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Slide 1: Ch. 6 Expansion of American Industry
Slide 2: Industrial Revolution  Samuel Morse ushered in the 2nd Ind. Rev. with the telegraph.   1st Ind. Rev? Morse Code?  From 1790-1860 36,000 patents were issued by the federal government.  Patents?  From 1860-1890 more than 500,000 patents were issued.  What does this mean?
Slide 3: Investment Opportunities  Many began to invest in the stock market.  What is the stock market?  The money companies received from investors went into producing and developing more products.  What is the goal of both the owner and the investor?
Slide 4: The Oil Industry is Born   Pennsylvania Oil Company, started by Ed Drake, was the first to drill and strike oil in 1859. Refineries transformed the “crude” oil into clean burnable fuel like kerosene.  What was used as fuel prior to oil?  Gasoline was a byproduct of the refinement process.   What did they do with the gasoline in the mid 1800’s? Why?
Slide 5: Electricity    Edison invents the light bulb in 1880, then the electric power plant in 1882.  How did these inventions change American life forever?  Wizard of Menlo Park (NJ) Westinghouse invents the “transformer” which propels electrical current miles away from its source.  Why would this be important? By 1898 there were 3000 power stations lighting more than 2 million light bulbs across America.
Slide 6: Impact of Electricity   Americans could now stay up longer and work, shop, or play. Daily life also changed with electricity…     Refrigerator Sewing machine Telegraph (Morse) Light bulb
Slide 7: Telephone    Alexander Graham Bell invented the first “talking telegraph” in 1876.  First words spoken? 1879 President Hayes has phone installed in Office. By 1900, more than 1.5 million telephones were in use.
Slide 8: Railroads  Problems in the industry…     No standard size of tracks  Wood tracks Train wrecks occurred often More train wrecks occurred! What did all this mean for business and consumer? No train signal standard  Poor braking system (later changed by Westinghouse)  Uncomfortable and expensive 
Slide 9: Transcontinental Railroad  On may 10, 1869 the federally funded Union Pacific (heading west) and Central Pacific (heading east) joined at Promontory Summit to complete the first transcontinental railroad.  What was its impact on…     Jobs Consumer Business Time Zones
Slide 10: Bessemer Process  Henry Bessemer patented the process of making stronger, lighter, and cheaper steel.  Steel versus Iron?  Now building and bridges could be built faster, cheaper, higher than ever before.   Reliance Building, Chicago  16 stories tall Longest in the world at that time. Brooklyn Bridge 
Slide 11: Business Terms  Robber Barons vs. Captain of Industry   Robbers Barons are perceived as those who profit from stealing or cheating the public while at the same time destroying our natural resources and corrupting of government officials. Captains of Industry are seen as those who provide for the public with goods and services, philanthropy, and creating jobs.  Can you be both?
Slide 12: Business Terms…         Horizontal Consolidation  When a company purchases different aspects of its production.  Standard Oil Vertical Consolidation  When a company owns all aspects of production.  Carnegie Steel Social Darwinism  Society and government should not interfere in business. Economies of Scale  Large companies can produce and out sell its competition cheaper because of company size and amount of capital. Oligopoly  A certain market dominated by just a few large companies. Monopoly  A company that has complete control over an industry. No competition! Trust  A trust is a group of companies run by a single board of directors (no one company controls the other). Cartel  A loose association of companies in the same industry who agree to production and price limits.
Slide 13: Rockefeller and Standard Oil    Rockefeller created Standard Oil in 1870. His company would later be the largest oil company in America.  Horizontal Integration Rockefeller gave more than $500 million to various charities including the foundation of the University of Chicago and the Rockefeller Foundation.  What is the purpose of the Rockefeller foundation?
Slide 14: Standard Oil Trust    Rockefeller wanted to expand his business by buying out all of his competitors, but the law stood in his way.  How? Monopoly? Rockefeller also received “rebates” from railroad companies to ship his oil on there railways.  Unfair advantage to competition. How? Standard Oil Trust  A trust is a group of companies run by a single board of directors (no one company controls the other).  Rockefeller joined with other oil companies to create the Standard Oil Trust.  This trust controlled 90% of the oil in America.  What is the outcome for business and consumers?
Slide 15: Sherman Anti-Trust Act   Outlawed any combination of companies who restrained, or restricted, interstate trade and commerce. The federal government took Standard Oil Trust to court for doing this.   What was it doing wrong? The trust was broken by federal courts in 1892.  Microsoft case in 1999?
Slide 16: Andrew Carnegie and Steel    Born an immigrant from Scotland, Carnegie started in a mill at 12 making only $1.20 a week. Using the Bessemer Steel process, Carnegie made a fortune in this industry.  Vertical Consolidation Years later, his steel company would make it possible to give away more than $350 million to various charities.  Carnegie Foundation?
