Download - Chapter 24

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Chapter 24Chapter 24

Industry Comes of AgeIndustry Comes of Age~ 1865 – 1900 ~ ~ 1865 – 1900 ~

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Iron Colt Becomes an Iron Horse Iron Colt Becomes an Iron Horse After CW, railroad production grew enormously, from 35,000 mi. of After CW, railroad production grew enormously, from 35,000 mi. of track laid in 1865 to a whopping 192,556 mi. of track laid in 1900 track laid in 1865 to a whopping 192,556 mi. of track laid in 1900 – Congress gave land to railroad companies totally 155,504,994 acres Congress gave land to railroad companies totally 155,504,994 acres

Railroads gave land their value; towns where railroads ran became Railroads gave land their value; towns where railroads ran became sprawling cities while those skipped by RR’s sank into ghost towns sprawling cities while those skipped by RR’s sank into ghost towns

Spanning the Continent with RailsSpanning the Continent with RailsCongress commissioned the Congress commissioned the Union Pacific RailroadUnion Pacific Railroad to begin to begin westward from Omaha, Nebraska, to gold-rich Californiawestward from Omaha, Nebraska, to gold-rich California– Used many Irish to lay the track Used many Irish to lay the track

company received huge sums of money and land to build its tracks, company received huge sums of money and land to build its tracks, but corruption also plagued it, as the insiders of the but corruption also plagued it, as the insiders of the Credit MobilierCredit Mobilier reaped $23 million in profits reaped $23 million in profits Over in California, the Over in California, the Central Pacific RailroadCentral Pacific Railroad was in charge of was in charge of extending the railroad westward extending the railroad westward – used Chinese workers, and received the same incentives as the Union used Chinese workers, and received the same incentives as the Union

Pacific, but had to drill through the Sierra Nevada Mts.Pacific, but had to drill through the Sierra Nevada Mts.– Union Pacific built 1086 mi. of track; 689 mi. by the Central Pacific.Union Pacific built 1086 mi. of track; 689 mi. by the Central Pacific.

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Binding the Country with Railroad Ties Binding the Country with Railroad Ties Before 1900, four other transcontinental railroads were built: Before 1900, four other transcontinental railroads were built: Northern Pacific RailroadNorthern Pacific Railroad stretched from Lake Superior to the stretched from Lake Superior to the Puget Sound and was finished in 1883 Puget Sound and was finished in 1883 Atchison, Topeka, and Santa FeAtchison, Topeka, and Santa Fe stretched through the stretched through the Southwest deserts and was completed the following year, in 1884 Southwest deserts and was completed the following year, in 1884 Southern PacificSouthern Pacific (completed in 1884) went from New Orleans to (completed in 1884) went from New Orleans to San Francisco San Francisco Great NorthernGreat Northern ran from Duluth to Seattle and was the creation of ran from Duluth to Seattle and was the creation of James J. HillJames J. Hill, probably the greatest railroad builder of all, probably the greatest railroad builder of all

Revolution by RailwaysRevolution by RailwaysRailroads stitched the nation togetherRailroads stitched the nation togethergenerated a huge market and lots of jobsgenerated a huge market and lots of jobshelped the rapid industrialization of Americahelped the rapid industrialization of Americastimulated mining and agriculture in the West by bringing people stimulated mining and agriculture in the West by bringing people and supplies to and from the areas were such work occurred and supplies to and from the areas were such work occurred Nov.18, 1883 Nov.18, 1883 - the creation of four national - the creation of four national time zonestime zones occurred occurred on, instead of each city having its own time zone (that was on, instead of each city having its own time zone (that was confusing to railroad operators). confusing to railroad operators).

