Unit 7: The Gilded Age ( ) SSUSH 11-12

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1 NAME Unit 7: The Gilded Age ( ) SSUSH Although the goal of Reconstruction was to rebuild the South, the actual affects of Reconstruction served to keep the South at an economic, social, and political disadvantage compared to the North, which was experiencing economic and industrial growth. Industrialization The Industrial Revolution began in the early 1800s. However, it wasn't until after the Civil War that more and more people began to work in factories - Industry Boomed! o Abundance of Natural Resources - water, timber, coal, iron, and copper. o Railroads - especially the Transcontinental Railroad o Workforce - large families and immigrants Industrialization Vocabulary laissez faire - "let do" - government should not interfere with industry other than to protect the private rights of private property rights! relies on supply and demand! runs on a profit motive entrepreneur - a person who invests their capital into organizing and running a business robber baron - a person who builds their fortunes by swindling investors and taxpayers, bribing government officials, and cheating on their contracts and debts monopoly - when a single company controls an entire market trust - a legal way to merge businesses that allow one person to manage another's property Steel Industry Late 1850s Bessemer Process developed by Henry Bessemer; was a way to manufacture high quality steel more inexpensively than previous methods. Cheaper steel led to faster expansion of RRs; also led to steel being used for constructing skyscrapers (tall buildings) in cities where land was scarce. The steel industry became very important to the U.S. economy, especially to RRs. The Significance of Railroads The federal government granted huge areas of western lands to railroad (RR) owners and the RR became the single largest business of the U.S. during this time. Made it easier to move people and goods from east to west. Heavier loads could be shipped on railroads more efficiently. RR could be constructed to go pretty much anywhere, regardless of the terrain. The RR also developed other areas of industry - steel, glass, wood, cloth... The U.S. went from having 35,000 miles of track in 1865 to over 193,000 miles of track by Robber Barons As RR industries spurred growth of other resources, a few men became incredibly wealthy: John D. Rockefeller Oil (horizontal integration) Cornelius Vanderbilt Railroads Andrew Carnegie Steel (vertical integration) J.P. Morgan - financial banking - loans and investments

2 The Consolidation of Industry Vertical Integration Horizontal Integration - Example: Example: Andrew Carnegie & Steel Carnegie began as a poor hand weaver from Scotland then became the founder of the world's first billion dollar company - Carnegie Steel Company. o invested in railroad companies o bought shares in iron mills o invested in companies that built RR bridges o sold railroad bonds He was also a well-known philanthropist. John D. Rockefeller & Oil John D. Rockefeller s Standard Oil Company was the first trust in America. The objective of the trust was to destroy competition and create monopolies. Rockefeller eventually came to own more than 90% of America s oil industry. His trust enabled him to dictate prices, eliminate competition, and control the U.S. oil industry. Investing in New Technology In 1832, Samuel Morse invented the telegraph, which could send messages through wires using morse code across the country. In 1874, Alexander Graham Bell invented the telephone. Thomas Alva Edison promoted Direct Current (DC), and bought patents for over 1,000 new inventions - such as the phonograph, electric light bulb, motion pictures... Nikola Tesla promoted Alternative Current (AC). The War of Currents Edison carried out a campaign to discourage the use of AC. o spreading disinformation on fatal AC accidents o publicly electrocuting animals o lobbying against the use of AC in state legislatures In the end, AC won the war (investments and publicity) but today we use both AC & DC. o AC is more efficient for long distance distribution (wavy). o DC is better for steady rate - used on appliances (direct). 2

