State Standards

1. Objectives1. The learner will analyze the effects of various scientific discoveries and manufacturing innovations on the nature of work, the American labor movement, and businesses.2. The learner will explain how the abundance of natural resources, new recovery and refining methods, and new uses for them led to intensive industrialization.3. The learner will identify inventions that changed the way people lived and worked. State Standards 6.1 Identify how the effects of 19th century warfare promoted the growth of industrialism (i.e., railroads, iron vs. steel industry, textiles, coal, rubber, processed foods). 6.7 Recognize technological and industrial advancements to the era (i.e., advancements in mining, farming or ranching). 6.8 Match innovators to their industrial and technological contributions (i.e., Vanderbilt, Westinghouse, Carnegie, Pullman, Hershey, Dupont, Bell, Edison, Rockefeller, Swift, and Armour). 6.12 Assess the effect of late 19th century technological innovation on the daily lives of American people (i.e., electricity, indoor plumbing, communication, transportation).

2. CHAPTER 14: A NEW INDUSTRIAL AGE LATE 19TH CENTURY AMERICA EXPERIENCED AN INDUSTRIAL BOOM

3. SECTION 1: THE EXPANSION OF INDUSTRY • After the Civil War (1865) the U.S. was still largely agriculture • By 1920, the U.S. was the leading industrial power in the world • This enormous growth was due to three factors; 1) Natural Resources 2) Governmental support 3) Urbanization

4. BLACK GOLD • Edwin L. Drake introduced an efficient means of retrieving oil from beneath the earth’s surface. • In 1859, Edwin Drake first successfully used a steam engine to remove oil from beneath the earth’s surface. • 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

5. 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 did (Henry Bessemer & William Kelly) • Henry Bessemer developed an efficient technique for transforming iron into steel. • Henry Bessemer developed a cheap and effective manufacturing process for making steel. BESSEMER CONVERTOR CIRCA 1880

6. Section 1 – The Expansion of Industry – Vocabulary Bessemer process – a cheap and efficient process for making steel, developed around 1850.

7. 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 • New methods of making steel made it possible to construct skyscrapers in the 1800s. BROOKLYN BRIDGE SPANS 1595 FEET IN NYC

8. INVENTIONS SPUR INDUSTRY

9. ELECTRICITY 1876- Thomas Alva Edison established the world’s first research lab in Menlo Park, New Jersey There Edison perfected the incandescent light bulb in 1880 Later, Thomas Edison developed an entire system for producing and distributing electrical power and organized power plants around the nation. By 1890, electricity powered numerous machines Electricity allowed manufacturers to build their factories away from rivers. EDISON

10. THE TYPEWRITER • Christopher Sholes invented the typewriter in 1867 • His invention forever affected office work and paperwork • It also opened many new jobs for women • 1870: Women made up less than 5% of workforce 1910: They made up 40%

11. THE TELEPHONE • Another important invention of the late 19th century was the telephone invented by Alexander Graham Bell • Alexander Graham Bell opened the way for worldwide communications with invention of the telephone. BELL AND HIS PHONE

12. Section 1 – The Expansion of Industry – Vocabulary Bessemer process – a cheap and efficient process for making steel, developed around 1850.

13. Objectives1. The learner will analyze the effects of various scientific discoveries and manufacturing innovations on the nature of work, the American labor movement, and businesses.2. The learner will identify the role of the railroads in unifying the country.3. The learner will list positive and negative effects of railroads on the nation’s economy.4. The learner will summarize reasons for, and outcomes of, the demand for railroad reform State Standards 6.1 Identify how the effects of 19th century warfare promoted the growth of industrialism (i.e., railroads, iron vs. steel industry, textiles, coal, rubber, processed foods). 6.7 Recognize technological and industrial advancements to the era (i.e., advancements in mining, farming or ranching). 6.8 Match innovators to their industrial and technological contributions (i.e., Vanderbilt, Westinghouse, Carnegie, Pullman, Hershey, Dupont, Bell, Edison, Rockefeller, Swift, and Armour). 6.10 Interpret a political cartoon which portrays the controversial aspects of the Gilded Age (e.g. Populist reaction to politician and/or tycoons, railroad development, westward expansion, Dawes Act, urban developments) 6.11 Analyze the impact of different forms of corruption and its consequences in American politics during the later half of the Age.(i.e., Grant's Black Friday, Credit Mobilier, Whiskey Ring, Tammany Hall, Boss System, Garfield's assassination, Civil Service Reform, Granger laws, Interstate Commerce Act).

