American History 2

1. American History 2 Chapter 14 Presentation

2. Chapter 14 14.1 The Rise of Industry 14.2 The Railroads 14.3 Big Business 14.4 Unions Thomas Edison

3. 14.1 The Rise of Industry • Natural Resources • Workforce • Free Enterprise • Technology

4. Chapter Standards ACOS: • 1.) Explain the transition of the United States from an agrarian society to an industrial nation prior to World War I. AHSGEStandard V: • 1. Identify and evaluate the events that led to the settlement of the West. • 2. Evaluate the concepts, developments, and consequences of industrialization and urbanization.

5. Natural Resources • America had plenty of natural resources including water, timber, coal, iron, and copper. • Railroads brought settlers and miners to the West. • They used the railroads to send resources back to the East.

6. Natural Resources • Petroleum was a new resource in high demand. • It was used to make kerosene. • Kerosene was used in lanterns and in stoves. • Edwin Drake drilled the first oil well in Pennsylvania in 1859. Edwin Drake

7. Workforce • America had a large workforce to contribute to industrial growth. • These workers also created greater demand for products. • Population growth was a result of two factors: bigger families and immigration. Ellis Island Immigrants

8. America’s economic system contributed to industrial growth. Government decisions have a direct and indirect impact on the economy. For example, measurements taken of Union soldiers during the Civil War led to the development of ready-made clothes. Free Enterprise

9. American’s supported the idea of laissez-faire. This means government should have a “hands-off” policy towards the economy. Free Enterprise

10. Free Enterprise • Entrepreneurs are rewarded for success in a free enterprise system. • Entrepreneurs are people who take risks to start businesses to make profits.

11. Free Enterprise • Supply and demand regulate prices and wages when a laissez-faire policy is implemented. • A laissez-faire policy supports government interference in the economy only to protect property rights and maintain peace.

12. Free Enterprise • The profit motive, or hope to make money, attracted people of high ability and ambition into business. • A nation's gross national product is the total value of all goods and services it produces during a year.

13. Technology • Alexander Graham Bell invented the telephone in 1876. • Alexander Graham Bell spoke the first words on a telephone: “Come here, Watson, I want you.” • In 1877 Bell created the Bell Telephone Company.

14. Technology • Today, that company is called the American Telephone and Telegraph Company (AT&T).

16. Technology • Thomas Edison invented the phonograph (sound writer), like a record player. • Thomas Edison established his laboratory at Menlo Park, New Jersey.

17. Technology • Edison also perfected the light bulb around 1880 using a bamboo filament. • He also formed a power company in New York in 1882. • It and other Edison companies merged to create the Edison General Electric Company in 1889. • The company is called GE today. • Edison used direct current electricity.

18. Technology • George Westinghouse discovered alternating current. • It was cheaper to produce. • It could travel further and be boosted at a transformer.

19. Technology • Thaddeus Lowe invented the ice machine, forerunner of the refrigerator.

20. Technology • Gustavus Swift created the refrigerated railroad car which could ship meat and other goods.

21. Technology • In 1889, the first electric sewing machine was invented. • Cyrus Field laid the transatlantic telegraph in 1866. • Radio would also be developed during this era.

22. 14.2 The Railroads • The Transcontinental Railroad • The Railroad Industry • The Credit Mobilier Scandal • The Great Northern

23. Chapter Standards ACOS: • 1.) Explain the transition of the United States from an agrarian society to an industrial nation prior to World War I. AHSGEStandard V: • 1. Identify and evaluate the events that led to the settlement of the West. • 2. Evaluate the concepts, developments, and consequences of industrialization and urbanization.

24. The Transcontinental Railroad • President Lincoln signed the Pacific Railway Act in 1862. • Two railroad companies were hired to build a railroad to connect the east and west coasts.

25. The Transcontinental Railroad • The Union Pacific Company worked westward from Omaha, Nebraska. • Grenville Dodge engineered the project for Union Pacific. • They hired veterans, immigrants, miners, farmers, ex-convicts, and others. • They shipped their supplies from the Missouri River.

