Industrialization

Industrialization 1865-1900 ish

Keys to industrial success

The Rise of Industry Following the Civil War, the United States had been primarily a rural (farming-based) country, by the 1920s it becomes one of the worlds leading industrial centers. What things allowed this to happen? • Superabundant supply of land and natural resources • Excellent natural and manmade transportation systems • A growing supply of labor caused by natural population growth and an explosion of immigration. • A Special facility for invention and technology • Superb industrial organization. http://www.belleville.k12.wi.us/bhs/history/Chapter%2017.ppt

Role of Railroads

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RAILROADS SPUR OTHER INDUSTRIES • The rapid growth of the railroad industry influenced the iron, coal, steel, lumber, and glass businesses as they tried to keep up with the railroads demand for materials • The spread of the railroads also led to the growth of towns, new markets, and opportunity for profiteers http://webzoom.freewebs.com/centralhistory/A%20C%206%20US%20CHAPTER%206.ppt

Building the Empire • 1865-1916--U.S. lays over 200,000 miles of track costing billions of dollars • Expenses met by government at all levels • Federal railroad grants prompt corruption • Railroads save government $1 billion in freight costs 1850-1945 http://www.rdale.k12.mn.us/classroom_connections/web_folders/jay_hohenstein/ch18.ppt

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Federal Land Grants to Railroads as of 1871 http://www.rdale.k12.mn.us/classroom_connections/web_folders/jay_hohenstein/ch18.ppt

Railroad Construction, 1830-1920 http://www.rdale.k12.mn.us/classroom_connections/web_folders/jay_hohenstein/ch18.ppt

Railroads, 1870 and 1890 http://www.rdale.k12.mn.us/classroom_connections/web_folders/jay_hohenstein/ch18.ppt

Problems of Growth • Intense competition among railroads (Jay Gould) • Efforts to share freight in an orderly way fail • After Panic of 1893, bankers gain control of railroad corporations • Bankers impose order by consolidating to eliminate competition, increase efficiency • In 1900, seven giant rail systems dominate http://www.rdale.k12.mn.us/classroom_connections/web_folders/jay_hohenstein/ch18.ppt

Railroad Magnates

Cornelius Vanderbilt http://www.rdale.k12.mn.us/classroom_connections/web_folders/jay_hohenstein/ch18.ppt

Cornelius “Commodore” Vanderbilt • Vanderbilt merged other rail lines with his New York Central Railroad. He built the original Grand Central Terminal in NYC. • He was involved with the standardization of rail gauges and the use of steel in rails. • He would be worth $143 billion in today’s money, making him the second-wealthiest person in U.S. history. • Vanderbilt gave little of his vast fortune to charity. • He left $1 million [= $700 million today] to Vanderbilt University and $50,000 to a church. He lived modestly. His descendants built the Vanderbilt houses of the Gilded Age. http://myteacherzone.com/TeacherUploads/27/Industry%20in%20the%20Gilded%20Age.ppt

Other notables • Leland Stanford • Jay Gould • James Hill • Jim Fisk

Resources, Innovations, Industries

Inventions and Innovations Technological change spurred growth of industry primarily in the northern cities. Both inventions and innovations caused this technological change. http://www.sps.k12.va.us/schools/nrhs/staff/saunders/index_files/VUS%208.ppt

The Business of Invention • Late 19th-century industry births American technology • An Age of Invention • telegraph, camera, processed foods, telephone, phonograph, incandescent lamp • Electricity in growing use by 1900 • Key name: Thomas Edison http://www.rdale.k12.mn.us/classroom_connections/web_folders/jay_hohenstein/ch18.ppt

Cow Factories • Slaughterhouses and a national and international beef market • Cows • Railroads shipping cheap western beef east • slaughterhouses and refrigerated rail cars combine to create a new industry

Philip Armour and Gustavus Swift • Armour had been a ditch-digger, Swift a butcher. • Demand in the growing cities of the East began to outstrip the local meat supply. • Cattle were shipped from the growing ranches of the West to Chicago’s stockyards to be butchered. • Swift objected to paying freight on the inedible parts of the cattle [60% of the weight]. • In 1880, after his engineer developed a refrigerated rail car, Swift and Armour built the world’s most highly coordinated production and distribution network. • A side of beef leaving his Chicago plant was stored in a freezer in New York on the same hook on which it was hung when killed in Chicago. • Swift created America's first vertically integrated company. His firm controlled the supply, production, and distribution of its products: buying, transporting, butchering the western steers, and then delivering to butcher shops. http://myteacherzone.com/TeacherUploads/27/Industry%20in%20the%20Gilded%20Age.ppt

