U.S. History – A
Ellsworth
American
Industrial
Revolution
Chapter 6, Section 1
Chapter 6, Section 2
Chapter 12, Section 3
Week 2
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Page 1 of 4
The Expansion
of Industry
MAIN IDEA
At the end of the 19th
century, natural resources,
creative ideas, and growing
markets fueled an industrial
boom.
Terms & Names
WHY IT MATTERS NOW
Technological developments of
the late 19th century paved the
way for the continued growth of
American industry.
•Edwin L. Drake
•Bessemer
process
•Thomas Alva
Edison
•Christopher
Sholes
•Alexander
Graham Bell
One American's Story
One day, Pattillo Higgins noticed bubbles in the springs around
Spindletop, a hill near Beaumont in southeastern Texas. This and
other signs convinced him that oil was underground. If Higgins
found oil, it could serve as a fuel source around which a vibrant
industrial city would develop.
Higgins, who had been a mechanic and a lumber merchant, couldn’t convince geologists or investors that oil was
present, but he didn’t give up. A magazine ad seeking
investors got one response—from Captain Anthony F. Lucas,
an experienced prospector who also believed that there was oil
at Spindletop. When other investors were slow to send money,
Higgins kept his faith, not only in Spindletop, but in Lucas.
A PERSONAL VOICE PATTILLO HIGGINS
“ Captain Lucas, . . . these experts come and tell you this or that
can’t happen because it has never happened before. You believe
there is oil here, . . . and I think you are right. I know there is oil
here in greater quantities than man has ever found before.”
—quoted in Spindletop
In 1900, the two men found investors, and they began to drill that
autumn. After months of difficult, frustrating work, on the morning of
January 10, 1901, oil gushed from their well. The Texas oil boom had begun.
Natural Resources Fuel Industrialization
After the Civil War, the United States was still largely an agricultural nation. By
the 1920s—a mere 60 years later—it had become the leading industrial power in
the world. This immense industrial boom was due to several factors, including: a
wealth of natural resources, government support for business, and a growing
urban population that provided both cheap labor and markets for new products.
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CHAPTER 6
GUSHER!
Pattillo Higgins
and the Great
Texas Oil Boom
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Page 2 of 4
BLACK GOLD Though eastern Native American tribes had made fuel and medicine from crude oil long before Europeans arrived on the continent, early
American settlers had little use for oil. In the 1840s, Americans began using
kerosene to light lamps after the Canadian geologist Abraham Gesner discovered
how to distill the fuel from oil or coal.
It wasn’t until 1859, however, when Edwin L. Drake successfully used a
steam engine to drill for oil near Titusville, Pennsylvania, that removing oil from
beneath the earth’s surface became practical. This breakthrough started an oil
boom that spread to Kentucky, Ohio, Illinois, Indiana, and, later, Texas.
Petroleum-refining industries arose in Cleveland and Pittsburgh as entrepreneurs
rushed to transform the oil into kerosene. Gasoline, a byproduct of the refining
process, originally was thrown away. But after the automobile became popular,
gasoline became the most important form of oil.
Vocabulary
entrepreneur:
a person who
organizes,
operates, and
assumes the risk
for a business
venture
BESSEMER STEEL PROCESS Oil was not the only natural resource that was
plentiful in the United States. There were also abundant deposits of coal and iron.
In 1887, prospectors discovered iron ore deposits more than 100 miles long and
up to 3 miles wide in the Mesabi Range of Minnesota. At the same time, coal production skyrocketed—from 33 million tons in 1870 to more than 250 million
tons in 1900.
Iron is a dense metal, but it is soft and tends to break and rust. It also usually
contains other elements, such as carbon. Removing the carbon from iron produces a lighter, more flexible, and rust-resistant metal—steel. The raw materials
needed to make steel were readily available; all that was needed was a cheap and
efficient manufacturing process. The Bessemer process, developed independently by the British manufacturer Henry Bessemer and American ironmaker
William Kelly around 1850, soon became widely used. This technique involved
injecting air into molten iron to remove the carbon and other impurities. By
1880, American manufacturers were using the new method to produce more than
90 percent of the nation’s steel. In this age of rapid change and innovation, even
Skillbuilder
Answers
1. Pennsylvania
2. An abundance of coal
and iron ore,
plus access to a
major river, contributed to
Pittsburgh’s high
levels of steel
production.
Natural Resources and the Birth of a Steel Town, 1886–1906
Pittsburgh
uperior
L. S
Oh
io
R
L. H
u
Cincinnati
M
O
Baltimore
E
W
IA
H
C
Coal mining
Atlanta
GEOGRAPHY SKILLBUILDER
areas?
1. Region Which state had the most steel-producing60°W
2. Human-Environment Interaction What connection can you
Oil
Steel production
0
150
150
300 miles
50°W
Steel mills, 1906
30°N
Iron ore mining
0
ah
el
ATLANTIC
OCEAN
PA
AP
Other cities
ng
Steel mills, 1886
S
LA
Major industrial city
Mo
no
N
N
O
U
S
R.
St. Louis
o
hi
N
IN
New York
Philadelphia
a
R.
Indianapolis
TA
Pittsburgh
40°N
Wilkes-Barre
Titusville
Cleveland
Pittsburgh
Omaha
Buffalo
City Limits
L.
ie
Er
Riv e r
Boston
io
s
Detroit
ntar
imit
.
iR
pp
Milwaukee
Chicago
L. O
City
L
n
ro
Mi
ssi
ssi
Allegheny
r
ive
MESABI
RANGE
Minneapolis
Page 231
L. Michigan
230-233-Chapter 6
draw between natural resources (including water) and steel
production in Pittsburgh?
