CHAPTER 19, SECTION 1Railroads Lead the Way

Railroad ExpansionRailroad Expansion

Following the completion of the Transcontinental Railroad in 1869, 5 new railroad systems crossed the nation

1900: 163,000 miles of rails

ConsolidationConsolidation

As industries grow, companies consolidate with other companies aka combine separate companies

In railroad industry, Railroad Barons control the industry

Railroad BaronsRailroad Barons

Cornelius Vanderbilt: controlled New York Central Line and acquired other to complement it

Growth of EconomyGrowth of Economy

Construction of railroads brought about growth in iron, steel and wood

Faster movement brought about economic boom in all sectors of society

Technological Technological Advancements in the Advancements in the

Railroad IndustryRailroad IndustryGeorge Westinghouse: devised air brakes that improved stopping

Eli H. Janney: easier car linkage

Gustavus Swift: railroads to ship meats and other perishable goods

George M. Pullman: luxury cars where seats turned to beds

Bargain TravelBargain Travel

Barons gave rebates aka “secret discounts” to friends to travel for free

Set up “pools” where barons set regional rates at higher prices

Problems: ticket prices went up for common people

What Railroads Did?What Railroads Did?

Helped population growth to Midwest/west

People began to think in terms of time (time rather than miles)

Economic growth to all regions of the United States

Analyze That!

• “These new Americans were primitive souls, ruthless, predatory, capable, single-minded men; rogues and rascals often, but never feeble, never hindered by petty scruples…They fought their way encased in rhinoceros hides.” -Vernon L. Parrington, Historian

• “It is cruel to slander the rich because they have been successful…They are not scoundrels because they have gotten money. They have gone into great enterprises that have enriched the nation and the nation has enriched them.” -Rev. Russell H. Conwell

CHAPTER 19, SECTION 2Inventions

The TelegraphThe Telegraph

Introduced by Samuel F.B. Morse (1844)

Telegraphs messages were sent in Morse Code over telegraph lines

First source of “instant” communication

Cyrus Fields lays telegraph cable across the Atlantic Ocean (1866)

The TelephoneThe Telephone

Invented by Alexander Graham Bell

Worked with the hearing impaired

Try to send sounds over wire device

This device was translating speech by 1876

Formed Bell Telephone Company (1877)

Inventions GaloreInventions Galore

Between 1860 and 1890 there were over 400,000 patents for new inventions

Christopher Sholes: typewriter

William Burroughs: adding machine

George Eastman: camera

John Thurman: vacuum

Thomas Alva EdisonThomas Alva Edison

Natural born inventor who had over 1,000 patents to his nameInvented the phonograph, motion picture projector, telephone transmitter, storage battery, dictating machineDeveloped the light bulb and electric power plantsPerfected by George Westinghouse

African American African American InventorsInventors

Lewis Howard Latimer: improved filaments for light bulbs

Granville Woods: electric incubator and electromagnetic brakes

Jan E. Matzeliger: developed a shoemaking machine that revolutionized the shoe industry

The AutomobileThe Automobile

Built the Model T after experimenting with automobiles powered by gasolineSold 15 million Model T’s over the first 18 years of making themAssembly line: cheap way of mass producing products

The AirplaneThe Airplane

Orville and Wilbur Wright built the first airplane made of bicycle mechanics, wood and canvas in Kitty Hawk, NC

Flew a distance of 170 ft.

CHAPTER 19, SECTION 3An Age of Big Business

OIL!!!!OIL!!!!Discovery of oil revolutionized businessIt was used for medicine (really?), used for heat and smoke-free light and to lubricate machinery (eventually gas)Edwin L. Drake: discovered oil in Titusville, Pennsylvania in 1859

New Technology, Transportation & Business Methods allowed the US to tap natural resources

Factors of Production - Agriculture to Industry• 1st Factor: Land –

physical land and all natural resources, US had vast resources for growth

• 2nd Factor: Labor – large numbers of workers – huge population growth from 1860-1900 – US population doubled in size

• 3rd Factor: Capital – Manufactured goods used to make other goods and services – Machines, buildings, and tools used to assemble cars, for example, are capital goods

• Capital = money for investment

CorporationsCorporationsCorporations: a company that sold shares (stock) of its business to the public

Those who bought stocks are called shareholders (partial owners)

Dividends: cash payments from the corporation’s profits

Stock exchange

John D. RockefellerJohn D. RockefellerBuilt first oil refinery in Cincinnati, Ohio with 4 partners

