Chapter 6

May 7, 2018 | Author: Anonymous | Category: History, European History, Europe (1815-1915), Industrial Revolution
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The Second Industrial Revolution 1865-1905

CAPITALISM: private bus. run most industries, competition deter. how much goods cost & workers are pd LAISSEZ-FAIRE: “let people do as they choose”—no govt intervention in econ

FREE ENTERPRISE/MARKET: supply, demand, & profits deter. by what goods are prod. & how much

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Some felt capitalism was unfair to working class MARXISM: pol. system to get rid of inequalities of wealth (Karl Marx)—overthrow capitalism COMMUNISM: society where indiv. ownership

How have inventions in the past help to launch a NEW industrial revolution?  Printing Press?  Cotton Gin?  Railroads?

All became possible b/c of using steam & coal as fuel Three major types of advancements:   

Industry Transportation Communication


Able to make more quickly & more cost effective b/c of Bessemer Process  Developed in 1850s by Henry Bessemer in G.B. &

William Kelly in U.S.  Allowed impurities to burn off using blast of hot air  Went from 15,000 tons (1865) to 28 million tons (1910) 

Iron ore from Midwest shipped to areas near Lake Michigan & Erie  Gary, IN Cleveland, OH Pittsburg, PA  Coal from PA/WV as fuel for steel mills

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New steel used for RR rails (inst. of iron), framework of buildings & bridges No rust, so good for nails/screws/wire/etc


Needed to be able to refine more b/c demand was increasing  Kerosene for lamps (whale oil hard to get)

Edwin Drake (1859) used steam engine to drill for oil in PA  “Drake’s Folly” b/c people thought it was crazy @ 1st,

until it started pumping 20 barrels/day  Like Gold Rush, people rushed to PA (OH, WV soon after) to find “Black Gold”  1880: 25 million barrels were being pumped 

Anthony Lucas (1901) struck oil in Beaumont, TX & started the TX oil boom  1902: 17 million barrels pumped (20% of all oil prod.)  1904: down to 10,000 barrels/day (reserve almost out!)

OIL, cont.  

1880: started refining oil for kerosene, waxes, lubricating oils, etc Elijah McCoy (son of runaway slave) got patent on lubrication cup to feed oil into machine while still running

RAILROADS Increased rapidly b/c of steel prod., and drop in $  Example: 

 1860: NY to Chicago, change trains 17x over 2 days  1870: same trip w/ no changes, 24 hrs 

Transcontinental Railroad done in 1869  From Omaha, NE to Pacific Ocean  Last spike in place in Promontory, Utah

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1900: 6 major rail lines (trunk lines) that crossed Great Plains to Pacific, linked every state George Westinghouse devel. air brake to allow all cars of trains to stop @ same time Comm. system set up from trains to stations

Railroad, cont.     

Double tracks b/c of more rails allowed trains to pass Standard rails allowed passengers to not have to change trains when reached a diff. line Encouraged expansion west, & growth of towns/cities Provided many jobs on the RR & industries related Businesses grew (& competition) b/c of being able to sell goods nationally

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HORSELESS CARRIAGE Self propelled vehicle in 1770, but a steam engine in a “car” was expensive/inefficient Nikolaus Otto invented 1st internal combustion engine that was powered by gas in 1876  

Used in 1893 for 1st motorcar in US Only wealthy people could afford @ 1st, but as prod. costs decreased, supply increased…more people could afford one


Wilbur & Orville Wright (OH) started w/ glider planes, then Euro. Engines, & finally internal combustion engine  Dec. 17, 1903: Kitty Hawk, NC made 1st piloted flight

(12 sec. & 120 ft)

Very little press, but word spread slowly & soon inventors were working quickly to improve on what they were able to do

TELEGRAPH: Samuel Morse devel. commun. system that sends elec. signals over wires (patent in 1837) Businesses  Morse Code (dots & dashes)  Western Union (1866) was leading telegraph comp. w/ over 2,000 offices  Followed RR & trains stations 

TELEPHONE Alexander Graham Bell (1876) called it the “talking telegraph”  Businesses found it a MUST HAVE item  By end of 1800s, 1 million+ phones installed  Bell Telephone Co. became Amer. Telephone & Telegraph: one of the biggest, longest monopolies of its time  Early operators had to connect callers 

 Women, very fast paced

TYPEWRITER Christopher Sholes (1867) was 1st to market it  Keyboard design has changed little from the original  Used carbon paper to make duplicate copies  Typing pool: group of women that do nothing but type documents for businesses 

 gave women a chance to work in a skilled job  Believed he was helping women not have to work so



Amateur scientist, inventor born in OH  Telegraph that could send 4 msgs @ once  Elec. Vote recorder  Telegraphic stock ticker

MENLO PARK (NJ)     

Research facility where he gathered other inventors Promised 1 minor invention/10 days & 1 major invention/6 months Phonograph Improved phone (better signal & sound) LIGHTBULB!!!