Logos DENVER (AP) – (May 2007) In a union of two large meat-processing companies, a Brazilian firm announced Tuesday it will acquire Swift & Co. in a $225 million cash deal that will give the combined company greater access to expanding markets and operations on three continents. http://scriptorium.lib.duke.edu/eaa/printlit/Q0039/Q0039-23-72dpi.jpeg http://kohm.org/blog/?m=200705

BLACK GOLD • In 1859, Edwin Drake used a steam engine to drill for oil • This breakthrough started an oil boom in the Midwest and later Texas • At first the process was limited to transforming the oil into kerosene and throwing out the gasoline -- a by-product of the process • Later, the gasoline was used for cars EDWIN DRAKE PICTURED WITH BARRELS OF OIL http://webzoom.freewebs.com/centralhistory/A%20C%206%20US%20CHAPTER%206.ppt

Rockefeller and Oil • Petroleum profitable as kerosene for lighting • 1859--first oil well drilled in Pennsylvania • 1863--John D. Rockefeller organizes Standard Oil Company of Ohio • Rockefeller lowers costs, improves quality, establishes efficient marketing operation • Standard Oil Trust centralizes Rockefeller control of member companies outside Ohio http://www.rdale.k12.mn.us/classroom_connections/web_folders/jay_hohenstein/ch18.ppt

Standard Oil • Standard Oil employed vertical and horizontal integration tactics on a grand scale to grow the business into a monopoly that controlled virtually all the oil production in the nation. • In 1882, the company combined its interests across dozens of states into a trust. • John D. Rockefeller, the company's president, became the richest man in the world for a time, earning him both the admiration and disdain of ordinary Americans. “Next!,” 1904 www.tahg.org/countDownload.php?video=true&filename=mm_ppt_businesslaborandtechnologyinthegildedage.ppt

Rockefeller Quotes • Charity is injurious unless it helps the recipient to become independent of it. • Competition is a sin. • Do you know the only thing that gives me pleasure? It's to see my dividends coming in. • I have ways of making money that you know nothing of. • I would rather earn 1% off a 100 people's efforts than 100% of my own efforts. http://www.rdale.k12.mn.us/classroom_connections/web_folders/jay_hohenstein/ch18.ppt

Logo http://upload.wikimedia.org/wikipedia/en/thumb/5/56/Amoco3.png/120px-Amoco3.png http://www.oskarlin.com/images/chevron_01.png http://www.crwflags.com/fotw/images/u/us~scal6.gif

BESSEMER STEEL PROCESS • Oil was not the only valuable natural resource • Coal and iron were plentiful within the U.S. • When you removed the carbon from iron, the result was a lighter, more flexible and rust resistant compound – Steel • The Bessemer process did just that (Henry Bessemer & William Kelly) • Use of steel changes agriculture, manufacturing, transportation, architecture BESSEMER CONVERTOR CIRCA 1880 http://webzoom.freewebs.com/centralhistory/A%20C%206%20US%20CHAPTER%206.ppt

NEW USES FOR STEEL • The railroads, with thousands of miles of track, were the biggest customers for steel • Other uses emerged: barbed wire, farm equipment, bridge construction (Brooklyn Bridge- 1883),and the first skyscrapers BROOKLYN BRIDGE SPANS 1595 FEET IN NYC http://webzoom.freewebs.com/centralhistory/A%20C%206%20US%20CHAPTER%206.ppt

CARNEGIE BUSINESS PRACTICES • Carnegie initiated many new business practices such as; • Searching for ways to make better products more cheaply • Accounting systems to track expenses • Attracting quality people by offering them stock & benefits ANDREW CARNEGIE 1835 -1919 http://webzoom.freewebs.com/centralhistory/A%20C%206%20US%20CHAPTER%206.ppt

The Steel Industry • Carnegie's steel mills set new standards for the steel industry. Including strategies to increase efficiency, cut costs, vertically integrate, and invest in new technology. • Steel was produced at profoundly reduced prices, which made engineering feats like bridges and tall buildings more affordable. • His obsession with cutting costs translated to low wages and dangerous working conditions for laborers. • J.P. Morgan bought out Carnegie's business and integrated it into U.S. Steel, which became the world's first billion-dollar corporation in 1901. The red line indicates that Carnegie produced 30% of steel in the country. Notice the spike after 1896. www.tahg.org/countDownload.php?video=true&filename=mm_ppt_businesslaborandtechnologyinthegildedage.ppt

