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Chapter 10 Complete the Chapter 10 Worksheet during the presentation.

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2 Chapter 10 Complete the Chapter 10 Worksheet during the presentation.

3 Statehood at Last Montana struggled to make the step from a territory to a state because the national government was controlled by a Republican Congress that would not allow a new state controlled by Democrats into the Union. However, in 1888, a new group of politicians were elected into Congress, many of them Democrats. Congress signed the Enabling Act in 1889, allowing Montana to become a state.

4 Montana’s Constitution In July of that year, 75 delegates, including mine owners, stockmen, farmers, merchants and politicians, met in Helena for a constitutional convention. Though a constitution was eventually written, the powerful mining delegates often argued with the delegates trying to protect the farmers and ranchers.

5 In the late 1800’s new inventions were created that used electricity. At the same time, it was discovered that copper was a perfect conductor of electricity. The price of copper skyrocketed, and men who owned copper mines were suddenly wealthy Two of the richest copper tycoons in the world were Marcus Daly and William A. Clark of Montana. The War of the Copper Kings

6 Marcus Daly  An Irish-Catholic miner with a nose for ore.  Arrived in Butte (1870’s) when copper could be found on the ground surface.  Convinced his employers to buy the Alice gold and silver mine. He later used his profits to buy the Anaconda mine.

7 William A. Clark Irish-Protestant capitalist who bought Butte land in hopes of selling it to the railroad. Irish-Protestant capitalist who bought Butte land in hopes of selling it to the railroad. Politically ambitious and obsessed with becoming Montana’s first Senator when the territory became a state in Politically ambitious and obsessed with becoming Montana’s first Senator when the territory became a state in Clark is most famous for trying bribe his way into becoming a Senator. Clark is most famous for trying bribe his way into becoming a Senator.

8 Political Wars: Daly Vs. Clark Both Men were Democrats (as most Montanans were at the time) but Daly used all of his power to keep Clark out of the Senate. Why? –Religion: Protestant vs. Catholic –Business: Rival companies –Politics: Daly owned lumber companies that had been illegally cutting timber on public lands. Daly did not want Clark to represent Montana because he knew that a Democrat would not be able to protect Daly’s business interests from a Republican-controlled Congress.

9 Political Wars, Round 1: Territorial Delegate Election of 1888 Before Montana became a state, its representative in Congress was called the Territorial Delegate. Clark ran as the Democratic favorite for the office, but in a huge shock, lost to Republican Thomas H. Carter by 5,000 votes. Daly had worked hard to get his political puppet, Carter, elected. He threatened to fire any employee who voted for Clark, and gave whiskey and cigars to anyone who would vote against him. The Daly-Clark feud had begun!

10 Political Wars, Round 2: 1890 Senate Elections When Montana became a state in 1889, its state legislature would need to choose two U.S. Senators. W.A. Clark wanted to be a Senator more than anything, and once again felt he was a shoe-in. However, the legislature was divided between Republicans and Democrats who could agree on almost NOTHING.

11 Political Wars, Round 2: 1890 Senate Elections Both Democrats and Republicans elected their own 2 Senators and sent them to Washington D.C. However, the national government was controlled by Republicans. Congress accepted Montana’s Republican Senators and sent the Democratic ones (including Clark) home.

12 Political Wars, Round 3: Senate Election of 1893 In 1893 the Montana legislature would chose one new U.S. Senator. Clark was done leaving things to chance; he bribed the Montana legislators in return for their votes. However, Daly was still up to his old tricks. He found out how much Clark had paid the legislators, then paid each one the same amount to change their vote! On election day Clark held his acceptance speech, but was stunned to learn that he had fallen 3 votes short of winning, despite having bribed many legislators. No candidate won enough votes that year and Montana was left with only 1 senator.

13 Political Wars, Round 4: The Capital War of 1894 In 1894, Montana voters would decide the location of the Montana state capital. Would it be Helena or Anaconda? This election was especially important to Daly, who owned the Anaconda Company and the town of Anaconda. If it was made capital of Montana, Daly would have significant control over the state government. To add to the excitement, Clark agreed to support Helena if businessmen there would help elect him to the U.S. Senate.

14 Political Wars, Round 4: The Capital War of 1894 Because this vote was decided by all Montanans, bribing was more difficult. However, both Clark and Daly spent $3 million trying to win the loyalty of individual voters (almost $1,400 per person in today’s money!) Also, both men bought newspapers to influence voters. Daly bought the Great Falls Tribune and Clark bought the Missoulian. In the end, Anaconda was defeated by Helena by less than 2,000 votes.

