U.S. Final Exam - Industrialization
Expansion of Industry Quiz 11. The expansion of jobs for women was caused by the invention of
Typewriter
The Rise of Labor Unions Quiz What is the name for the voluntary associations of workers seeking labor reforms?
Unions
A New War Begins Cornelius Vanderbilt
Vanderbilt became known as a cutthroat businessman - He would beat up guys In 40 years, Vanderbilt built the largest shipping empire in the world He realized that railroads were the next big thing in America - He sold all of his ships and invested all he had into railroads - By the end of the war, Vanderbilt is the richest man in the world Vanderbilt's son was killed in war, and this killed his empire - He has to rely on his other son, William to take over the business The competition against Vanderbilt no longer saw him as someone to fear - Vanderbilt sees an opportunity to show his dominance and teach William what it means to be a Vanderbilt Vanderbilt owns the only rail bridge into New York - This bridge supplies America - Vanderbilt shuts down the bridge and no other railroad can reach the city -> Millions of pounds of cargo can't reach the rest of the country -> His competitors are bled dry and sold their shares -> Vanderbilt bought those stocks Vanderbilt now had the largest railroad industry in America - 40% of America's train lines Vanderbilt builds Grand Central Station where the Hudson, the Harlem, and the New Haven railroads meet - It is in the heart of New York - It is the biggest railroad station in America The line railway that connects Chicago to New York was the most valuable railroad in the world - The Erie - Vanderbilt did not own it Vanderbilt had his men buy as much of the stocks for the Eerie until he could own it
The Rise of Labor Unions Quiz A significant contribution to the industrialization of the United States was Henry Ford's development of
improvements to the assembly line
Industrialization Notes The Expansion of Industry: The Typewriter
*Christopher Sholes invented the typewriter in 1867 His invention forever affected office work and paperwork It also opened many new jobs for women 1870: Women made up less than 5% of workforce 1910: They made up 40%
Expansion of Industry Quiz 2. The injecting of air into molten iron to remove carbon to create a system for cheap an efficient manufacturing of a flexible, rust-resistant metal.
Bessemer Process
The Rise of Labor Unions Quiz In the late 1800s, the federal government used troops to
Bring an end to strikes.
Expansion of Industry Quiz 14. How did the availability of electricity affect the decision of where to locate factories?
Business owners could now consider factors such population the availability of natural resources in their decision.
The Rise of Labor Unions Quiz Under President Theodore Roosevelt, the Sherman Antitrust Act was used to require which of the following industrialist to break up the monopoly they had over their industry.
John Rockefeller
The Rise of the Labor Movement 7. How did management and the government react to union activity?
Management reacted to union activity by not recognizing unions as representatives of the workers. They would ban union meetings and they would fire union members. They also changed the Sherman Antitrust Act so that now it could apply to labor. Now, all a company had to say was that the strike would hurt their interstate trade, and the federal government would step in and take care of it. These made it more difficult for unions to be effective.
A New War Begins Jay Gould and James Fisk
They realize that Vanderbilt is going to buy the Erie They come up with a plan to stop him - They printed more and more stock so that Vanderbilt's amount of stock is smaller and smaller - "Watering Down Stock" - fake stock - Vanderbilt keeps buying more and more stock Vanderbilt bought $7 million of watered-down stock from Gould and Fisk - Gould and Fisk wanted the world to know that they scammed him out of millions of dollars
The Rise of Labor Unions Quiz Henry Ford business goal was to
Produce an automobile that average American families could afford.
The Rise of Labor Unions Quiz Which of the following did NOT improve as a result of the Industrial Revolution?
Protection of the environment
Big Business Trust:
A business organization in which competing companies are under the control of a single group of trustees
Expansion of Industry Quiz 6. The American economic system in the 1800s was
A capitalist economy
The Expansion of Industry Bessemer Process:
A cheap and efficient process for making steel, developed around 1850
Big Business Vertical Integration:
A company's taking over its suppliers and distributors and transportation systems to gain total control over the quality and cost of its product a company buys out everything to do with making their products
The Rise of the Labor Movement Industrial Workers of the World:
A labor organization for unskilled workers, formed by a group of radical unionists and socialists in 1905. It was headed by William "Big Bill" Hayward, and they included miners, lumbers, cannery, and dock workers and they were open to African Americans. They only really had one victorious strike in 1912, but they gave dignity and a sense of solidarity to unskilled workers.
Big Business Sherman Antitrust Act:
A law, enacted in 1890, that was intended to prevent the creation of monopolies by making it illegal to establish trusts that interfered with free trade this eventually didn't work and had no control over the development of trusts or monopolies
A Rivalry is Born Henry Frick
A self-made millionaire by 30 He gets whatever he wants by any means necessary - He gives Carnegie his merciless edge Frick and Carnegie form a partnership - They were as different as they could possibly be - Frick's job was to get Carnegie's steel business into shape by eliminating waste and maximizing profits - Hiring Frick might be the worst decision Carnegie ever made The profit of Carnegie's business doubled in 2 years He was able to buy out competitors - His net worth was upward of 3.3 billion dollars Hiring Frick seemed like a good idea - His productivity was up - His profits were up - Carnegie made Frick the chairman of his business -> He was the 2nd most successful man in steel -> It isn't enough for him Frick buys land and makes a club - South Fork Hunting & Fishing Club - This club takes over the South Fork Dam - The Dam is lowered for Frick -> This weakens the dam Frick is content with everything he has in life - There is a storm at South Fork and the lake levels are rising -> 1 inch every 10 minutes - The nearby town, Johnstown, is informed that they need to evacuate -> "The South Fork dam liable to break, notify the people to prepare for the worst" -> This warning has been sent many times before, so they ignore this warning The South Fork Dam breaks
Taking the White House J.P. Morgan Comes for the Steel Business
After this deal, he sees the opportunity to take over steel - He has more power than wealth - He has more power over the economy than Rockefeller or Carnegie - He wants steel because it relates so many other businesses together He wants to consolidate steel into one large company - He will need to take over Carnegie Steel - Carnegie was at the point where he was wondering if he wanted to continue in the steel business Morgan sets up a meeting with Charles Schwab, Carnegie's right-hand man - Morgan told him that he was going to buy Carnegie Steel and that he would be the president of his new company Carnegie is starting to realize that he wants to do more good for the world - Schwab was putting the idea in Carnegie's mind that he could do more good for the world if he sold Carnegie steel - He asked him what price he would sell Carnegie steel for -> Carnegie wrote down 480 million --- Equivalent to 480 billion today Schwab shows the price to J.P. - J.P. told Schwab to have Carnegie to come and have a meeting - Carnegie sold Carnegie Steel for $480 million -> Carnegie has battled Rockefeller for 30 years to become the richest man in America -> He is now worth $310 billion in today's money J.P. Morgan calls the new company American Steel - It is the first business worth over 1 billion - Only possible in unchecked monopolies
The Rise of Labor Unions Quiz The Homestead was a protest
Against the Carnegie Steel Company's plan to cut jobs.
Industrialization Notes The Railroads: Robber Barons
Alarmed at the cut-throat tactics of industrialist, critics began to call them "Robber Barons" Famous "Robber Barons" included Carnegie, Rockefeller, Vanderbilt, Stanford, and J.P. Morgan
Expansion of Industry Quiz 20. Invented the telephone
Alexander Graham Bell
The Rise of Labor Unions Quiz This union was founded by Samuel Gompers. It sought better wages, more standardize working hours, better working conditions; skilled laborers, arose out of dissatisfaction with the Knights of Labor.
American Federation of Labor
The Rise of the Labor Movement American Federation of Labor (AFL):
An alliance of trade and craft unions, formed in 1886 by Samuel Gompers. They were able to get written agreements on wages, hours and working conditions by using strikes as their major tactic. Between the years of 1890 and 1915, the wages went from $17.50 to $24, and the hours went from 54.5 to 49 hours.
