Industry Comes of Age By Jeanelle and May

Railways 1900: railroad expands from miles (1865) to miles railroad is costly and risky so congress split the costs to different railroad companies

Until companies decided precise locations for railroad route all lands were withheld from other users until 1887 when Grover Cleavland ended this Railroad increases value of the land and cities pop up near the railroad but towns that the railroad didn’t pass became ghost towns

Spanning the Continent with Railroads Since the south seceded the proposed transcontinental railroad was stopped Since the south seceded the proposed transcontinental railroad was stopped 1862: congress commissions the Union Pacific railroad from Omaha, Nebraska to California 1862: congress commissions the Union Pacific railroad from Omaha, Nebraska to California

Constructing the Railroad  increase corruption = Credit Mobilier pockets money and bribes congress  Construction contains many Irish “paddies” who work 10 miles a day  Many died from Indian attacks

Central Pacific Railroad Begins in Sacramento and being promoted by the Big Four (chief financial backers) Begins in Sacramento and being promoted by the Big Four (chief financial backers) Collis P. Huntington (lobbyist) worked in b/n 2 companies and profited $10 million w/out bribing congressmen Collis P. Huntington (lobbyist) worked in b/n 2 companies and profited $10 million w/out bribing congressmen Labor is primarily Chinese (cheap, efficient, docile and expendable) many died from accidents Labor is primarily Chinese (cheap, efficient, docile and expendable) many died from accidents 1869: completion of the railroad 1869: completion of the railroad

Significance Railways Union Pacific RR = 1086 miles Union Pacific RR = 1086 miles Central Pacific RR= 689 miles Central Pacific RR= 689 miles Union Pacific, mostly constructed on flat prairie land and could build more quickly Union Pacific, mostly constructed on flat prairie land and could build more quickly Marked a tremendous feat of engineering Marked a tremendous feat of engineering connects West Coast to the rest of the Union connects West Coast to the rest of the Union Facilitates trade with Asia Facilitates trade with Asia paves the way for Western growth by penetrating the desert barrier paves the way for Western growth by penetrating the desert barrier Union pacific RRCentral Pacific RR Union pacific RRCentral Pacific RR

Four other transcontinental lines completed: Northern Pacific (Lake Superior to Puget Sound) Atchison, Topeka, and Santa Fe RR - (Atchison, KS to San Francisco) Southern Pacific (New Orleans to San Francisco) Great Northern RR (Duluth to Seattle) Great railroad builder James J Hill

Success and Failures Over investment of the land by pioneers = bankruptcy of trusting investors Over investment of the land by pioneers = bankruptcy of trusting investors Improvements: Improvements: steel rails by Vanderbilt replace old iron ones = safer & more economical since it can bear a heavier load steel rails by Vanderbilt replace old iron ones = safer & more economical since it can bear a heavier load 1870: Westing house air brake increases safety but there are still accidents 1870: Westing house air brake increases safety but there are still accidents Pullman palace cars, telegraphs, double- racking and block signals develop Pullman palace cars, telegraphs, double- racking and block signals develop

Revolution by Railroads America connected from “sea to shining sea” America connected from “sea to shining sea” Creates enormous domestic market and many jobs and appeals to foreign and domestic investors to participate Creates enormous domestic market and many jobs and appeals to foreign and domestic investors to participate Stimulates mining and increase agriculture in the west bringing new people and supplies (immigrants) Stimulates mining and increase agriculture in the west bringing new people and supplies (immigrants) 1883: Creation of time zones preventing confusion for RR operators 1883: Creation of time zones preventing confusion for RR operators Creates millionaires “lords of the rail” Creates millionaires “lords of the rail”

Corruption ► Credit Mobilier (see slide 5) ► Jay Guild: rich boomed and busted the stocks of Erie, Kansas Pacific, Union Pacific, Texas & Pacific RR companies ► “Stock Watering” = cheap $ making ► RR stock promoters grossly inflated claims about a given line’s assets & profit & sold stocks and bonds that exceed RR’s actual value ► RR companies: ► bribe judges & legislatures ► elected their own people to high offices ► & gave free passes to journalists & politicians ► RR kings: “pool” trusts- an agreement to divide the business in a given area & share profits

Government Bridles the Iron Horse RR plutocracy: people were aware of the injustice but were slow to react Granger: formed by farmers to fight against RR monopoly Supreme Court: Wabash Case v. Illinois- individual states hold no power to regulate interstate commerce Interstate Commerce Act (1887): prohibits rebates & pools and requires RR to publish their rates openly & forbids unfair discrimination against shippers and outlaws charging more for a short haul than a long one over the same time 1 st attempt by congress to regulate business

Miracles of Mechanization 1860: US is 4 th manufacturing nation of the world 1894: US is 1 st manufacturing nation of the world Change due to: liquid capital (abundance) and natural resources (ex. Coal, oil, iron) Unskilled labor = cheap & plentiful (reliance on cheap immigrant labor) 2 nd American Industrial Revolution: : patents issued Ex. Cash register, stock ticker, typewriter, refrigerator car, electric dynamo, electric railway Thomas Edison- “wizard of Menlo park” = electric light bulb, electric railway, ect.

