The Second Industrial Revolution 1865-1905. CAPITALISM: private bus. run most industries,...
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Transcript of The Second Industrial Revolution 1865-1905. CAPITALISM: private bus. run most industries,...
6:2 The Rise of Big Business
CAPITALISM: private bus. run most industries, competition deter. how much goods cost & workers are pd
LAISSEZ-FAIRE: “let people do as they choose”—no govt intervention in econ
FREE ENTERPRISE/MARKET: supply, demand, & profits deter. by what goods are prod. & how much
ECONOMY
Some felt capitalism was unfair to working class
MARXISM: pol. system to get rid of inequalities of wealth (Karl Marx)—overthrow capitalism
COMMUNISM: society where indiv. ownership
Think about it…
How have inventions in the past help to launch a NEW industrial revolution?
Printing Press?
Cotton Gin?
Railroads?
6:1 The Age of Invention
All became possible b/c of using steam & coal as fuel
Three major types of advancements: Industry Transportation Communication
INDUSTRY STEEL
Able to make more quickly & more cost effective b/c of Bessemer Process Developed in 1850s by Henry Bessemer in G.B. &
William Kelly in U.S. Allowed impurities to burn off using blast of hot air Went from 15,000 tons (1865) to 28 million tons
(1910) Iron ore from Midwest shipped to areas near
Lake Michigan & Erie Gary, IN Cleveland, OH Pittsburg, PA Coal from PA/WV as fuel for steel mills
New steel used for RR rails (inst. of iron), framework of buildings & bridges
No rust, so good for nails/screws/wire/etc
INDUSTRY, cont. OIL
Needed to be able to refine more b/c demand was increasing Kerosene for lamps (whale oil hard to get)
Edwin Drake (1859) used steam engine to drill for oil in PA “Drake’s Folly” b/c people thought it was crazy @ 1st,
until it started pumping 20 barrels/day Like Gold Rush, people rushed to PA (OH, WV soon
after) to find “Black Gold” 1880: 25 million barrels were being pumped
Anthony Lucas (1901) struck oil in Beaumont, TX & started the TX oil boom 1902: 17 million barrels pumped (20% of all oil prod.) 1904: down to 10,000 barrels/day (reserve almost
out!)
INDUSTRY, cont.
OIL, cont. 1880: started refining oil for kerosene, waxes,
lubricating oils, etc Elijah McCoy (son of runaway slave) got
patent on lubrication cup to feed oil into machine while still running
TRANSPORTATION RAILROADS
Increased rapidly b/c of steel prod., and drop in $
Example: 1860: NY to Chicago, change trains 17x over 2
days 1870: same trip w/ no changes, 24 hrs
Transcontinental Railroad done in 1869 From Omaha, NE to Pacific Ocean Last spike in place in Promontory, Utah
1900: 6 major rail lines (trunk lines) that crossed Great Plains to Pacific, linked every state
George Westinghouse devel. air brake to allow all cars of trains to stop @ same time
Comm. system set up from trains to stations
TRANSPORTATION, inc
Railroad, cont. Double tracks b/c of more rails allowed trains to
pass Standard rails allowed passengers to not have to
change trains when reached a diff. line Encouraged expansion west, & growth of
towns/cities Provided many jobs on the RR & industries
related Businesses grew (& competition) b/c of being
able to sell goods nationally
TRANSPORTATION, cont.
HORSELESS CARRIAGE Self propelled vehicle in 1770, but a
steam engine in a “car” was expensive/inefficient
Nikolaus Otto invented 1st internal combustion engine that was powered by gas in 1876 Used in 1893 for 1st motorcar in US Only wealthy people could afford @ 1st, but as
prod. costs decreased, supply increased…more people could afford one
TRANSPORTATION, cont
AIRPLANES Wilbur & Orville Wright (OH) started w/ glider
planes, then Euro. Engines, & finally internal combustion engine Dec. 17, 1903: Kitty Hawk, NC made 1st piloted
flight (12 sec. & 120 ft) Very little press, but word spread slowly &
soon inventors were working quickly to improve on what they were able to do
COMMUNICATIONS
TELEGRAPH: Samuel Morse devel. commun. system that sends elec. signals over wires (patent in 1837) Businesses Morse Code (dots & dashes) Western Union (1866) was leading telegraph
comp. w/ over 2,000 offices Followed RR & trains stations
COMMUNICATIONS
TELEPHONE Alexander Graham Bell (1876) called it the
“talking telegraph” Businesses found it a MUST HAVE item By end of 1800s, 1 million+ phones installed Bell Telephone Co. became Amer. Telephone &
Telegraph: one of the biggest, longest monopolies of its time
Early operators had to connect callers Women, very fast paced
COMMUNICATIONS
TYPEWRITER Christopher Sholes (1867) was 1st to market it Keyboard design has changed little from the
original Used carbon paper to make duplicate copies Typing pool: group of women that do nothing
but type documents for businesses gave women a chance to work in a skilled job Believed he was helping women not have to
work so hard
EDISON & MENLO PARK
THOMAS ALVA EDISON Amateur scientist, inventor born in OH
Telegraph that could send 4 msgs @ once Elec. Vote recorder Telegraphic stock ticker
MENLO PARK (NJ) Research facility where he gathered other inventors Promised 1 minor invention/10 days & 1 major
invention/6 months Phonograph Improved phone (better signal & sound) LIGHTBULB!!!
