Transcript 06 Unit 24 PP APUSH Industry Comes of Age (1865

INDUSTRY COMES OF AGE, 1865-1900
Chapter 24
The Iron Colt Becomes An Iron Horse
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RR building exploded after the Civil War.
US government subsidized the first two
transcontinental RR
How land-grants worked
Why subsidies were necessary.
In all RR got over 200 Mill acres from Feds and
states—area larger than the state of Texas.
Benefits of Subsidies
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US benefited from giving land to
RR.
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RRs promoted immigration
promoted of westward migration.
RR gave the government a break on
mail and military transport.
Free land a cheap way to subsidize.
Spanning The Continent With Rails
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After secession, Congress
Commissioned a transcontinental RR.
Union Pacific and Central Pacific.
Building began in earnest in 1865 after
the Civil War.
Credit Mobiler scandal
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$73m for $50m in construction
Building the Railroads
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On both lines mostly poor
immigrants did the work.
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Irish were predominant on the
UP line
Chinese on the Central Pacific
line. Often beset by Indians.
Moving tent cities
Hundreds of labors died.
Significance of
transcontinental RR
Some towns boom, some
wither
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Mountains – granite summit – blast – nitro
Snow sheds – asphyxiation
20-30 Mile canal for water
May 10th 1869 – Leland Stanford
travel from 3 months to one week
Binding The Country With Railroads
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Four other transcontinental
lines were built. None
received cash grants, but
three received land grants.
Many other RR went
bankrupt and fleeced
investors.
Towns competed with
bribes to RR promoters to
get the RR to come to their
town. Many of these RR
took the money and ran.
Federal Land Grants to Railroads
Cornelius Vanderbilt
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Cornelius Vanderbilt welded
together and expanding older
eastern Network.
Had made a huge fortune in
steamboats and used this wealth
to fund RRs.
He was coarse, ill educated,
ungrammatical and ruthless, but
knew how to make money.
Railroad Improvements
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Significant Improvements to RR facilitated
growth of railroads:
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Steel rail
Standard gauge track:
Westinghouse air brake 1870 – longer trains - safety
Pullman sleeping cars: made travel more
comfortable for passengers—1860s.
Initiates Tourism
Trains still dangerous.
Revolution By Railways
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Transcontinental RR caused many changes:
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Stimulated American economy
Stimulated manufacturing and industrialization
Westward expansion of agriculture
Stimulated immigration
Bigger cities
Settlement of the unsettled areas
Time zones
Created Millionaires
Changed Western ecology
Interstate Commerce Act
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Interstate Commerce Act in 1887.
 Prohibited rebates and pools
 Required RR to publish their rates openly
 Outlawed discrimination against shippers
 Outlawed charging more for short hauls
than for long ones
 Set up the Interstate Commerce
Commission to administer and enforce
Was not a revolutionary victory; simply
modest regulation
Water-shed in establishing the power of
government to regulate business
Miracles of Mechanization
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1865-1895 saw a huge industrial boom.
Reasons:
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Much more liquid capital
natural resources started to be exploited
Massive immigration provided cheap unskilled labor
American inventions made businesses and factories
more efficient.
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telegraph, mass production, cash register, stock ticker .
Telephone (1876) and expanded telegraph;
communications revolution.
Bell – AT&T
Thomas Alva Edison
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Innovation strange and new 1890 – 235K patents.
Edison
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Telegrapher
Science of testing – assistants
Filament electric light – changes life
DC vs AC remote
Gramophone – projector
Battery
Dictaphone
Mimiograph
Dynamos
1328 patents
“Wizard of Menlo Park”
The Trust Titan Emerges
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Businesses, left alone, hate
competition.
Ways to avoid competition.
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Vertical Integration--Andrew
Carnegie’s Steel operations.
Horizontal Integration—
Rockefeller and Standard Oil
Trusts—Rockefeller
Interlocking Directorates—
J.P. Morgan
The Supremacy Of Steel
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Steel became King after the Civil War.
Foundation for much of the industrial expansion
Bessemer process.
America biggest Steel producer by 1900.
Produced 1/3 of the world’s steel.
Carnegie And Other Sultans Of Steel
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Andrew Carnegie—US
Steel
King of American Steel
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Produced ¼
Carnegie cleared 25 Mil. a
year. Huge fortune
Sold out to J.P. Morgan
for 400 Million.
Spent the rest of his life
giving money away
Rockefeller and Standard Oil
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Oil industry emerges after the Civil
War.
Rockefeller and Standard Oil.
Ruthless.
Big believer in commercial
Darwinism.
By 1877 controlled 95% of all the old
refineries in the country.
Standard Oil—The Octopus
video
The Gospel of Wealth
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Rockefeller “God gave me my money”
Charles Graham Sumner
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Argued that laissez-faire economics is
justified by Charles Darwin's laws of
evolution.