3 How was big business affected by the growth of the RR? Who were the key players of big businesses? Immigration In the past, most immigrants came from Western Europe. In the late 1800s more immigrants were coming from Southern and Eastern Europe. o o They tended to be poor, Jewish or Catholic, and spoke very little to no English. They could not afford land to farm, so they lived in cities and worked as unskilled laborers in factories. Most immigrants coming to the east coast went through Ellis Island. o There were 19 other processing centers. o Only 2% of immigrants were turned away for chronic or contagious diseases, criminal backgrounds, or insanity. o Around 3,000 immigrants died on Ellis Island waiting to be processed. Many immigrants came to the U.S. as a result of industrialization. There was an incredible demand for labor and immigrants saw this as an opportunity for a better life. Problems for these immigrants included: o Overcrowding in urban slums & tenements o Impecunious circumstances o Pollution (air, sewage, garbage) o Rampant & contagious diseases o Constant threat of fires Increased feelings of nativism. o resurge of KKK o demand for immigration quotas Labor Unions In response to horrible working conditions labor unions increased. This was the source of much contention between factory owners and workers. Labor Unions worked to meet its goals through collective bargaining - negotiations with groups of employees and employers. Many labor unions would also strike (stop work) if necessary. 3

4 Employers did not like labor unions and often worked against them. o threatened to fire employees who joined unions o forced employees to sign non-union agreements o lockout - lock factory doors and refuse pay o blacklisted employees who joined in union activities American Federation of Labor A very influential labor union that formed in the late 1800s. Its goals included: o higher wages o shorter working hours/work weeks o better working conditions o First nationwide, industrial union. Samuel Gompers leader of the AFL. Labor Strikes The Haymarket Riot, 1866 The Knights of Labor planned a strike because workers wanted an 8 hour day. The factory hired strikebreakers. Violence broke out between the strikers and the strikebreakers. Six strikers were killed by police who fired into a riot. A rally was organized at Haymarket Square to protest police brutality. An unidentified person threw a bomb into the crowd and people died. Union leaders (anarchists and immigrants) were blamed and convicted in court despite the lack of evidence. The Great Strike, 1877 RR workers went on strike in Pennsylvania because their salaries were reduced and unemployment was rising. State militias were brought in to "keep the peace." Crowds of people gathered to protest military intervention (it was a riot). The troops responded by open-firing into the crowd and killing several unarmed men, women and children. Riots and demonstrations spread throughout the U.S. Federal troops were brought in to end the riots and reopen the railroads. The Pullman Strike, 1894 First national strike in U.S. history. Workers had to live in Pullman, Illinois (paying rent to Pullman), and shop and Pullman stores. Workers wages were cut but the price rent and other essentials did not decrease. American Railway Union had trains boycott Pullman cars. Federal troops were sent in and President Cleveland ended the strike because of the interference with U.S. mail. The RRs lost a lot of money by the time all of this was over! 4

5 The Triangular Shirtwaist Company, 1911 This company employed mostly women to sew shirts. The work conditions were horrible - long hours, monotonous work, low pay, and the doors stayed locked so that women couldn't steal the products. A fire started on the 8th floor and the women were unable to escape. Many women died from the fire, while some jumped to their deaths. This immediately led to reform for better working conditions for women and children who worked in factories. Describe the work conditions? Common Factors of Strikes: How are these problems solved? What is the role of the government? What is the usual outcome? The Transcontinental Railroad RRs played a major role in industrial growth and expansion by making life in the West and Manifest Destiny more possible: o Connected farmers, ranchers and settlers to eastern markets and resources. o Made moving west easier; helped to populate the west at a rapid rate. In 1862 Pacific Railway Act - Congress coordinated efforts to complete a trans-continental railroad; was signed by Abe Lincoln. Completion of the RR wasn't until 1869, with the final spike in place at Promontory Point, Utah. The Railroad Companies The Union Pacific (built East to West) from Iowa to Utah. o relied on Irish, German, and African American Labor The Central Pacific (built West to East) from San Francisco, California to Promontory Point, Utah. o relied on Chinese workers (European immigrants cared too much for gold) o earned $28 per month compared to Europeans' $50 wages As westward expansion of settlers continued, a series of incursions took place as the Plains Natives attempted to protect their lands. 5

