1. CHAPTER 24 NOTES AP US History Mrs. Marshall
Industry Comes of Age
CHAPTER 24 NOTES
AP US History
Mrs. Marshall

2. Reasons for transformation of American society:
Industrialization
Development of labor unions
Massive immigration
Creation of urban centers

3. Needs for the Industrial Revolution
For the Industrial Revolution of develop the nation needed:
A national transportation system
Large deposits of iron, coal and later oil
New sources of power
A supply of labor
Capital for investment
A stable banking system
Surplus agricultural production

4. Reasons for Subsidies
Reasons private railroad promoters gave the government for needing subsidies:
Too risky and expensive without government help
It was not profitable in thinly populated areas
In return for subsidies the government received long-term preferential rates for postal service and military traffic.

5. First Transcontinental Railroad
Pacific Railway Act- passed by Congress 1862
Union Pacific Railroad- built west from Omaha, Nebraska, relied on Irish immigrants
Central Pacific Railroad- built easy from Sacramento, California, relied on Chinese immigrants.
The 2 lines joined 1869 at Promontory Point, Utah

6. Other transcontinental railroads completed by end of the century:
Other Railroads
Other transcontinental railroads completed by end of the century:
Northern Pacific railroad
Atchison, Topeka and Santa Fe
Southern Pacific
Great Northern
James. J. Hill’s Great Northern Railroad-only one not built with government subsidies

7. Important innovations contributing to growth of railroads:
Standardization of time zones
Standard gauge of track width
Air brakes
Steel rails replacing iron tracks
Pullman Palace Cars

8. Cornelius Vanderbilt
An American entrepreneur who built his wealth in shipping and railroads.
Through graft and bribery he built the New York Central into the largest single railroad line in America.

9. Stimulus from Railroad
Railroads in the late nineteenth century provided a significant stimulus to:
Agriculture
Urbanization
Immigration
Industrialization

10. Wealth of Railroads Tactics used by railroads to amass large wealth:
Stock-watering people selling stock would inflate their claims about the companies assets/profits and sold stock way above the actual value
Bribery bribed judges, congressmen, lobbyists
Pool an agreement between railroad corporations to divide the business in a given area and share the profits
Rebates and Kickbacks would pay to big shippers in return for steady business

11. Regulation of Railroads
Efforts by government to regulate practices of railroad corporations:
1st attempt came from state legislatures
Interstate Commerce Act- created 1st federal regulatory agency. This act prohibited rebates and pools, required railroads to publish their rates, prohibited discrimination against shippers, outlawed charging more for short hauls than long hauls.
Interstate Commerce Commission-created to enforce the new legislation

12. Growth of Manufacturing
Factors which promoted growth of manufacturing in post-Civil War America:
Plentiful cheap labor
Available investment capital
Abundant natural resources
Massive immigration

13. Eli Whitney- mass production
Inventors
Eli Whitney- mass production
Alexander Graham Bell- telephone, resulted in building of a giant communication network.
Thomas Edison- electric light, mimeograph machine, motion picture

14. Scottish immigrant who became a giant in the steel industry
Andrew Carnegie
Scottish immigrant who became a giant in the steel industry
Two methods he used:
Vertical integration- process in which a company buys out its suppliers
Horizontal integration- process in which companies producing similar products merge

15. Industrialist who organized the Standard Oil Company
John D. Rockefeller
Industrialist who organized the Standard Oil Company

16. Trusts
Trusts- combination of firms or corporations formed by a legal agreement. It reduces competition.

17. Henry Bessemer and the Bessemer Process
Cheap and efficient process for making steel from iron (around 1850)

18. JP Morgan
Became the head of one of the most powerful banking houses in the world.
Bought out Carnegie
United States Steel Corporation

19. Oil Industry
Discovered kerosene (which comes from oil) could be used in lamps. Increased the demand.
Edwin Drake (1859) used a steam engine to drill for oil.
Gasoline was another by-product.
Gasoline was not demanded until the automobile.
Oil industry became a huge business with the invention of the internal combustion engine.

20. Social Darwinism
An economic and social philosophy based on the biologist Charles Darwin’s theory of evolution by natural selection-holding that a system of unrestrained competition will ensure the survival of the fittest.
Two notable Social Darwinist:
Herbert Spencer and William Graham
Sumner

21. “Gospel of Wealth”
“Gospel of Wealth” –essay by Carnegie-argues that accumulation of wealth was beneficial and government should not take action to impede it. People with money had duty to help others.

22. Sherman Antitrust Act (1890)
Was intended to prevent the creation of monopolies by making it illegal to establish trusts that interfered with free trade.

23. Textile mills provided jobs for many southerners in the “new south.”
Henry Grady editor of the Atlanta Constitution
Women were most affected by the new industrial age. Image of the “Gibson Girl” represented an independent and athletic “new woman”

24. Working Against the Worker
Tactics used by corporations against workers:
Lockout- closing factories so worker could not work
Yellow dog contract- signed agreement not to join a union
Blacklist- put name of union members/ agitators on list circulated among industries
Company town- corporation owned stores in town-workers became deeply in debt

25. National Labor Union (1866)
Successful in gaining 8 hour work day for government workers. A major setback was Depression of the 1870’s

26. Knights of Labor
1869-Uriah Stephens
Skilled and unskilled workers
Terence Powderly replaced Stephens in 1879
Favored open arbitration/discouraged strikes
Haymarket Riot
Disappeared by 1900

27. American Federation of Labor (AFL)
Samuel Gompers
Affiliation of craft unions for skilled workers
Lobbied for 8 hour day, 6 day week, higher wages, better working conditions, protection for workers

28. Attitude Towards Labor
By 1900, American attitude toward labor began to change as the public came to recognize the rights of workers to bargain collectively and strike. The vast majority of employers continued to fight organized labor.