American American IndustrializationIndustrialization

InventorsInventors and and

innovatorsinnovators who changed the who changed the

way Americans liveway Americans live

Edwin L. DrakeEdwin L. Drake 18591859 Titusville, PATitusville, PA DrilledDrilled for oil using for oil using

steam powered enginesteam powered engine Cheaper and more Cheaper and more

efficient way to obtain efficient way to obtain oiloil

Drake’s WellDrake’s WellTitusville,Titusville,

PennsylvaniaPennsylvania18591859

Produced 10 Produced 10 barrels per barrels per

dayday

Thomas EdisonThomas Edison 1880 improved 1880 improved the filament in the filament in light light

bulbsbulbs (bamboo fiber) (bamboo fiber) 1882 built 1882 built first power plant first power plant that lit that lit

dozens of buildings in dozens of buildings in NYCNYC Used direct current which could Used direct current which could

only travel short distancesonly travel short distances Received over Received over 1090 patents 1090 patents from from

U.S. Govt. for his inventionsU.S. Govt. for his inventions

Thomas EdisonThomas Edison

Thomas EdisonThomas Edison

Thomas EdisonThomas Edison

George WestinghouseGeorge WestinghouseΩ 18851885Ω Used Used alternating current (AC)alternating current (AC)Ω Cheaper & Cheaper & traveled longer distance traveled longer distance than than

direct current (DC)direct current (DC)Ω Invented the transformer to boost or Invented the transformer to boost or

reduce the power level as neededreduce the power level as neededΩ Made Made home electricity use practicalhome electricity use practical

Samuel F. B. MorseSamuel F. B. MorsePerfected the Perfected the telegraphtelegraph (did not (did not

invent it)invent it)18441844 – sent first telegraph – sent first telegraph

messagemessageMorse Code Morse Code – short & long – short & long

electrical impulses to represent electrical impulses to represent letters of the alphabetletters of the alphabet

Began a communication revolutionBegan a communication revolution

The TelegraphThe Telegraph

Morse CodeMorse Code

Alexander Graham BellAlexander Graham Bell

1876 – Patented the “talking telegraph”

1885 – Set up the American Telephone & Telegraph Company (AT&T) to build long distance telephone lines

1900 – 1.5 million telephones in use in America

The earliest “talking The earliest “talking telegraphs”telegraphs”

The latest “talking The latest “talking telegraphs”telegraphs”

Henry BessemerHenry Bessemer 1856 – England - received first 1856 – England - received first

patent for the “Bessemer process”patent for the “Bessemer process” Made Made production of steel from iron production of steel from iron

faster and cheaperfaster and cheaper Mass production of steel allowed Mass production of steel allowed

the building of the building of skyscrapersskyscrapers, , railroad railroad railsrails, and large suspension , and large suspension bridgesbridges (Brooklyn Bridge 1883) (Brooklyn Bridge 1883)

EntrepreneursEntrepreneurs who changed the who changed the way Americans way Americans create wealthcreate wealth

Andrew CarnegieAndrew Carnegie Scottish immigrant – came to U.S. at age Scottish immigrant – came to U.S. at age

1212 Worked in a textile mill as a childWorked in a textile mill as a child Then worked for Cornelius Then worked for Cornelius Vanderbilt’s Vanderbilt’s

railroad companyrailroad company Saw the potential in the Saw the potential in the Bessemer process Bessemer process

for mass producing steel.for mass producing steel. Carnegie Steel Works made him the Carnegie Steel Works made him the

wealthiest man in U.S.wealthiest man in U.S.

Andrew CarnegieAndrew Carnegie

Brooklyn bridgeBrooklyn bridge

John D. RockefellerJohn D. Rockefeller Poor son of a con-man and street peddler who Poor son of a con-man and street peddler who

did not support his familydid not support his family 1870 – Created the 1870 – Created the Standard Oil Company of Standard Oil Company of

OhioOhio Made Made secret deals secret deals to ship his kerosene to ship his kerosene

exclusively on exclusively on VanderbiltVanderbilt’s railroads’s railroads Set a new standard in Set a new standard in refining oil into kerosenerefining oil into kerosene Made a Made a safer product safer product and brought prices downand brought prices down 1882 –Standard Oil Trust controlled 90% of oil 1882 –Standard Oil Trust controlled 90% of oil

in United Statesin United States

John D. RockefellerJohn D. Rockefeller

John D. Rockefeller &

John D. Jr. 1921

What do you thnk was the most important technological

development of the time

Railroads

Transcontinental railroad

1863-1869 Joined the Union Pacific and the Central

Pacific rails at Promontory Point, Utah Funded by the U.S. government Irish immigrants worked from the East Chinese immigrants worked from the

West Averaged about 8 miles of track per day

Transcontinental Railroad“Driving of the Golden Spike”

Transcontinental Railroad Route

Promontory Point, Utah

Significance of Railroads

Faster, cheaper way to move people and products

Connected isolated markets

Caused other industries to grow (steel and coal)

How Business Grew

BIGin America

Businesses were structured in new ways – based on producing huge quantities of a

product

Economies of Scale

The more of something a company makes, the less it costs to produce each one.