Blood is Spilled Pinkerton Army Involvement
An army that has more guns and men than the military They were originally created to attack cowboys - Became an army that was used to protect the president - Then they became a mercenary army for hirer - Their involvement concludes tragedy Frick wasn't going to negotiate - He thought a show of strength and power would make the workers stop - He mis-calculated The workers weren't willing to back down - The Pinkerton Army fires upon the workers - When the fighting was over -> 9 Carnegie steel workers were dead -> Thousands were injured -> The men held their ground The state sent in militia to restore order The company goes back to the control of Frick - The public is outraged at the deaths - They directly blame Frick -> They want justice for the dead Carnegie was appalled at what happened at Homestead - "Homestead" - the battle at the factory - He extends his stay in Scotland, hoping that it would all blow over The public is outraged A new group is forming, the Anarchist - A group that strikes out whenever they feel that there is an injustice -> They are very violent - Their new target is Henry Frick
Big Business Social Darwinism:
An economic and social philosophy-supposedly based on the biologist Charles Darwin's theory of evolution by natural selection-holding that a system of unrestrained competition will ensure the survival of the fittest it justified why those that were extremely success were and why those who were really poor were
Industrialization Notes Big Business: The Men Who Built America: Rockefeller, Edison, Carnegie, Morgan, and Vanderbilt
Andrew Carnegie - "Captain of the Steel Industry" - *used the Bessemer Process - a cheap way of making steel - *Vertical integration: -> Company owns all of the different businesses on which it depends for its operation -> e.x. with Carnegie: Coal mines, limestone quarries, iron ore fields. (He didn't have to pay profits to "middle-men" who owned those businesses.) - Horizontal integration - Company buys out his competitors! Reduces competition... does this hurt the consumer? How? -> e.x: John D. Rockefeller's Standard Oil had control of 90% of the oil business in the U.S. Monopoly - When a single company achieves control of an entire market for a particular product or service Trust - a new way of merging businesses that did not violate the monopoly laws. Allows one person to manage another person's property. Tactic to avoid state laws which had been passed to stop horizontal integration and monopolies - Increased American business —-> competition —-> advertising and chain stores Department stores became popular: - *Woolworth's - Mail order/catalog stores: -> Montgomery Ward -> Sears & Roebuck
The Age of Railroads 3. How did railroad time work?
At this, everywhere in the world was at a different time. They would base their time off of the position of the sun. In 1869, Professor C.F. Dowd proposed dividing the Earth into 24 time zones. The railroads loved this idea and this became known as railroad time. On November 18, 1883, railroads and towns in the U.S. all synchronized their clocks and in 1884, the whole world switched to using railroad time. There are four time zones in the U.S.: Eastern, Central, Mountain, and Pacific time zones.
Blood is Spilled Pittsburgh, Pennsylvania
Carnegie finds a struggling steel company in Pittsburgh - He decided to make that his biggest steel company Cost Issue: Labor cost - To keep things cheap, Carnegie has to increase working hours and reduce wages - He can't do this while trying to repair his image - He turns to Frick Carnegie goes to Scotland and gives control to Frick
A Rivalry is Born Carnegie's Steel
Carnegie is a success and receives orders for steel - He doesn't have the capacity to make all that steel - His biggest company is the railroads With the help of Tom Scott, he builds his first steel factory - His steel factory becomes the largest steel plant in the world - He is able to supply as much steel as the world needs and he can make a fortune Carnegie has bad timing - The railroads are dying - Rockefeller agrees to sell his oil if he can get a cheaper rate - The railroads know they are dying - Rockefeller pulls his oil - Scotts company fails, and Scott never is the same again Scott dies - Carnegie loses his mentor - Carnegie blames Rockefeller for his death, and he wants revenge Carnegie is at risk of losing everything - Without the railroads, there isn't a market for steel - Carnegie blames Rockefeller - Carnegie realizes that he can capitalize on steel for architecture Carnegie's steel is building modern America - It isn't enough for him - He wants to avenge the death of Scott and become richer than Rockefeller Carnegie turns to Henry Frick for help
A New Rival Emerges The Fail of Carnegie Steel
Carnegie is in hopes of saving his reputation - He cuts his trip short Frick is back in his office after 3 days since he was shot Carnegie realizes that Frick is a liability - The relationship between Frick and Carnegie is falling apart - Frick goes behind Carnegie's back and attempts at a hostile takeover - Carnegie steel is falling apart The biggest threat to Carnegie Steel is J.P. Morgan, not Frick - He is a banker who buys out failing businesses - Like Carnegie's J.P. Morgan recently bought out consolidated pieces of the railroads - He was good at making businesses that were against each other to be in alliance - He would make the profit - He was good at getting things done Carnegie is at risk of being Morgan's next target - Carnegie makes a bold move - Carnegie fires Frick Carnegie struggles to fix his failing company - J.P. Morgan keeps growing, working with his father
A Rivalry is Born The Opening of Carnegie's Bridge
Carnegie sets up a circus to go across the bridge on its opening lead by an elephant - Carnegie is hoping that when the elephant goes over, the people will follow - His plan works!
A Rivalry is Born Andrew Carnegie
Carnegie started working for the Pittsburgh railroad at the age of 12 and became the assistant to Tom Scott - He had to work so that his family would survive Scott advanced Carnegie through the ranks quickly - At age 24, Carnegie was promoted to the manager of the company Scott wants Carnegie to build a bridge that spans the Mississippi river - It will be the biggest bridge in America - Carnegie has no idea how to build this bridge -> ¼ of bridges at the time fail -> Carnegie knows there is no gain without risk -> He invested everything into the bridge It seems impossible to build this bridge without it collapsing - Carnegie doesn't give up hope - Carnegie has the idea of steel -> No one has ever used steel like this before -> It was extremely difficult and expensive to produce Carnegie needs to find a way to make a mass amount of steel for cheap - Henry Bessemer has discovered a process to make steel much faster - Carnegie understood how revolutionary this technology was and he capitalized on it Carnegie started to mass produce steel to make his bridge - He is only 33 - His expenses are adding up and he is 2 years behind schedule building his bridge Carnegie is forced to bring construction to a halt because he is out of money - Carnegie still isn't going to give up - "Successful people learn to overcome their fear and harness it" - Carnegie is able to get the money he needs to build his bridge and in 4 years, the bridge is built Carnegie now has to convince the public that the bridge is safe and won't collapse - He has a plan to accomplish that -> A superstition at the time was that an elephant won't cross a structure that is unsafe
Expansion of Industry Quiz 12. This individual invented the typewriter
Christopher Sholes
Industrialization Notes The Expansion of Industry: Bessemer Steel Process
Coal and iron were plentiful within the U.S. When you removed the carbon from iron, the result was a lighter, more flexible and rust resistant compound - steel The Bessemer process did just that (Henry Bessemer & William Kelly)
The Rise of Labor Unions Quiz The economic system that has the government controlling ALL industry and businesses. This economic philosophy is attributed to Karl Marx.
Communism
The Rise of Labor Unions Quiz With which of the following is Karl Marx most closely associated?
Communism
The Age of Railroads 1. What industry was Cornelius Vanderbilt involved in? How did he improve the expansion of this industry?
Cornelius Vanderbilt was involved in the railroad industry. He improved the expansion of the industry by improving interstate travel and by expanding his network from New York into the Midwest. He did this by buying lots of small railroads that would only transport from one city to another. He linked together all these smaller railroads and that formed this large network. Before Vanderbilt's network, it would take 50 hours to get from New York to Chicago and the passengers would have to switch trains 17 times. With Vanderbilt's network, the trip could be completed in half the time and the passengers never had to switch trains.
Cornelius Vanderbilt 1. Which industries was Cornelius Vanderbilt involved in?
Cornelius Vanderbilt was involved in the steamship and railroad industries.
Industrialization Notes The Railroads: Robber Barons Were Generous Too
Despite being labeled as greedy barons, rich industrialists did have a generous side When very rich people give away lots of money it is called "Philanthropy" Carnegie built libraries, Rockefeller, Leland Stanford, and Cornelius Vanderbilt built schools Credit Mobilier Scandal - railroad construction company - greatly inflated construction cost & pocketed ridiculous profits! Cheated the stockholders of the railroad company. BUT... Not all railroad entrepreneurs were "Robber Barons" - Example: James J. Hill - took no federal land grants, etc. He was honest and smart in the way he ran his company
The Rise of Labor Unions Quiz According to the theory of laissez faire, the economy functions best when the government
Does not interfere in business
The Rise of the Labor Movement Pullman Strike
Due to the panic of 1893 and the economic depression after, the Pullman company had to lay off more than 50% of their employees and they had to cut wages of the remaining employees by 25%-50%. However, they did this without cutting the cost of housing, so at the end of the week, their employees were making less than $6. When the Pullman company didn't restore wages or decrease rent, a strike was called in the spring of 1894. Debs wanted to negotiate with Pullman, but Pullman didn't want to, so the ARU began to boycott. Pullman then hired strikebreakers and that caused the protest to get violent and President Grover Cleveland had to send in federal troops. Afterwards, Debs went to jail, most of the strikers were fired, and others were blacklisted by the railroads.
