Presentation is loading. Please wait.

Presentation is loading. Please wait.

Ch 24 Rise of Industry RRs, Industrialization, Immigration, Labor Unions.

Similar presentations

Presentation on theme: "Ch 24 Rise of Industry RRs, Industrialization, Immigration, Labor Unions."— Presentation transcript:

1 Ch 24 Rise of Industry RRs, Industrialization, Immigration, Labor Unions

2 Post Civil War RR expansion Some RR production from 1840-65 Post CW RR production skyrocketed. – Congress encouraged w/ land grants totaling over 155million acres. – Cos were allowed 10 mile wide strips of land, mapped in alternating 1 mi square sections some to keep & some to sell Cleveland stopped practice 1887 – Towns where RR came through became sprawling cities; those skipped by RRs bcm ghost towns

3 Transcontinental RR When south seceded congress commissioned Union Pacific RR for the northern route – Omaha, NE to CA 1862 – Co received huge $$ grants to build but Credit Mobilier netted 23 mill in profits Central Pacific RR in CA built eastbound route – Irish hired to lay westward route; Chinese hired to lay eastern route. RR workers defended tracks from Indian attacks Averaged 7-10 miles of track per day Central Pac backed by ‘Big 4’: (with) – Leland Stanford (ex gov CA)& Collis P. Huntington (lobbyist)

4 RRs (3) Central Pac also had to drill through Sierra Nevadas First Transcontinental route completed at Ogden, UT in 1869 By 1900, 4 other Transcontinental routes built – Northern Pacific RR (Lake Superior  Puget Sound) – Atchison, Topeka & Santa Fe crossed SW deserts – Southern Pacific from Orleans to SF, CA – Great Northern (Duluth to Seattle) James J. Hill project- greatest RR builder

5 RRs consolidate Many pioneers over invested in land & banks that supported them often failed when land value turned out to be low Cornelius Vanderbilt (NY Central RR) financed many western RRs RR advances: – Steel rails (stronger than iron) – Westinghouse Air Brake – Pullman Palace Cars – Telegraphs – Double racking & block signals Train accidents still common, many fatalities

6 Effects of RRs Tied nation together, created huge market & many jobs – Helped industrialize US – Stimulated mining, agriculture by bringing people, supplies – Creation of 4 time zones: Nov 18, 1883 Stopped independent times/ scheduling nightmare – Created millionaire class

7 RR wrong doings Credit Mobilier Jay Gould made millions watering stock – Embezzled from Erie, KS Pacific, Union Pacific, TX Pacific etc Inflated worth of stocks; sold over value Owners abused public – Bribed judges, legislatures, hired lobbyists – Elected their own to office – Used free passes as bribes w/ press – Formed defensive alliances, Trusts, then called Pools

8 Government’s first attempts to regulate business Gov position had always been pro business – Adam Smith: the market will regulate itself The People attempted to regulate RRs to stop injustices through the Grange – Several state cases allowed States to intervene, as in the Wabash case – Each time, the Supreme Ct overturned; only Congress can reg. interstate commerce – Interstate Commerce Act 87- banned rebates, pools, req’d RRs to publish rates openly, banned charging more for short hauls Set up ICC to enforce

9 Mechanization 1860- US: 4 th largest mfctr in world – 1894: #1 Abundant liquid capital Exploited natural resources: coal, iron, oil Abundant cheap labor: immigration American ingenuity (inventions) – Mass production – Cash register, stock ticker, typewriter, refrigerator car, electric dynamo, electric railway – Bell’s telephone – Thomas Edison (wizard of Menlo Park): light bulb, phonograph & dozens more

10 Trust Titans & Robber Barons Andrew Carnegie (steel) – Vertical integration Controlled all aspects of industry (from ground up) John D. Rockefeller (oil) – Horizontal integration Controlled certain parts of process, ie: all mining or all shipping – Standard Oil forced all weaker competitors to the wall Trusts: giant monopolistic corporations – Rockefeller also put his own men on boards of directors of other rival companies “interlocking directories”

11 Supremacy of Steel 1860: scarce, expensive 1900, US produced more than England & Germany together – Due to Bessemer process (though American, Wm Kelly discovered it first) Cold air blown over molten steel allows iron burned carbon impurities to rise up and be skimmed off – Purifies iron into steel – US had abundant iron, coal (heating)

