1. Sections 2 and 3 Cornell Notes

2. Texans Demand Railroad System Transportation before 1900 Effect of Railroad Railroad effect on Cattle Drive A network of steel When rapid growth and why? Land Grant 1876? Towns and Railroad connection Major towns? Transportat ion Improves Roads Streetcars Automobile Telephones in Texas Telephone invention - Effect - Inventor Industries Begin and grow What was industry like in Texas Products? After Civil War changes Lumber and Minerals Most important industry - What was it, Where, and what used for Monopolies Use Unfair Tactics Trusts Monopoly Farmers Become trapped in Debt Farmers and merchants view of railroads Why cotton prices decreased? Overproduction led to… Texans call for reforms Free enterprise New Law Prohibits Trusts Anti-Trust Laws Gov. Hogg Regulates the Railroad ISS Texas railroad commission James Hogg

3. Texas Demand Railroad System Before 1900 most families traveled by wagons and buggies Poor transportation system slowed the development of Texas and it made it harder to farmers and merchants to market their items Railroads could solve the problem with the promise to move goods faster What did the railroads do to the Cattle Drives?  Eliminated the need for long cattle drives, the whole point was to get the cattle to trains to send them north, now the railroads were in Texas!

4. A Network of Steel Connects Texas Before the Civil War there were very little railroads in Texas, and very little progress made during reconstruction Railroad companies made rapid growth after 1870 Land Grant Law of 1876 authorized 16 section of land to be granted to a railroad company for every mile of track it laid to encourage railroad companies to build

5. A Network of Steel Connects Texas Many railroad companies resold this land to farmers and ranchers Railroad companies built rails from the gulf northward across the state Settlers in west Texas often built towns near railroad lines Houston, Dallas, and Fort Worth developed rapidly because they were railroad centers

6. Trans- portation Improves No road system supported by state taxes existed in the late 1800s, each county built and maintained their own roads Roads in bad shape: rain turned it into mud holes, dust and dirt made travel unpleasant Brick was probably the most common paving activity

7. Trans- portation Improves Streetcars appeared in the 1870s, first pulled by mules and later electric 1890s: automobiles began to show up Growing demand of automobiles led to a demand for better roads.

8. Telephone in Texas Rapid communication made an important contribution to the growth of industry Alexander Graham Bell invented the telephone Every telephone call had to be connected by employees called operators

9. Industry Begins and Grows 1870s – Industry in Texas was very small, less than 1% of population worked in factory Gristmills that ground corn and wheat made up the largest industry in Texas Other Texas products: lumber, wagons, buggies, boots, harnesses, textiles, bricks, furniture, glue, and soap After the Civil War – Meat packing industry grew

10. Lumbering and Minerals By 1900 lumbering was the most important and valuable industry in the state Harvested from piney woods in East Texas Most lumber used in construction After railroads were built, mining became important part of Texas industrial economy

11. Lumbering and Minerals CountiesIndustry Palo PintoCoal Mining RuskIron ore BrownOil

12. Monopolies use Unfair Tactics By the approaching 20 th century, many large companies emerged in Texas that were helpful to the growth of the states because they provided valuable services and products Sometimes several companies formed trusts – a combination of companies that form an agreement to reduce competition Trusts were able to hold a monopoly – exclusive control – of a business, and reduce free trade

13. Farmers Become Trapped in Debt Farmers and merchants felt the railroad companies charged them more than larger businesses outside the state Farmers also worried about crops prices, cotton prices decreased between 1875 and 1900 because of increased supply that exceeded demand This oversupply resulted in lower prices and less profit

14. Texas Called for Reform Free enterprise system: allowed businesses to operate without government interference Organizations for ReformAccomplishments Grange Provided supplies at cheaper prices to members, pressured the legislature to deal with unfair shipping rates Farmers’ Alliance Negotiated sales directly with cotton mills, founded Populist party – aka Peoples Party Interstate Commerce Commission Set rules for interstate railroads (railroads that connect 2 or more states) Texas People’s PartyOr the Populist Party, were struggling, poor farmers, Populist influence led other politicians to support the passage of laws that protected farmers and workers.

15. New Law Prohibits Trust Antitrust Law: prohibited companies from joining together to fix prices of limit production

16. Governor Hogg Regulates the Railroad The regulation of railroads was another important reform of the period Interstate Commerce Commission (ICC) set rules for interstate railroads that connected 2 or more states Texas Railroad Commission: set rates and stopped many unfair railroad practices James Hogg remembered for helping put railroads under government control Within a few years, many railroads’ unfair practices were stopped