SSUSH11A thru E and 12B & D Industrialization

SSUSH11A thru E and 12B & D Industrialization

Causes of U.S. Industrialization The earliest forms of industrialization in the U.S. began in the late 1700 s with the development of the transportation and textile industries. The Civil War caused early industries to focus on the improvement of weapons manufacturing. After the Civil War industry rapidly expanded. Reasons for the nation s industrial success included: Availability of vast natural resources in the U.S. Discoveries of mineral rich areas in the West. Rapid settlement of the West by Americans. Construction of the Transcontinental Railroad. Discovery and development of Petroleum.

Causes of U.S. Industrialization America s human resource was also important in creating a Large Workforce. 1860 1910: The American Population almost tripled. 1865 1910: 20 Million immigrants came to the U.S. Millions of Americans moved from farms to factories. Another important factor was America s Free Enterprise System. Americans embraced the idea of Laissez-Faire, meaning Let people do as they choose without too much government control on the economy. Supporters of Laissez-Faire: Relied on Supply and Demand to regulate prices and wages Claimed a Free Market economy was more efficient. Advocated low taxes to give Americans more economic power. Believed in limiting government spending and debt.

Causes of U.S. Industrialization Investment of Private Capital was also a key reason for industrial growth. American Entrepreneurs risked their money to organize & run industries. Foreign Investors saw more financial opportunities in America than at home. A Wave of New Inventions 1874-1876: Alexander Graham Bell revolutionized communications by developing the Telephone. 1877: He and others formed Bell Telephone Co. 1870 s - Thomas Alva Edison became known for: 1877: Developing the first Phonograph 1879: Perfecting the first Light bulb 1882 1889: Creating General Electric Co.

A Wave of New Inventions 1865 1877: Thaddeus Lowe developed the Compression Ice Machine that revolutionized the process of Refrigeration. 1878: Gustavus Swift founded a Meat Packing Empire after engineers created the first effective refrigerated boxcar. 1889 1894: English immigrant James H. Northrop helped revolutionize the textile industry by developing the Northrop Automatic Loom. Other developments included power-driven sewing machines, cloth cutters, and mass-produced shoes.

The Railroad Boom (1860 s) 1862: President Abraham Lincoln signed the Pacific Railway Act for the construction of a Transcontinental Railway by two corporations: The Central Pacific, under the direction of Theodore Judah, started laying track from Sacramento, California in 1863. The Union Pacific, under the direction of Grenville Dodge, started laying track from Omaha, Nebraska in 1865. Both Railroads attracted key financial backers: Leland Stanford was one of the Big Four backing the Central Pacific. Thomas C. Durant was the dominant stockholder for the Union Pacific.

The Railroad Boom (1860 s) Railroad laborers faced mountain blizzards, desert heat, and angry Native Americans. Both railroad companies employed Civil War Veterans, Adventurers, and Ex-Convicts. A large portion of the labor force in both companies came from new immigrants: The Union Pacific employed 10,000 workers, many who were from Ireland. The Central Pacific hired about 10,000 hard-working Chinese laborers. Both Railroads also employed freed Slaves:

The Railroad Boom (1860 s 1900 s ) To encourage railroad construction across the United States, the federal government gave Land Grants to many railroad companies. Railroad companies would then sell the land to settlers and businesses to raise the money needed to build the railroad. 1860 s 1880 s: Railroad received over 120 million acres of federal lands. The booming railroad industry in the U.S. went from 35,000 to 200,000 miles of track within just 35 years. The existence of hundreds of small unconnected railroad lines eventually caused the need for railroad consolidation.

The Railroad Boom (1860 s 1900 s) Two key men became famous as wealthy railroad builders & consolidators: Cornelius Vanderbilt who owned the New York Central Railroad by 1867. Jason Jay Gould who controlled the Union Pacific Railroad by 1879. The great wealth that these Railroad Entrepreneurs acquired led to them being labeled Robber Barons due to accusations of bribery and swindling. 1872: This belief was promoted by the Credit Mobilier Scandal committed by Union Pacific Railroad stockholders. Unlike other Robber Barons, James J. Hill built the Great Northern Railroad without any federal grants or subsidies.

The Railroad Boom (1880 s 1900 s) Safety concerns over local times versus train schedules caused a major change. 1883: The American Railway Association divided the nation into four times zones. 1918: The Federal Government ratified the adoption of the four time zones. The Rise of Big Business (1870 s 1900 s) The rise of big business would not have been possible without Corporations. A Company owned by many people known as Stockholders. Spreading the financial risk through shares in the company called stocks. Treated as one owner by the issuance of a charter from the government.

The Rise of Big Business (1870 s 1900 s) The Railroad Boom and the rapid increase of Industrialization allowed two key entrepreneurs of big business become very wealthy: Andrew Carnegie who established a large steel industry in Pittsburg, PA., in 1875. John D. Rockefeller who founded the Standard Oil Company in Ohio in 1870. While in England, Andrew Carnegie learned of a new process that would revolutionize the steel industry. The Bessemer Process accomplished three things: It removed impurities from molten iron. Decreased the cost to manufacture steel. Increase the scale and speed of production.