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Railroad Consolidation and Mechanization Railroad Consolidation and Mechanization Advancement in railroad Advancement in railroad building:building:– steel rail steel rail – Westinghouse air brake Westinghouse air brake – Pullman Palace Cars Pullman Palace Cars – telegraphs telegraphs – double-racking double-racking – block signals block signals

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Wrongdoing in Railroading Wrongdoing in Railroading One method -- was called “One method -- was called “stock wateringstock watering,” - railroad companies ,” - railroad companies grossly over-inflated the worth of their stock and sold them at huge grossly over-inflated the worth of their stock and sold them at huge profits profits Railroad owners abused the public, bribed judges and legislatures, Railroad owners abused the public, bribed judges and legislatures, employed arm-twisting lobbyists, elected their own to political office, employed arm-twisting lobbyists, elected their own to political office, and used free passes to gain favor in the press and used free passes to gain favor in the press began the first of what would be called trusts, although at that time began the first of what would be called trusts, although at that time they were called “they were called “poolspools.”.”The Grange The Grange was formed by farmers to combat such corruption was formed by farmers to combat such corruption many state efforts to stop the railroad monopoly occurred many state efforts to stop the railroad monopoly occurred – Supreme Court issued its ruling in the Supreme Court issued its ruling in the WabashWabash casecase, in which it ruled , in which it ruled

that states could not regulate that states could not regulate interinterstate commerce state commerce Interstate Commerce ActInterstate Commerce Act (1887) banned rebates & pools (1887) banned rebates & pools – required the railroads to publish their rates openly (so as not to cheat required the railroads to publish their rates openly (so as not to cheat

customers)customers)– forbade unfair discrimination against shippers forbade unfair discrimination against shippers – banned charging more for a short haul than for a long onebanned charging more for a short haul than for a long one– set up the set up the Interstate Commerce Commission Interstate Commerce Commission (ICC) to enforce this (ICC) to enforce this

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Miracles of MechanizationMiracles of Mechanization In 1860, the U.S. was the 4th largest manufacturer in the In 1860, the U.S. was the 4th largest manufacturer in the world, but by 1894, it was #1, why? world, but by 1894, it was #1, why? – Now-abundant liquid capital Now-abundant liquid capital

Fully exploited natural resources (like coal, oil, and iron, Fully exploited natural resources (like coal, oil, and iron, the iron from the Minnesota-Lake Superior region which the iron from the Minnesota-Lake Superior region which yielded the rich iron deposits of the yielded the rich iron deposits of the Mesabi RangeMesabi Range) ) Massive immigration made labor cheapMassive immigration made labor cheapAmerican ingenuity played a vital role, as such American ingenuity played a vital role, as such inventions like mass production (from inventions like mass production (from Eli WhitneyEli Whitney) were ) were being refined and perfected being refined and perfected Popular inventions included the Popular inventions included the cash registercash register, the , the stock stock tickerticker, the , the typewritertypewriter, the , the refrigerator carrefrigerator car, the , the electric electric dynamodynamo, and the , and the electric railwayelectric railway 18761876 - - Alexander Graham Bell Alexander Graham Bell invented the telephone invented the telephone and a new age was launched and a new age was launched

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The Trust Titan Emerges The Trust Titan Emerges Industry giants used various ways to eliminate Industry giants used various ways to eliminate competition and maximize profits competition and maximize profits Andrew CarnegieAndrew Carnegie used a method called “used a method called “vertical vertical integrationintegration,” which meant that he controlled ,” which meant that he controlled allall aspects of an industry aspects of an industry – (in his case, he mined the iron, transported it, refined it, (in his case, he mined the iron, transported it, refined it,

and turned it into steel, controlling all parts of the process) and turned it into steel, controlling all parts of the process)

John D. RockefellerJohn D. Rockefeller, master of “, master of “horizontal horizontal integrationintegration,” and a giant among bankers, simply ,” and a giant among bankers, simply allied with competitors to monopolize a given market allied with competitors to monopolize a given market – He used this method to form He used this method to form Standard OilStandard Oil and control the and control the

oil industry by forcing weaker competitors to go bankrupt oil industry by forcing weaker competitors to go bankrupt

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Supremacy of Steel Supremacy of Steel by 1900by 1900 - Americans produced - Americans produced as much steel as England and as much steel as England and Germany combined Germany combined due to an invention that made due to an invention that made steel-making cheaper and much steel-making cheaper and much more effective: the more effective: the Bessemer Bessemer ProcessProcess, which was named after , which was named after an English inventor even though an English inventor even though an American, an American, William KellyWilliam Kelly (from KY) discovered it first (from KY) discovered it first – Cold air blown on red-hot iron Cold air blown on red-hot iron

burned carbon deposits and burned carbon deposits and purified it purified it

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Carnegie and Other Sultans of Steel Carnegie and Other Sultans of Steel Andrew Carnegie started in the Pittsburgh area Andrew Carnegie started in the Pittsburgh area – By 1900By 1900 - producing ¼ of the nation’s Bessemer steel, and getting - producing ¼ of the nation’s Bessemer steel, and getting