A New Rival Emerges Nicola Tesla
Edison over looks that he doesn't have any competitors - His biggest competitor is his former apprentice, Nicola Tesla Tesla has formed a new type of electricity, alternating current (AC) - Edison sees AC as more dangerous than direct current - Tesla resigns from Edison to start his own company Tesla begins looking for an investor to back AC = He finds George Westinghouse The potential for AC - One power plant can provide enough electricity to power all of the Eastern shore Tesla travels the country to show that AC is no more dangerous than direct current - Tesla is considered as a new giant in the electricity business Edison still doesn't see Tesla as a threat - Morgan believes the world only has room for AC or DC
Expansion of Industry Quiz 5. Steel was important to all of the following industries EXCEPT
Electricity
The Rise of Labor Unions Quiz This individual ran the American Railway Union and later ran for president several times as a socialist.
Eugene V. Debs
The Expansion of Industry Lewis H. Latimer:
He improved upon the lightbulb that Edison invented and made it safer and more efficient
The Rise of the Labor Movement 6. Who was Eugene V. Debs? Describe the socialist system that he believed in?
Eugene V. Debs was the creator of the American Railway Union and he believed that a union should consist of all people in a specific industry, whether they were skilled or unskilled. After the Pullman Strike in 1894, he went to jail where he read the teachings of Karl Marx, who was an advocate for Communism, which is a more extreme form of Socialism. He became an advocate for the Socialist party and fought to achieve better conditions for workers.
Expansion of Industry Quiz 1. Thomas Alva Edison ONLY invented the lightbulb
FALSE
The Age of Railroads 6. Why were farmers angry at railroad companies?
Farmers were angry at railroad companies because of the misuse of government land grants. The railroads sold this land to other businesses instead of selling it to the common people like they agreed to. They were also upset because the railroad companies entered into formal agreements to fix prices and charged different customers different rates. These helped to keep the farmers in debt. The railroad also wanted more money for short hauls than they did for long hauls.
Industrialization Notes Big Business: Big Businesses Boomed Because...
Favorable business climate - e.x. Corporations were easy to form: -> *an organization owned by many people; stockholders own shares of stock, each representing a percentage of the business -> *selling stock allows a business to raise huge amounts of capital ($$ to invest in the business) -> *it is run like it is owned by a single person Economies of scale - the cost of manufacturing is decreased by producing goods quickly in large quantities - Big corporations could squeeze out smaller businesses and force them to close Many corporations began to consolidate (merge their businesses with others like them) - *Pools - agreements among companies to maintain prices at a certain level. Did this practice interfere with the law of supply & demand, and keep costs to consumers high?
The New Machine The Age of Ford
Ford inspires other people to try new inventions It seems like the age of Rockefeller, Carnegie, and J.P. Morgan was over - The car is built Rockefeller's company grows - His smaller companies grew to become huge names - He becomes the richest man in America - He is worth 660 billion in today's money J.P. Morgan died in his sleep at 76 - The New York stock exchange shuts down -> It was an honor that was only given to a president - Morgan's passing makes them realize that time is running out Rockefeller and Carnegie have a new competition - Who can give away the most money - Carnegie gives away 67 billion in today's money -> It is mostly to libraries -> He dies 13 years before Rockefeller - Rockefeller starts the Rockefeller Foundation -> He gives away more than 100 billion in today's moneys -> He dies at the age of 97 The country is now united - They are now making technologies that are available to everyone - Starts the age of the prosperity - Only 50 years after the Civil War, America becomes a superpower This all happened because of the dedication of a small group of visionary men - From a broken world to a prosperous country, these men did not discover America, they built it
Blood is Spilled Henry Frick Takes Charge
Frick decides to increase the work hours - 12-hour days - 6 days a week Conditions are dangerous - A small group of men bounds together to get it fixed Frick is trying to decrease the wages - He tells Carnegie what is going on - Carnegie tells him he is in charge - Frick is ready for war Fick works the men harder than ever - He makes sure that there is a stockpile of steel, in case of a walkout - Accidents on the plant keep happening, until one turns fatal - This has shocked the workforce - Frick knows what is to come Frick reaches out to Carnegie again - Carnegie tells him that he is behind whatever he does Frick tells Carnegie Steel that nothing is going to change about the working conditions - Frick doesn't realize that the men think that they own Carnegie Steel - The men organize a strike - Frick wants them to call off the strike -> "I'll make sure that any man that walks out will never return" 2,000 steel workers barricade the front of the plant to make sure that Frick can't bring in replacement workers - The fight turns in personal - Frick calls in forces
The Rise of Labor Unions Quiz Among other things, the investigation of the Triangle Shirtwaist fire resulted in
Further examination and changes in local labor laws and safety precautions for women and children.
The Expansion of Industry 4. How did the harnessing of electricity transform American business?
Harnessing electricity allowed for American businesses to use it to run their machines, it was cheaper and convenient, and it allowed for business owners to have greater freedom in deciding where to locate their plant. It allowed for greater flexibility for businesses, and it allowed them to grow like never before.
The Rise of Labor Unions Quiz This event protesting police brutality led to a violent confrontation between police and union protestors in Chicago ended with the death of seven police officers.
Haymarket Riot
The Rise of the Labor Movement Samuel Gompers:
He and his parents were Jewish, and they immigrated to the U.S. when he was 13. Gompers got a job as a cigar maker and he joined a local union, which he eventually became the president of. He became a key figure in the labor movement and he dedicated his life to helping working Americans. He would campaign for basic trade-union rights and his efforts on the behalf of the workers helped organized labor gain national recognition and respect. Some of the rights that he campaigned for were the right to picket and the right to organize boycotts and strikes. The ideas that he had were shared by thousands of workers across the country.
Taking the White House Presidency of Theodore Roosevelt
He believes that he was elected by the people and that he needs to - He immediately starts a revolution against J.P. railroad's -> J.P. thought that he could manipulate Roosevelt -> He could not J.P. loses his railroad company to Roosevelt - Roosevelt gets elected for another term - He continues to break apart different monopolies Standard Oil became the most hated business in the world - Rockefeller is sued by Roosevelt - Rockefeller can't be sued because he is on the run
Big Business J.P. Morgan:
He created his business by buying out other companies and merging them together into one mega company; he would do this by buying out the stock in other companies. He created the States Steel Corporation by merging Carnegie Steel Company with other companies and that became the biggest business in the world at the time. it was believed that his consolidation methods made some mismanaged and inefficient companies better. he was a banker; he didn't create his own business - he merged and was also in the steel industry
Big Business John D. Rockefeller:
He formed a trust to create his company, Standard Oil. This allowed him to have control over the companies that supplied his business. These companies included buying barrel factories, oil fields, oil-storage facilities, pipelines, and railroad cars. Within a decade after 1870, Standard Oil supplied 90% of the refining business
Taking the White House Theodore Roosevelt
He is from a wealth New York family - He could have become a businessman like Rockefeller and Carnegie - He instead decided to go into politics He struggles with image - He wants to become a man of the people - His enrollment in the military helps that Roosevelt is unpersuadable - The titans know that he can't be bought out - Had the idea to make him the Vice President because they don't do much There is another election - Brians vs. McKinley - McKinley wins by a landslide and Roosevelt is sworn into office as the vice president - Titans think that they have won because they put their enemy in a powerless position
Oil Strike Vanderbilt
He realizes that he has created a monster - Rockefeller Vanderbilt realizes that his only option is for the railroads to band together to stop Rockefeller - He and Scott pull together and decide to pull all deals they have with Rockefeller - They want him to pay the going rates Rockefeller takes this as a declaration of war - Anyone who opposes Rockefeller is wrong - He sees it as them turning away from the glory of God -> Anyone who does this gets no grace
The Rise of the Labor Movement Eugene V. Debs:
He was born in Indiana, and he left home at the age 14 to work for the railroads. Debs organized a local lodge called the Brotherhood of Locomotive Firemen, but the attempts to unite the brotherhood failed. He believed that a union should include all laborers in a specific industry, whether they were skilled or unskilled. He formed the union, The American Railway Union, and it mostly involved unskilled workers or semi-skilled workers. However, their numbers climbed to 150,000 in 2 months, unlike the skilled unions that had 90,000 members. Even though his union didn't last in the end, it was important to the momentum of union organizing. He was heavily involved in the Pullman strike and this landed him in jail. While in jail, he read the works of Karl Marx and became disillusioned with capitalism. He became a spokesman for the Socialist Party and he was the candidate for the party 5 times and in 1912, he actually won 6% of the vote.