New Orleans
300 kilometers
70°W
90°W
80°W
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The Technological Explosion, 1826–1903
1826
1831
1837
● Telegraph
●
1846
● Sewing
Reaper
1860
Machine
Internal- ●
Combustion
Engine
● Photography
1867
Dynamite ●
Typewriter ●
1873 1877
1876 1879
1895
● Light Bulb
● Phonograph
● Telephone
● Electric Motor
the successful Bessemer process was bettered by the 1860s. It
was eventually replaced by the open-hearth process,
enabling manufacturers to produce quality steel from scrap
metal as well as from raw materials. A
HISTORICAL
S P O TLIG H T
ILLUMINATING THE
LIGHT BULB
Shortly after moving into a long
wooden shed at Menlo Park,
Thomas Alva Edison and his
associates set to work to develop
the perfect incandescent bulb.
Arc lamps already lit some city
streets and shops, using an electric current passing between two
sticks of carbon, but they were
glaring and inefficient.
Edison hoped to create a longlasting lamp with a soft glow, and
began searching for a filament
that would burn slowly and stay
lit. Edison tried wires, sticks,
blades of grass, and even hairs
from his assistants’ beards.
Finally, a piece of carbonized
bamboo from Japan did the trick.
Edison’s company used bamboo
filaments until 1911, when it
began using tungsten filaments,
which are still used today.
NEW USES FOR STEEL The railroads, with thousands of
miles of track, became the biggest customers for steel, but
inventors soon found additional uses for it. Joseph
Glidden’s barbed wire and McCormick’s and Deere’s farm
machines helped transform the plains into the food producer of the nation.
Steel changed the face of the nation as well, as it made
innovative construction possible. One of the most remarkable structures was the Brooklyn Bridge. Completed in
1883, it spanned 1,595 feet of the East River in New York
City. Its steel cables were supported by towers higher than
any man-made and weight-bearing structure except the
pyramids of Egypt. Like those ancient marvels, the completed bridge was called a wonder of the world.
Around this time, setting the stage for a new era of
expansion upward as well as outward, William Le Baron
Jenney designed the first skyscraper with a steel frame—the
Home Insurance Building in Chicago. Before Jenney had his
pioneering idea, the weight of large buildings was supported entirely by their walls or by iron frames, which limited
the buildings’ height. With a steel frame to support the
weight, however, architects could build as high as they
wanted. As structures soared into the air, not even the sky
seemed to limit what Americans could achieve.
CHAPTER 6
MAIN IDEA
Summarizing
A What natural
resources were
most important for
industrialization?
A. Answer
oil, coal, iron
ore, water
Inventions Promote Change
By capitalizing on natural resources and their own ingenuity,
inventors changed more than the landscape. Their inventions affected the very way people lived and worked.
THE POWER OF ELECTRICITY In 1876, Thomas Alva Edison became a pioneer on the new industrial frontier when he established the world’s first research
laboratory in Menlo Park, New Jersey. There Edison perfected the incandescent
light bulb—patented in 1880—and later invented an entire system for producing
and distributing electrical power. Another inventor, George Westinghouse, along
with Edison, added innovations that made electricity safer and less expensive.
The harnessing of electricity completely changed the nature of business in
America. By 1890, electric power ran numerous machines, from fans to printing
presses. This inexpensive, convenient source of energy soon became available in
homes and spurred the invention of time-saving appliances. Electric streetcars made
urban travel cheap and efficient and also promoted the outward spread of cities.
More important, electricity allowed manufacturers to locate their plants
232
1903
● Airplane
Radio
● Motion Pictures
● X-Ray
●
Vocabulary
incandescent:
giving off visible
light as a result of
being heated
10/21/02
MAIN IDEA
Analyzing
Effects
B How did
electricity change
American life?
B. Answer
It changed the
nature of business, made possible the invention of new
appliances, and
helped cities
and industries
grow.
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wherever they wanted—not just near sources of power, such as rivers. This
enabled industry to grow as never before. Huge operations, such as the Armour
and Swift meatpacking plants, and the efficient processes that they used became
the models for new consumer industries. B
INVENTIONS CHANGE LIFESTYLES Edison’s
light bulb was only one of several revolutionary
inventions. Christopher Sholes invented the
typewriter in 1867 and changed the world of
work. Next to the light bulb, however, perhaps
the most dramatic invention was the telephone,
unveiled by Alexander Graham Bell and
Thomas Watson in 1876. It opened the way for
a worldwide communications network.
The typewriter and the telephone particularly affected office work and created new jobs
for women. Although women made up less
than 5 percent of all office workers in 1870, by
1910 they accounted for nearly 40 percent of
the clerical work force. New inventions also had
a tremendous impact on factory work, as well as
on jobs that traditionally had been done at
home. For example, women had previously
sewn clothing by hand for their families. With
industrialization, clothing could be mass-produced in factories, creating a need for garment
workers, many of whom were women.
Industrialization freed some factory workers from backbreaking labor and helped
improve workers’ standard of living. By 1890, the average workweek had been
reduced by about ten hours. However, many laborers felt that the mechanization
of so many tasks reduced human workers’ worth. As consumers, though, workers
regained some of their lost power in the marketplace. The country’s expanding
urban population provided a vast potential market for the new inventions and
products of the late 1800s.
▼
230-233-Chapter 6
The typewriter
shown here dates
from around
1890.
1. TERMS & NAMES For each term or name, write a sentence explaining its significance.
• Edwin L. Drake
• Bessemer process
• Thomas Alva Edison
• Christopher Sholes
• Alexander Graham Bell
MAIN IDEA
CRITICAL THINKING
2. TAKING NOTES
In a chart like the one below, list
resources, ideas, and markets that
affected the industrial boom of the
19th century. In the second column,
note how each item contributed to
industrialization.
3. MAKING INFERENCES
Do you think that consumers gained
power as industry expanded in the
late 19th century? Why or why not?