15 Political Wars, Round 5: Senate Elections of 1898 This was the most corrupt and infamous election of all. It made Montana a national laughingstock. Clark again ran to become a U.S. Senator, and vowed to win no matter what the cost (literally.) He spent over $1 million ($21 million) bribing nearly all of the Montana legislators. However, a Montana state Senator named Fred Whiteside publicly exposed Clark’s bribes. He showed envelopes filled with $30,000 each that Clark had offered to legislators and demanded an investigation. Montana was ridiculed in the news as a place where corruption ruled. A Minnesota newspaper at the time claimed, “ The $1,000 Bill is the one most introduce in the Montana Senate. ”

16 Political Wars, Round 5: Senate Elections of 1898 Though Clark won the election, Daly pressured the government to investigate the bribery charges. An investigation proved that Clark had cheated. Clark resigned before being kicked out of the Senate, but schemed to win his spot back.

17 Political Wars, Round 5: Senate Elections of 1898 There was now an empty Senate seat which the Governor could fill. Governor Smith was loyal to Daly, but Clark had bribed Lieutenant Governor Spriggs. The Lieutenant Governor convinced Governor Smith that he was needed out of Montana. The Governor left the state before hearing of Clark’s resignation. Governor Smith

18 Political Wars, Round 5: Senate Elections of 1898 With the Governor gone, Lt. Governor Spriggs took his place and appointed W.A. Clark as the next Montana Senator! Governor Smith returned and protested the appointment. Instead he chose Paris Gibson, the founder of Great Falls, as Senator. The U.S. Senate was disgusted with the whole situation, but agreed to choose Gibson over Clark.

19 The End of the War In 1901 there was another election to decide who would represent Montana in the U.S. Senate. Clark again ran for the office, but this time was different. Marcus Daly had died in 1900, therefore Clark had no one of any importance to stand in his way. With Daly dead, the Anaconda Company was taken over by the Amalgamated Mining Company, a national corporation that had no sympathy for Montana laborers (workers.) W.A. Clark won his election and served an uneventful six years in the Senate, making people call him the “Honorable Senator Clark” from then on.

20 Economic Wars, Round 1: Boston Copper vs. the Anaconda When Marcus Daly first started to turn his Anaconda Copper Company into an economic power he faced resistance from the Boston Copper Company, which was the most powerful copper company in the world at the time. In 1886, Boston Copper dropped copper prices in an attempt to bankrupt the Anaconda.

21 Anaconda also dropped their price, resulting in a price war. Copper dropped to 10 cents a pound! Anaconda held out long enough to convince Boston Copper to give up. Both sides finally agreed to sell copper at a set price and share the market. Economic Wars, Round 1: Boston Copper vs. the Anaconda

22 Economic Wars, Round 2: The Secretan Syndicate In 1888, a French financier named Secretan tried to corner the copper market. This was during the copper price war, when copper was very cheap. Secretan offered to buy all copper at 13 cents a pound during price war. Secretan nearly accomplished a monopoly, but new sources of copper popped up every time he thought he had his monopoly.

23 Economic Wars, Round 3: Heinze vs. Amalgamated Copper As mentioned before, Daly’s Anaconda Company was bought by a hated holding company called the Amalgamated Copper Company around the time of his death. A holding company is a corporation that owns other corporations. Amalgamated owned many mines across the world, and was owned by John D. Rockefeller, founder of the Standard Oil Company and the richest man on the planet.

24 When Clark became a Senator, he also sold his mines to Amalgamated. Montanans feared that no local copper king could protect them from “The Company.” Amalgamated gave workers low wages and made them work in poor conditions for long hours. Also, the company did not allow workers to organize into unions, or demand better pay or working conditions. Economic Wars, Round 3: Heinze vs. Amalgamated Copper

25 One miner stood up to the company. Frederick Augustus Heinze, the handsome and crafty owner of the Rarus mine, used the Apex Law to resist the Amalgamated Copper Company. The Apex Law stated that the first miner to own a vein of ore could follow that vein to the surface (apex), even if it lead onto someone else’s claim. Economic Wars, Round 3: Heinze vs. Amalgamated Copper

26 Heinze knew that nearly all of Butte’s copper was interconnected underground and that no one could prove who had claimed the first copper vein. So Heinze started to tunnel from his Rarus mine into all the veins that apexed on his claim – including veins that connected to huge copper mines owned by Amalgamated. Heinze stated that the Apex Law gave him control of these mines, and bribed local judges in Butte to support him. Heinze won all of his court cases! Economic Wars, Round 3: Heinze vs. Amalgamated Copper

27 Amalgamated did not just give up - they appealed the court cases all the way to the Supreme Court. Also, Amalgamated’s miners sometimes engaged in dynamite fights with Heinze’s miners underground. However, Heinze made much more money from tapping into the company’s mines than he lost in lawyer’s fees. Heinze was able to compete against Amalgamated because he spent his money in Montana on local businesses, manipulated mining laws and convinced Montanans that Amalgamated wanted to control everything in the state. Economic Wars, Round 3: Heinze vs. Amalgamated Copper

28 In 1903, Amalgamated shut down all of their mines, mills and railroads in Montana – putting thousands of Montanans out of work – until the Governor would agree to move their court cases out of Butte. Eventually, Governor Joseph K. Toole agreed. Heinze lost his lawsuits and was forced to sell his mines to Amalgamated. Economic Wars, Round 3: Heinze vs. Amalgamated Copper


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