1882: opened one of the 1st electric power plants in NYC  

1893: World’s Columbian Exposition in Chicago included twinkling lights outlining the major buildings 

Used DC (direct current) to local locations only Later inventors dev. AC (alternating current) to be able to power other locations

Electric streetcars began to dev. in cities also

Died in 1931 as the “Wizard of Menlo Park” w/ 1,000+ patents




Some felt capitalism was unfair to working class




Organizers raise $ by selling shares of stock   

Stockholders get % of profits called dividends Little to no part in daily operations Limited liability

Businesses can raise a lot of $ through stock sales

More stability b/c not dependent on spec. owners

TRUST: group of comp. turn control of stock over to bd. of trustees, who run all companies as 1 Reduce competition  MONOPOLY: trust w/ total control of industry 

 Little to no competition  Total control of prices & quality

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Started wk in a RR office Bought stock in RR, oil, iron, telegraph & used profits to start investing in steel in 1860s Didn’t know much about steel, but hired best people in business Made mills most tech adv. Bought supplies in bulk & prod. lg amts. of goods @ once to keep costs low & profits high

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VERTICAL INTEGRATION Combined all smaller bus. into Carnegie Steel Comp. in 1899 Sold to J.P. Morgan for $500 mill Donated $350 mill to charities (libraries) Believed that wealthy had moral obligation to help society

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Founder of Standard Oil Comp Used vertical integration HORIZONTAL INTEGRATION Made deals for cheaper supplies & rates, could keep prices low & drive others out of bus. 1880: controlled 90% of oil refineries Donated $550 mill in charities, incl. $80 mill to Univ. of Chicago

VANDERBILT: had successful shipping bus. 1st, then invest. in RR  

Combined small lines to make direct routes betw. Cities 4,500 miles of track & $100 mill when died

WESTINGHOUSE: air brake inventor PULLMAN: built factory for comfy train cars (sleep, eat, wealthy) over long distances  

Poor Chicago neighborhood in hopes of helping Planned community (homes, schools, recreation, etc)  Was too controlling though, and many became upset w/ him

MARKETING: brand names, logos, slogans, packaging, advertising, etc MAIL ORDER: catalogs w/ large # of products 

Sears, Roebuck, & Comp.

DEPT. STORE: lg # of items, bought in bulk to keep prices down  

Created jobs Macys, Marshall Fields


Supporters of laissez-faire capitalism liked govt intervention when it helped them!

High tariffs on imports made US made goods less expensive

Govt gave little assist. to industrial workers

1890: 10% of population controlled 75% of wealth

50% unskilled workers made less than $500/yr

Amer. Arguments Against Trusts

Govt. Response

Problems with Act

Lg. demand for labor—by 1900, 1/3 of indust. workers were immig. Many Afr-Amer came north to find jobs, but still not every bus. would hire them (even if skilled!) Women & Kids: 

WOMEN: doubled from 1870-90  1900: 18% of workforce

KIDS: 1890: 20% of kids from ages 10-15  1:4 in textile mills(NC), 1:20 in Mass.

Kids worked 12hr shifts (often @ night) for pennies/day

Unskilled white males: @ least 10hr/day, 6 days/wk, less than $10/wk African/Asian/Mexican men worked same, less $  Women & kids often did same for ½ pay 

Dangerous jobs, fatigue

Company Towns: housing & stores owned by company to control workers 

Rec’d wages in “scrip” that could only be used for rent & company stores where prices were high

Nat’l Labor Union (1866) had some success w/ 8 hr wk day, but fell apart in 1870s 1869: KNIGHTS OF LABOR 

Started for white males, then added others not allowed in other unions in 1879 (skilled, unskilled, women)  MARY HARRIS JONES: organiz. strikes, marches, etc. to

educate & unite workers until she died @ 100

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Afr-Amer. were able to join in 1883, but not as open minded about Chinese workers Fought for 8 hr/day, =$ for =work, & end child labor 700,000 members by 1886

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Woman African American Chinese Immigrant 13 yr old boy Irish Immigrant I have to work to support my family. This is an idea of what it is like to work for me…..

RR strike in 1877 helped Knights of Labor to grow  

Reaction to pay cut Pres. Hayes used troops to protect RR, angered many & spread to 14 states

Many strikes in 1886: push for better working conditions…some were violent

1886:40,000 workers in Chicago @ McCormick Harvesting Mach. Comp wanted an 8 hr/day ANARCHISTS took over  Confrontation w/ police, 2 strikers killed  Peaceful mtg next day, until 200 police showed up: bomb went off, shooting started 

 60 officers wounded  7 officers & 1 civilian killed 

Arrested 8 anarchists (only 1 had been there) & chgd them w/ conspiracy  All 8 guilty, 4 hung

Union supporters on “blacklists”—hard time finding work Some had to sign “yellow-dog” contracts, promising NOT to join union if hired Union membership dropped, comp. used nonunion strikebreakers 

Skilled unions split from unskilled

Amer. Federation of Labor (AFL) created by Samuel Gompers for skilled workers

Homestead, PA: Carnegie Steel (1892) Protest wage cut, managers locked strikers out  Hired guards to protect plant  Violent, 16 dead 

Pullman, IL Cut wages, didn’t lower rent/prices  Amer. Railway Union supported workers, stopped most RR traffic in midwest  RR turned to govt for help, ordered to move again b/c stopping mail delivery 

 Union ignored govt & were jailed 

Pres. Grover Cleveland ordered troops to plant to stop strike & restore operations

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