Resources,
Ideas, Markets
Impact
4. HYPOTHESIZING
If the U.S. had been poor in
natural resources, how would
industrialization have been affected?
5. ANALYZING EFFECTS
Which invention or development
described in this section had the
greatest impact on society? Justify
your choice. Think About:
• the applications of inventions
• the impact of inventions on
people’s daily lives
• the effect of inventions on
the workplace
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The Age of the
Railroads
WHY IT MATTERS NOW
MAIN IDEA
The growth and consolidation
of railroads benefited the
nation but also led to
corruption and required
government regulation.
Railroads made possible the
expansion of industry across
the United States.
Terms & Names
•transcontinental
railroad
•George M.
Pullman
•Crédit Mobilier
•Munn v. Illinois
•Interstate
Commerce Act
One American's Story
In October 1884, the economist Richard Ely visited the
town of Pullman, Illinois, to write about it for Harper’s magazine. At first, Ely was impressed with the atmosphere of
order, planning, and well-being in the town George M.
Pullman had designed for the employees of his railroadcar factory. But after talking at length with a dissatisfied
company officer, Ely concluded the town had a fatal flaw:
it too greatly restricted its residents. Pullman employees
were compelled to obey rules in which they had no say. Ely
concluded that “the idea of Pullman is un-American.”
desires the happiness of the people, but in such way as shall please the authorities. . . . If free American institutions are to be preserved, we want no race of men
reared as underlings.”
—“Pullman: A Social Study”
As the railroads grew, they came to influence many facets of American life,
including, as in the town of Pullman, the personal lives of the country’s citizens.
They caused the standard time and time zones to be set and influenced the
growth of towns and communities. However, the unchecked power of railroad
companies led to widespread abuses that spurred citizens to demand federal regulation of the industry.
Railroads Span Time and Space
Rails made local transit reliable and westward expansion possible for business as
well as for people. Realizing how important railroads were for settling the West
and developing the country, the government made huge land grants and loans to
the railroad companies.
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CHAPTER 6
▼
A PERSONAL VOICE RICHARD T. ELY
“ It is benevolent, well-wishing feudalism [a medieval social system], which
The town of
Pullman was
carefully laid out
and strictly
controlled.
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A NATIONAL NETWORK By 1856, the railroads extended
west to the Mississippi River, and three years later, they
crossed the Missouri. Just over a decade later, crowds across
the United States cheered as the Central Pacific and Union
Pacific Railroads met at Promontory, Utah, on May 10, 1869.
A golden spike marked the spanning of the nation by the first
transcontinental railroad. Other transcontinental lines
followed, and regional lines multiplied as well. At the start of
the Civil War, the nation had had about 30,000 miles of
track. By 1890, that figure was nearly six times greater.
ROMANCE AND REALITY The railroads brought the
dreams of available land, adventure, and a fresh start within
the grasp of many Americans. This romance was made possible, however, only by the harsh lives of railroad workers.
The Central Pacific Railroad employed thousands of
Chinese immigrants. The Union Pacific hired Irish immigrants and desperate, out-of-work Civil War veterans to lay
track across treacherous terrain while enduring attacks by
Native Americans. Accidents and diseases disabled and killed
thousands of men each year. In 1888, when the first railroad
statistics were published, the casualties totaled more than
2,000 employees killed and 20,000 injured.
MAIN IDEA
Analyzing
Effects
A What were the
effects of railroad
expansion?
A. Answer
The growth of
industries that
could ship to new
markets; hazardous jobs for
railroad workers;
an increase of
immigration and
migration to the
West.
RAILROAD TIME In spite of these difficult working conditions, the railroad laborers helped to transform the diverse
regions of the country into a united nation. Though linked
in space, each community still operated on its own time,
with noon when the sun was directly overhead. Noon in
Boston, for example, was almost 12 minutes later than
noon in New York. Travelers riding from Maine to
California might reset their watches 20 times.
In 1869, to remedy this problem, Professor C. F. Dowd
proposed that the earth’s surface be divided into 24 time
zones, one for each hour of the day. Under his plan, the
United States would contain four zones: the Eastern,
Central, Mountain, and Pacific time zones. The railroad
companies endorsed Dowd’s plan enthusiastically, and
many towns followed suit.
Finally, on November 18, 1883, railroad crews and
towns across the country synchronized their watches. In
1884, an international conference set worldwide time
zones that incorporated railroad time. The U.S. Congress,
however, didn’t officially adopt railroad time as the standard for the nation until 1918. As strong a unifying force
as the railroads were, however, they also opened the way
for abuses that led to social and economic unrest. A
Page 2 of 5
HISTORICAL
S P O TLIG H T
CHINESE IMMIGRANTS AND
THE RAILROADS
Although the railroads paid all
their employees poorly, Asians
usually earned less than whites.
The average pay for whites working a ten-hour day was $40 to
$60 a month plus free meals.
Chinese immigrants hired by the
Central Pacific performed similar
tasks from dawn to dusk for
about $35 a month—and they
had to supply their own food.
The immigrants’ working conditions were miserable, as depicted
by artist Jake Lee below. In
1866, for example, the railroad
hired them to dig a tunnel
through a granite mountain. For
five months of that year, the
Chinese lived and worked in
camps surrounded by banks of
snow. The total snowfall reached
over 40 feet. Hundreds of the
men were buried in avalanches or
later found frozen, still clutching
their shovels or picks.
Opportunities and Opportunists
The growth of the railroads influenced the industries and businesses in which
Americans worked. Iron, coal, steel, lumber, and glass industries grew rapidly as
they tried to keep pace with the railroads’ demand for materials and parts. The
rapid spread of railroad lines also fostered the growth of towns, helped establish
new markets, and offered rich opportunities for both visionaries and profiteers.