14. SECTION 2: THE AGE OF THE RAILROADS • One American Story • In October 1884, the economist Richard Ely visited the town of Pullman, Illinois. • Ely was impressed with the atmosphere of order, planning, and well-being in the town George M. Pullman had designed for the employees of his railroadcar factory. • But after talking at length with a dissatisfied company officer, Ely concluded the town had a fatal flaw: it too greatly restricted its residents. • Pullman, Illinois was an unusual town because it was built by a company to house its workers. The town of Pullman was carefully laid out and strictly controlled.

15. THE AGE OF THE RAILROADS • The growth and consolidation of the railroad industry influenced many facets of American life • However, the unchecked power of the railroad companies led to widespread abuses and then reforms

16. A NATIONAL NETWORK • At Promontory Point, Utah, where the Central Pacific and Union Pacific railroads met on May 10, 1869, a golden spike marked the linking of the nation by the first transcontinental railroad. • Immigrants from China and Ireland and out-of-work Civil War vets provided most of the difficult labor • Thousands lost their lives and tens of thousands were injured laying track IMMIGRANTS FROM CHINA LAID TRACK

17. Section 2 – The Age of Railroads – Vocabulary Transcontinental Railroad – a railroad line linking the Atlantic and Pacific coasts of the United States, completed in 1869.

18. RAILROAD AND TIME • Before 1883, each community still operated on its own time • For example: Noon in Boston was 12 minutes later than noon in New York City • Indiana had dozens of different times • No standard time reference

19. PROFESSOR DOWD CREATES TIME ZONES • In 1869, to remedy this problem, Professor C.F. Dowd proposed dividing the earth into 24 time zones • The U.S. would be divided into 4 zones: the eastern, Central, Mountain, and Pacific • 1883 – Railroads synchronized their watches across U.S. • 1884 – International Conference adopts zones • The use of standardized time and time zones was introduced in order to benefit railroad companies and train travelers. PROFESSOR DOWD EXPLAINS HIS TIME ZONES

20. THE WORLD IS DIVIDED INTO 24 TIME ZONES

21. THE UNITED STATES IS DIVIDED INTO 4 TIME ZONES

22. 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 railroadsalsoled to the growth of towns, new markets, and opportunity for profiteers

23. RAILROADS LED TO GROWTH OF CITIES • Many of today’s major cities owe their legacy to the railroad • Chicago, Minneapolis, Denver, and Seattle all grew up thanks to the railroad “MY KIND OF TOWN”

24. Interactive

25. PULLMAN: A FACTORY & TOWN George Pullman was an industrialist whose company produced standard railroad cars and elegant sleeping cars. His company town, which he hoped would ensure a stable workforce, was criticized as “un-American.” The nearby townPullman built for his employees was modeled after early industrial European towns George Pullman was a railroad-car mogul who built a town to house his employees. Pullman workers felt his puritanical town was too strict When he lowered wages but not rent – it led to a violent strike in 1894 THE TOWN GEORGE PULLMAN

26. CREDIT MOBILIER SCANDAL • Stockholders of Union Pacific Railroad formed a construction company in 1864 • Stockholders then gave contracts to the company to lay track at 3 times the actual costs and pocketed the difference • They donated shares of the stock to 20 Republican members of Congress in 1867 • The main purpose of the company known as Credit Mobilier was to steal railroad money for its shareholders. • The stockholders of the Union Pacific Railroad used Credit Mobilier (construction company) to make huge, unearned profits for themselves. POSTER FOR BOGUS CONSTRUCTION COMPANY

27. Section 2 – The Age of Railroads – Vocabulary Transcontinental Railroad – a railroad line linking the Atlantic and Pacific coasts of the United States, completed in 1869. Credit Mobilier – a construction company formed in 1864 by owners of the Union Pacific Railroad, who used it to fraudulently skim off railroad profits for themselves.

28. THE GRANGE AND THE RAILROADS • Farmers were especially affected by corruption in the railroad industry • Grangers (a farmers organization) protested land deals, price fixing, and charging different rates to different customers • Granger Laws were then passed protecting farmers • Munn v. Illinois—Supreme Court upholds states’ right to regulate RR • In Munn v. Illinois, the states won the right to regulate the railroads for the benefit of farmers and other consumers. • Sets principle that federal government can regulate private industry GRANGERS PUT A STOP TO RAILROAD CORRUPTION

29. Section 2 – The Age of Railroads – Vocabulary Transcontinental Railroad – a railroad line linking the Atlantic and Pacific coasts of the United States, completed in 1869. Credit Mobilier – a construction company formed in 1864 by owners of the Union Pacific Railroad, who used it to fraudulently skim off railroad profits for themselves. Munn v. Illinois– an 1877 case in which the Supreme Court upheld states’ regulation of railroads for the benefit of farmers and consumers, thus establishing the right of government to regulate private industry to serve the public interest.