Trust Titan Emerges Monopolies: eliminates competition & get max profits Monopolies: eliminates competition & get max profits Andrew Carnegie= “vertical integration” i.e. control all aspects of an industry Andrew Carnegie= “vertical integration” i.e. control all aspects of an industry John D. Rockefeller= “horizontal integration” i.e. allied w/ competitor to monopolize a given market John D. Rockefeller= “horizontal integration” i.e. allied w/ competitor to monopolize a given market Standard oil: control oil industry & force weaker competitors to go bankrupt Standard oil: control oil industry & force weaker competitors to go bankrupt Carnegie Carnegie Rockefeller Rockefeller Mr. Monopoly Mr. Monopoly

Supremacy of Steel  “Steel is king!” -1900: US was producing as much as England and Germany combined  1850: Bessemer Process =cheaper method of producing steel  Access to materials needed to produce steel, ect. is near by Bessemer converter Bessemer converter

Carnegie and Other Sultans of Steel Andre Carnegie: poverty to wealthy Andre Carnegie: poverty to wealthy Steel business in Pittsburg: by 1900 he was producing ¼ of the nation’s Bessemer's steel & earning$25 million per year Steel business in Pittsburg: by 1900 he was producing ¼ of the nation’s Bessemer's steel & earning$25 million per year J. Pierpont Morgan = wealthy from financing the reorganization of railroads, insurance companies, and banks & bought Carnegie business for more than $400 million J. Pierpont Morgan = wealthy from financing the reorganization of railroads, insurance companies, and banks & bought Carnegie business for more than $400 million Carnegie spent profit on public libraries, pensions for professors, ect. (philanthropist) Carnegie spent profit on public libraries, pensions for professors, ect. (philanthropist) Morgan expands industrial empire: $1.4 billion; 1 st American billion dollar corporation Morgan expands industrial empire: $1.4 billion; 1 st American billion dollar corporation

Rockefeller and the Standard Oil Company Oil industry (1870): kerosene is the 1 st major product of infant oil industry & one of US’s most valuable export Ending of whaling 1885: technology takes over ex. light bulbs 1900: gasoline- burning internal combustion engine had clearly bested its rival, steam & electricity 1870: Rockefeller’s Standard Oil Company of Ohio = trust (1882) that crushed competitors & sold superior oil at a cheaper price

Divisions Between the Rich and the Poor New rich justify social position through the “Gospel of Wealth” – “Godliness is in the league of the riches” New rich justify social position through the “Gospel of Wealth” – “Godliness is in the league of the riches” “survival of the fittest” –Charles Darwin “survival of the fittest” –Charles Darwin Views of the poor: lazy & lacking enterprise Views of the poor: lazy & lacking enterprise Rev. Russell Cornwell of Phil: rich from “Acres of Diamonds” – “There is not a poor person in the US who was not made poor by his own short comings.” Rev. Russell Cornwell of Phil: rich from “Acres of Diamonds” – “There is not a poor person in the US who was not made poor by his own short comings.” Plutocracy: lawyers use the 14 th Amendment Plutocracy: lawyers use the 14 th Amendment parallel in defending the trusts & judges agreed to it

Government And Southern Industry 1890: Sherman Anti Trust Act: forbids combinations in restraints of trades (not enforced till 1914) 1890: Sherman Anti Trust Act: forbids combinations in restraints of trades (not enforced till 1914) largely ineffective because no real way of enforcing the laws largely ineffective because no real way of enforcing the laws law used to curb labor unions law used to curb labor unions James Duke = huge cigarette industry (American Tobacco Company) James Duke = huge cigarette industry (American Tobacco Company) Henry Grady: editor of Atlanta Constitution promotes industrialization Henry Grady: editor of Atlanta Constitution promotes industrialization Northern companies set rates that prevent the Southerners from regaining its status Northern companies set rates that prevent the Southerners from regaining its status creation of jobs = blessing to Southerners creation of jobs = blessing to Southerners

Impact of the Industrial Revolution for the US Standard living improves Increase of immigrants Women: new opportunities: “Gibson Girl” by Charles Gibon- most women worked hard for $ Pressures: foreign trade- industrial machine threatened to flood domestic market Increase class divisions

Labor Unions Workers unable to improve their conditions because there is a large supply of unskilled workers Strikes v. strikebreakers “ironclad oaths” –court gets involved to stop strikes “yellow dog contracts”- troops get involve “blacklisted” “If workers want a better life, they can always improve by working harder like Carnegie and Rockefeller.”

Labor Limps Along National Labor Union (1886) = attracted members excluded Chinese, blacks and woman National Labor Union (1886) = attracted members excluded Chinese, blacks and woman Industrial disputes and 8 hr workday Industrial disputes and 8 hr workday Depression of 1873 ends disputes Depression of 1873 ends disputes Knights of Labor (1869) excluded liquor dealers, pro gamblers, lawyers, bankers & stockbrokers: wanted economic and social reforms led by Terence V. Powderly Knights of Labor (1869) excluded liquor dealers, pro gamblers, lawyers, bankers & stockbrokers: wanted economic and social reforms led by Terence V. Powderly Decline: Decline: May Day strikes (1886 Chicago) turns violent May Day strikes (1886 Chicago) turns violent Haymarket Square Bombing (May 1886) - bomb thrown during a protest against police abuses during strikes Haymarket Square Bombing (May 1886) - bomb thrown during a protest against police abuses during strikes American Federation of Labor - protects skilled workers (who have a better bargaining position than unskilled ones) American Federation of Labor - protects skilled workers (who have a better bargaining position than unskilled ones) Demand for better wages, hours & working conditions Demand for better wages, hours & working conditions more than strikes & loss of $450 million more than strikes & loss of $450 million 1900: yield to most workers’ demands 1900: yield to most workers’ demands 1894: Labor Day = legal holiday 1894: Labor Day = legal holiday