Big Business Andrew Carnegie:
He was born in Scotland to penniless parents and immigrated to the U.S. in 1848 at the age of 12. He was one of the first industrial moguls to make his own fortune. One morning, Carnegie single-handedly relayed messages that unsnarled a tangle of freight and passenger trains. His boss, Thomas A. Scott, gave him a chance to buy stock and Carnegie received his first dividend. At the age of 18, Carnegie was the private secretary to the local superintendent of the Pennsylvania Railroad. Carnegie's mother mortgaged their house so that Carnegie was able to buy stock; Carnegie made his fortune through his steel business, Carnegie Steel; Carnegie was the first to make a steel bridge that crossed the Mississippi River
Taking the White House Leon Czechoslovakia
He was fired from a company taken over by J.P. Morgan He liked the rising anarchist movement - He believed that the government is helping the rich become richer and the poor become poorer He assassinates McKinley - 8 days after McKinley was shot, he died - Theodore Roosevelt became president
Oil Strike Rockefeller's Oil Business
He was stuck in a dead-end job and was willing to take a big risk - He realized the potential for oil to change the world and for him to be rich - He knew it was a risky business and was trying to find a better way to gather oil -> Refining oil produces kerosene -> Rockefeller believes that gamblers mine for oil and businessmen refine oil -> His deal with Vanderbilt was going to allow him to be in the corner of the business for oil Kerosene is getting a bad reputation - There were stories of kerosene exploding houses - Rockefeller sees this as a business opportunity Rockefeller created Standard Oil - It becomes the most sort after brand in the country Light is becoming the most sought-after thing in America - Rockefeller is at the head of it All of this isn't enough for Rockefeller - He has outgrown his deal with Vanderbilt - He is making more oil than Vanderbilt is able to transport
The Expansion of Industry Thomas Alva Edison:
He was the inventor of the lightbulb that we know and use today
The Expansion of Industry Christopher Sholes:
He was the inventor of the typewriter and helped to shape the way the workforce is now run
A New Rival Emerges Thomas Edison
His invention of the lightbulb catches Morgan's eye - It uses electricity - It will revolutionize the world Morgan knows that this is his chance to create his own legacy that will transform the world forever - Morgan is considering an investment in Edison's company and lightbulb - He has it installed into his own house -> His house became a laboratory for Edison to test his light bulbs -> After months of trial and error, the home is ready to be displayed Morgan invites many, including his father, to see the demonstration of electricity - "The gas lamp is dead, long live the electric light" - J.P. Morgan's home is the first private residence in the world to be lit by electricity -> Morgan's father is disappointed in him -> Despite his father's disappointment, Morgan's party is a success
Big Business 4. The following is a quote in the book on page 511, "Competitive commerce (the activity of buying and selling) exalts a selfishness to the dignity of a moral principle. It pits men against one another in a gladiatorial game in which there is no mercy and in which ninety percent of the combatants finally strew the arena...If the rich had only what they earned, and the poor had all that they earned, ... Life would be more sane." What do you think this quote means and do you agree with this quote? Explain why or why not.
I think that this quote means that competitive commerce is not moral, and it causes competition to be between men. It is something where only a few will make anything, and the rest will never get anywhere with it. If the poor kept all of the money they made and they didn't have to give some to the rich, then life would be fair. I agree with this quote because the economy of America isn't fair. People will work very hard for a business and won't make any returns and others won't do any work and become successful. This system is based on chance and not how hard you work.
Expansion of Industry Quiz 19. Thaddeus Lowe invented
Ice machine
The Rise of Labor Unions Quiz What was the main benefit that labor unions of the late 19th century gained for their members?
Improved wages and hours
Industrialization Notes The Railroads: Professor Dowd Creates Time Zones
In 1869, to remedy this problem, Professor C.F. Dowd proposed dividing the Earth into 24 time zones The U.S. would be divided into 4 zones: the Eastern, Central, Mountain, and Pacific 1883 - Railroads synchronized their watches across the U.S. 1884 - International Conference adopts zones
Big Business laissez-faire:
In French, meaning "to let do"; a form of capitalism that allows companies to conduct business without intervention by the government allowed businesses to establish wages and prices
The Expansion of Industry Telephone
Inventor: Alexander Graham Bell and Thomas Watson Date Invented: 1876 How Did it Improve Life: Allowed people to communicate quickly over long distances and became an essential business tool
The Expansion of Industry Typewriter
Inventor: Christopher Soles Date Invented: 1867 How Did it Improve Life: Changed the world of work and created new jobs for women
The Expansion of Industry Mechanical Reapers and Plows
Inventor: Cyrus McCormick and John Deere Date Invented: 1831 How Did it Improve Life: Helped transform the plains region into the food producer of the nation
The Expansion of Industry Steam Engine:
Inventor: Edwin L. Drake Date Invented: 1859 How Did it Improve Life: Started an oil boom spreading through Kentucky, Ohio, Illinois, Indiana, and Texas
The Expansion of Industry Bessemer Process
Inventor: Henry Bessemer and William Kelly Date Invented: 1850 How Did it Improve Life: It made it cheaper and easier to manufacture steel; manufactures were using it to produce 90% of the nation's steel
The Expansion of Industry Improved the Lightbulb by Creating a Carbon Filament
Inventor: Lewis H. Latimer Date Invented: 1881 How Did it Improve Life: It made the lightbulb safer, more efficient, and made it last for longer
The Expansion of Industry One of the First Research Labs and Lightbulb
Inventor: Thomas Alva Edison Date Invented: 1876-1880 How Did it Improve Life: in New Jersey it was inexpensive and it was convenient and it was available to everyone more could be accomplished at night
The Expansion of Industry A System for Producing and Distributing Electricity
Inventor: Thomas Edison and George Westinghouse Date Invented: By 1890 How Did it Improve Life: Electricity allowed business owners to have greater freedom in deciding where they wanted to locate their plants; it made things convenient and inexpensive
The Expansion of Industry Skyscraper with a Steel Frame
Inventor: William Le Baron Jenney Date Invented: 1884/1885 How Did it Improve Life: Architects could now build buildings as high as they wanted them to go
Expansion of Industry Quiz 16. How did the Bessemer process improve manufacturing?
It provided an efficient process to create a flexible, rust-resistant metal.
Big Business 12. How did J.P. Morgan become one of the richest men in America? Who did he buy out?
J.P. Morgan became one of the richest men in America by buying other companies and merging them. He then would own monopolies in many different industries. He bought out the railroads, steel, and farming equipment industries.
Taking the White House The Three Titans
J.P. Morgan is now one of the most powerful man in the country - His competitors are Rockefeller and Carnegie - They are worth 1 trillion dollars combined While they are getting richer, others are getting poorer - The gap between rich and poor is the largest it has ever been - The majority are making less than a dollar a day - The average family is living off only $100 per month
A New Rival Emerges J.P. Morgan
J.P. was taught that the only way to do business is the Morgan way - You do everything to make money for yourself Morgan's strange relationship with his father remains at the age of 40 - Morgan hopes to make his own identity - J.P. Morgan realizes that he can become more successful than his father J.P. Morgan was taught that you don't take big risk - He was tired of doing what his father taught him - J.P. wanted to build his own business from the ground up
Expansion of Industry Quiz 15. Improved the incandescent lightbulb with the invention of a carbon filament.
Lewis H. Latimer
The New Machine Henry Ford
Made an appeal to Allam (Association of Licensed Automobile Manufacturers) start his own car business - Cars were only made for the wealthy - He wants to make a car that is for the common man Ford created the model A car - He can't sell it without approval from Allam - His application is rejected -> He is determined to show the world that all you need to succeed in America is integrity and He thought that it was ridiculous that the idea of the automobile had a patent on an idea - He is going against a virtual monopoly - He is going to have to make a name for himself He challenged the owner of the biggest car company to a race - Alexander Winton -> He was known as the fastest car driver - The problem: Ford has never raced a car before - Ford won the race -> This made him instantly famous He raises $28,000 to build his first car factory - He is producing 15 cars a day at a price that is accessible to all Allam takes notice - They hit him with a lawsuit saying that he is violating the patent - He is getting ready to fight in Court -> He continues to make cars and sell them against Allam -> He pays his workers a livable wage --- $5 a day -> He gets more out of his workers --- He perfected the assembly line --- His workers can build cars 8 times faster than other companies --- They can make a car that once took 12 hours in 1 and ½ hours -> He established the 8-hour workday -> He established the 5-day work week Unlike Rockefeller and Carnegie, he was trying to help the American people - He starts making the Model T - Only $825 -> It could be afforded by the common man Inspires people to try things that were never accomplished before
Taking the White House William Jennings Brian Runs for President
Made himself the spokesperson for the common man He ran for president - He is the biggest threat the titans have ever faced - He wants to overthrow their companies - He wants them all sent to jail They are desperate to keep their empires - They want William McKinley to run for president - They have the most power of anyone in the world They each give $20,000 to McKinley - Equivalent to 2 million today - They were able to buy publicity for McKinley Brian travels around the country to campaign - They started to use fear tactics to persuade people to vote for McKinley
Industrialization Notes Big Business:
Main Idea: After the Civil War, big business assumed a more prominent role in American life Big business began to dominate the American economy - Why?....
