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Chapter 17

Chapter 17



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Published by mchiu61593
American History: A Survey by Alan Brinkley
American History: A Survey by Alan Brinkley

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Published by: mchiu61593 on Mar 29, 2010
Copyright:Attribution Non-commercial


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Michael ChiuAP US HistoryPeriod 212/23/09
Outline of Chapter 17:
Industrial Supremacy
-The industrial developments of the last three decades of the 19
century were huge – transformation of the national economy
Sources of Industrial GrowthIndustrial Technologies
-Henry Bessemer and William Kelly developed a process for converting iron into morethe more durable steel – took Bessemer’s name-made mass production of steel possible-The steel industry emerged first in western Pennsylvania and eastern Ohio – iron ore wasthere in abundance and there was already a flourishing iron industry there-Pittsburgh became center of the steel world because anthracite or hard coal was plentiful-The oil industry rose because the steel industry needed lubrication for its machines-Pennsylvania businessman George Bissell showed that the petroleum in westernPennsylvania could be used for many different products – oil mining grew
The Airplane and the Automobile
-the creation of gasoline or petrol was critical for the development of the automobile-Charles and Frank Duryea built the first gasoline-driven motor vehicle in America-Henry Ford produced the first of the famous cars that would bear his name-Wilbur and Orville Wright used an internal-combustion engine to construct a glider thatsuccessfully traveled 120 feet in 12 seconds under its own power – in Kitty Hawk, N.C.
Research and Development
-General Electric created one of the first corporate laboratories in 1900-Emergence of corporate research laboratories came with a decline in governmentsupport for research – helped corporations to attract skilled researchers who once workedfor government agencies-In the late 19
and 20
centuries, American universities transformed themselves ingrowing numbers – one product was a growing connection between university-basedresearch and the needs of the industrial economy-Partnership developed between academic world and commercial world
The Science of Production
-Many industrialists turned to the new principles of “scientific management” or “Taylorism” – Frederick Winslow Taylor urged employers to subdivide tasks – wouldspeed up production and make workers interchangeable – would reduce need for highlytrained skilled workers – however, would also make working people less independent-Most important change in production technology was introduction of mass productionand the moving assembly line, invented by Henry Ford – used in automobile plants
Railroad Expansion
-Railroads helped found “standard time” in the United States-Every decade in the late 19
century, railroad trackage increased dramatically
The Corporation
-Under laws of incorporation passed in the 1830s and 1840s, organizations could raisemoney by selling stock to members of the public – many Americans considered it a good
investment because they only had “limited liability” – risked only the amount theyinvested, not liable for any debts the corporation might accumulate after that-Ability to sell stock to public made it possible for businesses to get capital for projects-First to adopt the new corporate form of organization was the railroad industry, amongthem the Pennsylvania Railroad-The central figure in the steel industry was Andrew Carnegie, a Scottish immigrant whoopened his own steel business in Pittsburgh – dominated the industry-Many corporate organizations developed a new approach to management – corporateleaders introduced a set of managerial techniques – relied on division of responsibilities,a hierarchy of control, modern cost-accounting procedures, and the “middle manager”,who formed layer of command between workers and owners
Consolidating Corporate America
-“Horizontal integration” – combining of a number of firms engaged in the sameenterprise into a single corporation – ex. Consolidation of many railroad lines-“Vertical integration” – taking over of all the different businesses on which a companyrelied for its primary function – ex. Case of Carnegie Steel-Most celebrated corporate empire was John D. Rockefeller’s Standard Oil – createdthrough both horizontal and vertical integration – controlled access to 90% of refined oilin U.S.-As movement toward combination accelerated, new techniques emerged – poolarrangements were informal agreements among companies to stabilize rates and dividemarkets – did not work well
The Trust and the Holding Company
-Failure of pools led to new techniques – one of the most successful was creation of the“trust” – pioneered by Standard Oil and perfected by J. P. Morgan – under a trustagreement, stockholders in corporations transferred their stocks to a small group of trustees in exchange for shares in the trust itself -a “holding company” – a central corporate body that would buy up the stock of variousmembers of the Standard Oil trust and establish direct, formal ownership of thecorporations in the trust-The consolidation of corporations grew in the 19
Capitalism and its Critics
-People criticized the corporate power centers as a threat to republican society and pointed to the corruption that the industrial titans seemed to produce
The “Self-Made Man”
-Defenders of the new industrial economy argued that it provided every individual with achance to succeed-Many millionaires claimed to be “self-made men”, but most had begun tycoons wealthy-Their rise to power had not always been hard work, also from corruption
Survival of the Fittest
-Social Darwinism was the belief that only the fittest individuals in human societysurvived and flourished in the marketplace-Herbert Spencer was the first to argue this theory – said society benefited from theelimination of the unfit-Social Darwinism appealed to businessmen – confirmed their success and virtues –  justified their tactics
The Gospel of Wealth
-Some businessmen used another idea, the “gospel of wealth” to temper the harsh philosophy of Social Darwinism-Argued that wealthy people had not only great power but great responsibilities – it wastheir duty to use their riches to advance social progress – Andrew Carnegie reinforced it-Another popular idea was that wealth was available to all – Russell H. Conwell, aBaptist minister was the most prominent spokesman by delivering “Acres of Diamonds” – speech that had stories of individuals who had found opportunities for wealth-Horatio Alger wrote novels about common people who rose to great wealth through hardwork 
Alternative Visions
-one philosophy emerged through work of Lester Frank Ward – argued that civilizationwas not governed by natural selection but by human intelligence – an active governmentengaged in positive planning was society’s best hope-Henry George of California tried to explain why poverty existed amidst the wealthcreated by modern industry – increase in value of land was not result of effort by theowner but by the growth of the society around the land – proposed a “single tax” toreplace all other taxes – would destroy monopolies-Edward Bellamy also rose in popularity – wrote novel
 Looking Backward 
– believed thateventually, “fraternal cooperation” would replace competition and there should not beclass divisions – Bellamy called philosophy “nationalism”
The Problems of Monopoly
-Monopoly caused the gap between rich and poor to increase
Industrial workers in the New EconomyThe Immigrant Work Force
-By the end of the 9
century, the major sources of immigration had shifted fromEngland, Ireland, and northern Europe to southern and eastern Europeans – in the West,major sources of immigration were Mexico and Asia-Arrival of new groups heightened ethnic tensions - competition
Wages and Working Conditions
-Many workers didn’t like how they lost control over the conditions of their work 
Women and Children at Work 
-Many employers hired women because they didn’t have to pay them as much – mostlyyoung and white – majority were immigrants – most worked in a few industries whereunskilled and semiskilled machine labor prevailed – textile industry was largest employer -Female workers made much less than males did, sometimes even half as much-Many children also worked – led to passing of child labor laws in 38 states in 19
century – had limited impact
The Struggle to Unionize-
the first attempt to combine various labor organizations was when William H. Sylvisfounded the National Labor Union – eventually disappeared after Panic of 1873-The National Labor Union excluded female workers-There was middle-class hostility toward the unions – blamed workers for labor disputeswith employers – particularly alarming to them were the “Molly Maguires”, a militantlabor organization in the anthracite coal region of Pennsylvania
The Great Railroad Strike

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