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ANOTHER
P E R S P EC T I V E
ON THE WRONG TRACK
While the railroads captured the
imagination of most 19th-century
Americans, there were those who
didn’t get on the bandwagon. The
writer Herman Melville raged
against the smoke-belching iron
horse and the waves of change it
set in motion as vehemently as
his character Captain Ahab raged
against the white whale and the
sea in Moby-Dick. “Hark! here
comes that old dragon again—
that gigantic gadfly . . . snort!
puff! scream! Great improvements of the age,” Melville
fumed. “Who wants to travel so
fast? My grandfather did not, and
he was no fool.”
Page 238
NEW TOWNS AND MARKETS By linking previously isolated cities, towns, and settlements, the railroads promoted
trade and interdependence. As part of a nationwide network
of suppliers and markets, individual towns began to specialize in particular products. Chicago soon became known for
its stockyards and Minneapolis for its grain industries. These
cities prospered by selling large quantities of their products
to the entire country. New towns and communities also
grew up along the railroad lines. Cities as diverse as Abilene,
Kansas; Flagstaff, Arizona; Denver, Colorado; and Seattle,
Washington, owed their prosperity, if not their very existence, to the railroads. B
PULLMAN The railroads helped cities not only grow up but
branch out. In 1880, for example, George M. Pullman built
a factory for manufacturing sleepers and other railroad cars on
the Illinois prairie. The nearby town that Pullman built for his
employees followed in part the models of earlier industrial
experiments in Europe. Whereas New England textile manufacturers had traditionally provided housing for their workers,
the town of Pullman provided for almost all of workers’ basic
needs. Pullman residents lived in clean, well-constructed brick
houses and apartment buildings with at least one window in
every room—a luxury for city dwellers. In addition, the town
offered services and facilities such as doctors’ offices, shops, and an athletic field.
As Richard Ely observed, however, the town of Pullman remained firmly
under company control. Residents were not allowed to loiter on their front steps
or to drink alcohol. Pullman hoped that his tightly controlled environment
would ensure a stable work force. However, Pullman’s refusal to lower rents after
cutting his employees’ pay led to a violent strike in 1894.
Pullman cars
brought luxury to
the rails, as shown
in this
advertisement
from around 1890.
▼
CRÉDIT MOBILIER Pullman created his company town out of the desire for
control and profit. In some other railroad magnates, or powerful and influential
industrialists, these desires turned into self-serving corruption. In one of the most
infamous schemes, stockholders in the Union Pacific Railroad formed, in 1864, a
construction company called Crédit Mobilier (krDdPGt mI-bClPyEr). The stockholders gave this company a contract to lay track at two to
three times the actual cost—and pocketed the profits. They
donated shares of stock to about 20 representatives in
Congress in 1867.
A congressional investigation of the company, spurred by
reports in the New York Sun, eventually found that the officers
of the Union Pacific had taken up to $23 million in stocks,
bonds, and cash. Testimony implicated such well-known and
respected federal officials as Vice-President Schuyler Colfax
and Congressman James Garfield, who later became president.
Although these public figures kept their profits and received
little more than a slap on the wrist, the reputation of the
Republican Party was tarnished. C
The Grange and the Railroads
Farmers were especially affected by corruption in the railroads.
The Grangers—members of the Grange, a farmers’ organization founded in 1867—began demanding governmental control over the railroad industry.
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CHAPTER 6
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MAIN IDEA
Summarizing
B How did the
railroads affect
cities?
B. Answer
Railroads led to
a growth of
cities in the
Northeast and
the Midwest
and led to the
development of
new cities in the
West.
MAIN IDEA
Summarizing
C How did
railroad owners
use Crédit Mobilier
to make huge,
undeserved
profits?
C. Answer
By charging too
much for railroad construction and paying
off government
officials.
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Major Railroad Lines, 1870–1890
Seattle
GREAT N ORTHE
RN
Portland
Butte
NORT
Superior
L.
Fargo
HERN PACIFIC
PA
40°N
FIC
CI
U NI
TR A L
CEN
Salt Lake City
P A CI
Chicago
FIC
Omaha
Denver
Los Angeles
ATCH
IS
Topeka
SOUT
H
ER
N
PA C I F I C
OCEAN
Eastern time
P ACIFIC R
AI
LW
AY
Tucson
, TOPEK
E
A , & A NT A F
ON
S
St. Louis
Kansas
City
Memphis
Albuquerque
ILLINOIS C ENT R A L
Great Salt
Lake
Sacramento
San Francisco
ON
ILLINOIS
C E N TRA L
Mountain time
R
NEW Y O
Buffalo
New York
Philadelphia
Pittsburgh
Baltimore
Washington, DC
Richmond
Norfolk
NI A
SYLVA
NN
PE
Indianapolis
Louisville
Nashville
Wilmington
AT L A N T I C
OCEAN
Fort Worth
Savannah
E
W
Railroads by 1870
S
Railroads by 1890
120°W
0
0
150
300 miles
150 300 kilometers
Background
Price fixing occurs
when companies
within an industry
all agree to charge
the same price for
a given service,
rather than
competing to offer
the lowest price.
MAIN IDEA
Analyzing
Issues
D How did the
Grangers, who
were largely poor
farmers, do battle
with the giant
railroad
companies?
30°N
N
New Orleans
Pacific time
Boston
40°N
Atlanta
El Paso
EN
K C TRA L
Albany
rie
E
Detroit
L.
Cleveland
TEXAS AND PACIFIC
Central time
L. Ontario
on
ur
Minneapolis
L. H
St. Paul
L. Michigan
236-240-Chapter 6
110°W
GEOGRAPHY SKILLBUILDER
1. Human-Environment Interaction What factor led
80°W
to rapid growth in Chicago, Minneapolis, and Denver?
2. Movement Why was rail construction concentrated in
the East before 1870 and in the West after 1870?
