1865-1900
Unit 7
AP US History
Completing the Transcontinental
Railroad
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As the Civil War ended it became
an initiative to link the nation east
to west. (California Gold)
The federal government gave
land grants and loans to private
companies to build the railroad.
Building out of Omaha, Nebraska
and heading west was the Union
Pacific Railroad.
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Building out of the boom town of
Sacramento, California and
heading east was the Central
Pacific Railroad.
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Employed mostly Irish
Employed mostly Chinese
Both companies met in Ogden,
Utah in 1869.
Influences of the Railroad
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Railroads take over as major
economic business.
Economic Growth
Stimulated the growth of
mining of natural resources
and farming.
Created a national economy
where raw materials from the
west were shipped and made
into consumer goods in the
northeast.
Boomtowns
Deforestation of northern
woodlands
Time management: 4 time
zones to monitor schedules to
avoid crashes
The millionaire class
Railroading Corruption
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Railroad stock promoters
exaggerate the values of
railroads and sold stocks for more
than they were worth. (“Stock
Watering”)
This drove up prices on rates in
order for RR managers to meet
their obligations.
Free passes given to journalists
and politicians.
“The Pool”: agreement between
RR companies to divide business
of an area and share the profits.
Rebates and kickbacks for
assurance of use of their rail by
large corporations.
Charge more for a short haul
than a long haul.
Small farmers/businesses
suffered the most.
Taking a Stand…
Farmers began to protest the
practices by these
monopolistic RR companies.
 Congress passes the
Commerce Act of 1887
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Prohibits rebates and pools
RR must publish their rates
openly
 Forbade discrimination against
shippers
 Outlawed charging more for
short haul
 Created the Interstate
Commerce Commission to
enforce the legislation
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This was the first time that the
federal government stepped
in to regulate a private
business.
The Railroad influences an
Industrial Revolution…
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What caused the United
States to undergo a
Revolution?
 Investors and loans from
foreign capitalists
 Innovations in
transportation
 Abundance of natural
resources
○ Coal, oil, iron, steel,
copper, bauxite, zinc
 Mass production
methods
 New inventions and
innovations
Rise of “Corporations”
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A type of business
organization where
shareholders invest
money into the
business.
Characterized by
‘limited liability’ where
shareholders cannot
lose more money than
what they invested.
Impact on raising
taxes on these
institutions on you and
me.
Light bulb
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Invented in 1876 by
Thomas Edison.
Prior to the light
bulb, lighting in
homes came by way
of gas lighting.
Electricity heats a
thin strip called a
filament until it is hot
enough to glow.
Telephone
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Invented by Alexander
Graham Bell
March, 1879
Bell beat Elisha Gray in
attaining credit for the
patent by only 2 hours!
First installed telephone
was in Connecticut in
1877.
First conversation was
between Bell and his
assistant in the next
room.
“Hello Girls”
Assembly line manufacturing
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Introduced by Henry
Ford in 1908.
This allowed the
manufacturing of
vehicles less
expensive which
allowed more average
Americans to
purchase them.
In 1908, the first car
(Model T) could be
purchased for
$825.00
Airplane
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Introduced by the
Wright Brothers on
Dec. 17th, 1903.
The world’s first
power driven
airplane in Kitty
Hawk, NC.
The plane was run
off of a 12 horse
power engine.
Bessemer Steel Process
Invented by Henry
Bessemer
 Produced steel at a
faster, less expensive
rate, while needing
less workers.
 Also used to purify the
iron, used to make
steel, by oxidation.
(Air being blown
through the molten
iron).
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Industrial Leaders
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Andrew Carnegie
 Steel Manufacturing
 Used on RR
 Used the Bessemer
steel process
○ Makes steel faster,
more efficient.
 Vertical Integration
○ Combining into one
organization all
phases of
manufacturing from
mining to marketing
Industrial Leaders
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Oil
 John D. Rockefeller
 Horizontal integration
○ Allying with
competitors to
monopolize a market.
This came to be
known as a trust
 Standard Oil Company
1870
○ Kerosene first major
product
 Invention of Automobile
creates higher demand
for his oil
Industrial Leaders
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Finance and
Banking
 J.P. Morgan
 Buys out Carnegie
steel for 400 million $.
 1901: launches the
United States Steel
Corporation; worth
1.4 billion $.
 America’s first billion
dollar corporation.
Industrial Leaders
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Railroads
 Cornelius Vanderbilt
 Greatly influences the
building of the
Transcontinental
Railroad.
 Replaces old iron tracks
with steel which was
more safe and could
hold heavier loads.
 Made a standard for
width of track for more
uniformity among
connecting rails.
Breaking the “Trust”
People tired of paying
the high prices for
goods from the million
dollar corporations
begin to protest.
 Congress passes the
Sherman Anti-trust Act
of 1890.
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 Forbade companies to
join together to
monopolize a market.
 Law proved to be
ineffective, corporate
lawyers found numerous
loopholes.
○ Ex. Sirius-XM satellite
radio.
Impacts of the Industrial
Revolution on the Nation
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Increased wealth of the nation
Increased standard of living
(luxuries, free time)
Cities boomed
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Decline in agriculture
More government regulation in
private business (anti-trust)
Concept of time (time zones)
Roles of women
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Typewriter
Telephone
Wage laborers marry and begin life later.
Class divisions: laborer vs.
bosses
Wage labor issues
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Population, immigration, wage labor
Job security, working hours, corrupt
bosses
Participation in global markets
Influenced creation of labor union
Labor Unions
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Knights of Labor
1869
Secret society with
passwords, handshakes
until 1881
Invited membership
from skilled, unskilled,
men, women, whites,
and even blacks.
Fought for economic
and social reform, safety
and health codes, and
the 8 hour work day.
Labor Unions continued…
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American Federation of
Labor
1886
Samuel Gompers
Skilled workers:
carpenters, bricklayers
Association of selfgoverning unions
Fought for social reform,
against socialism,
higher wages, less
hours, and improved
working conditions.
Used “walk-outs” and
boycotts
Haymarket Square Strike
May 4, 1886
Chicago, ILL
Started out as a strike
for workers.
 A bomb was thrown at
police and gunfire rang
out killing 8 police and
numerous civilians.
 Four anarchists were
put to death, a fifth
committed suicide in
prison.
 Knights of Labor
accused of being an
anarchist union.
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Homestead Strike
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June of 1892
Homestead, PA
Strike between
Carnegie Steel
Company and the steel
workers labor union AA.
Striking against working
conditions, pay, safety
regulations.
Violence between
striking workers and the
Pinkertons, a security
agency.
Gains from Strikes
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Limited Working
hours
Regulated Working
Conditions
Consistent and
higher pay