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Industry Comes of Age 1865 - 1900. The Iron Colt Becomes an Iron Horse Railroad production increased –1865 – 35,000 miles - 1900 – 192,556 miles Congress.

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Presentation on theme: "Industry Comes of Age 1865 - 1900. The Iron Colt Becomes an Iron Horse Railroad production increased –1865 – 35,000 miles - 1900 – 192,556 miles Congress."— Presentation transcript:

1 Industry Comes of Age 1865 - 1900

2 The Iron Colt Becomes an Iron Horse Railroad production increased –1865 – 35,000 miles - 1900 – 192,556 miles Congress gave land to railroad companies –Stopped in 1887 by Grover Cleveland Railroads gave land value –Towns grew around railroads

3 Union Pacific Railroad Commissioned by Congress in 1862 –Began westward from Omaha, Nebraska to California –Company received money to build its tracks Corruption resulted – Credit Mobilier - $23 million Labor – Irishmen – 10 miles of track a day –Built a total of 1086 miles Indian attacks were regular –Many Indians and workers died during construction

4 Central Pacific Railroad Started in California, pushing eastward Backed by the Big Four: including –Leland Stanford – ex-governor of CA –Collis P. Huntington – lobbyist Labor – Chinese workers –Much harder terrain –Built a total of 689 miles 1869 – Transcontinental rail line was completed near Ogden, Utah-- “wedding of the rails” Completion was one of America’s most impressive peacetime undertakings, uniting the two coasts

5 Binding the Country Before 1900, four other transcontinental railroads were built –Northern Pacific Railroad Stretched from Lake Superior to the Puget Sound – 1883 –Atchison, Topeka, and Santa Fe Stretched through the Southwest deserts – 1884 –Southern Pacific Went from New Orleans to San Francisco – 1884 –Great Northern Ran from Duluth to Seattle – creation of James J. Hill

6 Railroad Consolidation & Mechanization Older eastern railroads financed the successful western railroads –New York Central – Cornelius Vanderbilt Advancements: –Steel rail – stronger than iron –Standard gauge of track –Westinghouse air brake – increased safety –Pullman Palace Cars –Telegraphs –Double tracking –Block signals

7 Revolution by Railways Stitched nation together Created domestic market for raw materials Generated huge market & lots of jobs Helped rapid industrialization of America Helped people settle in the Great Plains region Stimulated mining & agriculture –Brought people & supplies to the West Creation of 4 time zones – Nov 1883 Makers of millionaires & a millionaire class Stimulated stream of immigration from Europe

8 Wrongdoing in Railroading Jay Gould –Embezzled stocks from Erie, Kansas Pacific, union Pacific, & the Texas and Pacific railroad companies “Stock-watering” –Railroad companies grossly inflated the worth of their stock & then sold them Abused the public, bribed judges & legislatures, employed lobbyists, elected their own, & sued free passes to gain favor in the press Pools - Companies set prices for the industry / eliminate competition

9 Government Bridles the Iron Horse The Grange –Formed by farmers to combat railroad monopolies Wabash case – ruled states could not regulate interstate commerce –federal gov’ts job Interstate Commerce Act – 1887 –Banned rebates & pools –Required railroads to publish rates –Forbade unfair discrimination against shippers & banned charging more for a short haul that for a long haul First attempt by Congress to regulate business

10 Miracles of Mechanization 1860 – US was the 4 th largest manufacturer 1894 – US was Number 1 – why? –Abundant liquid capital –Exploited natural resources – coal, oil, iron –Massive immigration led to cheap labor –American ingenuity

11 American Ingenuity Mass production –Eli Whitney Cash register Stock ticker Typewriter Refrigerator car Electric dynamo Electric railway Alexander Graham Bell –Telephone Thomas Edison –“Wizard of Menlo Park” –Electric light bulb

12 Edison Lab at Menlo Park Always a self-promoter, Edison used this depiction of his "invention factory" to suggest that his development of a durable light bulb in 1879 would have an impact on life around the globe. (Departrment of the Interior, National Park Service, Edison National Historic Site) Edison Lab at Menlo Park Copyright © Houghton Mifflin Company. All rights reserved.

13 Edison with phonograph lab Thomas Edison, the most prolific inventor of the post-Civil War era, and his invention "factories" patented hundreds of creations, including the phonograph, the light bulb, and the motion picture. He had enormous appeal for Americans, not only because he gave them incredible new devices, but because he proved that the power of individual genius still had significance in the age of the corporation. (Library of Congress) Edison with phonograph lab Copyright © Houghton Mifflin Company. All rights reserved.