Founded Standard Oil Company of Ohio

Horizontal integration: combining competing firms into one company

Becomes the largest/most powerful company

Oil MonopolyOil Monopoly

Trust: a group of companies managed by the same board of directors

Standard Oil still controlled these companies by buying up the stock

MONOPOLY – total control of an industry by a single producer

Steel – Ideal Material• Steel was the ideal

material for railroad tracks, bridges and many other products

• 2 methods of making steel: Bessemer Method and Open-Hearth Method: these methods allowed steel to be produced at lower prices in large quantities in the 1870’s

• Large steel mills were built near sources of iron ore in Western PA and Eastern OH

• Pittsburgh, PA became the capital of the US (remember the name of the football team)

• Chicago, IL – Cleveland, OH – Detroit, MI – Cleveland, OH all hubs for steel

Andrew CarnegieAndrew CarnegieSon of a Scottish immigrantStarted as a messenger and telegraph operator, worked his way up to a manager of PA RailroadLearned about the Bessemer process and built a steel plant near Pittsburgh around 1865By 1890, dominated steel industryVertical integration: bought companies that provided equipment and services he neededProduced 1/3 of nation’s steelPhilanthropy: use wealth to benefit the community

Philanthropy – use of money to benefit the community

• Andrew Carnegie• Donated $350 million to

various organizations• Built Carnegie Hall in

NYC• Created more than 2,000 libraries across

the world• There are 106 Carnegie

libraries in IL alone, closest is Milford, IL

• John D. Rockefeller• Established the University of

Chicago in 1890 – a very prestigious university known

for great academics• Funded Rockefeller Institute

for Medical Research in NYC• Funded the Rockefeller Center in NYC – you can go

ice skating there and it is where the NYC Christmas

tree is found

Sherman Antitrust Sherman Antitrust ActActMerger – combining of

companies (Comcast and Verizon was a merger)

Established “to protect trade and commerce against unlawful restraint and monopoly”

Did not work because it did not define “trusts” or “monopolies”

CHAPTER 19, SECTION 4Industrial Workers

The price of economic The price of economic growthgrowthWith economic growth

came new jobs and factory workers paid the price

Industrial workers worked 10-12 hours a day, 6 days a week

Could be fired at any moment for any reason

Workers were replaced with immigrants

Working ConditionsWorking ConditionsSweatshops: crowded urban factories where conditions were deplorableAccidents were common1 Million women in workforce by 1900Women were paid half of what their male counterparts wereChild labor was a common issue – supposed to be 12 to work

Labor UnionsLabor UnionsTrade unions: represented a specific trade – had little influenceKnights of Labor: founded by garment cutters; met secretlyTerence V. Powderly: led this union and it became an national organization from 1880s.Recruited women, African Americans, immigrants, unskilled laborsMany strikes led public opinion to wane in 1890’s and unions lost power

The American Federation of The American Federation of LaborLabor

By 1886, AFL represented skilled workers in various craftsSamuel Gompers: led AFL who pressed for better wages, shorter hours, better working conditionsCollective bargaining: unions represent workers in bargaining with management

Women Union Women Union LeadersLeadersMary Harris Jones “Mother

Jones” was a prominent fighter for women rights

International Ladies’ Garment Workers Union: organized in response to the Triangle Shirtwaist Company fire

150 peopled died in the fire because the company had locked the doors of the factory to keep immigrant workers from leaving early – no one could escape.

Workers RevoltWorkers RevoltRailroad Strike of 1877: strikers burned railroad yards, ripped up tracks, and destroyed railroad property

Strikebreakers were called in and they were replacement workers

Haymarket Riot of Haymarket Riot of 18861886Took place in Chicago on

May 4, 1886Strikers were workers from the McCormick Harvester CompanyWere protesting the killing of four workersBomb killed 1 policeman and several more were killed in a riot that followedLabor unions were associated with terrorism and disorder

Homestead Strike of Homestead Strike of 18921892

Took place at Andrew Carnegie’s steel plant in Homestead, PA

Nonunion workers were brought in and 300 armed guards

13 people were killed

Busted the local union

Pullman Strike of Pullman Strike of 18941894Took place at George

Pullman’s railroad company near ChicagoCut wages; thus, workers went on strikeRail traffic was halted because other railway workers refused to handle Pullman carsUS Attorney General ordered injunction to stop strikePresident Grover Cleveland sent in troops to force an end to the strike