$25 million/year $25 million/year

J.P. Morgan bought Carnegie’s entire business of $400 millionJ.P. Morgan bought Carnegie’s entire business of $400 million– but Carnegie, fearing ridicule for possessing so much money, spent but Carnegie, fearing ridicule for possessing so much money, spent

the rest of his life donating $350 million of it to charity, pensions, and the rest of his life donating $350 million of it to charity, pensions, and libraries libraries

Morgan launched the Morgan launched the United States Steel CorporationUnited States Steel Corporation in 1901in 1901– became the first billion-dollar corporation in the worldbecame the first billion-dollar corporation in the world

Government Tackles the Trust EvilGovernment Tackles the Trust Evil 18901890 - the - the Sherman Anti-Trust ActSherman Anti-Trust Act was signed into lawwas signed into law– it forbade combinations in restraint of trade, without any distinction it forbade combinations in restraint of trade, without any distinction

between “good” and “bad” trusts between “good” and “bad” trusts – proved ineffective because it couldn’t be enforced proved ineffective because it couldn’t be enforced

Not until 1914 was it properly enforced and those prosecuted for Not until 1914 was it properly enforced and those prosecuted for violating the law were actually punishedviolating the law were actually punished

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The South in the Age of IndustryThe South in the Age of IndustrySouth remained agrarian despite all the industrial advances South remained agrarian despite all the industrial advances northern companies set rates to keep the South from gaining northern companies set rates to keep the South from gaining any competitive edge at all any competitive edge at all cheap labor led to the creation of many jobscheap labor led to the creation of many jobs– despite poor wages, many white Southerners saw employment as a despite poor wages, many white Southerners saw employment as a

blessingblessing

Impact of the New Industrial Revolution on AmericaImpact of the New Industrial Revolution on AmericaAs the Industrial Revolution spread in AmericanAs the Industrial Revolution spread in American– the standard of living rosethe standard of living rose– immigrants swarmed to the U.S.immigrants swarmed to the U.S.– Women found new opportunities in factoriesWomen found new opportunities in factories

A nation of farmers was becoming a nation of wage earners, but the A nation of farmers was becoming a nation of wage earners, but the fear of unemployment was never far fear of unemployment was never far – workers who wanted to improve their conditions found that they could workers who wanted to improve their conditions found that they could

not, since their bosses could easily hire the unemployed to take their not, since their bosses could easily hire the unemployed to take their places places

Workers could be “Workers could be “blacklistedblacklisted,” or put on a list and denied privileges ,” or put on a list and denied privileges elsewhere elsewhere

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Labor Limps AlongLabor Limps Along National Labor UnionNational Labor Union, formed in 1866 , formed in 1866 the the Knights of LaborKnights of Labor, was begun in 1869 and , was begun in 1869 and continued secretly until 1881 continued secretly until 1881 the Knights won a number of strikes for the eight-the Knights won a number of strikes for the eight-hour day, and when they staged a successful strike hour day, and when they staged a successful strike against Jay Gould’s Wabash Railroad in 1885 against Jay Gould’s Wabash Railroad in 1885 18861886 - - Samuel GompersSamuel Gompers founded the American founded the American Federation of Labor Federation of Labor – Gompers demanded a fairer share for labor Gompers demanded a fairer share for labor – sought better wages, hours, and working conditions sought better wages, hours, and working conditions – Composed of skilled laborers, it was willing to let unskilled Composed of skilled laborers, it was willing to let unskilled

laborers fend for themselves laborers fend for themselves – greatest weakness of labor unions was that they only greatest weakness of labor unions was that they only

embraced a small minority (3%) of all workers embraced a small minority (3%) of all workers – 18941894 - - Labor DayLabor Day was made a legal holiday was made a legal holiday


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