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Industrialization

Industrialization

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Industrialization

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  1. Industrialization
  2. Why did industrialization occur in the U.S. during the late 1800s and early 1900s? Natural resources- iron, coal, lumber Huge workforce- including large number of immigrants Transportation routes- railroads, rivers Power source- water, oil, electricity
  3. What types of industry existed? Steel- iron that has been strengthened by heating it and combining it with other metals Steel was used in the growth of railroads and cities (skyscrapers and bridges)
  4. Andrew Carnegie Carnegie started a steel business in 1873 By 1899 he was manufacturing more steel than all of Britain He encouraged competition within his company He used innovative techniques (Bessemer process)
  5. The Bessemer Process Henry Bessemer discovered that blasting hot air through the iron would create stronger steel. This also proved to be a cheaper method to strengthen the steel. (1850s)
  6. Carnegie used both horizontal consolidation and vertical integration to gain monopolies on the products he manufactured.
  7. Horizontal Integration(Consolidation)

    Combining many companies (that produce a similar product) into one company
  8. Vertical Integration One company owns all elements of production required to create a product
  9. J.P. Morgan Morgan formed U.S. Steel in 1901 and bought out Carnegie Steel Morgan was considered the wealthiest man in the U.S. and made his money on the railroads Morgan made the steel industry a billion dollar industry
  10. What types of industry existed? 2. Iron/Coal Industry Alabama was a leader in both the coal and iron industries but investors were from the North and wanted to maintain Northern power Alabama had a large labor force Alabama laborers were often paid in “scrip” which could only be used at the company store
  11. Birmingham iron was cheaper but to keep areas like Pittsburg competitive, the “Birmingham differential” was created This was similar to a tax and it was added to iron produced in Birmingham
  12. What types of industry existed? 3. Oil John D. Rockefeller, Standard Oil Company Rockefeller used/created the “trust” method Because monopolieswere “illegal” a trust enabled stockholders to give control of their stock to the trust (trustees est. a board of directors that supervise stock movement) By the early 1880s he controlled about 90% of the nation’s oil
  13. What types of industry existed? 4. Railroads This became a big industry after the Civil War The federal government and businesses saw the advantages a country could experience if it were linked by railroads Steel production allowed RR growth The U.S. gov’t gave land grants to RRs to encourage construction in the West
  14. Railroads led to the creation of towns and a more unified nation Because RR stops needed to be scheduled, RRs adopted time zones George Pullman- developed luxury cars in the 1880s and built a “company” town
  15. Corruption/Problems with Railroads Credit Mobilier Scandal-1864-72; this involved graft and overpayment for services; the eventually investigation implicated members of Congress and increased public distrust of business Railroad Strike-1877; workers went on strike to protest wage cut but Pres. Hayes sent in the army to end the strike (80,000 walked off jobs in 11 states)
  16. Interstate Commerce Commission Est. 1886-87 to investigate/regulate RR activity but it had no real power until the 1900s However, this was a break from typical “laissez-faire” view of the government
  17. Unions and Strikes Factory work was unhealthy and dangerous Workers were paid poorly with no rights Unions were created by workers to help workers Owners were typically against unions Blacklisted-employers would list “problem” employees and they would not be hired anywhere Strikebreakers-(scabs) would work for less during a strike
  18. Knights of Labor 1st nationwide industrial union This union effectively used strikes Terence Powderly (leader) Allowed anyone to be a member Wanted An 8 hour workday Equal pay for women To end child labor Government to play a role in helping workers
  19. Haymarket Affair/Riot May 1886, Chicago Gathered to protest police violence against strikers Bomb went off and 9 people (7 police) were killed; about 100 injured 8 anarchists were convicted; no association with labor but The Riot caused public support to be against strikers/laborers
  20. American Federation of Labor Est. 1886 Samuel Gompers, lead organizer Organization of skilled workers only Opposed immigrant labor Organized based on trade rather than industry Wanted Higher wages Better working conditions Collective bargaining
  21. Robber Barons Term used as a negative way to refer to wealthy industrial leaders They controlled all aspects of trade in a specific area Very wealthy Increased the line between wealthy and poor Carnegie and Rockefeller (examples)
  22. Inventions Improved communication and helped the economy grow Made life easier
  23. Thomas Edison Light bulb, electricity, phonograph Menlo Park, NJ-first research lab Allowed scientist to experiment, learn, and create Founded Edison General Electric (GE)
  24. Alexander Graham Bell Telephone, 1876 Organized Bell Telephone Company that became AT & T
  25. Additional Inventions Radio, 1899; inventor- Marconi Telegraph, 1856; inventor-Morse Transatlantic Cable, 1866; inventor- Field Has been replaced but idea used until 1960s when replaced by satellites