Industrialization Notes The Railroads:
Main Idea: After the Civil War, the rapid construction of railroads accelerated the nation's industrialization and linked the country together Pacific Railway Act - 1862; provided for construction of a transcontinental railroad - *Would connect country from East to West - *Mostly built with immigrant labor (Irish & Asian) The Transcontinental Railroad - Union Pacific - Central Pacific - Meeting point... Promontory Point, Utah Cornelius Vanderbilt - One of the most famous & successful railroad magnates. He built New York City's famous Grand Central Station
Industrialization Notes The Expansion of Industry:
Main Idea: American industry grew rapidly after the Civil War, bringing revolutionary changes to American society After the Civil War, millions of Americans left farms to work in mines & factories - By 1914, the nation's gross national product, or GNP, (value of all goods & services produced by a country) was eight times greater than when the Civil War ended Why was American industrialization so successful? 1. Abundance of natural resources -> *water, timber, coal, copper, & petroleum* -> Settlement of the West created a large market for manufactured goods -> Railroads carried settlers west and carried raw materials back east for industry -> 1859 - Edwin Drake drilled first oil well near Titusville, PA 2. Large Workforce -> *1860-1910, population more than tripled. Why?* -> Large families -> Immigration (over 20 million) --- *Due to conditions in Europe & Asia; they were looking for a better life --- *More demand for industrial products 3. Free enterprise system -> *Laissez-faire policy by U.S. government --- Did not interfere with business --- Supply & demand regulated markets -> *Profit motive attracted many entrepreneurs (people willing to risk their $$, or capital, by investing it in industry) -> *European investors could make big $$ by investing in American industry --- Capitalism = free enterprise: individuals own most businesses --- An economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition 4. Government helped, not hindered, business -> *Morrill Tariff - tariff on foreign imports; made American goods cheaper, more attractive to buyers -> *Land grants to railroad companies & businesses; this further spurred settlement of the west and boosted the economy
Industrialization Notes The Railroads: Railroads Led to the Growth of Cities
Many of today's major cities owe their legacy to the railroad Chicago, Minneapolis, Denver, and Seattle all grew up thanks to the railroad Some big-mane railroad magnates were called "Robber Barons" for their practice of swindling investors & bribing government officials - Example of a "Robber Baron": Jay Gould -> He manipulated stock values by practicing "insider trading." He used information he received as a railroad owner to manipulate stock prices to his benefit
The Rise of Labor Unions Quiz Which of the following prominent labor leaders would be a labor organizer and advocate (vocal supporter) for the workers featured in the photo below?
Mary Harris Jones
The Rise of Labor Unions Quiz All of the following were negatives of industrialization EXCEPT
More availability of goods at cheaper prices.
Industrialization Notes The Railroads: The Railroads
Much of the financing of railroads depended on the federal government's land grants to railroad companies Companies would then sell the land to raise $$$ for construction of the railroad
The Rise of the Labor Movement Collective Bargaining:
Negotiation between employers and an organized group of employees on conditions of employment, such as wages or hours. Union leaders thought that this was the best way to obtain these benefits. If these negotiations didn't work, workers would most likely strike or organize a boycott to support union demands.
Blood is Spilled Opening of Carnegie Hall
New York's new hall for the performing arts - Peter Cinkosky is the opening night performer - Andrew Carnegie is treated like royalty - John D. Rockefeller has the bigger presence -> He is worth 3x as much -> Carnegie's Hall brings this rivalry to the new level They made little jabs at each other - Rockefeller sent Carnegie a paper vest to mock at his poor upbringing - Carnegie sent Rockefeller a bottle of whiskey because he is a devoted Baptist who doesn't drink Steel is becoming the chosen material for building - Carnegie needs to increase profit if he wants to beat Rockefeller as the richest man in America - Carnegie needs to be the best steel producer in the world
Industrialization Notes The Expansion of Industry: Inventions
New inventions also helped American industry - *Telephone - Alexander Graham Bell -> "Mr. Watson - come here - I want to see you" - *Thomas Alva Edison - phonograph, better light bulb, electric generator, battery, motion picture, power company for cities, etc..... -> Thomas Edison was the most prolific inventor in American history....... - *Thaddeus Lowe - ice machine (the basis for refrigeration) - *Gustavus Swift - refrigerated railroad car - *George Pullman - sleeping railroad car - *Northrup automatic loom - *Clothing industry - standard sizes, power sewing machine
Expansion of Industry Quiz 7. What made it possible, during the late 1800s, to construct skyscrapers?
New methods of making steel.
The Rise of the Labor Movement Homestead Strike
On June 29, 1892, Henry Frick of Carnegie Steel Company decided to cut the wages of his workers, and they were not happy. The workers at the homestead plant decided that they would have a strike. Frick hired the Pinkerton Army to protect the plant from the workers and this way he could hire strikebreakers. However, the workers held the Pinkerton Army, and a fight broke out. The aftermath was 3 dead from the Pinkertons and 9 dead from the workers. The workers continued to keep the plant closed until they were forced out by the National Guard on July 12. They continued to strike until November, but at that point the majority of the union had just given into Frick and Carnegie Steel.
Big Business 8. What methods did ruthless business operators use to eliminate competition?
One method they used was to buy out the stocks of a business control that business. Then when they bought that business, they merged it with other businesses they liked until they had a mega business. They could also use trust. These trusts allowed them to partially own the companies that would supply their business. These methods helped businesses to make more money and to own more of the industry. they would lower their prices, everyone would buy them, other companies couldn't compete because they would go bankrupt or would sell their company for very cheap, then once they had the monopoly, they would raise their prices as high as they wanted to
The Rise of the Labor Movement 4. What were tactics used by the various labor unions?
One tactic that was used by the various labor unions was collective bargaining. Collective bargaining was when union officials that represented the workers would negotiate with management on issues like higher wages, shorter hours, and better working conditions. Another tactic that was used by labor unions were closed businesses. These were businesses that you could only work at if you were a part of a certain union and to work at this business, the workers had to join that union. These businesses allowed for unions to have more control over the work environment. The other tactic that labor unions used was through political power. The unions would elect sympathetic politicians and they would use their influence and these politicians would pass laws that favored the union members. They would also raise money and run their own political candidates.
The Age of Railroads 2. What were the conditions faced by railroad workers?
Railroad workers were paid only an average of $40-$60 a month and were given free meals. The railroads would pay different rates for their workers depending on their ethnicity. Chinese workers were only paid $35 monthly and they had to supply their own food. The working conditions were awful; there were accidents and diseases that would disable and kill thousands of workers each year. When the casualties from the railroad were first published in 1888, a shocking 20,000 were injured and 2,000 were killed.
The Rise of Labor Unions Quiz In what industry did the Great Strike of 1877 take place?
Railroads
Oil Strike John Deen Rockefeller's Early Life
Raised in a poor Cleveland household Wanted more and new it wasn't going to be handed to him - Started a small business selling candy to children - He wasn't able to rely on his father, so he made money for his family -> His father was a con man -> He would disappear for months at a time - Was forced to quit school to provide for the family This all-shaped Rockefeller's future
Expansion of Industry Quiz 8. Cyrus McCormick & John Deere Invented
Reapers and plows
Taking the White House Rockefeller Comes for Carnegie
Rockefeller finds a mine full of iron ore, the main material in creating steel - He doesn't know anything about steel - He finds the opportunity to defeat his enemy at his own game Rockefeller starts to sell the iron ore to Carnegie's competitors at rock bottom prices - The competitors sell for just under what Carnegie sells - Carnegie's sales drop drastically Rockefeller wants to build a steel plant better than anything Carnegie has - Carnegie can't let that happen - Carnegie calls a meeting to intimidate Rockefeller out of the steel business -> Negotiations between the men last for months -> Neither man is willing to give in Carnegie knows that he has little choices - He needs Rockefeller to stay out of steel - He offers to buy Rockefeller's iron mine, if Rockefeller denounces his steel mill - They agree Rockefeller is happy because he got a large sum of money for something that he was never interested in This deal strikes J.P. Morgan, and he has ideas for something even bigger
Oil Strike John Deen Rockefeller
Rockefeller goes to New York to meet Vanderbilt Vanderbilt wants to do a deal with Rockefeller's oil refinery - Rockefeller wanted a rate of $1.31 per barrel - Rockefeller told Vanderbilt he would fill all his trains with oil, or he will fill someone else's - He agreed to fill 60 train cars of oil -> Rockefeller can't fill that many, only half -> Has to find a way to gather more kerosene
A New Rival Emerges Rockefeller Realizes a Threat
Rockefeller realizes that if electricity gets out, it will replace him - He will have to work harder than ever before Morgan realizes that he has the chance to be like Vanderbilt, Rockefeller, and Carnegie - He doesn't want to go against his father J.P. finds out that he is able to power larger areas with power plants - He wants to know the cost to power all of New York with electricity - He invests everything he has in electricity, against his father's will J.P. wants to fund the entire country with electricity - He is given the quote of 83 million today - He and Edison form the Edison Electricity Company - Morgan goes against everything his father taught him Morgan and Edison transport a building in Manhattan into the world's first power station - His workers workday and night to make the canals - New York is the first place to be lit up by electricity -> Half of Manhattan is lit up -> Edison and Morgan will make millions Rockefeller realizes that this will hurt his business - Every home that Morgan puts electricity into, that is 1 more customer that Rockefeller loses - He didn't want anyone else putting lights into homes Rockefeller makes a targeted ad against electricity - He says that it is dangerous -> Likely to explode -> Likely to catch on fire Rockefeller isn't the only danger to Morgan's business - A new competitor, Nicola Tesla, will be Morgan's biggest competition
Big Business 11. How was John D. Rockefeller able to create a monopoly out of the oil industry?
