The Rise of Big Business

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The Rise of Big Business

• How did the rise of big business promote
  industrialization and immigration?

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1st Transcontinental Railroad

• Pacific Railway Act of 1862
• U.S. Government hired Union Pacific and Central
  Pacific Railway Company to extend railways across
  the United States.
• Central Pacific
• Started in Sacramento, CA
• Union Pacific
• Started in Omaha, NE
• The two railroad companies met in Promontory,
  Utah to drive the Golden Spike on May 10, 1869

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Promontory, Utah May 10, 1869
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Who did the Railroad Impact?

• Native Americans
• called it the Iron Horse
• Helped Westward expansion
• Trade much easier
• Became crucial to the U.S. economy shipping
  costs dropped drastically.
• Hurt farmers economically
• Made deals with wealthy businessmen
• Corruption

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So what happens?
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Monopoly

• How does the game work?
• What is the goal of the game?

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Big Business Emerges!

• Monopoly
• to have complete control of a product or service.
• businesses who make the same product agree to
  limit supply to keep prices high.

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How was steel produced in mass amount???
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The Bessemer Process

• Henry Bessemer
• English businessman
• William Kelly
• Kentucky businessman
• Developed new way of making steel

Melt iron, add carbon, remove impurities
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Brooklyn Bridge

• Old way to Manhattan to Brooklyn was ferry
• Winter ferry could not run because of ice
• John Roebling
• German began building
• Dies in mid construction
• Washington Roebling completes
• Son
• Disabled by accident during construction
• Completed on May 24, 1883

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Steel

• Steel was being used to build buildings, bridges,
  trains, cars, and railroads.

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Andrew Carnegie

• An entrepreneur in the steel industry
• His goal was to produce steel at the lowest cost
  possible.
• Immigrant from Scotland
• Helped steel become a major industry in the US.
• His mills provided work for many immigrants.

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John D. Rockefeller

• Made a fortune by refining petroleum into
  kerosene.
• Kerosene lamps were the main source of lighting
  during this period.
• Began a company called Standard Oil.
• This company became a monopoly in the oil
  industry.

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Standard Oil Co.
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George Westinghouse

• Entrepreneur that began an electric company that
  competed against Thomas Edison.
• Delivered electricity to homes and businesses.

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William R. Hearst

• Was one of the nations most influential
  newspaper publishers
• Used big eye-catching headlines
• Newspapers included color sections and
  photographs

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J.P. Morgan

• Most powerful American banker of his time
• His bank helped many new businesses like railroad
  companies, and steel mills get the capital they
  needed to get started.

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Reasons that Big Businesses Grew

• Inventions created new jobs
• New businesses were connected by rails
• Many immigrants were entering the work force
• The US had many natural resources

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US Changes

• People working on the farm to people working in
  industries
• US becomes largest producer of manufactured goods
  in the world
• US economy was one of the strongest and fastest
  growing in the world
• People move from the farms to the cities to fill
  the new jobs.

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How did transportation change during the
Industrial Revolution?
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The telegraph was invented by Samuel Morse in
order to help the railroads communicate, stay on
schedule and prevent accidents.
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Alexander Graham Bell

• Born and educated in Scotland. The Bell
  family emigrated to Canada in 1870. Alexander
  moved to Boston, Mass. as a teacher to the deaf.
• He is best known as the inventor of the
  telephone.

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Telegraph vs. Telephone

• Businesses would be able to communicate by
  telephone more quickly and easily. Soon homes of
  wealthy people had telephones.
• The telephone was easier to use because it did
  not require people to learn a new system of
  communication such as the Morse code.

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Thomas Edison

• The light bulb was not invented by Thomas Edison
  however it was significantly improved and made
  practical for use.

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Improved Light Bulb

• It promoted economic growth because it made it
  possible to light factories as well as homes more
  safely than kerosene lamps.
• African American, Lewis Latimer developed a
  method of making carbon filaments in light bulbs
  last longer.

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Edisons first invention

• Edisons first invention was the phonograph.
  This was the first machine that could record a
  voice and play it back.

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Power Station

• Edison decided to build an electrical power
  station to get electricity into peoples homes
  and businesses.

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Lives Changed

• Other cities also built power stations and soon
  many businesses used the electric light. This
  changed the work habits of many Americans who
  could now work longer hours. Eventually homes
  were also lit by electricity.

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Transportation Changed

• Electricity also contributed to the growth of
  transportation.
• Horses pulled the first streetcars along steel
  tracks laid in the street.

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Streetcars

• Electric streetcars replaced horse drawn
  streetcars.
• Streetcars would pick up and drop off passengers
  around the city just like buses.