6 Profit v. Safety Concerns in the RR The two major RR companies (UP and CP) were to be given $48,000 in government bonds for each mile of track built and told to meet somewhere in the middle: o both RRs cut corners, which track would have to be rebuilt later o neglected to provide safe working environments o established shanty towns along the way - The Wild West Originally, trains could be unpredictable for the public use, which led to the development of: o trained managerial staff o signal systems o better braking systems o national time zones The Chinese Labor Force Railroad companies in the west employed thousands of Chinese immigrants under egregious conditions: Estimated that 500 to 1,000 Chinese men died from explosions, rock slides, and snowstorms. Violence and Discrimination - financial harassment (unfair taxes) and slaughter by white men who felt that the Chinese, "were deviously determined to undermine white labor by working for inhumane low wages." Chinese Exclusion Act (1882) - after the RR was complete, a U.S. law passed to ban immigration from China. Chinese Immigrants were separated and detained at Angel Island Processing Center. Western Development The Homestead Act of 1862 granted 160 acres to any settler who lived on the land for at least 5 years and improved it. Western farmers depended on railroads to ship their grain and cattle from the west to the east. Originally, property was not fenced, which allowed the cattle to roam freely and gave rise to the cowboy. However, by the late 1880s, barbed wire fencing put the open-range system on the decline. The Native Americans Native Americans were greatly impacted by the westward movement of settlers, who arrogated the tribes' land. Settlers killed great numbers of buffalo and disrupted their migratory pattern (this was an intentional gov't program). o The Plains Indians depended on buffalo for their livelihood - food, clothing and shelter. o Native Americans were often forced to relocate to reservations or to assimilate into white culture. It became very common for the U.S. to make a treaty with the Native tribes and then violate the treaty. Treaty of Fort Laramie (1868) - Native get land in the Black Hills, in return they agreed to not harass or threaten western settlers. The Dawes Act (1887) - Authorized the federal government to break up tribal lands and create smaller plots for individuals. o The goal was forced assimilation. o Natives who bought land could become citizens. o Over 90 million acres were sold to non-natives. 6

7 Chief Joseph Leader of the Nez Perce tribe. Wanted a peaceful existence with white settlers but the U.S. kept breaking their land treaties once gold was discovered. He refused to sign a new land treaty and tensions grew - Chief Joseph began to fear a war so he led 600 Nez Perce on 1,400 mile march retreat toward Canada to save them from massacre. He surrendered on October 5, 1877 and was taken to a reservation in Indian Territory in the Oklahoma and later to a reservation in northern Washington. He later died from a broken heart. Geronimo Chiricahua Apache - "fighting men." In 1877, the U.S. gov't rounded up the Apaches, and settled them on the San Carlos Reservation in Arizona, to learn farming and cattle ranching. Geronimo refused to be moved and he proved to be an elusive and aggressive fighter. Spend the last 20 years as a POW. "I should never have surrendered, I should have fought until I was the last man alive." Sitting Bull Leader of the Sioux tribe (he was more of medicine man than a warrior). The Sioux fought at the Battle of Little Bighorn (1876) and the U.S. army, led by General Custer was defeated - the U.S. was not happy. Sitting Bull went into exile and when he returned, he agreed to settle on a reservation. He then performed a Ghost Dance, a ceremony to reestablish ancestral lands and repopulate the buffalo. American soldiers out of fear and revenge, massacred 300 unarmed Sioux men, women, and children at Wounded Knee - this was the last major conflict with between U.S. troops and the Natives in the Plains area. What affect did the RR have on the Native Americans? 7

8 UNIT VOCABULARY 1. Gilded (adj.) Covered thinly with gold leaf or gold paint. 2. Philanthropy (noun) the desire to promote the welfare of others, expressed especially by the generous donation of money to good causes. 3. Impecunious (adj.) having little or no money. 4. Contention (adj.) heated disagreement. 5. Incursion (noun) an invasion or attack, especially a sudden or brief one. 6. Egregious (adj.) outstandingly bad. 7. Arrogate (verb) to take or claim something without justification. 8