Download CH 14 Industrialization

CH 14
Industrialization
Section 1 – Rise of Industry
 GNP – Total value of goods and services
produced by a country

U.S. GNP was 8X greater in the early
1900’s then it was before the Civil War.
Natural and Human
Resources
 Industry needed water, timber, coal,
iron, copper
 First oil well in Titusville, PA in 1859
 Petroleum (Kerosene)
 Oil fields grew rapidly from
Pennsylvania to Texas
 Labor needs led to more immigration
 China and Eastern Europe
Free Enterprise and the
Government
 Laissez-Faire Economics


“Let Do”
Low taxes, limited government debt
 Entrepreneurs
 Tariffs and the issue of free trade


Contradictions to laissez-faire ideas
Did American industry really need
protection from foreign competition
New Technology
 Alexander Graham Bell (Telephone)

AT&T
 Thomas Edison

Electricity
 Refrigerated railroad car,
automatic loom, sewing machines,
telegraph, radios
Section 2 - Railroads
 Many new inventions made settling the West easier
 Nothing aided the settlement of the west more than the
Transcontinental Railroad
Transcontinental Railroad
 Two railroad companies worked on the
first Transcontinental Railroad…


The Union Pacific Company started in
Omaha, Nebraska
The Central Pacific Company started in
Sacramento, California
 Final spike at Promontory Summit, UT
on May 10, 1869
Pioneers of the Railroad Industry
 Grenville Dodge

Union Pacific
 “Big Four”

Central Pacific
 Cornelius Vanderbilt

Grand Central Station
National Railway System
 Time Zones
 Huge benefit to
the nation’s
infrastructure
 Travel was
safer and more
efficient
Land Grant System
 Government gave railroads land that
was sold to raise money for railroad
construction
Robber Barons
 Railroad owners that built their fortunes
by swindling investors

Jay Gould
 Credit Mobilier Scandal
 James J. Hill


The anti-robber baron
Great Northern Railroad
 Only
transcontinental railroad not eventually
forced into bankruptcy
Sec 3 Big Business
 Corporation – an organization owned by
many people but treated by law as
though it was a single person


The people who owned the corporation
were Stockholders
The shares of ownership those people
owned were called Stocks
 Companies had two different kinds of
costs


Fixed Costs – costs that companies pay
whether they are running or not
Operating Costs – costs that occur when
running a company
Consolidation of Industry
 Vertical Integration

A company owns all of the different
businesses on which it depends
 Horizontal Integration

Combining of firms engaged in the same
type of business
 Competition and Laissez-faire
economics led to the control of a few
very powerful men in industry
 These men became the most powerful
men in the U.S. during the time.
 Andrew Carnegie – Steel industry
 John D. Rockefeller – Standard Oil
Company
 Jay Gould – Financier, banker
Monopolies
 When a single company controls an
entire market
 Trusts – legal concept that allows one
person to manage another person’s
property
Sec 4 Unions
 From 1865 to 1897, the U.S.
experienced a rise in the value of money
called deflation
 Workers became angry when companies
tried to pay them less and they formed
Unions to fight back.
2 types of Unions
 Trade Union – a union made up of
skilled workers such as “Teachers
Union”
 Industrial Union – a union that united all
workers within a certain industry, like the
“Pelham High School Union”
 Workers who tried to organize a strike
were fired and put on a blacklist
 When workers formed a union
companies would use a lockout to not
allow them in the factory and refuse to
pay them.
 If the union called for a strike, the
employer would hire replacement
workers called strikebreakers
3 Major Strikes of the late 1800s
 The Great Railroad Strike of 1877
 The Haymarket Riot
 The Pullman Strike
The Great Railroad Strike of 1877
 The strike involved 80,000 railroad
workers in 11 states
 It also affected 2/3 of the nation’s
railways
 President Hayes ordered the army to
reopen many of the rail lines but before it
was over more than 100 people were
dead and millions of dollars of equipment
had been destroyed.
Haymarket Riot
 In 1886, organizers called for a strike to
fight for an 8 hour work day
 In Chicago 3,000 people gathered for a
rally
 When the police entered someone threw
a bomb in the middle of the officers
 7 police officers and 4 workers were
killed
 The Knights of Labor were blamed for
the bombing
Pullman Strike
 Pullman cars were a type of rail car used
by different train companies
 In an effort to end the strike the
government began to use the cars for
the U.S mail
 Grover Cleveland sent in troops to end
the strike saying that he had to “keep the
mail running”