RAILROAD ABUSES Farmers were angry with railroad companies for a host of
reasons. They were upset by misuse of government land grants, which the railroads sold to other businesses rather than to settlers, as the government intended. The railroads also entered into formal agreements to fix prices, which helped
keep farmers in their debt. In addition, they charged different customers different
rates, often demanding more for short hauls—for which there was no alternative
carrier—than they did for long hauls.
GRANGER LAWS In response to these abuses by the railroads, the Grangers
took political action. They sponsored state and local political candidates, elected
legislators, and successfully pressed for laws to protect their interests. In 1871
Illinois authorized a commission “to establish maximum freight and passenger
rates and prohibit discrimination.” Grangers throughout the West, Midwest, and
Southeast convinced state legislators to pass similar laws, called Granger laws.
The railroads fought back, challenging the constitutionality of the regulatory
laws. In 1877, however, in the case of Munn v. Illinois, the Supreme Court
upheld the Granger laws by a vote of seven to two. The states thus won the right
to regulate the railroads for the benefit of farmers and consumers. The Grangers
also helped establish an important principle—the federal government’s right to
regulate private industry to serve the public interest. D
INTERSTATE COMMERCE ACT The Grangers’ triumph was short-lived, however. In 1886, the Supreme Court ruled that a state could not set rates on interstate commerce—railroad traffic that either came from or was going to another
state. In response to public outrage, Congress passed the Interstate Commerce
Act in 1887. This act reestablished the right of the federal government to supervise railroad activities and established a five-member Interstate Commerce
Commission (ICC) for that purpose. The ICC had difficulty regulating railroad
rates because of a long legal process and resistance from the railroads. The final
Skillbuilder
Answers
1. Their location
as railroad hubs.
2. In 1869, the
transcontinental
railroad was
complete, which
spurred the
need for new,
smaller rail lines
across the
West.
D. Answer
The farmers
took political
action in one
united front.
They pressed
legislators to
pass laws to
protect them.
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Page 5 of 5
Analyzing
“THE MODERN COLOSSUS OF (RAIL) ROADS”
Joseph Keppler drew this cartoon in 1879, featuring the railroad “giants”
William Vanderbilt (top), Jay Gould (bottom right), and Cyrus W. Fields (bottom
left). The three magnates formed a railroad trust out of their Union Pacific,
New York Central, and Lake Shore & Dependence lines.
SKILLBUILDER Analyzing Political Cartoons
1. The title of this cartoon is a pun on the Colossus of Rhodes, a statue
erected in 282 B.C. on an island near Greece. According to legend, the
100-foot-tall statue straddled Rhodes’s harbor entrance. Do you think the
artist means the comparison as a compliment or a criticism? Why?
2. The reins held by the railroad magnates attach not only to the trains but
also to the tracks and the railroad station. What does this convey about
the magnates’ control of the railroads?
SEE SKILLBUILDER HANDBOOK, PAGE R24.
Skillbuilder
Answers
1. Criticism. The
Colossus of
Rhodes protected the harbor;
the magnates
controlled the
railroads for
their own gain.
2. Controlling
the tracks and
the station
implies that
Vanderbilt has
total control of
the whole operation.
blow to the commission came in 1897, when the Supreme
Court ruled that it could not set maximum railroad rates.
Not until 1906, under President Theodore Roosevelt, did
the ICC gain the power it needed to be effective.
PANIC AND CONSOLIDATION Although the ICC presented few problems for the
railroads, corporate abuses, mismanagement, overbuilding, and competition
pushed many railroads to the brink of bankruptcy. Their financial problems
played a major role in a nationwide economic collapse. The panic of 1893 was the
worst depression up to that time: by the end of 1893, around 600 banks and
15,000 businesses had failed, and by 1895, 4 million people had lost their jobs.
By the middle of 1894, a quarter of the nation’s railroads had been taken over by
financial companies. Large investment firms such as J. P. Morgan & Company
reorganized the railroads. As the 20th century dawned, seven powerful companies
held sway over two-thirds of the nation’s railroad tracks.
Vocabulary
consolidation: the
act of uniting or
combining
1. TERMS & NAMES For each term or name, write a sentence explaining its significance.
• transcontinental railroad
• George M. Pullman
• Crédit Mobilier
• Munn v. Illinois
• Interstate Commerce Act
MAIN IDEA
CRITICAL THINKING
2. TAKING NOTES
In a chart like the one below, fill
in effects of the rapid growth of
railroads.
3. MAKING INFERENCES
Do you think the government and
private citizens could have done
more to curb the corruption and
power of the railroads? Give
examples to support your opinion.
Think About:
• why the railroads had power
• the rights of railroad customers
and workers
• the scope of government
regulations
Rapid Growth
of Railroads
How did the growth of railroads
affect people’s everyday lives?
How did it affect farmers?
240
CHAPTER 6
4. SYNTHESIZING
The federal government gave land
and made loans to the railroad
companies. Why was the
government so eager to promote the
growth of railroads?
5. ANALYZING MOTIVES
Reread “Another Perspective” on
railroads (page 238). Why do you
think that some Americans disliked
this new means of transportation?
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Page 422
Page 1 of 6
The Business
of America
WHY IT MATTERS NOW
MAIN IDEA
Consumer goods fueled the
business boom of the 1920s
as America’s standard of
living soared.
Business, technological, and
social developments of the
1920s launched the era of
modern consumerism.
Terms & Names
•Calvin Coolidge
•urban sprawl
•installment plan
One American's Story
In 1927, the last Model T Ford—number 15,077,033—rolled off
the assembly line. On December 2, some 1 million New Yorkers
mobbed show rooms to view the new Model A. One striking difference between the two models was that customers could
order the Model A in such colors as “Arabian Sand” and
“Niagara Blue”; the old Model T had come only in black. A
Ford spokesman explained some additional advantages of the
new automobile.