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The Worlds First Car

• The worlds first car was called a horseless
  carriage because it did not need horse to pull
  it. The first cars with gasoline powered engines
  were built in Germany.

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First American Car

• Frank Duryea and Charles Duryea built the first
  automobile in the United States.

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The Wright Brothers

• In 1903, the Wright Brothers fly the first plane
  in Kitty Hawk, North Carolina.
• The first flight only lasted 12 seconds.
• It was the first time in history that a machine
  carrying a man raised itself by its own power
  into the air in full flight.

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What other technological changes occurred in the
rural areas of the United States?

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Manual Labor versus Mechanization

• Manual labor was the only way to get tasks done
  on farms.
• Manual labor means jobs done by hand, without the
  help of machines.
• Inventors started creating machines to help make
  farming easier.
• Using machines to do work is called mechanization.

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Mechanical Reaper

• Cyrus McCormick perfected a reaper, a machine
  that cuts grain.

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Threshing Machine

• Threshing machines separated the grain from the
  plant stalks.

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Others who benefited from mechanization

• L.O. Clovin developed the first milking machine.
  Farmers could milk more than one cow at a time.
• Gustav de Laval invented the first cream
  separator. Milk could be separated from cream in
  minutes.

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What was the effect of mechanization on the size
of farms?

• Machines worked faster than people could.
• Farmers with new machines were able to get work
  done in less time.
• They could farm more land and farms increased in
  size.
• Farmers could grow and sell more crops.

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New Industries

• These inventions led to new industries.
• People started businesses to offer telephone
  service and electrical service.
• Companies were started to make streetcars,
  automobiles, and airplanes.
• Many companies started competing with each other
  for business.

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Industrys Impact

• Industry was growing in big cities like New York
  and Chicago.
• Stores increased in number and size to sell these
  affordable goods to people in the cities.

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Challenge

• Many Americans lived on farms and ranches.
• How could farmers hope to buy new factory-made
  items if they lived far from a city?
• Aaron Montgomery Ward had an
  answer mail order catalog.

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Electric Appliances Change Work

• Washing Machine 1914

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Electric Iron

• 1893

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Electric upright vacuum cleaner

• 1907

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Electric Stove

• Electric stoves didnt need coal or wood to
  create heat.

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Food Mixer and Dish Washer
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The Reorganization of Work
The Assembly Line
Mass production
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Child Labor
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Child Labor
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Conditions

• Long hours
• Less than 1.00 per week
• Difficult, dangerous and unhealthy work
• Heavy machinery
• Could lose finger, arm or be scalped by machinery
• Dusty, cold/hot respiratory conditions
• Corporal punishment

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Labor Union Goals

• Eight-hour workday.
• Abolition of child and prison labor.
• Equal pay for men and women.
• Safety codes in the workplace.

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The Great Railroad Strike of 1877

• The Great Railroad Strike of 1877 was the
  country's first major rail strike and the first
  general strike in the nation's history.
• The strike and the violence it spawned briefly
  paralyzed the country's commerce and led
  governors in ten states to mobilize 60,000
  militia members to reopen rail traffic.
• The strike would be broken within a few weeks,
  but it also helped set the stage for later
  violence in the 1880s and 1890s, including the
  Haymarket Square bombing in Chicago in 1886,

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Haymarket Riot (1886)

• On May Day 1886, the workers at the McCormick
  Harvesting Machine Co. in Chicago began a strike
  in the hope of gaining a shorter work day.
• On May 3, police were used to protect
  strikebreakers and a scuffle broke out one
  person was killed and several others injured.
• The following day, May 4, a large protest was
  scheduled to protest police brutality.
• Rain and cold weather kept the numbers down to
  between 1,500 to 2,000.
• The gathering was peaceful until a police
  official sent units into the crowd to force it to
  disperse.
• A pipe bomb was thrown into the police ranks
  killing seven policemen and injured more than 60
  others.
• The police fired into the crowd of workers,
  killing four.

McCormick Harvesting Machine Co.
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The American Federation of Labor 1886

• Samuel Gompers was an early labor leader
• President of the American Federation of Labor
• Gompers led the labor movement in achieving solid
  gains for workers.
• He believed that unions should concentrate on
  bargaining agreements and legislation affecting
  labor

Samuel Gompers
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The Pullman Strike of 1894

• The Pullman Strike was a nationwide conflict
  between labor unions and railroads that occurred
  in the United States in 1894.
• The conflict began in the town of Pullman,
  Illinois on May 11 when approximately 3,000
  employees of the Pullman Palace Car Company began
  a strike in response to recent reductions in
  wages, bringing traffic west of Chicago to a
  halt. The American Railway Union, became
  involved in a struggle between the greatest and
  most important labor organization that involved
  some 250,000 workers in 27 states.