2.02 Innovation Nation

Who Were Some Inventors of the Second Industrial Revolution?

By 1900, the ideas and hard work of inventive men and women had changed life in America. The inventors of the Second Industrial Revolution were not limited to a single ethnic group, racial group, or gender. People from many different backgrounds contributed to the Second Industrial Revolution.

Scientific Management

In the 1880s, engineer *Frederick W. Taylor* became interested in what would later be known as time study. Taylor measured the time it took different workers to perform certain tasks. He suggested that each worker could complete a specific job in a set period of time. He concluded that eliminating wasted time and motion could increase production speed. This idea became the foundation of scientific management, which signaled another change in business practices. Although labor leaders resisted Taylor's ideas, his innovation became very influential. By the Progressive Era, many factories used scientific management to increase production speeds.

How Did Innovation Change the American Landscape?

In the mid- to late-19th century, the United States relied on railroads. The Bessemer process, patented in 1855, allowed steel to be mass-produced for the first time. Steel railroad tracks were lighter and stronger than iron, and by the 1880s, railroads crisscrossed the nation. The construction of the Transcontinental Railroad after the Civil War increased travel and encouraged settlement in the West. As a result, the population and economy of this region grew. Farms, ranches, and towns appeared throughout the West. The railroad allowed producers to send goods to the East at a higher speed and lower cost than previously possible. Railroads also opened up other parts of the country to new settlement and investment. For example, industrialist *Henry Flagler* used the railroad to help the sparsely populated state of Florida grow. A partner of the Standard Oil Company, Flagler became interested in Florida after visiting the state in the late 1870s. He went on to build the Florida East Coast Railway, which connected land as far south as Key West to the rest of the nation. Working with other investors such as H.B Plant, Flagler also built hotels, helping to develop the region into a popular tourist destination. Another developer, *Hamilton Disston*, bought large areas of land in central and western Florida. Towns such as Kissimmee and Tarpon Springs developed on Disston's land. When railroad businessperson *William Chipley* developed rail lines running east to west across the Florida Panhandle, the state's economy grew quickly. Visitors to Tallahassee, the state capital, admired stately pre-Civil War architecture, including homes designed by free African American, *George Proctor*. The cattle industry was able to ship livestock across the South and to the East Coast. The cigar makers in the West Coast cities of Tampa and Ybor City shipped their products across the nation. The growing economy brought new immigrants to the state. Cuban and Italian immigrants came to work in the cigar industry. Greek immigrants came in large numbers to Tarpon Springs to work in the sponge-diving industry. While many of these developments were positive, progress also had its drawbacks. The Everglades, a large marshland and mangrove swamp in South Florida, was drained to allow for development. This harmed the ecosystem and endangered species native to the area. Across the country, the economic impact of railroads and related industries was beyond measure. During the late 1800s, railroad companies provided jobs for the majority of the country's population. As the need for locomotives and rails grew, other industries, such as steel and railroad car companies, that were needed to produce those high-demand items, also grew. Railways also allowed companies to sell their products nationally, thus increasing their markets. For example, a steel company in Pennsylvania could sell its material to railroad companies in the West, and companies in the Midwestern region could send their products to the East Coast.

Vertical Integration

Industries developed new methods to increase efficiency levels—as well as profits. *Andrew Carnegie*, owner of the Carnegie Steel Company, pioneered the use of vertical integration. Under this system, Carnegie bought out companies that provided raw materials and services that he needed. Iron, for example, is a main component of steel. Workers also needed a large amount of coal to heat the furnaces used in the Bessemer process. Instead of buying iron and coal from other suppliers, Carnegie simply bought the suppliers. This allowed him to pay less to manufacture steel and increase his profits. To ship his steel at a lower cost, he purchased railroads.

How Did New Inventions Change Business Practices?