Slide 17: Captain or Robber?    Carnegie and Rockefeller are often looked at as both Captains of industry and robber barons. Can you really be one without the other? Other examples..    Vanderbilt (Railroads) J.P. Morgan (Banker) Ford (Auto Maker)
Slide 18: Labor and Unions    Due to long droughts in rural areas, 8-9 million Americans flooded the cities in the late 1800’s. Prior to the Civil War the majority of the labor force was made up of Americans. Between 1860-1900 more than 14 million immigrants will make the journey to America, most settling in the cities as well.  Contract Labor Act, 1864   Why would businesses choose immigrants now over Americans? What is the long term negative effect on immigrants?
Slide 19: Factory Work    Although the government passed a 10 hour work day, 8 for federal employees, it was rarely enforced.  Most worked 12- 16 hours a day! Many immigrants were paid in a system known as piecework.  Paid by how much you produced not by hour. Most worked in placed known as “sweatshops”.  Employees worked long hours for low wages in poor conditions!
Slide 20: Working Conditions   Division of Labor means that workers only worked on small parts of the product, never seeing its completion. Working conditions were also poor, with injuries occurring almost daily.     Bad ventilation and lighting. No heat in winter Faulty equipment and fire dangers. No training or medical insurance.
Slide 21: Child Labor  In the 1880’s child labor made up 5% of the work force. Many had to work to pay for food rather than stay in school.  Long term effect of uneducated child labor? Highlights poor conditions and long term effects of child labor with photographs.   Children of the Poor by Jacob Riis  How do pictures punctuate the problems of child labor to people?
Slide 22: Unions and Great Strike  The gap between rich and poor was wide in the 1800’s.  9% of the population held 75% of the nations wealth.  The other 91% struggled to make a few hundred dollars a year!  The idea of Socialism grew amongst the poor.  Socialism?
Slide 23: Labor Unions   What is a union?  What function does it serve to the workers?  What demands did they bring to owners? Knights of Labor  Early union representing over 60,000 members.  Including women and African Americans!  Why is this important?  The Knights also sought to end child labor, 8 hour work day, and equal pay for equal work.  Did not believe in striking!  Labor Day was started by the Knights in 1882!
Slide 24: American Federation of Labor (AFL)    This union , starting in 1886, was open to only skilled workers.  Skilled vs. unskilled? By 1892 more than 250,000 members joined.  Strength in numbers?  Striking and boycotts were used often. Collective Bargaining:  Workers negotiate with owners.  What do they negotiate?  What if negotiations fail?
Slide 25: Industrial Workers Union (IWW) or Wobblies   The unskilled felt left out of the AFL and founded their won union called the IWW (Wobblies). This radical union contained socialist and used violent strikes to force owners to give in to their demands.  Socialist?
Slide 26: How to Break a Union  Owners employed several methods to discourage employees from unionizing.      1. Forbid unions to meet on property 2. Fire union organizers. 3. new employees signed “yellow dog” contracts forbidding union membership. 4. Refusing collective bargaining to strikers. 5. Hiring strike breakers.  Strike breakers?
Slide 27: Great Strikes…  Railroad strike of 1877   Pittsburgh railroad workers went on strike in protest of 10% pay cut for second time. When the strike stopped the railroads from moving local police and strikers clashed.   5 million in damages President Hayes sent in the army to stop the strike.  Government siding with big business. Why?
Slide 28: Haymarket Riot, 1886   Workers from the McCormick Reaper factory went on strike over 8 hour work day.  Strikers were fired and scabs hired.  Scabs? In protest, strikers took to the streets in protest rallies.  A bomb was thrown into police, killing 1. Police open fire into the strikers killing many!  4 strikers were hung the next day.  Justice or hatred?
Slide 29: Homestead Strike (Carnegie Steel), 1892  With Carnegie in Europe, partner Henry Flick tried to cut wages of steel workers.  Workers protested and were fired.  The factory union went on strike.  Flick called in strike breakers and killed several workers.  The factory reopened under state troops protection.
Slide 30: Pullman Strike, 1894   In protest of a 25% wage cut, workers in the Pullman sleeping car industry went on strike. More than 260,000 joined in.  Strikers stopped shipments from getting through, including the U.S. Mail!   Pres. Cleveland sent in 2,500 troops to break up the strike. Why did the government side with big business?
Slide 31: Government and Big Business  Factory owners by the late 1800, frequently called on the federal government.   Injunctions – court order to return to work  Punishable by years in jail and heavy fines. Federal troops – often called in to break up a strike and to protect the business.  Why was the government so willing to look over the poverty and harsh conditions of the workers to help the rich business owners?