Production goes up.

Prices go down.

Monopoly• Mono = one• Complete control of a product or

service by one huge company• Monopolies form when one company

forces other competing companies out of business or buys a majority of their stock

• Vanderbilt, Rockefeller & Carnegie all form monopolies

Are business monopoliesUsually good or bad for workers and consumers who buy the products

For example, what would happen if there was no

competition – if there was ONLY ONE car company

Without competition, a company could charge whatever price it wants to. Consumers have no

where else to go for that product.

But some monopolies actually produced better, cheaper

products by eliminating “wasteful” competition.

Trust• A type of business monopoly• Instead of one business buying

out the competition, several companies agree to combine their assets and give control to a “board of trustees”

• J.D. Rockefeller formed the Standard Oil Trust because monopolies were declared illegal

So what effect did these new BIG BUSINESSES

and their wealthy owners have on

American society

The distribution of wealth in America

became very uneven:

1/8 of the population owned 7/8 of the

wealth.

What does that look

like?

Lets divide $100 between 8 people

Carnegie gets $87.50

The common people get $1.79 each

How did the wealthy business owners

justify this unequal distribution of wealth

Laissez-Faire• French term – “leave alone”• Major element of a capitalistic

economy – the separation of the government and the economy in a nation

• So government should not attempt to regulate business practices.

• The “free marketplace” will naturally regulate economic successes and failures.

Social Darwinism

• Philosophy that applied Charles Darwin’s theory of “survival of the fittest” to the business world.

• The most “fit” businesses would grow and prosper and the “unfit” ones would fail

• So government should stay out of the affairs of business and let the process of “natural selection” operate

“The ability to make money is a gift from God.”

John D. Rockefeller

Some people are just “unfit” or God hasn’t blessed them

“God’s gift” to

Rockefeller - just the summer cottage

Gospel of Wealth Andrew Carnegie’s idea of philanthropy: The wealthy have been blessed by God

with the ability to produce wealth and should be allowed to do so.

But they also have superior knowledge of how to use that wealth to benefit society.

So the wealthy should give most of their wealth away to build museum, concert halls, universities.

Do you see any problems with Carnegie’s

philosophy

Will museums, concert halls,

and universities really help this woman

What was it like to be a factory

worker

Harsh Working Conditions

•Workers fined or fired for being late or talking

•Deafening noise •Poor lighting and ventilation•Unsafe •Frequent fires and accidents

Harsh Working Conditions

•500,000 workers were completely disabled each year

•35,000 killed each year•No corporate accountability

for worker safety. No workers’ compensation laws or insurance.

•You get hurt, you get fired.

Sweatshops• A shop usually in

upper floors of a building

• Crowded and hot• Often sewing

garments • Workers paid by

number of items produced (piece-work)

• No breaks or toilet facilities

Child Labor• No child labor laws existed.• Children as young as 6 could work

in a factory.• Most children permanently left

school at age 12 to work.• Factory owners wanted children

because they could pay them less.• Families needed the money

children earned.• Many were maimed or killed.

Child Labor

Child Labor

How did society

respond to these

problems

Labor UnionsGroups of workers with similar jobs that join together to fight for safer working conditions

8 hour work day

higher pay

Collective Bargaining

One or two union members are chosen as spokesmen for the workers.

Union reps negotiate with owners and managers on behalf of the workers.

What if collective

bargaining doesn’t work

StrikeA union tactic in which workers refuse to work until their demands are met by management

Strikers on a Picket Line

Why would strikes be an effective tactic to use against factory

owners and managers

What can factory owners and managers do if they don’t want to give into the workers’ demands

ScabsManagement can hire non-union workers to take the place of striking workers

How would you feel about scabs if you

were a striking union member

2 Major Labor

Unions Form

Knights of Labor• Formed in 1869 by Terrence Powderly • Joined all workers together (men,

women, all races, and all trades) • Used education and peaceful political

action to achieve their goals• Almost like a religious brotherhood

Knights of Labor

Charter

Knights of Labor

print featuring founder

Terrence Powderly

In the beginning, God ordained that man should labor, not as a curse, but as a blessing; not as a punishment, but as means of development, physically, mentally, morally, and has set thereunto his seal of approval in the rich increase and reward. By labor is brought forward the kindly fruits of the earth in rich abundance for our sustenance and comfort; by labor (not exhaustive) is promoted health of the body and strength of mind, labor garners the priceless stores of wisdom and knowledge. It is the “Philosopher’s Stone,” everything it touches turns to wealth. “Labor is noble and holy.” To glorify God in its exercise, to defend it from degradation, to divest it of the evils to body, mind, and estate, which ignorance and greed have imposed; to rescue the toiler from the grasp of the selfish is a work worthy of the noblest and best of our race.You have been selected from among your associates for that exalted purpose. Are you willing to accept the responsibility, and, trusting in the support of pledged true Knights, labor, with what ability you possess, for the triumph of these principles among men?