26. The Transcontinental Railroad • The Central Pacific Company worked eastward from Sacramento, California. • They could not find enough American workers. • They hired 10,000 Chinese workers. • They shipped their supplies around South America or across the Isthmus of Panama. • Both companies raced to lay the most track.

28. The Railroad Industry • The railroad industry helped other markets grow. • Cornelius Vanderbilt linked smaller railroad tracks together and made a lot of money. • He began the first direct rail service from New York City to Chicago.

29. The Railroad Industry • The American Railway Association created four time zones. • Local times had depended on the sun. • Different times created confusion and danger. • These time zones are still in effect today.

31. The Railroad Industry • The government tried to encourage railroad development by offering land grants. • Companies received land around the track they laid. • They would resell the land for profit. • Some people took unfair advantage of these grants.

32. The Railroad Industry • People who loot an industry and give nothing back are called robber barons. • Jay Gould practiced “insider trading” to his advantage. • Companies often bribed congressmen to offer more land grants.

33. The Credit Mobilier Scandal • The Union Pacific Company hired an outside company—Credit Mobilier—to actually build the tracks. • Credit Mobilier overcharged for their services. • Most of the money became the profit of the investors. • When they needed more money, they bribed congressmen for support.

34. The Credit Mobilier Scandal • The congressmen bought stock in Credit Mobilier at a “discounted” price. • The corruption was eventually investigated. • Even a future U.S. president was involved (James Garfield). • Despite scandals like this one, some people earned profits fairly and effectively.

35. The Great Northern • The Great Northern Railroad did not receive federal support. • It was run by James J. Hill. • Hill was not a robber baron. • The Great Northern became the most successful transcontinental railroad. • It was also the only one that was not forced to file for bankruptcy.

36. 14.3 Big Business • Economics • Andrew Carnegie • Monopolies and Trusts • Business

37. Chapter Standards ACOS: • 1.) Explain the transition of the United States from an agrarian society to an industrial nation prior to World War I. AHSGEStandard V: • 1. Identify and evaluate the events that led to the settlement of the West. • 2. Evaluate the concepts, developments, and consequences of industrialization and urbanization.

38. Economics • Corporations began to form. • A corporation is an organization owned by many people but treated by the law as if it were one person. • Corporations became bigger and achieved economies of scale. • Economies of scale refers to the reduction of costs as a result of increased production at a given facility.

39. Economics • Economies of scale result in reduced costs and prices.

40. Economics • All businesses have fixed costs and operating costs. • Fixed costs are costs the company has to pay no matter what. • Operating costs are costs that occur when running a company, • These costs can change depending on production.

41. Economics • Smaller corporations with high operating costs find it hard to compete with larger ones. • Many are forced out of business by the larger corporations.

42. Andrew Carnegie • Carnegie was poor but became successful. • He invested in companies that supported the railroad industry.

43. Andrew Carnegie • Carnegie also used the Bessemer Process. • Sir Henry Bessemer invented a new process for making high quality steel efficiently and cheaply. • Carnegie opened a steel company in Pittsburgh.

44. Andrew Carnegie • Carnegie began the vertical integration of the steel industry. • A vertically integrated company owns all the different businesses it uses for operation. • It saved the company money.

46. Andrew Carnegie • He also supported horizontal integration. • This is the combining many firms engaged in the same type of business into one large corporation. • John D. Rockefeller used horizontal integration also. John D. Rockefeller

47. Click the mouse button or press the Space Bar to display the answer.

48. Monopolies and Trusts • Rockefeller’s Standard Oil Company controlled 90% of American oil refining industry. • Rockefeller created a monopoly. • A monopoly happens when a company achieves control of an entire market. • Monopolies are now illegal.

49. Monopolies and Trusts • Standard Oil then created the first trust. • A trust is a legal concept that allows a person to manage another’s property. • A trustee is the person who manages the money. • This allowed Rockefeller to control the other companies without actually owning them.

50. Business • The advertising industry grew as the business industry grew. • Department stores offered many services in a fancy environment. • Chain stores offered lower prices without the elaborate service and decor. • Rural people shopped from mail order catalogues like Montgomery Ward and Sears, Roebuck.