li>http://youtube.com/watch?v=_y7XbLri4ZE </li></ul>
    33. 35. The Standard Oil Trust <ul><li>Built empire using horizontal integration </li></ul><ul><ul><li>combining competing companies together </li></ul></ul><ul><ul><li>pressured customers not to deal with rival companies </li></ul></ul><ul><ul><li>pressured R/R’s to give him rebates </li></ul></ul><ul><ul><ul><li>I’ll pat your back/ you pat mine </li></ul></ul></ul>
    34. 36. Power…. <ul><li>Increased control by forming a trust </li></ul><ul><li>Step 1- Rockefeller bought stock in lots of other oil companies </li></ul><ul><li>Step 2- Shareholders of those companies traded their stock for Standard Oil stock </li></ul><ul><li>Step 3- Now B.O.D. of Standard Oil had ownership of other’s stock and could manage their companies. </li></ul>
    35. 37. <ul><li>Created a monopoly- total control by a single producer </li></ul><ul><li>Standard Oil (Rockefeller) became the oil master </li></ul>
    36. 38. The Steel Industry <ul><li>Steel – a new big business </li></ul><ul><li>Expensive to manufacture </li></ul><ul><li>New techniques brought costs down and change the industry </li></ul>
    37. 39. <ul><li>2 new methods to make steel </li></ul><ul><ul><li>Bessemer Process </li></ul></ul><ul><ul><li>Open hearth process </li></ul></ul><ul><li>Steel mills emerge in western Pennsylvania/Eastern Ohio near iron ore </li></ul><ul><li>Pittsburgh becomes steel capital of US among other eastern cities </li></ul>
    38. 40. Bessemer Process
    39. 41. Open Hearth Process
    40. 42. Andrew Carnegie
    41. 43. Andrew Carnegie <ul><li>http://www.youtube.com/watch?v=h_kMkQCZV8o </li></ul><ul><li>Son of a Scottish immigrant </li></ul><ul><li>began as a telegraph operator </li></ul><ul><li>worked up to manager of the Pennsylvania RR </li></ul><ul><li>1865 invested in iron industry </li></ul><ul><li>built a steel plant near Pittsburg </li></ul><ul><li>used the Bessemer process </li></ul><ul><li>Named company J. Edgar Thompson Steel Works </li></ul>
    42. 44. Vertical Integration <ul><li>1890– Carnegie dominated steel industry </li></ul><ul><li>Built it through vertical integration </li></ul><ul><li>acquired companies that had the resources, services, equipment he needed </li></ul><ul><ul><li>coal and iron mines, warehouses, ore ships, railroads </li></ul></ul><ul><ul><li>1900 combined all his companies into the Carnegie Steel Company </li></ul></ul><ul><ul><li>produced 1/3 of all steel </li></ul></ul>
    43. 45. <ul><li>Carnegie sells out </li></ul><ul><li>J. Pierpont Morgan </li></ul><ul><li>$450 MILLION </li></ul><ul><li>Formed Carnegie with other companies </li></ul><ul><li>United States Steel Corporation (US Steel) </li></ul><ul><ul><li>1 st billion dollar corporation </li></ul></ul>
    44. 47. US Steel
    45. 48. Make it and Give it Away <ul><li>Philanthropists- use money to benefit the community </li></ul><ul><li>Rockefeller, Carnegie </li></ul><ul><li>Carnegie Hall-concert hall </li></ul><ul><li>Carnegie Foundation for the Advancement of teaching </li></ul><ul><li>University of Chicago </li></ul><ul><li>Rockefeller Institute for Medical Research </li></ul>
    46. 49. Carnegie Hall
    47. 50. University 0f Chicago
    48. 51. Corporations grow and grow … <ul><li>Like Standard Oil, US Steel etc. more and more companies “merged” </li></ul><ul><li>Pro’s and Con’s </li></ul><ul><ul><li>helped growth </li></ul></ul><ul><ul><li>power in the hands of a few people </li></ul></ul><ul><li>Monopolies—defenders believed </li></ul><ul><ul><li>reduced competition = great economic stability </li></ul></ul><ul><ul><li>opposition– lack of competition, fear of unstable prices </li></ul></ul>
    49. 52. Government steps in <ul><li>15 states limited monopolies </li></ul><ul><li>companies set up shop in other states </li></ul><ul><li>1890 congress Sherman Antitrust Act--”to protect trade and commerce against unlawful restraint and monopoly” </li></ul>
    50. 54. Section 4 Industrial Workers
    51. 55. No more Mom and Pop joints <ul><li>Industrial growth increased jobs </li></ul><ul><li>more people working, bigger payrolls, larger staffs </li></ul><ul><li>factories once family owned/now corporations </li></ul><ul><li>led to poorer working conditions </li></ul>
    52. 57. <ul><li>less personal </li></ul><ul><li>10 – 12 hr wk days </li></ul><ul><li>fired for any reason </li></ul><ul><li>immigrants would work for lower pay </li></ul><ul><ul><li>(out servicing overseas today) </li></ul></ul>
    53. 58. Working Conditions <ul><li>http://www.youtube.com/watch?v=n9oDbphV8nM </li></ul><ul><li>noisy, unhealthy </li></ul><ul><li>accidents common </li></ul><ul><li>burns from molten steel </li></ul><ul><li>cave-ins from coal mines </li></ul><ul><li>gas and coal dust inhalation </li></ul><ul><li>sweatshops common in garment district </li></ul><ul><li>firetraps </li></ul>
    54. 59. Who made what? <ul><li>Salaries- </li></ul><ul><ul><li>women made ½ salary of men </li></ul></ul><ul><ul><li>common for children under 16 to work </li></ul></ul><ul><ul><li>Laws passed to protect kids </li></ul></ul>
    55. 61. Labor Unions formed <ul><li>Trade Unions </li></ul><ul><li>Knights of Labor </li></ul><ul><ul><li>Secret organization </li></ul></ul><ul><ul><li>allowed groups no others would </li></ul></ul><ul><ul><li>lost membership during strikes </li></ul></ul><ul><li>AFL </li></ul><ul><ul><li>wanted same things as others </li></ul></ul><ul><ul><li>collective bargaining </li></ul></ul><ul><ul><li>lasted through strikes </li></ul></ul>
    56. 63. <ul><li>Women and the Unions </li></ul><ul><ul><li>Mother Jones </li></ul></ul><ul><ul><li>Triangle Shirtwaist Company </li></ul></ul><ul><ul><li>International Ladies’ Garment Workers Union </li></ul></ul>
    57. 66. The Unions Act <ul><li>Depression of the 1870’s and 1890’s </li></ul><ul><li>Unions “ strike ” back </li></ul><ul><li>Railroad Strike of 1877 </li></ul><ul><ul><li>used strikebreakers </li></ul></ul><ul><li>Haymarket Riot of 1886 </li></ul><ul><ul><li>protest leads to killings—leads to bomb </li></ul></ul><ul><ul><li>labor unions linked to terrorism </li></ul></ul>
    58. 70. <ul><li>Homestead Strike of 1892 </li></ul><ul><ul><li>Carnegie’s steel plant </li></ul></ul><ul><ul><li>non-union workers </li></ul></ul><ul><ul><li>armed guards, militia </li></ul></ul><ul><li>Pullman Strike of 1894 </li></ul><ul><ul><li>cut wages </li></ul></ul><ul><ul><li>closed plant </li></ul></ul><ul><ul><li>railway union responds </li></ul></ul><ul><ul><li>government intercedes </li></ul></ul>
    59. 71. Homestead Strike
    60. 72. Pullman Strike

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