Ch 14  Notes

Bessemer process: blast of hot air to purify molten iron and convert it to                                     steel

 

Oil:    Pennsylvania: 1st commercial oil well by Drake

          Texas: Spindletop oil boom where Texaco and Exxon made their start

 

Railroads:    steel made cheaper by Bessemer process ($12 instead of $50)

                   Transcontinental: Union Pacific started in Omaha, Nebraska

                             Central Pacific started in Sacramento, California

                             Finished in 1869 at Promontory Summit, Utah Territory

                   1) promoted trade

                   2) provided jobs

                   3) boost to steel and train manufacturers

                   4) sped up settlement

                   5) created standard time which Congress adopted in 1918

 

Era of self-reliant individualism helped lead to the business boom and entrepreneurs

 

Laissez-faire:  “to let do” or hands off government towards business

 

Capitalism

 

Social Darwinism: natural selection or “survival of the fittest”

 

Proprietorship: individual

Partnership: two or more

Corporation: owned by stockholders but run by a board of directors

Trust: companies merge

Monopoly: no competition

 

Rockefeller: Standard Oil

          Vertical integration: buy companies that supply your business

Horizontal integration: taking over companies that produce the same                                            thing

Donated $80 million to University of Chicago and $ to education

 

 

 

Carnegie:     Steel                      Rags to riches                

Used vertical integration

                   Sold steel company to JP Morgan

                   Known for philanthropy, gave $ to education, libraries, and                           music

                   Gospel of Wealth- make all you can but give all you can too

 

Vanderbilt:   Railroads and shipping

                   Did not give away much of his $

 

Pullman:       designing and building railroad cars but best known for sleeper                      cars

                   Built town for his workers to live in but there was no self rule

 

“Robber Barons”: exploited the poor to make their money

          or

Captains of Industry: rich who gave back to the community and helped the economy

 

Hershey: chocolate

Dupont: chemical company

 

Development of the Department store: one stop shopping that was cheaper b/c the owner bought in bulk  

 

Mail order catalog: rural communities benefited most (example: Sears, Roebuck and Co)

 

Sherman Anti-Trust Act: broke up trusts that interfered with trade and didn’t allow monopolies             Did not enforce at first

 

1890: 10% of population controlled 75% of the wealth

 

Workers

          Most were white but many were also children

          10 hour work day 6 days a week

          no vacation or sick days

          no compensation for injury

 

 

Knights of Labor

          Allowed unskilled workers, women and African Americans to join

          Worked for: 8 hour work day, end of child labor, and equal pay for     equal work

 

Railroad strike: workers walked off jobs and blocked railways

                   Put down by the US Army and about 100 were killed

1886 Haymarket Riot

          protest and bomb went off, 11 dead and 100 injured

          blamed on foreigners

          helped to flame xenophobia: the fear of foreigners

 

Blacklists

 

American Federation of Labor: Samuel Gompers

          Used strikes and won higher wages and shorter work week

 

Homestead Strike: Carnegie Steel Co

          Tried to lock out workers but they seized the plant

          Hired guards and workers had a 14 hr shootout/standoff

          State militia called in to end the strike

 

Pullman Strike

          1/3 of employees fired and other workers’ wages were cut

          American Railway Union refused to work on trains with Pullman Cars

          This interfered with the US mail

          Pres Grover Cleveland called in federal troops to end the strike

 

Transportation: mass transit or public transportation

          Street cars: San Francisco 1st cable car 1873

          Subways: 1897 Chicago and New York

          Automobiles: 1867 internal combustion engine led to “horseless                              carriage”

          Airplanes: Wright Brothers in Kitty Hawk, North Carolina

Communication:    telegraph by Samuel Morse led to Morse Code (1837)

                             Telephone by Alexander Bell (1876)

                             Typewriter: 1867 provided job opportunities for women

Edison: inventor of many things including phonograph, telephone transmitter, incandescent light bulb and the power plant (over 1,000 patents in his lifetime