▼
The Model A was
a more luxurious
car than the
Model T. It was
introduced at
$495. Model T’s
were selling for
$290.
A PERSONAL VOICE
“ Good-looking as that car is, its performance is better than its appearance. We
don’t brag about it, but it has done seventy-one miles an hour. It will ride along
a railroad track without bouncing. . . . It’s the smoothest thing you ever rode in.”
—a Ford salesman quoted in Flappers, Bootleggers, “Typhoid Mary,” and the Bomb
The automobile became the backbone of the American economy in the 1920s
(and remained such until the 1970s). It profoundly altered the American landscape
and American society, but it was only one of several factors in the country’s business boom of the 1920s.
American Industries Flourish
The new president, Calvin Coolidge, fit into the pro-business spirit of the 1920s
very well. It was he who said, “the chief business of the American people is business. . . . The man who builds a factory builds a temple—the man who works
there worships there.” Both Coolidge and his Republican successor, Herbert
Hoover, favored government policies that would keep taxes down and business
profits up, and give businesses more available credit in order to expand. Their goal
was to keep government interference in business to a minimum and to allow private enterprise to flourish. For most of the 1920s, this approach seemed to work.
Coolidge’s administration continued to place high tariffs on foreign imports,
422
CHAPTER 12
Skillbuilder
Answers
1. Possible
Answers: With a
Southwestern
route, engineers
did not have to
build a road
across the
Rocky
Mountains.
Also, Route 66
would help open
up the sparsely
populated
Southwest to
the rest of the
country and
thus spur population growth
and economic
development.
2. Cities along
the route grew
as traffic
brought more
business to the
area.
422-427-Chapter 12
10/21/02
A. Possible
Answers Roads
were paved, and
shopping centers and other
services for
cars were built;
people commuted to work, and
urban sprawl
developed;
regional differences diminished.
MAIN IDEA
Analyzing
Effects
A What was
the impact of
the automobile?
5:19 PM
Page 423
Page 2 of 6
which helped American manufacturers. Reducing income taxes meant that people had more money in their pockets. Wages were rising because of new technology and so was productivity.
THE IMPACT OF THE AUTOMOBILE The automobile literally changed the
American landscape. Its most visible effect was the construction of paved roads
suitable for driving in all weather. One such road was the legendary Route 66,
which provided a route for people trekking west from Chicago to California.
Many, however, settled in towns along the route. In addition to the changing
landscape, architectural styles also changed, as new houses typically came
equipped with a garage or carport and a driveway—and a smaller lawn as a result.
The automobile also launched the rapid construction of gasoline stations, repair
shops, public garages, motels, tourist camps, and shopping centers. The first
automatic traffic signals began blinking in Detroit in the early 1920s. The
Holland Tunnel, the first underwater tunnel designed specifically for motor
vehicles, opened in 1927 to connect New York City and Jersey City, New
Jersey. The Woodbridge Cloverleaf, the first cloverleaf intersection, was built
in New Jersey in 1929. A
The automobile liberated the isolated rural family, who could now travel to
the city for shopping and entertainment. It also gave families the opportunity to
vacation in new and faraway places. It allowed both women and young people to
become more independent through increased mobility. It allowed workers to live
Gas for cars
was cheap and
plentiful. Gas
stations sprung
up on Route 66
charging 25¢
per gallon.
▼
Route 66
UTAH
Barstow
Los Angeles
PAINTED
DESERT
Winslow
r
ve
Ri
Holbrook
WYOMING
COLORADO
A rka
nsas
30°N
KANSAS
Tulsa
Amarillo
OKLAHOMA
N
0
W
E
S
0
100
200 miles
100 200 kilometers
Routing of highway through
392 miles of Oklahoma
gave the state more miles,
more jobs, and more
income than other states
on Route 66.
St. Louis
KENTUCKY
Springfield
Claremore
TENNESSEE
ARKANSAS
Red R iver
TEXAS
120°W
ILLINOIS
Springfield
MISSOURI
River
Tucumcari
Santa
Rosa
NEW MEXICO
ARIZONA
OHIO
INDIANA
ss
iv ou r
er i
Galena
Albuquerque
Chicago
IOWA
Route 66 linked hundreds of rural
communities in Illinois, Missouri,
and Kansas to Chicago, enabling
NEBRASKA
farmers to
transport produce.
i
M R
l
Co
MOJAVE
DESERT
a
or
do
C K Y
I N S
R O
U N T A
M O
The “Auto Camp”
developed as townspeople roped off
spaces alongside
the road where
travelers could
sleep at night.
CALIFORNIA
iver
iR
Roadside stands offering food, drink, and other items
appeared in increasing numbers.
40°N
L a k e M i ch i ga n
MONTANA
PACIFIC
OCEAN
rior
pe
Commissioned on the cusp of the Depression, Route 66 symbolized the road to opportunity. Also known as “the Mother Road,” it
a ke H u roand
became the subject of countless songs, films, Lbooks,
legends.
n
1916 Federal-Aid Road Act sets up highway program with the
federal government paying half the cost of states’ highway
L. Su
construction.
1921 Highway construction in 11 western
states begins under
Mis WISCONSIN
sis
administration of Bureau of Public
Roads.
sip
p
1926 U.S. Highway 66, which would run 2,448 miles from
MINNESOTA
Chicago to Los Angeles, California, is established. MICHIGAN
WASHINGTON
GEOGRAPHY SKILLBUILDER
1. Place What do you think were some of
the reasons government officials decided
to build Route 66 through the Southwest
rather than straight west from Chicago?
2. Movement How do you think the
increase in traffic affected the cities
along this route?