14 The Trust Titan Emerges Andrew Carnegie – “vertical integration” –Controlled all aspects of an industry –(he mined the iron, transported it, refined it, & turned into steel, controlling all parts of the process) John D. Rockefeller – “horizontal integration” –Allied with competitors to monopolize a given market / brought up competition –Formed Standard Oil Company

15 Rockefeller & Carnegie Formed trusts – giant monopolistic corporations –Weaker competitors were left out of the agreement Rockefeller used “interlocking directories” –placed his own men on the boards of directors of other rival competitors

16 The Supremacy of Steel Bessemer Process –made steel cheaper & more effective 1900 - Andrew Carnegie produced ¼ of the nation’s Bessemer steel J.P. Morgan bought Carnegie’s business for $400 million –Carnegie - donated $350 million US Steel – 1 st billion dollar corporation

17 Standard Oil Monopoly Believing that Rockefeller's Standard Oil monopoly was exercising dangerous power, this political cartoonist depicts the trust as a greedy octopus whose sprawling tentacles already ensnare Congress, state legislatures, and the taxpayer, and are reaching for the White House. (Library of Congress) Standard Oil Monopoly Copyright © Houghton Mifflin Company. All rights reserved.

18 Rockefeller Grows an American Beauty Rose 1859 – “Drake’s Folly” – first oil well in PA –Created an industry almost overnight, taking more wealth from the earth than the 49ers –Electric light bulbs made kerosene lamps obsolete –Invention of automobile, renewing the life of the oil trade

19 American Beauty Rose Rockefeller dominated oil industry –1877—controlled 95% of all oil refineries in the country –Employed spies and extorted secret rebates from railroads –Turned out superior product at cheap price Other trusts created, including sugar and meat trusts

20 The Gospel of Wealth Andrew Carnegie – wealthy were entrusted with society’s riches, and had to prove themselves morally responsible Many relied on “Social Darwinism” –Those who were poor stayed poor because they were lazy and lacking in enterprise Corporations sought protection of 14 th amendment –Courts interpreted corporation to be a legal “person”

21 Government Tackles the Evil Trust Sherman Anti-Trust Act of 1890 –Forbade all combinations in restraint of trade; good or bad. –“bigness”, not badness, was the sin Ineffective –More new trusts formed in 1890s than any other period

22 The South in the Age of Industry 1900 – South produced less of nation’s manufactured goods than before Civil War 1890 – James Duke created American Cigarette Company –Machine-made cigarettes made tobacco consumption shoot up –Trinity College is changed to Duke University (Boo) Obstacles: –Transportation rates higher on goods moving north –Kept South as supplier of raw materials

23 Textile Mills in the South 1880s: northern capital brought cotton mills in the South –Received tax benefits –Cheap and nonunionized labor Mixed blessing for South –Dominated communities –Lower wages than northern counterparts

24 Impact of New Industrial Revolution Jefferson’s ideals withering (Ag getting smaller while manufacturing grows) Hamilton is the winner! No longer a nation of small farmers Regimented life by factory whistle, not by daylight Women poured into workforce –Received lower wages

25 In Unions There Is Strength Labor market more favorable to boss than worker –Always someone willing to work for less –Individuals could not fight the corporation Federal courts issued injunctions ordering strikers back to work –Could request federal gov’t to bring in troops –“black list” employees that were agitators

26 Labor Limps Along National Labor Union –Created in 1866 and lasted 6 years –Total of 600,000 members –Depression of 1870s dealt it a fatal blow Knights of Labor –Began in 1869 as secret society –Included most professions, levels of skill, gender, and race –Leader Terence V. Powderly –Membership height at 750,000 members

27 Knights of Labor Black delegate Frank J. Farrell introduces Terence V. Powderly, head of the Knights of Labor, at the organization's 1886 convention. The Knights were unusual in accepting both black and female workers. (Library of Congress) Knights of Labor Copyright © Houghton Mifflin Company. All rights reserved.

28 Unhorsing the Knights of Labor Haymarket Square Riot – May 4, 1886 –Chicago police advanced on a meeting called to protest brutality –Dynamite bomb thrown that killed/injured several dozen people –Eight anarchists rounded up and charged –Probably had nothing to do with the riot –1892—3 survivors pardoned by Gov Altgeld. Public associated Knights with anarchists Knights handicapped by inclusion of skilled and unskilled workers Skilled workers eventually sought refuge in skilled craft unions—American Federation of Labor

29 The AF of L to the Fore 1886—brainchild of Samuel Gompers –Consisted of an association of national unions –Each was independent, with AFL unifying strategy –Chief weapons were boycott and walkout –Composed for skilled craftsmen, let unskilled laborers fend for themselves

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