Chapter 24; Industry Comes of Age (1865-1900)
Theme:
America accomplished heavy industrialization in the post-Civil War era. Spurred by
the transcontinental railroad network, business grew and consolidated into giant corporate trusts.
Theme:
Industrialization radically transformed the condition of American working people, but
workers failed to develop effective labor organizations to match the corporations.
I.
The Iron Colt becomes an "Iron Horse"
Rail dramatically increases.
1865 -- 35,000m
1900 -- 192,550m
Government Subsidies.
1.
Provide 155m acres of federal land
Provide 49m acres of state land
2.
Liberal loans to railroad companies from government
Used land as collateral for bank loans
II.
Transcontinental Railroad (1862 - 1869)
Purpose:
Unite West (CA) to rest of country.
From East:
Union Pacific Railroad
Generous federal loans & land grants
Credit Mobiler Scandal ($50m profit)
Workers:
Irish immigrants (Indian raids)
From West:
Central Pacific Railroad
Workers: Chinese immigrants (100s died)
Generous federal loans & land grants
III.
Binding the Country w/ RR ties
First Transcontinental RR Union Pacific to Central Pacific RR
Note: RRs faced bankruptcies, mergers, & reorganizations
IV.
RR Consolidation and Mechanization
Cornelius Vanderbilt -- Consolidated Eastern Lines, added steel rails replacing iron.
RR advances -- Standard gauge track, Westinghouse air brakes, Pullman Cars (Sleepers), block signals.
Still, Accidents commonplace.
V.
Revolution by Railways increases Industrial Revolution
* RR united America & created common market.
* Allowed raw materials to be transported to factories
* Cities increased in size -- food easily transported to them
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V.
Revolution by Railways increases Industrial Revolution (Cont.)
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VI.
Increased immigration -- transport to interior farms
Created "time zones" for unified time
Created RR elite robber barons
harmed environment
Wrongdoing in RR
Vanderbilt Quotes:
"Law! What do I care about the law? Hain't I got the power?"
"I won't sue you, for the law is too slow. I'll ruin you."
"The public be damned."
* Credit Mobiler Scandal
* Over-inflated stock prices.
* Pools, trusts, kickbacks, overcharges on common people
VII.
Government Bridles the Iron Horse
* Midwest farmers at mercy to prices of RR monopolies
* Cleveland Laissez faire -- hands off
Wabash Court Case (1886) -- IL State Court ruled individual states could not regulate Railroads.
(Interstate Commerce can only be regulated by the Federal government)
Grangers -- Midwest farmers who wanted to:
a)
Regulate Railroad prices
b)
Turn RR into public corporations
Interstate Commerce Act 1887 Significance: First large scale attempt to regulate the economy.
a)
Prohibited pools & rebates
b)
Rates must be public
c)
Rates of interstate railroads must be “reasonable”.
d)
Created ICC -- Interstate Commerce Commission
Note: Art. I Sec. 8 Para. 3 allows Federal Government to regulate interstate trade.
VIII.
Miracles of Mechanization
1860 -- US 4th largest manufacturer. By 1894, ranked 1st
Why? * Access to vast natural resources
* Increased immigration
* Increased inventions
a)
Thomas Edison Lightbulb – Added industry.
b)
Alexander Graham Bell Telephone –business.
c)
Christopher Sholes Typewriter. 1870 – 5% of
Office workers are women; 1900 -- 75% (500,000).
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IX. The Trust Titan Emerges
Carnegie -- steel; Rockefeller -- Standard Oil; Morgan -- Banking
"vertical integration" -- control every aspect of manufacture from mining to marketing. (Carnegie)
"Trust" -- Combine w/ competitors to form a monopoly.
"horizontal integration" -- control entire market.
Rockefeller controls 95% of oil market.
"American Beauty Rose" -- See cartoon
1859 -- Drake's Folly -- 1st oil well (PA) "black gold"
* Produce Kerosene
* 1900 combustion engine
X. Supremacy of Steel; Steel is King
Bessemer Process - increased steel production. US produces more steel than closest two competitors combined.
XI. Carnegie and other Sultans of Steel
Morgan buys out Carnegie ($400m) & creates $1.4b US Steel Corp.
Philanthropy – Rich give money to public cause like libraries, music halls, art galleries, etc.
“The man who dies thus rich dies disgraced.” Carnegie
XII. Gospel of Wealth
Gospel of Wealth – God helped the rich become rich and they therefore had an obligation to be
morally responsible
Social Darwinism -- Survival of the fittest in business and society.
The rich are rich b/c they earned it. The poor are poor b/c they deserved it.
XIII. Sherman Anti-trust Act 1890
Purpose:
Forbade "combinations in restraint of trade"
Intended to break up trusts.
Effectiveness: Did not work. Was used instead to break up Unions.
Trusts increased in number and size.
XIV. South in the Age of Industry
Henry W. Grady -- (Atlanta Constitution) Sought increase of Southern industrialization. Failed.
a)
RR discriminated (charged more for) against southern products moving north.
b)
Some textile mills but poor wages & working conditions.
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XV. Impact of the New Industrial Revolution on America
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2nd Industrial Revolution increased standard of living.
US transforming from rural to urban manufacturing nation
Factories (jobs) were a magnet for immigrants
Unequal wealth distribution – 10% owned 90% of wealth in US
Effects of Industrial Revolution on Women
* Inventions – Typewriter & telephone increase women in work
* “Gibson Girl” – New image of independent, athletic women
XVI. In Unions There is Strength
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Workers being treated like pieces of machinery
"Scabs" -- Strikebreakers
Business controlled the politicians, press & courts
Lockout -- Employer refused to allow workers to work unless they agreed to owners terms.
Yellow Dog Contracts -- Worker signed a contract before employment agreeing not to join a union.
Blacklist -- Union organizers denied work in a market
Company Town -- Helped workers become indebted to company
XVII. Labor Limps Along
National Labor Union (1866-1872) -- 600,000 members
a) 1st major Union (included all workers except minorities)
b) wanted 8 hr. days & won it for government workers
Knights of Labor -- Terence V. Powderly (leader)
a) included skilled & unskilled workers
b) wanted 8 hr. workday
c) sought economic and social reform in society
d) Mother Jones -- Woman organizer
XVIII. Unhorsing the Knights of Labor
Haymarket Affair -- Chicago. 180 police came to break up a strike. A bomb exploded killing 7
police. The police opened fire killing 10. 4 leaders of strike hanged. Bad press. immigrants blamed
Result: Led to the downfall of the Knights of Labor.
XIX. The AF of L to the Fore
Samuel Gompers -- Founder. AFL (American Federation of Labor) an association of unions.
a) Sought "closed shop" -- all union workers in co.
b) Methods -- boycotts, picketing, walk-outs
c) Composed of skilled workers (not unskilled)
Union Overview 1881-1900.
* 23,000 strikes
* Only 3% organized by 1900
* Unions began to gain public acceptance
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