Politics of the Roaring Twenties
423
422-427-Chapter 12
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5:19 PM
KEY PLAYER
CALVIN COOLIDGE
1872–1933
Stepping into office in 1923, the
tightlipped Vermonter was respected for his solemnity and wisdom.
Coolidge supported American business and favored what he called
“a constructive economy.”
Known for his strength of character, Coolidge forced the resignation of Attorney General Daugherty
and other high officials who had
created scandal in office.
Shortly after Coolidge was elected, his son died of blood poisoning. Coolidge later wrote, “The
power and the glory of the presidency went with him.” When he
decided not to seek reelection in
1928, Coolidge stumped the
nation. Keeping in character, he
said, “Goodby, I have had a very
enjoyable time in Washington.”
▼
Flight attendants train
for an early United
Airlines flight. When
commercial airline
flights began, all flight
attendants were female
and white.
424
CHAPTER 12
Page 424
miles from their jobs, resulting in urban sprawl as cities
spread in all directions. The automobile industry also provided an economic base for such cities as Akron in Ohio,
and Detroit, Dearborn, Flint, and Pontiac in Michigan. The
industry drew people to such oil-producing states as
California and Texas. The automobile even became a status
symbol—both for individual families and to the rest of the
world. In their work Middletown, the social scientists Robert
and Helen Lynd noted one woman’s comment: “I’ll go
without food before I’ll see us give up the car.”
The auto industry symbolized the success of the free
enterprise system and the Coolidge era. Nowhere else in the
world could people with little money own their own automobile. By the late 1920s, around 80 percent of all registered motor vehicles in the world were in the United
States—about one automobile for every five people. The
humorist Will Rogers remarked to Henry Ford, “It will take
a hundred years to tell whether you helped us or hurt us,
but you certainly didn’t leave us where you found us.” B
THE YOUNG AIRPLANE INDUSTRY Automobiles weren’t
the only form of transportation taking off. The airplane
industry began as a mail carrying service for the U.S. Post
Office. Although the first flight in 1918 was a disaster, a
number of successful flights soon established the airplane
as a peacetime means of transportation. With the development of weather forecasting, planes began carrying radios
and navigational instruments. Henry Ford made a trimotor
airplane in 1926. Transatlantic flights by Charles Lindbergh
and Amelia Earhart helped to promote cargo and commercial airlines. In 1927, the Lockheed Company produced a
single-engine plane, the Vega. It was one of the most popular transport airplanes of the late 1920s. Founded in 1927,
Pan American Airways inaugurated the first transatlantic
passenger flights.
Page 3 of 6
Vocabulary
status symbol:
a possession
believed to
enhance the
owner’s social
standing
MAIN IDEA
Analyzing
Effects
B How did the
widespread use
of the automobile
affect the
environment and
the lives of
Americans?
B. Possible
Answers It
encouraged
consumers to
consider many
more items
necessities
rather than luxuries. The
Coolidge administration and big
business got
along very well
together.
Page 4 of 6
America’s Standard of Living Soars
The years from 1920 to 1929 were prosperous ones for the United States.
Americans owned around 40 percent of the world’s wealth, and that wealth
changed the way most Americans lived. The average annual income rose more
than 35 percent during the period—from $522 to $705. People
found it easy to spend all that extra income and then some.
ELECTRICAL CONVENIENCES Gasoline powered much of
the economic boom of the 1920s, but the use of electricity also
transformed the nation. American factories used electricity to
run their machines. Also, the development of an alternating
electrical current made it possible to distribute electric power
efficiently over longer distances. Now electricity was no longer
restricted to central cities but could be transmitted to suburbs.
The number of electrified households grew, although most
farms still lacked power.
By the end of the 1920s, more and more homes had electric
irons, while well-to-do families used electric refrigerators, cooking
ranges, and toasters. Eunice Fuller Barnard listed prices for electrical appliances in a 1928 magazine article:
Image not available for
use on this CD-ROM.
Please refer to the image
in the textbook.
▼
Goods and Prices, 1900 and 1928
1900
wringer and washboard
brushes and brooms
sewing machine (mechanical)
1928
$ 5
$ 5
$25
washing machine
vacuum cleaner
sewing machine (electric)
$150
$ 50
$ 60
MAIN IDEA
Forming
Generalizations
C How did the
use of electricity
affect Americans’
lifestyle?
American consumers
in the 1920s could
purchase the latest
household electrical
appliances, such as a
refrigerator, for as
little as a dollar down
and a dollar a week.
These electrical appliances made the lives of housewives easier, freed them for
other community and leisure activities, and coincided with a growing trend of
women working outside the home. C
THE DAWN OF MODERN ADVERTISING With new goods flooding the market,
advertising agencies no longer just informed the public about products and
prices. Now they hired psychologists to study how to appeal to people’s desire for
youthfulness, beauty, health, and wealth. Results were impressive. The slogan
“Say it with flowers” doubled florists’ business between 1912 and 1924. “Reach
for a Lucky instead of a sweet” lured weight-conscious Americans to cigarettes and
away from candy. Brand names became familiar from coast to coast, and luxury
items now seemed like necessities.
One of those “necessities” was mouthwash. A 1923 Listerine advertisement
aimed to convince readers that without Listerine a person ran the risk of having
halitosis—bad breath—and that the results could be a disaster.
A PERSONAL VOICE
“ She was a beautiful girl and talented too. She had the advantages of education
and better clothes than most girls of her set. She possessed that culture and
poise that travel brings. Yet in the one pursuit that stands foremost in the mind of
every girl and woman—marriage—she was a failure.”
—Listerine Advertisement
Businesspeople applied the power of advertising to other areas of American
life. Across the land, they met for lunch with fellow members of such service
organizations as Rotary, Kiwanis, and the Lions. As one observer noted, they sang
Politics of the Roaring Twenties
425
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Page 426
ANOTHER
P E R S P EC T I V E
THE NEEDY
While income rose for many
Americans in the 1920s, it did
not rise for everyone. Industries
such as textile and steel manufacturing made very little profit.