30. INTERSTATE COMMERCE ACT • In 1887, the Federal government re-established their control over railroad activities • Congress passed the Interstate Commerce Actand established a 5-member Interstate Commerce Commission (ICC) • The goal of the Interstate Commerce Act to lower excessive railroad rates. • The Interstate Commerce Act gave the right to supervise railroad activities to the federal government. • The Interstate Commerce Act reestablished the right of the Federal government to supervise railroad activities and set up the Interstate Commerce Commission for that purpose. • The ICC struggled to gain power until 1906 1887 – CONGRESS PASSED THE ICA

31. Section 2 – The Age of Railroads – Vocabulary Transcontinental Railroad – a railroad line linking the Atlantic and Pacific coasts of the United States, completed in 1869. Credit Mobilier – a construction company formed in 1864 by owners of the Union Pacific Railroad, who used it to fraudulently skim off railroad profits for themselves. Munn v. Illinois– an 1877 case in which the Supreme Court upheld states’ regulation of railroads for the benefit of farmers and consumers, thus establishing the right of government to regulate private industry to serve the public interest. Interstate Commerce Act – a law, enacted in 1887, that established the federal government’s right to supervise railroad activities and created a five-member Interstate Commerce Commission to do so.

32. Section 2 – The Age of Railroads – Vocabulary Transcontinental Railroad – a railroad line linking the Atlantic and Pacific coasts of the United States, completed in 1869. Credit Mobilier – a construction company formed in 1864 by owners of the Union Pacific Railroad, who used it to fraudulently skim off railroad profits for themselves. Munn v. Illinois– an 1877 case in which the Supreme Court upheld states’ regulation of railroads for the benefit of farmers and consumers, thus establishing the right of government to regulate private industry to serve the public interest. Interstate Commerce Act – a law, enacted in 1887, that established the federal government’s right to supervise railroad activities and created a five-member Interstate Commerce Commission to do so.

33. Objectives1. The learner will analyze the effects of various scientific discoveries and manufacturing innovations on the nature of work, the American labor movement, and businesses.2. The learner will identify management and business strategies that contributed to the success of business tycoons such as Andrew Carnegie.3. The learner will explain Social Darwinism and its effects on society.4. The learner will summarize the emergence and growth of unions.5. The learner will explain the violent reactions of industry and government to union strikes. State Standards 6.6 Read and interpret a primary source document reflecting the dynamics of the Gilded Age American society (e.g., Booker T. Washington's "Atlanta Compromise," Carnegie's "Gospel of Wealth," Sojourner Truth "Ain't I A Woman," Jane Addams' Hull House accounts, Jacob Riis photographs and/or writings, a sweatshop worker's personal story). 6.9 Recognize the economic disparity among farmers, wage earners, immigrants, or racial groups when compared to industrial capitalists. 6.10 Interpret a political cartoon which portrays the controversial aspects of the Gilded Age (e.g. Populist reaction to politician and/or tycoons, railroad development, westward expansion, Dawes Act, urban developments)

34. SECTION 3: BIG BUSINESS AND LABOR • Andrew Carnegie was one of the first industrial moguls • He entered the steel industry in 1873 • Andrew Carnegie was a Scottish immigrant who made a fortune in steel and donated most of his profits. • Andrew Carnegie, a millionaire tycoon, who made his riches in the steel industry. • By 1899, the Carnegie Steel Company manufactured more steel than all the factories in Great Britain combined

35. 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

36. CARNEGIE’S VERTICAL INTEGRATION • Carnegie attempted to control as much of the steel industry as possible • Andrew Carnegie gained control of a large percentage of the steel industry by buying out his suppliers, buying out his competitors, underselling his competitors. • Vertical integration, a business strategy used by steel mogul Andrew Carnegie, involves buying out raw material producers and distributors. • Vertical integration is a process by which a company buys out all of its suppliers.

37. Section 3 – Big Business and Labor – Vocabulary Vertical Integration – a company’s taking over its suppliers and distributors and transportation systems to gain total control over the quality and cost of its product.