MENLO PARK, cont
1882: opened one of the 1st electric power plants in NYC Used DC (direct current) to local locations only Later inventors dev. AC (alternating current) to
be able to power other locations 1893: World’s Columbian Exposition in
Chicago included twinkling lights outlining the major buildings Electric streetcars began to dev. in cities also
Died in 1931 as the “Wizard of Menlo Park” w/ 1,000+ patents
CORPORATIONS
Organizers raise $ by selling shares of stock Stockholders get % of profits called dividends Little to no part in daily operations Limited liability
Businesses can raise a lot of $ through stock sales
More stability b/c not dependent on spec. owners
TRUSTS
TRUST: group of comp. turn control of stock over to bd. of trustees, who run all companies as 1 Reduce competition MONOPOLY: trust w/ total control of industry
Little to no competition Total control of prices & quality
ANDREW CARNEGIE & STEEL
Started wk in a RR office Bought stock in RR, oil, iron, telegraph &
used profits to start investing in steel in 1860s
Didn’t know much about steel, but hired best people in business
Made mills most tech adv. Bought supplies in bulk & prod. lg amts.
of goods @ once to keep costs low & profits high
CARNEGIE, cont
VERTICAL INTEGRATION Combined all smaller bus. into Carnegie
Steel Comp. in 1899 Sold to J.P. Morgan for $500 mill Donated $350 mill to charities (libraries) Believed that wealthy had moral
obligation to help society
ROCKEFELLER & OIL
Founder of Standard Oil Comp Used vertical integration HORIZONTAL INTEGRATION Made deals for cheaper supplies & rates,
could keep prices low & drive others out of bus.
1880: controlled 90% of oil refineries Donated $550 mill in charities, incl. $80
mill to Univ. of Chicago
RR GIANTS VANDERBILT: had successful shipping bus. 1st,
then invest. in RR Combined small lines to make direct routes betw.
Cities 4,500 miles of track & $100 mill when died
WESTINGHOUSE: air brake inventor
PULLMAN: built factory for comfy train cars (sleep, eat, wealthy) over long distances Poor Chicago neighborhood in hopes of helping Planned community (homes, schools, recreation, etc)
Was too controlling though, and many became upset w/ him
MASS MARKETING
MARKETING: brand names, logos, slogans, packaging, advertising, etc
MAIL ORDER: catalogs w/ large # of products Sears, Roebuck, & Comp.
DEPT. STORE: lg # of items, bought in bulk to keep prices down Created jobs Macys, Marshall Fields
6:3 LABOR STRIVES TO ORGANIZE
GOVT. & BUSINESS
Supporters of laissez-faire capitalism liked govt intervention when it helped them!
High tariffs on imports made US made goods less expensive
Govt gave little assist. to industrial workers
1890: 10% of population controlled 75% of wealth
50% unskilled workers made less than $500/yr
NEW WORKING CLASS
Lg. demand for labor—by 1900, 1/3 of indust. workers were immig.
Many Afr-Amer came north to find jobs, but still not every bus. would hire them (even if skilled!)
Women & Kids: WOMEN: doubled from 1870-90
1900: 18% of workforce KIDS: 1890: 20% of kids from ages 10-15
1:4 in textile mills(NC), 1:20 in Mass.
WORKING CONDITIONS Kids worked 12hr shifts (often @ night) for
pennies/day
Unskilled white males: @ least 10hr/day, 6 days/wk, less than $10/wk African/Asian/Mexican men worked same, less $ Women & kids often did same for ½ pay
Dangerous jobs, fatigue
Company Towns: housing & stores owned by company to control workers Rec’d wages in “scrip” that could only be used for
rent & company stores where prices were high
KNIGHTS OF LABOR Nat’l Labor Union (1866) had some success w/
8 hr wk day, but fell apart in 1870s
1869: KNIGHTS OF LABOR Started for white males, then added others not
allowed in other unions in 1879 (skilled, unskilled, women) MARY HARRIS JONES: organiz. strikes, marches, etc. to
educate & unite workers until she died @ 100 Afr-Amer. were able to join in 1883, but not as open
minded about Chinese workers Fought for 8 hr/day, =$ for =work, & end child labor 700,000 members by 1886
Progressive Paragraph
Woman African American Chinese Immigrant 13 yr old boy Irish Immigrant
I have to work to support my family. This is an idea of what it is like to work for me…..
THE GREAT UPHEAVAL
RR strike in 1877 helped Knights of Labor to grow Reaction to pay cut Pres. Hayes used troops to protect RR, angered
many & spread to 14 states
Many strikes in 1886: push for better working conditions…some were violent
HAYMARKET RIOT
1886:40,000 workers in Chicago @ McCormick Harvesting Mach. Comp wanted an 8 hr/day ANARCHISTS took over Confrontation w/ police, 2 strikers killed Peaceful mtg next day, until 200 police
showed up: bomb went off, shooting started 60 officers wounded 7 officers & 1 civilian killed
Arrested 8 anarchists (only 1 had been there) & chgd them w/ conspiracy All 8 guilty, 4 hung
AFTERMATH OF RIOTS
Union supporters on “blacklists”—hard time finding work
Some had to sign “yellow-dog” contracts, promising NOT to join union if hired
Union membership dropped, comp. used non-union strikebreakers Skilled unions split from unskilled
Amer. Federation of Labor (AFL) created by Samuel Gompers for skilled workers
HOMESTEAD & PULLMAN STRIKES
Homestead, PA: Carnegie Steel (1892) Protest wage cut, managers locked strikers out Hired guards to protect plant Violent, 16 dead
Pullman, IL Cut wages, didn’t lower rent/prices Amer. Railway Union supported workers, stopped
most RR traffic in midwest RR turned to govt for help, ordered to move again b/c
stopping mail delivery Union ignored govt & were jailed
Pres. Grover Cleveland ordered troops to plant to stop strike & restore operations