What do all of these have in common?TypewriterRubber bicycle tires CarburetorDiesel engineX-rayRadioCold cerealAspirinMagnetic tape recorderRubber heel (for

shoe/boot)Movie projectorWireless radio

telegraphPhotoelectric cellMilk safety testThermite (industrial

material)Self-powered model

airplaneBolt action rifleMotion picture cameraData processing

machinePhotocopying machineBridle bit (for horse)Desk top pencil

sharpenerDust panFountain pen Golf tee Dry cell battery (Ever

Ready) Steel-framed

skyscraper American Express

Travelers Cheques Book matches

Hershey chocolate bar Cathode-ray tube Jell-o Roll film Vacuum cleaner The “T”Cracker Jack Peanut agricultural

science DirgibleDixie cup (paper cup) Dishwasher Peep show Escalator Gasoline powered car Player piano Submarine Double-edge safety

razor

Did you say…They are all major inventions of the 1890s?You win a prize!

American Innovation, Invention & Industry at the Turn of the Century

Content Question #1:What were the most important causes

of industrial development in the US from the Civil War to World War I

(1865-1914)?

Inventors / InnovatorsThomas Alva Edison

Menlo Park – first research & developmentTest 1000s of materials for light bulb filamentFirst practical incandescent light bulb (1879)First electrical power station built in 1882 NYC

His team invented generators, regulators, meters, switches, light sockets, fuse boxes, underground electric cables

Electricity to homes, stores, factories

Alexander Graham BellThe telephone invented 1876Opens way for worldwide communications

network

Natural Resources• Oil (black gold)

– Refined into kerosene, and later gasoline– First drill invented by Edwin Drake in 1859 –wells

pump oil to surface • Vast deposits of iron & coal discovered

– 1860 = 14 mil. tons coal mined– 1884 = 100 million tons

• Steel– The Bessemer process takes carbon out of iron

ore to create lighter, more flexible, rust-resistant metal

– Before Civil War steel could be made 3-5 tons/day, now the same could be made in 15 minutes

– By 1880, 1 million tons produced– By 1910, 25 million tons

Drake Oil Drill, Titusville PA

The Skyscraper

Home Insurance Building Ames Building Flatiron BuildingChicago, 1884 (the first) Boston, 1893 (Washington St.) New York, 1903

ProductivityElectricity

allows manufacturers to build factories anywhere

Demand for labor-saving household electric appliancesElectric street cars – cities will spread

Industry will grow as never before

ProductivityAgricultural / Transportation Advances

Before Civil War, 61 hours labor to produce acre of wheat

By 1900, 3 hours 19 min.Manufactured ice & meatpacking193,000 miles railroad

Tractors towed and powered new planters, cultivators, reapers, pickers, threshers, combine harvesters, mowers, and balers

New Farm Machinery

The RailroadTranscontinental Railroad completed 1869

The RailroadCreation of standard time and time zones

Economic Innovations & InventionsEconomies of Scale – the more you make, the

cheaper it costsCorporation: a business that is owned by

many investorslegal entity separate from ownersRaise large amounts of capital and limit liability

Stock – partial ownership in a company (held by a shareholder)

Bond – an IOU (set period of time, w/ interest)Capital – Assets (money and/or machinery)Monopoly, holding company, trust (from HW)

George M. PullmanTown of Pullman, IllinoisDesigned for employees of his railcar co.Strictly controlled lives of employees

Richard Ely on Pullman, IL“The wholesome, cheerful surroundings enable the men

to work more constantly and more efficiently. The healthy condition of the residents is a matter of general comment.”

“Very gratifying is the impression of the visitor who passes hurriedly through Pullman… What is seen in a walk or drive through the streets is so pleasing to the eye that a woman's first exclamation is certain to be, ‘Perfectly lovely!’”

but…“individual initiative, even in affairs which concern the

residents alone, is repressed. Once several of the men wanted to form a kind of mutual insurance association to insure themselves against loss of time in case of accident, but it was frowned down by the authorities, and nothing further has been heard of the matter. A lady attempted to found a permanent charitable organization to look after the poor and needy, but this likewise was discouraged, because it was feared that the impression might get abroad that there was pauperism in Pullman.”

And so…The worker is “surrounded by constant restraint and

restriction, and everything is done for him, nothing by him.” (no free discussion, civic responsibility)

“laborers at Pullman have not been allowed to acquire any real property in the place… There is a repression of any individuality. Everything tends to stamp upon residents, as upon the town, the character expressed in ‘machine made’."

“the idea of Pullman is un-American.”

New Business StrategiesVERTICAL INTEGRATION

Control all stages from resources, to manufacturing, to distribution

Ex: Carnegie bought out coal fields, iron mines, freighters and rail lines

HORIZONTAL INTEGRATIONControl all manufacturing/production in an

industryEx: By 1880 Rockefeller controlled 95% of oil

refining (Standard Oil Trust)

“Titans of Industry”

J.P. Morgan Andrew Carnegie John D. Rockefeller