Mining and farming actually suffered losses. Farmers were
deeply in debt because they had
borrowed money to buy land and
machinery so that they could produce more crops during World
War I. When European agriculture
bounced back after the war, the
demand for U.S. crops fell, as did
prices. Before long there were
U.S. farm surpluses.
Many American farmers could
not make their loan and mortgage payments. They lost their
purchasing power, their equipment, and their farms. As one
South Dakota state senator
remarked, “There’s a saying:
‘Depressions are farm led and
farm fed.’”
songs, raised money for charities, and boosted the image of
the businessman “as a builder, a doer of great things, yes,
and a dreamer whose imagination was ever seeking out new
ways of serving humanity.” Many Americans idolized business during these prosperous times.
A Superficial Prosperity
During the 1920s, most Americans believed prosperity
would go on forever—the average factory worker was producing 50 percent more at the end of the decade than at its
start. Hadn’t national income grown from $64 billion in
1921 to $87 billion in 1929? Weren’t most major corporations making fortunes? Wasn’t the stock market reaching
new heights?
PRODUCING GREAT QUANTITIES OF GOODS As productivity increased, businesses expanded. There were
numerous mergers of companies that manufactured automobiles, steel, and electrical equipment, as well as mergers
of companies that provided public utilities. Chain stores
sprouted, selling groceries, drugs, shoes, and clothes. Fiveand-dime stores like Woolworth’s also spread rapidly.
Congress passed a law that allowed national banks to
branch within cities of their main office. But as the number
of businesses grew, so did the income gap between workers
and managers. There were a number of other clouds in the
blue sky of prosperity. The iron and railroad industries,
among others, weren’t very prosperous, and farms nationwide suffered losses—with new machinery, they were producing more food than
was needed and this drove down food prices.
BUYING GOODS ON CREDIT In addition to advertising, industry provided
another solution to the problem of luring consumers to purchase the mountain
of goods produced each year: easy credit, or “a dollar down and a dollar forever.”
The installment plan, as it was then called, enabled people to buy goods over
Analyzing
“YES, SIR, HE’S MY BABY”
This cartoon depicts Calvin Coolidge playing a saxophone
labeled “Praise” while a woman representing “Big Business”
dances up a storm.
SKILLBUILDER Analyzing Political Cartoons
1. The dancing woman is a 1920s “flapper”—independent,
confident, and assertive. In what ways was big business
in the 1920s comparable to the flappers?
2. What do you think the cartoonist suggests about
Coolidge’s relationship with big business?
SEE SKILLBUILDER HANDBOOK, PAGE R24.
426
CHAPTER 12
Page 5 of 6
Background
See productivity
on page R44 in
the Economics
Handbook.
422-427-Chapter 12
10/21/02
MAIN IDEA
Analyzing
Issues
D What were the
main advantage
and disadvantage
of buying on
credit?
5:19 PM
Page 427
Page 6 of 6
an extended period, without having to put down much money at the time of purchase. Banks provided the money at low interest rates. Advertisers pushed the
“installment plan” idea with such slogans as “You furnish the girl, we’ll furnish
the home” and “Enjoy while you pay.”
Some economists and business owners worried that installment buying might
be getting out of hand and that it was really a sign of fundamental weaknesses of
a superficial economic prosperity. One business owner even wrote to President
Coolidge and related a conversation he had overheard on a train. D
D. Answer
Advantage:
People could
buy goods they
could not otherwise afford.
Disadvantage:
People could
go far into
debt without
realizing it.
A PERSONAL VOICE
“Have you an automobile yet?”
“No, I talked it over with John and he felt we could not afford one.”
“Mr. Budge who lives in your town has one and they are not as well off as you are.”
“Yes, I know. Their second installment came due, and they had no money to pay it.”
“What did they do? Lose the car?”
“No, they got the money and paid the installment.”
“How did they get the money?”
“They sold the cook-stove.”
“How could they get along without a cook-stove?”
“They didn’t. They bought another on the installment plan.”
—a business owner quoted in In The Time of Silent Cal
MAIN IDEA
Predicting
Effects
E How do you
think the changes
in spending will
affect the
economy?
Still, most Americans focused their attention on the present, with little concern for the future. What could possibly go wrong with the nation’s economy?
The decade of the 1920s had brought about many technological and economic
changes. And yet the Coolidge era was built on paradox—the president stood for
economy and a frugal way of life, but he was favored by a public who had thrown
all care to the wind. Life definitely seemed easier and more enjoyable for hundreds of thousands of Americans. From the look of things, there was little warning of what was to come. E
E. Possible
Answer
The economy
may falter when
consumers are
unable to meet
their credit obligations.
Automobile Registration
1910–1930
1. TERMS & NAMES For each term or name, write a sentence explaining its
significance.
•Calvin Coolidge
•urban sprawl
•installment plan
MAIN IDEA
CRITICAL THINKING
2. TAKING NOTES
Re-create the web below on your
paper and fill it in with events that
illustrate the central idea.
3. EVALUATING
Do you agree with President
Coolidge’s statement “The man
who builds a factory builds a
temple—the man who works there
worships there”? Explain your
answer. Think About:
Technology &
Business Changes
of the 1920s
Choose one event from the web and
explain its significance in the 1920s.
• the goals of business and
of religion
• the American idolization of
business
• the difference between workers
and management
Registration (millions)
25
20
15
10
5
1910
1915
1920
1925
1930
Source: Historical Statistics of the United States.
4. INTERPRETING GRAPHS
What trend does the graph show
between 1920 and 1930? What
were some of the reasons for this
trend?
Politics of the Roaring Twenties
427