Rockefeller was able to create a monopoly out of the oil industry by creating his trust and this allowed him to create his oil industry. He was able to secure the rates he got to create his oil products. This helped him to control the oil industry in America. He would sell his oil at a much cheaper rate until he was the only company. Then, he made the prices skyrocket and no one could do anything about it.
The Rise of the Labor Movement Mary Harris Jones:
She was a native of Ireland and she immigrated to North America as a child. Jones became involved in the labor movement after receiving help from the Knights of Labor. She became known as the mother of the laboring class. She supported the Great Strike of 1877 and she later organized for the United Mine Workers of America. She also endured death threats and spent time in jail with miners where she got her nickname Mother Jones. In 1903, she led 80 mill children, that all had awful injuries, to the home of President Theodore Roosevelt in order to expose the cruelty of child labor. She was said to have fought the battle for the children with the love of a mother. She continued to fight for labor rights until the age of 100 and was not the type of person who was admired by industrialists because of her beliefs.
The Age of Railroads 7. How did Granger laws help farmers?
The Granger laws helped farmers to have the benefit from the railroads. They passed the law "to establish maximum freight and passenger rates and prohibit discrimination." This gave the federal government the right to regulate the private industry to serve the public interest.
Big Business 3. Explain Social Darwinism and its effects on society.
Social Darwinism is the belief of natural selection. In the free enterprise system, some people would become very rich, and others would stay very poor. The idea of natural selection was applied in Social Darwinism. Those who could thrive in free enterprise would thrive and continue to thrive, and those that struggled would struggle and continue to struggle. Millionaires in the U.S. supported this idea because it suggested that those that worked hard would make money and those that didn't. At the time, it was also a belief that those who were rich were blessed by God and those who were poor were lazy and inferior and deserved to be where they were in life. The working class obviously didn't like the idea of Social Darwinism and didn't like rich people and their attitude. if you are not successful, then it is your own fault and is because you are weak
Big Business 1. What were some beliefs in the late 1800s that helped entrepreneurs and businessmen to thrive in America?
Some beliefs in the late 1800s that helped entrepreneurs and businessmen to thrive were the free enterprise economy, the idea of laissez-faire, being allowed to set their own prices and wages, being able to not have the government interfere in their business affairs, the protective tariffs that the government placed on imported goods and being able to turn to the government for help if needed.
The Age of Railroads 8. *What are some negatives to railroads and railroad companies? What are some positives?
Some negatives to the railroads and companies were that they were controlling, they were not fair, they kept farmers in debt, and the pay for working for the railroads was very low. Some positives to the railroad is that it made travel easier and more efficient, it provided jobs, it helped for the country to adopt the same time method, it promoted trade, and it helped to start cities and helped cities to grow.
The Rise of Labor Unions Quiz John D. Rockefeller was most closely associated with
Standard Oil
Oil Strike Panic of 1873
Stocks for the railroads plummet - ⅓ of the countries railroad companies went bankrupt - The country experienced the first depression - Lots of workers got laid off, but the employers stayed in their lavish lifestyles Rockefeller sees an opportunity - As his competition went bankrupt, he would buy them - He has created the largest corporate empire in America Cornelius Vanderbilt dies at the age of 82 at the height of the depression - Vanderbilt leaves his $100 million company to his son, William - Rockefeller could never have started his business without Vanderbilt Tom Scott and Andrew Carnegie are still competing with Rockefeller - Rockefeller is still reliant on them to send his oil to Pittsburgh - Scott and Carnegie infiltrated the oil industry and built their own pipelines -> Rockefeller doesn't like this and calls it piracy Rockefeller shuts down his Pittsburgh oil refineries - This cost him lots of money - However, this pays off Scott loses millions of dollars and has to lay off more than half the workers and drastically cut wages - His workers are outraged - The protest by burning buildings and rail cards - Scott's company is in ruins Rockefeller has replaced Vanderbilt as the richest man in America - His net worth was equal to 2.2 billion dollars today
Expansion of Industry Quiz 18. The first skyscraper with a steel frame was
The Home Insurance Building in Chicago
The Age of Railroads 4. Define supply and demand. Identify the relationship between the two and how they influence business decisions.
Supply refers to the amount of a good or service that companies are willing to produce for sale. Demand is the amount of that product that consumers are willing or able to purchase. They are linked because when there is a higher demand for a product, the company is more likely to produce more of that product. They do this because they hope that they can increase their sales and profit.
The Rise of Labor Unions Quiz The Rockefeller Foundation, Carnegie Hall, and the Morgan Library illustrate various ways that entrepreneurs and their descendants have
Supported philanthropic activities to benefit society
Expansion of Industry Quiz 10. William Le Baron Jenney designed the first skyscraper with steel frame.
TRUE
Expansion of Industry Quiz 13. The Industrial Revolution in America lead to massive growth in many industries including steel, communications, electrical power, and building construction.
TRUE
Expansion of Industry Quiz 3. The United States GNP was 8 times greater than at the end of the Civil War
TRUE
The Expansion of Industry 2. What was the Bessemer process, and how did it fuel steel production?
The Bessemer process was a technique that involved injecting air into molten iron to remove the carbon and other impurities. It fueled steel production because it was a cheap and efficient manufacturing process for steel. It also helped manufacturers to produce quality steel from scrap metals and raw materials.
Blood is Spilled The South Fork Dam
The Dam breaks - 2,000 people died - ⅓ are so muddle that they are unrecognizable - 1,600 houses are destroyed - 400 acres are leveled - This flood is what caused for the formation of the Red Cross The public looks for somebody to blame - The public blames the members of the South Fork Hunting & Fishing Club - The members don't feel that they are responsible for anything - Lawsuits are formed, but nothing ever happens -> The members of the South Fork club get away with murder Andrew Carnegie feels responsible, unlike the rest of the members - He starts organizations and raising money to help rebuild the town - He donates millions - He starts building monuments throughout the country - A music hall becomes his passion
Expansion of Industry Quiz 4. The Steam engine was important to which of the following industries?
The Oil Industry
The Rise of Labor Unions Quiz All of the following were reasons for the Pullman Company Strike EXCEPT:
The Pullman Company offered paid vacation.
Big Business 10. Why did the South not experience this great business expansion and industrialization?
The South didn't experience great business expansion because they were still recovering from the Civil War. There was a lack of money in the South after the war and people weren't willing to risk money like they were in the North. The only profitable business in the South was the railroads and it was owned 90% by Northerners. Southerners were stuck at the mercy of the railroads and their cost to ship goods.
The Rise of Labor Unions Quiz What is the main idea of this cartoon?
The Standard Oil Company was a harmful monopoly.
Big Business 5. What business did Andrew Carnegie dominate and what business practices did he use to be so successful?
The business that Andrew Carnegie dominated was the steel industry. He used different practices he had initiated and these helped him to be successful. First, he would find the best ways to make better products cheaper by incorporating new machinery and techniques. Second, he attracted talented people by offering them stock in the company and encouraged competition between his assistants. Carnegie also used the technique of vertical integration to buy out his suppliers and horizontal integration to buy out competing companies.
The New Machine The Panama Canal
The court case is getting ugly Standard Oil is getting prosecuted, and nothing is happening to U.S. Steel - J.P. is using his influence J.P. has a chance in South America - The Panama Canal - He raises a billion in today's money to build it The Panama Canal embodies everything that makes America the strongest country in the world - Run on steel, uses gasoline and electricity
Big Business 2. What was the economic system in America? Explain how it functions and what is unique about capitalism in America.
