Industrial Revolution

1880-1910

Steel IndustryWilliam Kelly

Henry Bessemer

Bessemer Process

Injecting hot air in to molten iron making steel

This created new industries and jobs making the U.S. the top steel producer

R&R, Buildings, Bridges are built with this new product

Price rose significantly because of demand

Oil! Edwin L. Drake

drilled the first commercial oil well

He sparked a oil boom in Spindletop, Texas which created companies like Exon Mobil, Gulf Oil, and Texaco

Wildcatters = oil prospectors

Rise of Big Business

Late 1800’s Capitalism starts = economic system where private businesses run most industries

Competition determines prices and wages

Laissez-Faire = Companies conduct business without Government intervention

Social Darwinism

Businesses adopted the Natural Selection theory of Charles Darwin

Survival of the Fittest

No one should interfere with the process

Ways to run a business

Corporation = business owned by stockholders, decisions made by board of directors, corporate officers handle day to day operations

Trust = companies merge stocks turned over to a board, several companies then run like a single corporation, split profits

Ways to run a business continued

Monopoly = No Competition in a specific industry

Vertical Integration = Buy companies producing supplies and services you need

Horizontal Integration = buy competing companies in the same industry

Robber Barons/ Tycoons

Someone who has total control over the sale and production of a product.

Not looking out for the consumer Only trying to make as much money as

they can

John D. Rockefeller Standard Oil Used Vertical and

Horizontal Integration 1879 he refined 90%

of U.S. oil Sold his oil for less

than others to drive out competition

$900 Million gave half away

Andrew Carnegie Carnegie Steel

Company Used Vertical

Integration, bought in bulk, made lost of product

Became a philanthropist

Gave $350 million away

J.P. Morgan

U.S. Steel Bought out Carnegie

Steel for $480 Million

Most successful holding company ever.

Cornelius Vanderbilt

Invested in R&R during Civil War

Gave $1 million to Central University in Nashville

Became Vanderbilt University

George M. Pullman

Pullman, Illinois Company controlled

town Created the Pullman

Sleeping Car

Laws

Sherman Anti-Trust Act = illegal to form trusts that interfered with free trade

Stopped monopolies and activities that hindered competition in the marketplace

Government did not enforce

Working conditions

No paid vacation 10 hour work day No sick leave No pay of injuries on site

Unions form NLU or National Labor Union starts in

1866 = 1st large scale labor union Fought for 8hr workday and shorter

work week

Unions continued Knights Of Labor =

lead by Terence V. Powderly

fought for 8 hr work day, no child labor, equal pay for equal work, no strikes only boycotts

Arbitration = both parties go to a judge to solve dispute

Unions continued

American Federation of Labor

Headed by Samuel Gompers

Used strikes Won wage increase

and shorter work week

IWW

Wobblies Created in 1905 Miners Believed in

General Strikes William D.”Big

Bill” Haywood

Railroad Strike of 1877 Wages Cut Workers walked off

jobs and blocked trains

Mail flow blocked Army brought in to

move trains $4 million in

damages

Haymarket Square Wages cut workers

strike Chicago crowd

gather to protest police brutality at previous days work strike.

Police called in again and a bomb is thrown

Haymarket continued

11 killed 100 injured Immigrants blamed Xenophobia= fear of

foreigners starts Eight arrested No evidence to

arrest 4 hung 1 commits suicide 3 get off later

Homestead Strike

Union told they would not be renewed

Workers would not work faster and were locked out

Scabs brought in Workers seized plant Pinkerton Police

brought in 16 hrs later workers win

but are not hired back H.C. Frick decides who

get a job and who does not.

Business fight back

All who want a job sign pledge to not join unions

Blacklists = lists of those who were seen as troublemakers and refused to hire

New Inventions 1903 Kitty Hawk, North Carolina Orville and Wilber Wright fly for 1st time

New Inventions Andrew Smith

Hallidie Mass-transit = public

transportations systems that carry large numbers of people.

Steam powered cable car to replace the horse-drawn street car

New Inventions

Nikolaus A. Otto Built 1st combustion

engine

New Inventions

1893 Charles and J. Frank Duryea built 1st motorcar in the U.S.

New Inventions

Samuel F.B. Morse Telegraph = sending

messages through wires with electricity

Operators used the system of Morse code.

New Inventions

Alexander Graham Bell

Invented the “telephone” with the assistance of Thomas Watson

New Inventions

Christopher Latham Sholes

Invented the typewriter

Placed keys in the QWERTY pattern

New Inventions

Thomas Alva Edison Created: General

Electric or GE. Electricity helped

characterized the 2nd industrial revolution

Thomas Edison Continued

1876 established the worlds first research laboratory in Menlo Park, New Jersey.

Direct Current or DC was the type of electricity he used.

1880 patented the incandescent light bulb Phonograph, batteries, telephone

transmitter, power stations, helped with motion pictures.

New Inventions

George Westinghouse

Invented Air Brakes for railroad cars

Also pushed the use of A.C. current

New Inventions

Nikola Tesla Invented AC

Transformers, Motors, and generators.