Industry benefited greatly from new inventions and innovations. The development of the Bessemer process, for example, advanced many industries beyond the steel and railroad industries. Railroad shipping industries improved as a result of being able to move goods cheaply over long distances. This gave companies access to new markets and increased profits. Growing industries and improved shipping meant that Americans had to import fewer goods. During this period, the United States practiced what was known as laissez-faire capitalism, which means that companies were allowed to operate without a lot of government regulation or intervention. The most successful companies grew into the first large corporations. Some of these corporations, such as John D. Rockefeller's Standard Oil, began to reshape business practices in the United States. Rockefeller began working in the new industry of oil refining in the 1860s. He founded the Standard Oil Company in 1870. It grew rapidly, thanks in part to agreements with railroads for reduced shipping rates. By the end of the decade, Standard Oil controlled as much as 95 percent of U.S. oil refining. In 1882, Standard Oil set up a trust. This system brought Standard Oil and some 40 other related companies together under one management, allowing the company to produce large quantities of oil cheaply. A monopoly exists when one company or group of companies controls most or all of the business in an industry. However, many people objected to one corporation having so much economic power because there was no competition to benefit consumers. Monopolies could raise prices as much as they wanted without worrying about being undercut. Industrialists who used exploitative business techniques, like controlling access to natural resources or driving up prices through monopolies, were often referred to as "Robber Barons." A state court broke up the Standard Oil Trust in 1889. It re-formed a decade later as a holding company that raised stock in related companies. This again gave the company a great deal of power over the industry. Some companies formed less formal pools. Members of the pools owned different independent companies but agreed on rates and business practices. All of these systems limited competition. By the Progressive Era, reformers were working hard to end the influence of these companies.

Horizontal Integration

Other industries, such as Rockefeller's Standard Oil, used horizontal integration. Rather than buying suppliers, Rockefeller bought out competitors. Then he could control—or eliminate—his competition. The image of the octopus was often used in political cartoons of the time to show how one person used many "arms" to control his business. For the octopus, the economy was "food" for the taking. For much of the rest of society, the tentacles strangled their choices and their wallets. Even though many people despised the dominance that entrepreneurs like Rockefeller and Carnegie held in their industries, these two men proved by their giving that they were not selfish money hoarders. Modeling philanthropy (showing a love and concern for mankind by the giving of wealth to certain causes), it is believed that both men gave over half of their fortunes away to help people and communities. Jesus said in Luke 12:48, "From everyone who has been given much, much will be demanded; and from the one who has been entrusted with much, much more will be asked."

Famous Inventors

Perhaps the most famous inventor of the time was *Thomas Alva Edison*. Edison's work with electricity gave homes and businesses brighter, cleaner lights. He also developed numerous other devices at his lab in Menlo Park, New Jersey. These inventions included the phonograph and a motion picture camera. The lab in Menlo Park was the first industrial research laboratory in the United States. Edison's successes earned him the nickname "The Wizard of Menlo Park." Women such as *Madame C.J. Walker* also contributed important new products. Madame C.J. Walker became the first female African American self-made millionaire for her development of popular hair care products. Inventors also worked to improve transportation. In 1872, *Elijah McCoy*, the son of runaway slaves, developed a way to keep the moving parts of steam engines lubricated. This helped keep the engines working smoothly and safely. Elijah McCoy's steam engine lubricator was so successful that people asked sellers if they had the "Real McCoy." Other inventors looked toward the sky to improve travel. In 1903, *Orville and Wilbur Wright* made the first successful powered flight in Kitty Hawk, North Carolina.

How Did Innovation Drive the Second Industrial Revolution?

The Second Industrial Revolution was a time of great change. Individual inventors drove much of this change. These men and women worked tirelessly to create new inventions and improve existing devices. Their innovations spanned all fields. Inventions helped light people's homes and power transportation in new ways. Inventors found ways to make travel faster, streets safer, building materials stronger, and household chores easier. During the first half of the 1800s, inventors applied for fewer than 8,000 patents. Between 1865 and 1875, that number more than doubled. The explosion of innovation that characterized the Second Industrial Revolution can be seen in the number of patent applications filed. Patents allow inventors to protect their work from being unfairly copied by others. Patents helped to ensure rewards for those who pushed their minds and bodies to search out God's natural laws and apply this knowledge to practical, everyday life. Also, the promise of reward motivated people to push themselves to be the next person with a great invention to improve people's lives. They lived out Ecclesiastes 9:10, "Whatever your hand finds to do, do it with all your might." These inventions encouraged the rise of new industries. As industry grew, so did the American economy. New jobs were created. Trade within the United States and with other countries increased. Inventors and their innovations were key contributors to the Second Industrial Revolution. U.S. Patent Activity from 1860-1910: 1860 - 7,653 1870 - 19,171 1880 - 21,761 1890 - 39,884 1900 - 39,673 1910 - 63,293