The economic system in America is free enterprise. Free enterprise is a form of capitalism that allows individuals and businesses to run most businesses. It allows for companies to set their own prices for their goods and wages for their employees. These decisions are usually determined by factors such as competition and consumer demand. supply and demand controlled this economic system
The Rise of the Labor Movement 9. How did the fire at the Triangle Shirtwaist factory impact the labor movement?
The fire at the Triangle Shirtwaist factory caused the public to not overlook the conditions at factories. When the fire broke out on May 25, 1911, the fire spread throughout the cloth that was soaked in oil and spread to the 8th, 9th, and 10th floors. When the women working in the factory tried to escape, they ended up being trapped inside because all the doors but 1 were locked, the 1 door that wasn't locked was blocked by fire, there was no sprinkler system, and the fire escape had collapsed. In the end, 146 women died and this caused the states to pay better attention to the working conditions in factories.
Big Business 9. How well did government regulation curb business activity? Why were they successful or not successful?
The government did not regulate curb business activity very well. They passed the Sherman Antitrust Act, but it wasn't easy, and it eventually wasn't even enforced by the government. They didn't clearly define terms in the act like what a trust was. The act also wasn't very clear as to whether it outlawed monopolies. It was later decided by the supreme court that it didn't, so ultimately, this law was useless and unsuccessful.
The Age of Railroads 5. How did the growth of railroad lines promote the growth of cities and trade?
The growth of the railroad lines promoted growth because the market was growing. This caused cities to specialize in a particular product. They would sell their product to the rest of the country in large amounts and prospered from that. There were also some cities that used the railroads for tourism to make money instead of selling a product. Other cities were built around the railroad and have the railroads to thank for their existence. steel and Pittsburg, tourism and Florida, weed and California, stockyards and Chicago, grain industries and Minneapolis
Cornelius Vanderbilt 7. What impact did Cornelius Vanderbilt have on New York City railways?
The impact that Cornelius Vanderbilt had on the New York City railways was that he was trying to control them all and he built the train station that eventually became the Grand Central Terminal that we know today.
Cornelius Vanderbilt 5. What industry was Vanderbilt involved in before railroads? How did he gain experience in that industry?
The industry that Vanderbilt was involved in before the railroads was the steamship industry. He gained experience in that industry by working for a wealthy ferry captain, Thomas Gibbons, in 1817. By the late 1820s, Vanderbilt went to business on his own and became one of the most fearsome business owners.
The Rise of the Labor Movement 2. What were the list of complaints that laborers had in the late 1800s:
The list of complaints that laborers had in the late 1800s were the long hours, danger, low wages, child labor, less pay for women, less pay for children, and more successful businessmen didn't have income tax.
The Expansion of Industry 3. What were the many uses in the United States for steel?
The many uses for steel include the railroad, which was the biggest consumer of steel, for farming equipment, innovative construction, and skyscrapers could be made with a steel frame, which was more durable and allowed architects to build even higher.
Big Business Horizontal Integration:
The merging of companies that make similar products buy out your competition
Oil Strike Rockefeller Finds a Solution
The oil is transported through pipes in the factory - Rockefeller realizes that he can use these to transport oil all over America - This is a very risky and expensive move -> If this succeeds, Rockefeller will win the war against the railroads His workers blast through the land - They lay over a 1 ½ miles of pipe everyday When the pipe is finished, it is over 4,000 miles long - It connects oil factories to his refinery - He found a way to cut the railroads out of oil transportation The railroad is the biggest business in America - No one has ever gone against them - Without the oil from Rockefeller, the railroads will start to fail -> Rockefeller is now in control of the railroads
A New War Begins John Deen Rockefeller
The owner of the refinery in Cleveland - His company is on the verge of bankruptcy - Cleveland is a top seller of oil Vanderbilt want to meet Rockefeller to keep his trains full of cargo - Rockefeller wants to keep his business running and he admires Vanderbilt - Vanderbilt invites Rockefeller to a meeting in New York -> His train left at 6:25 am -> Rockefeller narrowly misses the train - Rockefeller is saved from being killed on the train that he missed -> He believes that this was God's way of changing him Rockefeller goes to New York a changed man
Industrialization Notes The Expansion of Industry: New Uses for Steel
The railroads, with thousands of miles of track, were the biggest customers for steel Other uses emerged barbed wire, farm equipment, bridge construction (Brooklyn Bridge - 1883), and the first skyscrapers - Brooklyn Bridge spans 1595 feet in NYC Nothing...NOTHING...contributed to the settling of the West and the realization of "Manifest Destiny" more than the RAILROAD!!!
Industrialization Notes The Railroads: The Railroads Spur Other Industries
The rapid growth of the railroad industry influenced the iron, coal, steel, lumber, and glass businesses as they tried to keep up with the railroads demand for materials The spread of the railroads also led to the growth of towns, a new market, and opportunity for profiteers 1869: George Westinghouse patented air brakes for trains 1887: Granville Woods patented a telegraph system for trains Gustavus Swift developed refrigerated cars for transporting food By 1883, 3 transcontinental railroad lines existed in the U.S.
Taking the White House Election Day
The rich vs. the poor 90% of the population went to vote J.P., Carnegie, and Rockefeller agonize over the outcome of the ballot for 20 hours - The results would change America forever -> Brian - Rural South -> McKinley - Northeast McKinley wins the election - They have dodged a bullet - They can continue to run their businesses the way they originated - They are still as powerful as ever They have defeated the common enemy - Their alliance starts to fray -> Rockefeller breaks away first
The Rise of the Labor Movement 5. What types of strategies did companies use to fight union workers?
The strategies that companies used to fight union workers were "yellow-dog contracts", they would hire prison laborers, they used the Sherman Antitrust Act, and they would involve the government when it got very serious.
The Rise of the Labor Movement 1. On page 516 Samuel Gompers lists out the wants of the laborers? What are at least 5 things laborers want? Are these realistic goals? Why or why not?
The things that the laborers wanted were more schoolhouses and less jails, more books and less arsenals, more learning and less vice, more constant work and less crime, more leisure and less greed, more justice and less revenge, more of the opportunities to cultivate our better natures, to make manhood more noble, and to make womanhood more beautiful and childhood more happy and bright. I think that these goals are realistic, but they are a lot to ask for from our country. I think that we could eventually get to the point where these can happen, but it would require a lot of work and it would take a while. It would take everyone in the country wanting a change and everyone putting forward a conscious effort.
The Expansion of Industry 5. How did new inventions and products affect people at home and work?
The typewriter changed the way of the work world. It created new jobs for women. They went from being 5% of the workforce to 40% of the workforce. The telephone changed the way of life for everyone. It became essential for businesses, and it allowed everyone to communicate with people over far distances. The telephone also helped with women having more jobs.
The Rise of Labor Unions Quiz During the period 1865 to 1900, disputes between labor and management were often marked by
The use of violence by both sides
The Rise of the Labor Movement The Great Strike of 1877
The workers of the Baltimore and Ohio railroads were outraged in July of 1877 because they had just had their second wage cut in two months. They decided that they would protest this by stopping working. Well, this protest spread to other lines and most freight and some passenger traffic covering over 50,000 miles were stopped for over a week. Multiple state governors asked the president at the time, Rutherford B. Hayes, for help and he sent federal troops that ended the strike.
The Rise of the Labor Movement Colored National Labor Union (CNLU):
Their Leader and Who Was Included in their Membership: Formed by a caulker from Baltimore, Issac Meyes. This group was formed because the NLU wouldn't allow African Americans to join. Success: They succeeded in including African Americans as part of the Union.
The Rise of the Labor Movement National Labor Union (NLU):
Their Leader and Who Was Included in their Membership: Formed in 1866 by ironworker William H. Sylvis. They would not allow African Americans to join the group. This group grew to 640,000 members. Success: In 1868, the NLU persuaded Congress to legalize an eight-hour day for government workers. They focused on linking existing local unions.
The Rise of the Labor Movement Knights of Labor:
Their Leader and Who Was Included in their Membership: Formed in 1869 by Uriah Stephens. It was open to all workers, regardless of race, gender, or degree of skill. At its height in 1886, it had 700,000 members Success: They fought for the same things the NLU fought for, eight-hour workdays and equal pay for all genders. They thought that strikes were a last resort and instead advocated arbitration. They declined after a failure of a series of strikes.
The Rise of the Labor Movement American Railway Union (ARU):
Their Leader and Who Was Included in their Membership: It was created by Eugene V. Debs, and it included all workers from a certain trade, whether skilled or unskilled. They were able to get written agreements on wages, hours, and working conditions by using strikes. They were able to get the wages to go from $17.50 to $24 and the workweek to go from 54.5 hours to 49 hours. Success: They were able to win a strike and get higher wages. Although they lost a major strike and they never recovered from it, they were important towards the momentum of union organizing.
