History Chpt 6 Outline

Michael Doherty I.

Technological Revolution A. Changes in Daily Life 1. Daily Life in 1865 2. Investing Technology a) in 1860-1890, 500,000 patents issued 1) for inventions such as typewriter, telephone and phonograph b) European and American business leaders began to invest heavily in new inventions 1) combination of financial backing and American ingenuity helped create new industries and expand old ones c) by 1900, Americans’ standard of living among the highest in the world 1) result of nation’s growing industrial productivity B. New Forms of Energy 3. Drake Strikes Oil a) Edwin L. Drake sent to Titusville, Pennsylvania to drill for oil 1) idea of drilling oil new and many were skeptical b) Drake set up oil well and began drilling c) oil became a major industry d) oil refineries sprang up around country 4. Edison, a Master of Invention a) Thomas Edison helped make another new source of energy widely available b) Edison developed the idea of a central power station 1) built power plant that lit dozens of buildings in New York City 5. Electricity Is Improved a) Lewis Latimer patented an improved method of producing filament in light bulbs b) George Westinghouse 1) began experimenting with form of electricity called alternating current 2) Edison used direct current, which was expensive and could only travel a mile or two 3) alternating current could be generated cheaper with longer range c) investors used Edison’s and Westinghouse’s ideas and inventions to create two companies, General Electric and Westinghouse Electric 1) by 1898, nearly 3,000 power stations were lighting some 2 million light bulbs 6. Electricity’s Impact on Business and Daily Life a) electric sewing machine made clothes production faster and cheaper 1) clothes prices went down b) rapidly growing industries opened up thousands of jobs for Americans C. Advances in Communications 7. The Telegraph a) Samuel F.B. Morse took out a patent on telegraphy

b) Morse did perfect telegraph even though he didn’t invent it c) after Civil War, many telegraph companies joined together to form the Western Union Telegraph Company 8. The Telephone a) Alexander Gram Bell immigrated from Scotland to Boston to teach people with hearing difficulties b) Bell and a group of partners set up American Telephone and Telegraph Company to build long-distance telephone lines D. Railroads Create a National Network 9. The Transcontinental Railroad a) completion of transcontinental railroad was key event in the expansion of rail business b) federal government stepped in to fund the completion 10. Railroad Developments a) steel rails replaced iron rails and track gauges and signals became standardized b) railroads also led to development of many towns throughout western part of U.S. 11. Railroads and Time Zones a) scheduling proved to be another problem for railroads b) most towns set their clocks independently, according to solar time c) time differences created confusion when trains started regular passenger service d) railroads adopted a national system of time zones to improve scheduling e) clocks in broad regions of country showed the same time 12. Railroads and Industry a) transport of goods over long distances still costly and inefficient b) railroads played key role in revolutionizing business and industry in U.S E. The Bessemer Process c) Henry Bessemer and William Kelly independently developed a new process for making steel 13. The Brooklyn Bridge a) Engineer John A. Roebling believed a bridge could be built connecting Manhattan and Brooklyn 14. A Symbol of American Success a) despite problems, Brooklyn Bridge was completed and opened on May 24, 1883 II. The Growth of Big Business A. Robber Barons or Captains of Industry? 15. John D. Rockefeller a) on his way to great fortune when he formed Standard Oil Company b) by the end of his life, he had given $500 million to establish or improve charities and institutions that he believed would benefit humanity

c) his philanthropy helped found the University of Chicago and the Rockefeller Foundation 16. Carnegie’s “Gospel of Wealth” B. Social Darwinism a) Carnegie suggested that the wealthy were somehow the most valuable group in society b) idea was inferred from Charles Darwin’s theory of evolution c) theory soon emerged that applied Darwin’s theory to society as a whole d) most Americans agreed that government should not interfere with private businesses e) as a result, government neither taxes businesses’ profits nor regulated their relations with their workers C. Business on a Larger Scale 17. Larger pools of capital 18. Wider geographic span 19. Broader range of operations a) prior to big business, most businesses in the United States were highly specialized 20. Revised role of ownership a) increased scope of operations, workers, products, and money changed nature of ownership and management 21. New methods of management a) innovations, such as more complex systems of accounting, were necessary for controlling these large amounts of resources D. Gaining a Competitive Edge 22. New Market Structures a) market structure dominated by only a few large, profitable firms, is called an oligopoly b) some companies set out to gain a monopoly, or complete control of a product or service 1) to do this a business bought out its competitors or drove them out of business 2) the remaining company would then be free to raise its prices 23. Carnegie Steel a) soon had enough money to buy the companies that performed all the phases of steel production b) even bought the shipping and rail lines necessary to transport his products to market c) gaining control of many different businesses that make up all phases of a product’s development is known as vertical consolidation 24. The Standard Oil Trust a) Rockefeller was able to negotiate with railroad companies to obtain refunds on part of the cost of transporting his oil b) had enough money to buy out competitors 25. The Government Response

a) Congress passed a law in attempt to limit the amount of control a business could have over an industry b) Sherman Antitrust Act outlawed any combination of companies that restrained interstate trade or commerce I. Industrialization and Workers B. The Growing Work Force a) around 14 million people immigrated to United States between 1860 and 1900 b) federal government encouraged immigration by passing Contract Labor Act in 1864 C. Factory Work 1. Increase Efficiency a) increase in productivity didn’t always mean higher wages for workers b) often led to many layoffs because businesses no longer needed as many workers 2. The Division of Labor a) artisans traditionally made a product from start to finish 1) required them to perform a variety of tasks b) factory workers usually performed only one small task over and over c) proved to be efficient but took joy out of working 3. The Work of Environment a) factory workers ruled by the clock b) not always safe workplace 1) noise of machines could be deafening 2) lighting and ventilation were often poor 3) fatigue, faulty equiptment, and careless training resulted in frequent accidents c) threatened children especially A. Working Families d) children made up more than 5% of industrial labor force III. The Great Strikes D. Gulf Between Rich and Poor a) the richest 9% of Americans held nearly 75% of the national wealth E. The Rise of Labor Unions 1. Early Labor Unions a) strong local unions resurfaced after Civil War b) demands included shorter workdays, higher wages and better working conditions 2. The Knights of Labor a) Noble and Holy Order of the Knights of Labor formed in 1869 b) pursued broad and social reforms such as equal pay for equal work, the eight-hour workday and end of child labor 3. The American Federation of Labor a) craft union; rather than organizing all workers, sought to organize only skilled workers in network of smaller unions 4. The Wobblies

5. Reaction of Employers a) employers disliked and feared unions b) feared that if they had to pay higher wages and meet other demands of unions, their costs would go up c) took measures to stop unions A. Railroad Workers Organize 6. The Great Railroad Strike of 1877 a) began when Baltimore and Ohio Railroad announced 10% wage cut during depression b) workers declared strike and clashed with local militia c) rioting strikers attacked railroad property and President Hayes responded by sending in federal troops to restore order 7. Debs and the American Railway Union a) railroad workers mainly organized into various “brotherhoods” B. Strikes Rock the Nation 8. Haymarket, 1886 a) groups of workers mounted a national demonstration for an eight hour workday b) gunfire between police and protesters killed dozens on both sides c) to many unionists, anarchists who took part in Haymarket Riot were heroes 9. Homestead, 1892 10. Pullman, 1894 a) George Pullman developed a luxury sleeping car b) during Panic of 1893, Pullman laid off workers and cut wages by 25% c) widespread local strikes followed d) strike got out of hand and completely disrupted western railroad traffic, including mail delivery e) General Managers Association turned to federal government for help