The Steel Industry www.tahg.org/countDownload.php?video=true&filename=mm_ppt_businesslaborandtechnologyinthegildedage.ppt

Carnegie and Steel • 1872--Andrew Carnegie enters steel business • By 1901 Carnegie employs 20,000, produces more steel than Great Britain • Sells out to J. P. Morgan ($492,000,000) • Morgan heads incorporation of the United States Steel Company http://www.rdale.k12.mn.us/classroom_connections/web_folders/jay_hohenstein/ch18.ppt

The Steel Industry Many companies incorporated by U.S. Steel (vertical integration), as well as related industries absorbed by the company (horizontal integration). www.tahg.org/countDownload.php?video=true&filename=mm_ppt_businesslaborandtechnologyinthegildedage.ppt

International Steel Production, 1880-1914 http://www.rdale.k12.mn.us/classroom_connections/web_folders/jay_hohenstein/ch18.ppt

Carnegie Quotes • Concentrate your energies, your thoughts and your capital. The wise man puts all his eggs in one basket and watches the basket. • I would as soon leave my son a curse as the almighty dollar. • The first man gets the oyster, the second man gets the shell. http://www.rdale.k12.mn.us/classroom_connections/web_folders/jay_hohenstein/ch18.ppt

Logos Steelmark logo, originated by U.S. Steel and used by AISI to promote the steel industry. Adapted from sample images appearing in various locations on the World Wide Web. Created http://www.answers.com/topic/steelmark-logo-png

Money • All of this takes money to create the capital for all of these new industries. • These large transactions now need a finance industry to meet the needs of capitalism. • The giant of this industry was J.P. Morgan

Finance • Morgan arranged the merger that formed General Electric; financed a steel company he merged with Carnegie Steel to form U.S. Steel; raised capital in Europe to help the railroads reorganize and achieve greater efficiencies; and fought against speculators interested only in profits. • U.S. Steel was a monopoly, attempting to dominate not only steel, but also the construction of bridges, ships, railroad cars and rails, wire, and nails . • President Cleveland arranged for Morgan to supply the U.S. Treasury with $65 million in gold [half from Europe] for a bond issue that restored the treasury surplus, saving the Treasury. • He gave a large art collection to the Metropolitan Museum of Art in NYC. The Broker: J. Pierpont Morgan http://myteacherzone.com/TeacherUploads/27/Industry%20in%20the%20Gilded%20Age.ppt

http://www.unions.org/home/unioncompanies.php http://www.jpmorganco.com/images/logo.gif

ELECTRICITY 1876- Thomas Alva Edison established the world’s first research lab in New Jersey There Edison perfected the incandescent light bulb in 1880 Later he invented an entire system for producing and distributing electricity By 1890, electricity powered numerous machines EDISON http://webzoom.freewebs.com/centralhistory/A%20C%206%20US%20CHAPTER%206.ppt

The History of GE • GE first started in 1879 when Thomas Edison created a carbon filament incandescent lamp at Menlo Park Laboratory. • The General Electric Company was formed in 1892 merging the Edison General Electric Company and the Thomson-Houston Company. http://www.angelfire.com/in4/roondog02/General_Electric.ppt

One of Edison's most important inventions was the creation of and electric power plant in 1882. Within a year Edison's invention was supplying electric power to homes and more power plants were built. Steam powered engines were soon replaced with safer electric motors. http://www.mrzindman.com/Zindman%20Class%20Web%20Page/Zindman%20Web%20Site%20Folders/Soc.%20St.%20powerpoint%20Study%20Guide%20Question%20Sheets%20tests/Chapter%2020%20Industrial%20Growth.ppt

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Communication • Background • Samuel Morse’s telegraph • Advancement of telegraphy technology spur innovation in technology • Edison wins a national quadraplex telegraph contest and sells the idea to Jay Gould

THE TELEPHONE • Another important invention of the late 19th century was the telephone • Alexander Graham Bell and Thomas Watson unveiled their invention in 1876 BELL AND HIS PHONE http://webzoom.freewebs.com/centralhistory/A%20C%206%20US%20CHAPTER%206.ppt

Telephone http://www.rdale.k12.mn.us/classroom_connections/web_folders/jay_hohenstein/ch18.ppt

Industrialization