Knights of Labor Creed

American Federation of Labor (AFL)

Formed in 1886 by Samuel Gompers Used strikes and boycotts to achieve

their goals Only skilled workers included NO women or blacks

American Federation of Labor Emblem

Samuel Gompers

So . . . How did factory owners and managers respond when labor

unions formed in their factories

How Management RespondedForbad union meetingsFired union organizersForced employees to sign a contract

pledging not to join a union Refused to recognize unions and

collectively bargain

So . . . How did labor (the workers) respond

VIOLENCE

4 GREAT STRIKES1877 - 1894

Great Railroad Strike of 1877 Baltimore and Ohio RR announced a 10%

wage cut. Train lengths were doubled, increasing the

chance of accidents. RR workers struck. The strike turned into a violent riot. President Hayes sent in federal troops Rioters burned RR property.

Railroad Strike of 1877

Railroad Strike of 1877

Railroad Strike of 1877

Railroad Strike of 1877

Railroad Strike of 1877

Railroad Strike of 1877

Haymarket Riot (May, 1886) Chicago workers struck for an 8-hour workday. At a rally in Haymarket Square in Chicago

anarchists joined the strikers. Someone threw a bomb which killed 7 armed

policemen. Dozens were killed in the gunfight that followed. Four anarchists were found guilty and hanged. There was never any proof of their involvement.

Poster promoting the

“rally” at Haymarket

Square

Haymarket Riot (1886)

7 officers killed in Haymarket Riot

People Involved in the Haymarket Riot (1886)

Four Haymarket anarchists hung – Nov 11, 1887

Haymarket Martyrs Monument, 1887

“The day will come when our silence will be more powerful than the voices

you are throttling today.”

Haymarket Riot Postcard

Homestead Strike (1892) Wages were cut at Carnegie’s Homestead

Steel Works in PA. Union workers struck. Pinkertons were brought in and they opened

fire on the strikers. Workers attacked Pinkertons. Soldiers were called in. Dozens of workers were killed. All union workers were fired and never

employed by Carnegie again.

Pinkertons A police force for hire Founded by Samuel Pinkerton The first secret service agency that

protected Lincoln when he traveled Known for their ruthlessness in

breaking up strikes

Pinkerton’s National Detective Agency

Carnegie’s Homestead Steel Works

Pinkertons Arriving by Barge

Federal Troops Called In

Pullman Strike (1894)George Pullman built the luxury “sleeper” rail

cars for the wealthy.His Chicago workers lived in the “company

town” used “company script” as money at the “company store”

During an economic depression, Pullman cut wages and laid-off workers but did not cut rent.

When workers protested, he fired them.Workers struck.

Pullman Strike (1894)Other RR unions in 23 states joined in

More than a 1000 rail cars were destroyed13 workers killed

RR service to the western half of the country is disrupted, including mail service.

Owners banded together and sought court orders to halt any union activity that interfered with the delivery of the mail.

Leader Eugene V. Debs was imprisoned

George Pullman

Pullman Strike (1894)

Pullman Strike (1894)

Pullman Strike (1894)

Congress finally takes action to

limit “Big Business”

Interstate Commerce Act1887Federal law to regulate trade between the

states.Stopped railroads from charging unfair

rates to farmers and making secret deals with some large clients (like oil companies).

Sherman Anti-Trust Act 1890 “Every . . . combination . . . in restraint of

trade is declared to be illegal.” Was intended to stop monopolies and to

promote fair competition in the business market.

But later the courts used the law to prohibit labor union strikes (because strikes were “restraining free trade.”

A 3rd labor union forms

but . . .this one is different

The Wobblies Industrial Workers of the World (IWW) Founded in 1905 by Eugene V. Debs who

became a socialist while in prison A radical union that used violence during

strikes Goal was the world-wide destruction of

capitalism by labor forces

SocialismAn political philosophy which

proposes:Wealth should be equally

distributed to everyone;Production of goods based on

cooperation, not competitionSociety as a whole, not just a

few private individuals should have control of a nation’s wealth

32

Eugene V. Debs, Socialist and Founder of the IWW

The Wobblies (IWW)