holding company:

a company that buys up enough stock to control various other companies

pool:

a group of companies that agree to set prices and business practices together

trust:

a group of companies that turn control of their stock over to a common board of trustees who then run all of the companies as a single business

corporation:

a jointly owned company that issues shares of stock

horizontal integration:

a system of related businesses in which a company owns its competitors

vertical integration:

a system of related businesses in which a parent company owns its suppliers

scientific management:

an industrial business theory suggesting that efficiency can be increased by eliminating wasted time and motion

patent:

official document giving the right to make or sell an invention for a period of time

inventors, their innovations, and the significance of those innovations timeline

1861: The first transcontinental telegraph line is completed, allowing people across the country to communicate with one another almost instantly. Originally developed by Samuel Morse and Alfred Vail in the 1830s, Morse Code let people send telegraph messages easily. 1865: George Pullman creates the first railroad sleeping car, the "Pioneer." Pullman later became president of the Pullman Palace Car Company. This company made and operated sleeping cars on contract with railroad companies. The company became so large that it had its own town for its workers just south of Chicago. Pullman workers held one of the most famous strikes of the 19th century in 1894. 1872: Elijah McCoy patents a steam engine self-lubricator. This device used the high pressure of steam valves to keep moving parts greased and moving smoothly. McCoy received more than 50 patents in his career, mostly for improvements to the steam engine. He founded his own company, the Elijah McCoy Manufacturing Company, in 1920 1876: Alexander Graham Bell receives the patent for the telephone. The telephone improved on the telegraph by using electricity to transmit sound. Several lawsuits over the true inventor of the device followed, but Bell ultimately won. 1879: Thomas Edison develops an improved incandescent electric light bulb. Among Edison's numerous other inventions were the phonograph, an improved telephone, and a motion picture camera. 1883: Jan E. Matzeliger patents the first machine to successfully attach the tops and bottoms of shoes over the last, a mold in the shape of a foot. The machine could finish between 100 and 650 more pairs of shoes per day than a person doing so by hand. Shoe prices plummeted as machine-made shoes flooded the market. 1884: Lewis Howard Latimer becomes the only African American member of Thomas Edison's inventing lab. He had already developed improved electric lamps and a light bulb filament. While working for Edison, Latimer wrote an engineering handbook about incandescent lights. 1885: Sarah E. Goode becomes the first African American woman to receive a patent. Her cabinet bed allowed users to transform their beds into desks to save space in small city apartments. The bed had hinged sections that could be folded or unfolded as needed. 1892: Granville T. Woods, an African American inventor, develops a way to send electricity to trains without the use of exposed wires. This improved safety for passengers. He later developed the third rail that fed electricity to trains with less friction than in the past. Subways today still use this concept to power trains. 1893: George Westinghouse wins the contract to power the Chicago World's Fair (shown) using his alternating current (AC) system. Later, Westinghouse used his invention to develop hydroelectric power at Niagara Falls. AC power presented a serious challenge to direct current power, which was used widely in the United States in the late 1800s. George Westinghouse often competed with Edison in the field of electricity. During his career, Westinghouse received more than 100 patents. His inventions ranged from railroad brakes to gas pipes. 1903: Orville and Wilbur Wright make the first successful powered flight. They had developed several failed airplanes before launching this Wright Flyer in Kitty Hawk, North Carolina. The Wright Brothers continued to improve on powered flight over the years. In 1908, Wilbur Wright accomplished the first powered flight with a passenger. 1906: Madame C.J. Walker opens a company to sell her beauty products. Her inventions include shampoos and hair creams. They were so successful that Walker became the first self-made female African American millionaire. 1908: Henry Ford begins making the Model T automobile. Over the next two decades, Ford sold more than 15 million of the cars in the United States alone. By the turn of the century, Henry Ford had developed a series of increasingly successful automobiles. These vehicles, along with his development of the assembly line, redefined how Americans lived and traveled. Its relatively low price was made possible by Ford's use of mass production techniques. 1923: Garrett Morgan patents the first three-position traffic signal. Earlier signals had shown only the words "Stop" and "Go." This led to many accidents at busy intersections as drivers failed to stop in time. Morgan added a four-way stop sign to halt all traffic before the signal changed. This improved safety both for drivers and for pedestrians trying to cross busy streets.