All forms of business regulation, labor
unions, or public welfare.
Charles
Graham Sumner
Social Darwinism
Rich deserve to be rich; poor deserve to
be poor
Contempt for poor who had “earned”
their own poverty
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Carnegie’s Gospel of Wealth
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"The Gospel of Wealth",[is an essay
written by Andrew Carnegie in 1889 that
described the responsibility of
philanthropy by the self-made rich.
The central thesis of Carnegie's essay was
the peril of allowing large sums of money
to be passed into the hands of persons or
organizations ill-equipped mentally or
emotionally to cope with them.
As a result, the wealthy entrepreneur
must assume the responsibility of
distributing his fortune in a way that it
will be put to good use,
Wealthy should act as “trustees” for their
“poorer brethren.”
Give back to the community as a whole,
not to individuals
Carnegie gave away millions
Government Tackles The Trust Evil
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Sherman Anti Trust Act of 1890.
The first United States Federal
statute to limit cartels and
monopolies
Forbids combinations in restraint
of trade.
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Not very effective because
penalties weak and loopholes
Not vigorously enforced until
Theodore Roosevelt's presidency
(1901–1909).
Biggest effect was unintended-Was used against unions.
Today still forms the basis for
most antitrust litigation by the
United States federal government.
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The South In The Age Of Industry
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South gains limited
Produced smaller % of Manufacturing goods than
pre-Civil War
James Duke—Cigarettes
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Barriers to Southern development
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Duke acquired a license to use the first automated
cigarette making machine
By 1890 his American Tobacco Company controlled
40% of US market
$430m gets Trinity college renamed Duke University
Railroad rate discrimination
Textile Mills
Statue of James B Duke
The Impact Of Industrialization
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Increased wealth of nation
Standard of living rose sharply
Workers enjoyed many more physical comforts
Urban centers mushroomed
Jeffersonian Ideal of nation of small farmers died
Concept of time changed.
Many more women in the workforce
Delayed marriages and smaller families
New class system
Workers becoming more dependent and more
vulnerable.
Plight Of The Unskilled Worker
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Surplus of unskilled labor.
Individual workers were powerless to
bargain
Early Unions had little power, as well.
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strike-breakers, lawyers and thugs
Courts issued injunctions against
strikes based on Anti-Trust laws.
Yellow-dog contracts
Black-lists
Company stores
Middle-class was largely
unsympathetic.
Labor Limps Along
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Unions strengthened after the Civil War.
National Labor Union organized in 1866 and did
well
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600,000 members, both skilled and unskilled
Did not recruit women or blacks
Goals: arbitration of industrial disputes, 8-hour day
damaged by the depression in the 1870s.
Knights of Labor
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An injury to one is the
concern of all!
Terence V. Powderly
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Knights of Labor took over where the National Labor Union
had left off.
The Knights of Labor (was the largest and one of the most
important American labor organizations of the 1880s. Its most
important leader was Terence Powderly.
The Knights promoted the social and cultural uplift of the
workingman, rejected Socialism and radicalism, demanded the
eight-hour day.
Never well organized, It was established in 1869, reached
28,000 members in 1880, then jumped to 100,000 in 1885. Then
it mushroomed to nearly 700,000 members in 1886,
Most members abandoned the movement in 1886-87, leaving at
most 100,000 in 1890.[
 Sought to include all labor in one big Union.
 They stayed out of politics, but campaigned hard for
economic and social reform.
 Their biggest issue was the 8-hour work day.
 Won that fight from a number of industries and their ranks
swelled.
Unhorsing The Knights Of Labor
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Knights of Labor riding for a fall
Problems:
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The Haymarket Square incident in
Chicago in 1886
Fusion of both skilled and unskilled
labor.
Skilled workers abandoned the
Knights for the American Federation
of Labor.
This dealt the Knights a death blow,
and the union slowly withered.
Haymarket Riot (1886)
McCormick Harvesting Machine Co.
The AF Of L To The Fore
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AF of L --1886
Brain child of Samuel Gompers.
President of the union every year
for 38 years but one.
Confederation of self-governing
independent unions for skilled
laborers.
Gompers political strategy.
Major goal was closed shop.
Weapons were walk-outs and
boycotts.
The AF Of L To The Fore
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Let unskilled workers,
blacks and woman fend
for themselves.
500,000 members by 1900.
1881-1900 over 23,000
strikes
By 1900, increased but
fragile support
1894—Labor Day holiday.
Most employers still
fought labor aggressively.
Management vs. Labor
“Tools” of
Management
“Tools” of
Labor
 “scabs”
 boycotts
 P. R. campaign
 sympathy
demonstrations
 Pinkertons
 lockout
 blacklisting
 yellow-dog contracts
 informational
picketing
 closed shops
 court injunctions
 organized
strikes
 open shop
 “wildcat” strikes