The Rise of Big Business (1870 s 1900 s) Andrew Carnegie also took advantage of two key systems to increase manufacturing efficiency: Vertical Integration: Buying all the required companies that would normally supply the steel industry with materials. Horizontal Integration: Combining, or Buying Out, many companies engaged in the same type of business into one large Corporation. By 1880, John D. Rockefeller had used this to build a Monopoly: Gaining control of 90% of the oil refining industry in the U.S.

The Rise of Big Business (1870 s 1900 s) By the late 1880 s, Carnegie and Rockefeller joined the ranks of modern Robber Barons when Americans became suspicious of large Corporations and feared the power of Monopolies. To preserve competition, many states established laws to make it harder for monopolies to exist. 1882: Standard Oil formed the first Trust Company, by having a group of trustees manage the stocks of various companies without actually owning them. 1889: New Jersey created a law establishing Holding Companies. Controlling several companies without producing anything itself.

The Formation of Early Unions (1830 s 1870 s) There were many influences on the development of Labor Unions in the U.S.: Working Conditions were unhealthy and dangerous. Heavy Machines lacked safety devices causing injury. Uneven distribution of wealth between social classes. Economic deflation in the U.S. between 1865 1897. (Rise in the value of money versus the cost of goods) Craft Workers in the United States were the first to form Trade Unions. By 1873: There were 32 national Trade Unions within the United States. Employers were forced to recognized and negotiate with the Trade Unions. Many considered unions as Illegitimate Conspiracies against their industries. By 1880 s: Companies used several techniques to prevent formation of unions.

Opposition to the Formation of Unions By 1880 s - Companies used several techniques to prevent formation of unions. They required workers to sign contracts promising not to join a union. They hired detectives to go undercover and identify union organizers. They fired union organizers and placed them on a Blacklist as Troublemakers. By 1880 s - If Workers formed Unions, Companies often used other methods: They used Lockouts to prevent workers from working & getting paid. They hired replacement workers known as Strikebreakers or Scabs. By 1880 s Workers who wanted to organize unions also faced other problems. There were no laws giving workers the right to organize union. Courts frequently ruled against strikers as conspiracies against trade.

The Formation of Unions (1870 s 1900 s) Conflicts between union and companies often led to Violence & Bloodshed. Panic of 1873: Severe economic recession forced many companies to cut wages. 1877: The Great Railroad Strike Occurred. Railroads announced additional wage cuts. Workers in West Virginia walked off the job and blocked RR tracks. Strikes spread to involve over 80,000 workers in eleven states. Railroad service was stopped in five major cities including Chicago. President Rutherford B. Hayes sent troops to restore law and order. The strike cost millions of dollars in lost property and over 100 dead.

The Formation of Unions (1870 s 1900 s) 1880: Originally organized in 1869, the Knights of Labor grew to 28,000 members after the Great Railroad Strike, supporting several issues. An Eight-Hour Workday Bureau of Labor Statistics Equal Pay for Women Abolition of Child Labor Arbitration between Parties By 1885: Membership in the Knights of Labor grew to at least 700,000. In 1886: The Haymarket Strike in Chicago led to the Union s rapid decline.

The Formation of Unions (1870 s 1900 s) 1 3 May 1886: A Nationwide strike to show support for the Eight Hour Workday resulted in a death after a clash between strikers and police in Chicago. Anarchist Group organized a meeting to protest striker s death. When Police arrived someone threw a bomb into the crowd. Seven Policemen and four Protestors were killed in a gun battle. Eight men (including a member of the Knights of Labor) were arrested and four were convicted and executed.

The Formation of Unions (1870 s 1900 s) 1886: American Federation of Labor is formed Delegates from over 20 Trade Unions Samuel Gompers became first leader: He Rejected Socialism / Communism He Believed in staying out of Politics He Promoted fighting for small gains He Worked within the Legal Systems Three Main Goals developed: Convince Companies to Recognize Unions Get Companies to hire only Union Members (Known as Closed Shops ) Promoted the adoption of an Eight-Hour Workday By 1900: Became the biggest union in the nation with 500,000 members.

The Formation of Unions (1870 s 1900 s) 1893: American Railway Union is formed Eugene V. Debs became first leader First to Unionize the Pullman Company 1893: United States was struck by Depression Pullman Company required workers to live in company town and buy from company stores. Pullman Company cut workers wages drastically. Pullman fired three workers who complained. May 1894: The Pullman Strike Began Nationwide Boycott of Pullman Cars occurred. Railroad Managers attached U.S. Mail to Pullman Cars President Grove Cleveland sent in U.S. Troops Federal Court issued an Injunction to End the Strike