12 Carnegie Began as poor clerk for RR co – Acted quickly to resolve company crisis Rewarded w/ opportunity to buy stock.. Quickly bought up as much as he could Eventually owned RR On to Steel. Pittsburgh area- produced ¼ nation’s Bessemer Steel – J.P. Morgan (banker) attempted to move into Steel tubing Carnegie threatened to ruin him Negotiated settlement: Morgan bought out Carnegie for $400 million – Carnegie gave away $350 mill to charity, pensions, libraries Added other steel holdings, formed: US steel 1901: first billion $$ corp in world

13 Rockefeller 1859 Drake first mined oil in Titusville PA – By 1870s used to light kerosene lamps all over nation (whale oil – obsolete) – By 1885 1/4mill Edison Electric light bulbs in use- made kerosene obsolete – Industry shifts to gas burning internal combustion engine Rockefeller already owned 95% oil production in US when he org’d Standard Oil of Ohio 1882 – Crushed weaker competitors – American Beauty Rose theory of competition Trusts: built superior product at cheaper price, Gustavus Swift & Philip Armour: meat barons

14 Gospel of Wealth Many rags to riches stories (Horatio Alger) in real life – Newly rich feel some are destined to become rich (predestination.. Calvinist) AND help society w/ $$ – Rev. Russell Conwell (Phila) bcm rich on his lecture: “Acres of Diamonds” preached poor people made themselves poor, rich made themselves rich.. Everything was based only on your actions – Corporate lawyers used 14 th amendment to defend trusts as living entities (big people) entitled to their property Plutocracy ruled

15 Gov attacks trusts 1890: Sherman Anti-trust Act – Forbade combinations in restraint of trade No distinction between good & bad trusts Could not be enforced 1914- enforced, violators first punished

16 South in Age of Industry Agrarian – James Buchanan Duke: cigarette industry: American Tobacco Company Donations to Duke University – Henry Grady (Ed. Atlanta Constitution) urged S. to industrialize – No. companies set rates to keep S from gaining competitive edge Textile mills developed in S Cheap labor led to creation of many jobs, (low wages) still welcomed in S

17 Impact of Industrial Age Standard of Living rose Immigrants poured in for opportunities Jeffersonian ideas of dominance of agriculture faded Women swarmed to factories, found new opportunities – Gibson Girl (Charles Dana Gibson): romantic ideal of the age Pressures of foreign trade developed Overproduction will drive us to develop more foreign markets – Leads to Imperialism

18 In Unions There Is Strength National Labor Union – 1866- 600,000 members- lasted only 6 yrs Excluded Chinese Never recruited blacks; women Worked for arbitration of industrial disputes – & 8 hr day Won 8 hr day for Gov workers- till Depression 1873

19 Unions (2) Knights of Labor – 1869 – 1881 (in secret) Barred only liquor dealers, prof. gamblers, lawyers, bankers, stockbrokers – Campaigned for economic & social reform – Led by Terence V. Powderly Won many strikes for 8 hr day After strike against Jay Gould’s Wabash RR 1885, membership went up to ¾ million

20 End of Knights of Labor Involved in several May Day strikes; half failed – Chicago: (80K knights & hundreds anarchists) May 4, 1886- Police advancing on meeting called to protest brutality by authorities (Haymarket Sq) – Bomb thrown, killing & injuring many – 8 anarchists rounded up; no proof – Jury sentenced 5 to death for conspiracy – Other 3 long prison terms 1892 John P. Altgeld, Dem Gov IL pardoned 3 survivors after studying case – Defeated in re-election bid – Forever assoc w/ anarchists- KOL membership dropped

21 A F of L 1886- Samuel Gompers founded Am Fed of Labor – Assoc of self gov’d unions, all indep – Demanded ‘fairer share for labor’ Better hours, wages – Skilled workers only (labor trust) – 1881-1900 over 23,000 strikes; w/ 6.6 mill workers Still less than 3% of all workers unionized. 1894 Labor Day became legal holiday Most owners fought unions still

Download ppt "Ch 24 Rise of Industry RRs, Industrialization, Immigration, Labor Unions."

Similar presentations

Ads by Google