2nd Industrial Revolution and Immigration
2nd Industrial Revolution and Immigration
nd
The Age of Oil and Steel
Oil
In the mid-1800s people began to refine oil found on
coastal waters and lakes for kerosene lamps.
In 1859 Edwin L. Drake drilled for oil in
Pennsylvania, starting the first commercial oil well.
Wildcatters, or oil prospectors, struck oil near
Beaumont, Texas, which began the Texas oil boom.
It lasted less than 20 years, but oil remains big
business in Texas to this day.
The Age of Oil and Steel
Steel
In the 1850s a new method made steel-making
faster and cheaper and by 1910 the U.S. was the
world’s top steel producer- Bessemer Process
Steel helped transform the U.S. into a modern
industrial economy.
It was used to make bridges, locomotives, and taller
buildings.
Factories used steel machinery to make goods
faster.
Railroads Expand
Between 1865 and 1890 the number of track miles increased by five times.
The federal government helped by giving land to railroad companies, and
cheap steel enabled the railroad to expand.
Congress authorized two companies to build railroads to the West
Coast: the Union Pacific and the Central Pacific.
Workers raced for six and a half years to complete the first
transcontinental railroad, or a track that crossed the country.
In May 1869 the two rail lines met in the Utah Territory, linking east and
west. Throughout the country railroads expanded into a vast network.
The railroads promoted trade, created jobs, and helped western settlement.
Railroads also led to the adoption of standard time, because rail schedules
could not accurately depend on the sun’s position, as most people did.
The Rise of Big Business
Big business grew in the late 1800s when entrepreneurs, or business risk-
takers, started businesses within an economic system called capitalism, in
which most businesses are privately owned.
Under laissez-faire capitalism, which is French for “leave alone,”
companies operated without government interference.
There were inequalities under capitalism, but many believed that Charles
Darwin’s theory of social Darwinism, or survival of the fittest, explained
how business was like nature: only the strongest survived.
A new type of business organization developed called the corporation,
which was owned by people who bought stock, or shares, in a company,
was led by a board of directors and run by corporate officers.
Corporations raised money by selling stock and could exist after their
founders left. Stockholders could lose only what they invested.
To gain dominance, some competing corporations formed trusts that led
several companies to form as one corporation and dominate an industry.
Industrial Tycoons Made Huge
Fortunes
John D. Rockefeller
Started Standard Oil as a refinery
Used vertical integration, buying companies that
handled other aspects of oil business
Used horizontal integration by buying other
refineries
Refined half of the U.S. oil by 1875
Industrial Tycoons Made Huge
Fortunes
Andrew Carnegie
Grew up poor in Scotland and, at 12, came to
the U.S. to work on railroads
Began to invest and started Carnegie Steel
Company, which dominated the steel industry
In 1901, sold the company to the banker J.P.
Morgan for $480 million and retired as a
philanthropist
Industrial Tycoons Made Huge
Fortunes
Cornelius Vanderbilt
Began investing in railroads during the Civil War
Soon his holdings stretched west to Michigan
and north to Canada.
Vanderbilt gave money to education for the
public
Industrial Tycoons Made Huge
Fortunes
George Pullman
Made his fortune when he designed and built
sleeper cars to make long distance train travel
more comfortable
Built an entire town near Chicago for his
employees that was comfortable, but controlled
many aspects of their daily lives.
Workers Organize
Government did not care about workers. Many workers scraped by on less than
$500 per year while tycoons got very, very rich.
The government grew worried about the power of corporations, and in 1890
Congress passed the Sherman Antitrust Act, which made it illegal to form trusts
that interfered with free trade, though they only enforced the law with a few
companies.
Factory workers were mostly Europeans immigrants, children, and rural
Americans who came to the city for work.
Workers often worked 12-to-16-hour days, six days a week, in unhealthy
conditions without paid vacation, sick leave or compensation for common
workplace injuries.
By the late 1800s working conditions were so bad that more workers began to
organize, trying to band together to pressure employers into giving better pay and
safer workplaces.
The first effective group was the Knights of Labor, which campaigned for eight-
hour work days, the end of child labor, and equal pay for equal work in
Philadelphia.
Strikes and Setbacks for Workers
At first, the union preferred boycotts to strikes,
but strikes soon became a common tactic.
Some famous strikes include:
The Great Railroad Strike was the first major rail
strike, which stopped freight trains for almost a week,
caused violence, and was put down by the army.
The Haymarket Riot in Chicago was a result of a
protest against police actions toward strikers. It killed
11 people and injured over 100
Strikes and Setbacks for Workers
Employers struck back by forcing employees to
sign documents saying they wouldn’t join unions
and blacklisting troublemakers.
Samuel Gompers founded the American
Federation of Labor (AFL) in 1886, winning
wage increases and shorter workweeks.
Unions suffered setbacks when Carnegie
employees seized control of a plant and 16
people were killed and when federal troops
crushed the American Railway Union strike
City Growth Spurs Transportation
Advances
Streetcars
Horse-drawn passenger vehicles were the
earliest mass transit.
By the 1830s horsecars, or streetcars, rolled
along street rails.
Cable cars were built in cities with steep hills
such as San Francisco.
By 1900 most cities had electric streetcars, or
trolleys.
City Growth Spurs Transportation
Advances
Subways