The Rise of the Labor Movement Industrial Workers of the World (IWW) or Wobblies:
Their Leader and Who Was Included in their Membership: It was formed by William "Big Bill" Haywood, and it included miners, lumbers, cannery, and dock workers. It also welcomed African Americans, however its membership never topped 100,000 Success: The only major strike victory they had occurred in 1912. They gave dignity and a sense of solidarity to unskilled workers.
The Rise of the Labor Movement American Federation of Labor (AFL):
Their Leader and Who Was Included in their Membership: It was led by Samuel Gompers, and it included skilled workers from one or more trades Success: They were able to get written agreements on wages, hours, and working conditions by using strikes. They were able to get the wages to go from $17.50 to $24 and the workweek to go from 54.5 hours to 49 hours.
The Rise of the Labor Movement Haymarket Riots (Affair)
There had been a McCormick Harvester plant the day before May 3, 1886 and at that event, a striker had been killed and others had been injured due to police brutality. So the next day, a protest was held against police brutality and during the protest, someone had thrown a bomb at a line of policemen. The police fired and the aftermath of the following event was that 7 police officers died and several workers died. 3 speakers and 5 radicals were charged with being responsible for the incident and all of them were convicted of it. 4 of them were hung and 1 of them committed suicide while in jail. It was only later decided by the governor of Illinois that the trial they had been given was unfair and the remaining 3 were pardoned. This event caused the public to turn against the labor movement.
The New Machine Henry Ford vs. ALAM
They wanted to sue him and make him pay royalties on every car he builds Ford doesn't like this - Not because he can't afford it - Because it will drive up the price of his cars - This will make the cars out of the range to be bought by the common man This is a life changing case for everyone in the industry - The court rules in favor of Ford - Ford can now make his dream a reality
The New Machine The People vs. The Standard Oil Company
This court case will be the biggest one of the century - Rockefeller will have to defend the company that he built from the ground up Every accusation that was made towards him in court he denied - "I don't remember" Standard Oil is considered a destructive company - It has been on a mission to become a monopoly - Take over smaller businesses - Push up the price of kerosene Rockefeller is offended - He has done nothing but help the country - He brought jobs, fixed the kerosene industry, and brought millions of dollars to the country - "You call it monopoly; I call it enterprise" Rockefeller has done all he can to keep his monopoly intact - His company lies in the hands of the court - The court decides that the Standard Oil Trust violated the Anti-Sherman Trust Act -> His company must break up within 6 months -> He is broken up into 34 smaller companies This ends the age of monopolies
Expansion of Industry Quiz 9. Invented an entire system for producing and distributing electric power.
Thomas Alva Edison
The Rise of Labor Unions Quiz Why did workers form unions?
To improve working conditions
Cornelius Vanderbilt 2. What reputation did Vanderbilt have? How may this help him in business?
Vanderbilt had a reputation for being fiercely competitive and ruthless. This helped him to give everything to his business and to make it the best that he could.
A New War Begins The Oil Industry
Vanderbilt realizes that the future of the railroads is not building new lines, but to transport new goods Oil is revolutionizing America - It brings access to light and that is changing the way America lives - Vanderbilt knows that kerosene is going to take over the world - Kerosene demands are high - Vanderbilt wants to be the main transporter of kerosene to the world
Cornelius Vanderbilt 3. Describe Vanderbilt's family background.
Vanderbilt was born on May 27, 1794, on Staten Island, New York. His parents were farmers, and his father would transport cargo between Staten Island and Manhattan. Vanderbilt helped his father on the water, and he went to school for a short amount of time.
Cornelius Vanderbilt 8. In comparison to Andrew Carnegie and John Rockefeller, was Vanderbilt as philanthropic?
Vanderbilt was not as philanthropic as Carnegie or Rockefeller because he didn't give money to charity and the only time, he did give his money, it was to do something in honor of him. Yes, it would provide education to others, but the main attempt was to make himself look good.
Cornelius Vanderbilt 6. Why was Vanderbilt's new steamship service across Nicaragua an instant success?
Vanderbilt's new steamship service was an instant success because it was faster than the other routes that went from New York to San Francisco.
Big Business 6. Describe how Andrew Carnegie used vertical integration to expand his businesses?
Vertical integration is when you buy out the suppliers you use to make the goods you sell so that you can gain more money and have total control over your product. Andrew Carnegie would buy out his suppliers from coal fields, iron mines, ore freighters, and the railroad lines. This way, Carnegie could control the raw materials and the transportation systems and could better control the price of his steel.
Big Business 7. What was the difference between vertical integration and horizontal integration?
Vertical integration is when you buy out the suppliers you use to make the goods you sell so that you can gain more money and have total control over your product. Horizontal integration is when you buy out companies that make the same product as you, your competitors, and you merge your companies.
Oil Strike Tom Scott
Wants to take over Vanderbilt's place as king of the railroads He wants to make a deal with Rockefeller - Rockefeller gets a better deal with Scott than Vanderbilt Vanderbilt is losing his competitive edge Rockefeller is the most successful businessman in America at that time - Is able to buy out his competition - He wants to own every refinery in the country -> Known as a monopoly -> Seemed impossible at the time -> Rockefeller wants to expand his company and maximize profits by any means necessary Rockefeller controls 90% of America's oil supply - At 33, he is the most powerful man in the country
Expansion of Industry Quiz 17. All of the following are reasons for the success of industrialization in America EXCEPT
War in Europe encouraged industrialization in America.
The Expansion of Industry Edwin L. Drake:
Was the inventor of the steam engine and helped to shape the industrialization of America
The Expansion of Industry Alexander Graham Bell:
Was the inventor of the telephone, the most dramatic invention next to the lightbulb, and it became an essential business tool
The Expansion of Industry 1. What led to the nation's oil boom?
What led to the nation's oil boom was the invention of the steam engine by Edwin L. Drake. It made it practical to remove oil from beneath the earth's surface. It caused an oil boom to spread through Kentucky, Ohio, Illinois, Indiana, and Texas.
Cornelius Vanderbilt 4. What is odd about Vanderbilt's romantic life?
What was odd about Vanderbilt's romantic life is that he only ever got married to his cousins.
The Rise of Labor Unions Quiz This individual headed the Industrial Workers of the World (known as the Wobblies) that gave solidarity and dignity to unskilled workers.
William "Big Bill" Haywood
The Rise of the Labor Movement 8. What role did women play in the labor movement?
Women were banned from most unions, so they would bound together behind powerful leaders to get conditions changed. They wanted better working conditions, equal pay for equal work, and an end to child labor. Mary Harris Jones was one of the most prominent figures that were women that fought for rights. She was the main advocate for a change to child labor. Another prominent figure was Pauline Newman who created the International Ladies' Garment Workers Union and supported the "Uprising of the 20,000". She was able to win labor agreements and get improved working conditions for some strikers.
The Age of Railroads Credit Mobilier:
a construction company formed in 1864 byowners of the Union Pacific Railroad, who used it to fraudulently skim off railroad profits for themselves stockholders of the Union Pacific created an outside company (Credit Mobilier) and that gave them a quote and what it would cost them to build that railroad, that quote would be 2x or 3x the normal cost and they would lay the railroads and keep the remaining money for themselves
The Age of Railroads Interstate Commerce Act:
a law, enacted in 1887, that reestablished the federal government's right to supervise railroad activities and created a five-member Interstate Commerce Commission to do so it takes time for this commission to take effect, happens under Theodore Roosevelt and he tries to do everything he can to protect the average citizens
The Age of Railroads Munn v. Illinois:
an 1877 case in which the Supreme Court upheld states' regulation of railroads for the benefit of farmers and consumers, thus establishing the right of government to regulate private industry to serve the public interest allowed for states to regulate a business, this allowed the federal government to regulate a business
Big Business Monopoly:
having complete control in the marketplace, without any outside competition could do things more freely than a regular business could
The Age of Railroads George M. Pullman:
the owner of a town he built for his employees of his railroad-car factory; his rules of this town were too strict and was called un-American inventor of the sleeping rail car, made this town to control his employees and created a reliable work force, it assured that his employees would arrive on time, was all made to increase his profit, his housing developments he made were not cheap and sucked more money out of his employees
The Age of Railroads Transcontinental Railroad:
the railroads line linking the Atlantic and Pacific coasts of the United States, completed in 1869 completed May 10, 1869, the railroads met at Promontory, Utah by a gold spike, it made transport easier and quicker
The Age of Railroads Cornelius Vanderbilt:
was on of the key figures in the expansion of regional railroads in the New York area; he would buy lots of small railroads in New York, and linked them to create a larger network and improved interstate travel he cut down travel times almost by half because all his railroads were connected, it was cheaper to ride his railroads
