Because factories were concentrated in or near cities, it was a lot cheaper to wire them than it was to wire farms or even smaller cities away from electrical generating stations. Many of the new factories built during this later period appeared outside city limits, another new development. Electrification allowed managers to automate jobs once done by hand labor, thereby eliminating inefficiency, gaining greater control over the production process, and boosting overall productivity. New devices like time clocks and even new modes of production like the assembly line also depended upon electric power.
The advent of cheap and readily available electricity had a particularly important effect upon the physical layout of American cities during this period. Frank Sprague, an electrical engineer who had once worked for Thomas Edison, designed the first electric streetcar system for Richmond, Virginia, in 1888. Such systems supplanted horse‐drawn carriages, making it possible for people to travel further and faster than they would have otherwise. This gave rise to a burst of suburbanization, a spate of new towns on the outskirts of American cities where wealthy and middle‐class people could move to escape from the difficulties of modern urban life but still be close enough to enjoy many of its advantages.
The new suburbanites often traveled to and from work via new electric streetcars. The electrical equipment manufacturer Westinghouse was one of the major manufacturers of vehicles powered by an overhead wire. Electric streetcars had the advantage over horses of not leaving manure or of dying in the streets. Streetcars were more popular during weekends than during the week as working‐class people took advantage of low fares to explore new neighborhoods or to visit amusement parks, like Coney Island, generally built at the end of these lines.
In the same way that employers and city planners depended upon streetcars to move people, manufacturers became more dependent upon railroads, after 1880, to move their finished products. Railroad track mileage grew greatly after the Civil War, connecting cities and leading to the growth of new factories in places that were convenient to the necessary resources to make marketable goods. Eventually, mass distribution was a prerequisite to benefit from all that increased productivity. For all these reasons, separating the causes and effects of industrialization and urbanization is practically impossible.
Throughout the nineteenth century, factories usually had to be built near shipping ports or railroad stops because these were the easiest way to get factory products out to markets around the world. As more railroad tracks were built late in the nineteenth century, it became easier to locate factories outside of downtowns. Streetcars helped fill up the empty space downtown where factories would have gone. They made it easier to live further away from work and still commute to the heart of downtown, thereby making it possible for other kinds of businesses to locate there. One example would be the large urban department store, a phenomenon that predates 1880, but grew into its own after that date. Such stores like Wanamaker's in Philadelphia or Marshall Field's in Chicago bought the products of industrialization in bulk and sold them at a discounted price to workers who might have had trouble getting access to them any other way.
2.4.3 Structural Steel and Skyscrapers
While retail emporiums could be blocks long and only a few stories tall, other business rented space in thinner buildings built much higher. By the late 1880s, structures that had once been built with iron began to be built with a structural steel – a new, stronger kind of steel. The practice had begun in Chicago, championed by the architect Louis Sullivan, who designed the first skyscrapers there. A skyscraper, Sullivan wrote, “must be every inch a tall and soaring thing, rising in sheer exultation that from bottom to top it is a unit without a single dissenting line” (Alexiou 2013). That kind of design required a skeleton of structural steel upon which other substances like brick or granite could hang. Even then, such skyscrapers had to be tapered; otherwise, the weight from the top floors could make the whole structure collapse.
Creating structural steel for skyscrapers required entirely different production methods than had been required to make Bessemer steel (which had been used primarily for railroad rails). Quantity and speed were the main requirements of producing Bessemer steel. Structural steel required a more carefully made product. The demands of structural steel encouraged steelmakers like Andrew Carnegie to redesign entire factories, most notably replacing older Bessemer converters with the open‐hearth process. This new kind of steelmaking not only produced higher quality steel but also required fewer skilled workers. This encouraged Carnegie's company to lock out its union workforce at Homestead, Pennsylvania, in 1892, so that it could save money by employing cheap replacement workers.
The other innovation that made skyscrapers possible was the electric elevator. Elisha Graves Otis designed the first reliable elevator in 1857. With electric power, it became possible to rise 60 stories in a matter of seconds. Before the elevator, rental spaces in commercial buildings cost more on lower floors because people didn't want to have to walk up stairs to get to the top. With elevators, tenants willing paid a premium in order to get better views out of their windows. Without elevators, nobody would have bothered to erect a building taller than five stories (Misa 1999, 2016).
The construction of skyscrapers was itself a terrific example of the industrial age coordination of labor and materials distribution. Steel skeletons meant that the unornamented higher sections of a building could be worked on even before the inevitable elaborate ornamental fringes on the lower part of the building were finished. This saved both time and money. When New York got so crowded that there was no space to store raw materials, the appearance of those materials would be carefully choreographed, and they would be taken directly off of flatbed trucks and placed in their exact positions near the tops of new buildings. Around the turn of the twentieth century, a major skyscraper could be built in as little as one year. The faster a building could be built, the faster an owner could collect rents and begin to earn back construction expenses.
The great benefit of skyscrapers was the ability to compress economic activity into smaller areas. “The skyscraper,” explained one New Yorker in 1897, “gathers into a single edifice an extraordinary number of activities, which otherwise would be widely separated. Each building is an almost complete city, often comprising within its walls, banks and insurance offices, post office and telegraph office, business exchanges restaurants, clubrooms and shops.” These same miniature cities also included numerous retail outlets, where the products of industrialized manufacturing could be purchased (Rees 2013). Shorter distances between these locations accelerated the pace of economic activity, which promoted further economic growth. However, large projects (like the many skyscrapers associated with the building of New York's Grand Central Station) eliminated or at least obscured urban industrial areas.
Unburdened by the need to pay federal income tax, industrial titans from across the United States displayed their massive wealth by building lavish mansions along New York's Fifth Avenue during the 1890s. By the 1920s, the value of land in Manhattan grew so fast because of its possible use for skyscrapers that second‐generation industrial families sold their mansions, since they no longer wanted to pay huge property taxes on them. Blocks of what was known as “Vanderbilt Alley,” named after the children of the steamship and railroad pioneer who had built mansions in the same area, were replaced by skyscrapers and high‐end retail emporiums.
The same basic principles of skyscraper production – build it quick and large, and pack it with people – motivated the way that builders produced other kinds of urban domiciles. “Today, three‐fourths of [New York City's] people live in the tenements,” wrote the reformer Jacob Riis in his 1890 classic, How the Other Half Lives, “and the nineteenth‐century drift of the population to the cities is sending ever‐increasing multitudes to crowd them” (Riis 1914). The best‐known tenement house design of this period was the dumbbell tenement of about five or six stories tall. They came about as the result of a design contest but were generally so crowded that they did more harm than good to the people who lived in them. Four families might live on a single floor with only two bathrooms between them. Designed to let light and air into central courtyards (which explains why they were shaped like a dumbbell from above), stacked up back‐to‐back, one against the other they did neither. Widely copied, New York City actually outlawed this design