Ch 24
Industry Comes of Age
Transcontinental Rail
The Union-Pacific Rail Co. - Commissioned by
Congress to go from Omaha, Nebraska to the
West.
Given generous loans and land to help build
the rail.
Central-Pacific: Sacramento to the East
Ogden, Utah 1869
The Titans of Industry
Cornelius Vanderbilt- Railroads
John D. Rockefeller- Oil
Andrew Carnegie- Steel
J.P. Morgan- Finance
Cornelius Vanderbilt
Industry: Railroads
Owned many different rail lines, Made steel
rails more popular, Lowered cost of travel.
Amassed a fortune of 100 million dollars.
Effect of Railroads
Expanded trade and increased manufacturing
Towns sprout up along railroad lines.
Increased immigration from Europe.
Time Zones
Andrew Carnegie
Company- Carnegie Steel
Vertical Integration: Controlling a product
during all phases of production.
Started company in Pittsburgh, PA.
Bessemer Process
Steel before the 1850’s was expensive to
produce
The Bessemer Process provides for cold air to
be blown into a furnace to remove impurities in
steel
Cheaper Steel = More demand
Carnegie Steel
By 1900, Carnegie was making 25% of U.S.
Steel.
Carnegie decides to sell his company for 400
Million dollars in 1900 ( in the billions, today)
Gospel of Wealth: gave away 350 million of his
money.
John D. Rockefeller
Company: Standard Oil Company
Horizontal Integration: owning all aspects of
one specific part of production
Trust: holding property to benefit another.
Standard Oil
By 1877, Standard Oil controlled 95% of the
refineries in the US
Trusts expanded over many different industries.
Rockefeller’s current day wealth: Over 600
Billion dollars
Standard Oil
Standard Oil provided a quality and cheap
product to the masses.
Ruined smaller businesses that wouldn’t join
leads to the Sherman Anti-Trust Act
J.P. Morgan
Industry: Finance/ Investment banker
Starts General Electric with Thomas Edison
Creates U.S. Steel after buying Carnegie Steel
Loaned the US Government 65 million in 1893
Trust Busting
Sherman Anti-Trust Act: Forbade combinations
that restrain trade. Hoped to increase
competition.
Interstate Commerce Act- Required railroads to
post rates, prevented trusts in the railroad
industry
Life of a Factory Worker
Wages are slowly rising in the late 1800’s
Unions are on the rise to protect the factory
workers ( 2 out 3 Americans work in a factory)
No security: Wage cuts, no insurance,
unemployment
Unions Vs Industry
The increased use of machines displaced many
workers during the late 1800’s
Many employers controlled their employees
through Company Towns, Blacklists, and scab
workers
National Labor Union
organized in 1866, lasted about 6 years
membership totaled about 600,000
Won an 8-Hour workday for Government
workers
didn’t allow minorities
Knights of Labor
started in 1869
barred minorities and “non- producers”
Fought for social reform, Health and Safety
codes for laborers
American Fed. of Labor
started in 1886, a federation of national unions
led by Samuel Gompers, sought to get more of
a fair share.
Sought to make all labor industries closed
shops