INDUSTRY COMES OF AGE, 1865-1900 Chapter 24 The

INDUSTRY COMES OF AGE, 1865-1900 Chapter 24 The

INDUSTRY COMES OF AGE, 1865-1900 Chapter 24 The Iron Colt Becomes An Iron Horse 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 statesarea larger than the state of Texas. Benefits of Subsidies

US benefited from giving land to RR. 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

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 $73m for $50m in construction Building the Railroads On both lines mostly poor immigrants did the work.

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 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 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 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 Significant Improvements to RR facilitated growth of railroads:

Steel rail Standard gauge track: Westinghouse air brake 1870 longer trains - safety Pullman sleeping cars: made travel more comfortable for passengers1860s. Initiates Tourism Trains still dangerous. Revolution By Railways Transcontinental RR caused many changes:

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

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 1865-1895 saw a huge industrial boom. Reasons:

Much more liquid capital natural resources started to be exploited Massive immigration provided cheap unskilled labor American inventions made businesses and factories more efficient. telegraph, mass production, cash register, stock ticker . Telephone (1876) and expanded telegraph; communications revolution. Bell AT&T Thomas Alva Edison

Innovation strange and new 1890 235K patents. Edison Telegrapher Science of testing assistants Filament electric light changes life DC vs AC remote Gramophone projector Battery

Dictaphone Mimiograph Dynamos Wizard of Menlo Park 1328 patents The Trust Titan Emerges Businesses, left alone, hate competition. Ways to avoid competition. Vertical Integration--Andrew Carnegies Steel operations. Horizontal Integration

Rockefeller and Standard Oil TrustsRockefeller Interlocking DirectoratesJ.P. Morgan The Supremacy Of Steel 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 worlds steel. Carnegie And Other Sultans Of Steel

Andrew CarnegieUS Steel King of American Steel Produced 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

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 OilThe Octopus video The Gospel of Wealth

Rockefeller God gave me my money Charles Graham Sumner Argued that laissez-faire economics is justified by Charles Darwin's laws of evolution. All forms of business regulation, labor unions, or public welfare. Social Darwinism Rich deserve to be rich; poor deserve to be poor Contempt for poor who had earned their own poverty

Charles Sumner Graham p542 Carnegies Gospel of Wealth "The Gospel of Wealth",[is an essay written

by Andrew Carnegie in 1889 that described the responsibility of philanthropy by the selfmade 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 Sherman Anti Trust Act of 1890.

The first United States Federal statute to limit cartels and monopolies Forbids combinations in restraint of trade. Not very effective because penalties weak and loopholes Not vigorously enforced until Theodore Roosevelt's presidency (19011909). Biggest effect was unintended-Was used against unions. Today still forms the basis for most antitrust litigation by the United States federal government.

p543 The South In The Age Of Industry South gains limited Produced smaller % of Manufacturing goods than pre-Civil War James DukeCigarettes Barriers to Southern development

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

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

Surplus of unskilled labor. Individual workers were powerless to bargain Early Unions had little power, as well. 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 Unions strengthened after the Civil War. National Labor Union organized in 1866 and did well 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

An injury to one is the concern of all! Terence V. Powderly 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 Knights of Labor riding for a fall Problems: 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

AF of L --1886 Brain child of Samuel Gompers. President of the union every year for 38 years but one. Confederation of selfgoverning 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

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 1894Labor Day holiday. Most employers still fought labor aggressively. Management vs. Labor Tools of Management Tools of Labor

scabs boycotts P. R. campaign Pinkertons sympathy demonstration s

lockout blacklisting informational picketing yellow-dog contracts closed shops organized strikes

wildcat court injunctions open shop

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