39. HORIZONTAL INTEGRATION • Additionally, Carnegie bought up the competition through friendly and hostile takeovers • This is known as Horizontal Integration; buying companies that produce similar products – in this case other steel companies MERGERS

40. Section 3 – Big Business and Labor – Vocabulary Vertical Integration – a company’s taking over its suppliers and distributors and transportation systems to gain total control over the quality and cost of its product. Horizontal Integration – the merging of companies that make similar products.

41. SOCIAL DARWINISM The philosophy known as Social Darwinism has its origins in Darwin’s theory of evolution Darwin theorized that some individuals in a species flourish and pass their traits on while others do not Social Darwinists (like Herbert Spencer) believed riches was a sign of God’s favor, and being poor was a sign of inferiority and laziness Social Darwinism was a theory that justified the efforts of millionaires and discouraged government interference in big business. DARWIN (RIGHT) LIMITED HIS FINDINGS TO THE ANIMAL WORLD SPENCER WAS THE ONE WHO COINED THE PHRASE “SURVIVAL OF THE FITTEST

42. Section 3 – Big Business and Labor – Vocabulary Vertical Integration – a company’s taking over its suppliers and distributors and transportation systems to gain total control over the quality and cost of its product. Horizontal Integration – the merging of companies that make similar products. Social Darwinism – an economic, and social philosophy – supposedly based on the biologist Charles Darwin’s theory of evolution by natural selection – holding that a system of unrestrained competition will ensure the survival of the fittest.

43. Darwin’s theory of biological evolution: the best-adapted survive Social Darwinism discouraged government regulation Social Darwinism was used to justify the existence of poverty, the success of big business, the power of millionaire industrialists. Principles of Social Darwinism

44. BUSINESS GROWTH & CONSOLIDATION • Mergers could result in a monopoly (Trust) • A monopoly is complete control over an industry • A market in which one company has complete control over an industry’s production, quality, wages paid, and prices charged is a Monopoly • An example of consolidation: In 1870, Rockefeller Standard Oil Company owned 2% of the country’s crude oil • By 1880 – it controlled 90% of U.S. crude oil • A corporation that does nothing but buy out the stock of other companies is a holding company • A corporation made up of many companies that receive certificated entitling them to dividends on profits earned is a trust. CHICAGO’S STANDARD OIL BUILDING IS ONE OF THE WORLD’S TALLEST

45. ROBBER BARONS Alarmed at the cut-throat tactics of industrialists, critics began to call them “Robber Barons” Famous “Robber Barons” included Carnegie, Rockefeller, Vanderbilt, Stanford, and J.P. Morgan John D. Rockefeller created trusts and was criticized as a robber baron while serving as head of the Standard Oil Company. J.P MORGAN IN PHOTO AND CARTOON

46. ROBBER BARONS WERE GENEROUS, TOO • Despite being labeled as greedy barons, rich industrialists did have a generous side • When very rich people give away lots of money it is called “Philanthropy” • Carnegie built libraries, Rockefeller, Leland Stanford, and Cornelius Vanderbilt built schools ROCKEFELLER CHAPEL – UNIVERSITY OF CHICAGO

47. SHERMAN ANTI-TRUST ACT • Industrial consolidation and trusts reduced competition during the late 1800s. • In 1890, the Sherman Anti-Trust Actmade it illegal to form a monopoly (Trust) • The Sherman Antitrust Act outlawed the formation of trusts that interfered with free trade. • Sherman Antitrust Act made it illegal for corporations to interfere with free interstate or international trade. • Prosecuting companies under the Act was not easy – a business would simply reorganize into single companies to avoid prosecution • Seven of eight cases brought before the Supreme Court were thrown out

48. Section 3 – Big Business and Labor – Vocabulary Vertical Integration – a company’s taking over its suppliers and distributors and transportation systems to gain total control over the quality and cost of its product. Horizontal Integration – the merging of companies that make similar products. Social Darwinism – an economic, and social philosophy – supposedly based on the biologist Charles Darwin’s theory of evolution by natural selection – holding that a system of unrestrained competition will ensure the survival of the fittest. Sherman Antitrust Act – a law, enacted in 1890, that was intended to prevent the creation of monopolies by making it illegal to establish trusts that interfered with free trade.

49. (REAL TRUST)

50. WORKERS HAD POOR CONDITIONS • Workers routinely worked 6 or 7 days a week, had no vacations, no sick leave, and no compensation for injuries • Injuries were common – In 1882, an average of 675 workers were killed PER WEEKon the job