Industry Comes of Age 1865-1900 Chapter 24
The Iron Colt Becomes an Iron Horse Is there more power in BUSINESS or POLITICS? Surge in railroad development 1865 35,000 miles of track 1900 over 192,000 miles of track Railroad building subsidized by govt. Govt. provides railroad companies with land In return, govt. receives favorable railroad rates
Railroad Construction, 1830 1920
The Iron Colt Becomes an Iron Horse Railroads lead to development of otherwise undeveloped areas Towns fought for railroads to be built through their communities Why?
Spanning the Continent with Rails 1862 construction of the transcontinental railroad begins Binding the country economically Union Pacific Railroad works westward from Omaha, Nebraska Irish immigrants Central Pacific Railroad began in CA Chinese immigrants Sierra Nevada
Chinese Irish
Spanning the Continent with Rails 1869 Wedding of the Rails in Utah Central Pacific responsible for 689 miles Union Pacific responsible for 1,086 miles Paved the way for westward expansion Encouraged trade with Asia
Binding the Country with Railroad Ties By 1900, four other transcontinental lines were completed Railroad boom encourages people to take risks Not always a good thing Land speculation
Railroad Consolidation and Mechanization Commodore Cornelius Vanderbilt Early fortune in steamboats; shifts focus to railroads Railroad boom aided by: Steel replaces iron rails Air brakes (Westinghouse) Frequent accidents The learning curve
Railroads Revolution by Railways Industrialization Time zones Stimulated mining, farming Increased immigration Millionaire class Growth of cities
Wrongdoing in Railroading Fortunes corruption? Jay Gould Stock watering Power and politics Bribes Control the flow of information!!! Eliminate competition The pool
Government Bridles the Iron Horse The American public is largely at the mercy of the few (rich guys) Where is the govt.? Would govt. intervention violate American ideals? Led by farmers, many called on the govt. to regulate the railroad industry Wabash (1884) Supreme Court rules that individual states had not right to regulate interstate commerce Thus, if the railroads are going to be regulated, the responsibility falls on the federal govt.
THE FEDS TAKE ACTION INTERSTATE COMMERCE ACT OF 1887 1)regulated the prices that railroads charged to move goods between states; 2)rates must now be set in proportion to distance traveled; 3)made it illegal to give special rates to certain customers 4)Set up the Interstate Commerce Commission (ICC) to enforce the laws Shows that the govt. is willing to at least ATTEMPT to regulate big business
Abundance of cheap natural resources Large pools of labor (immigration) Industrial Explosion Government support without regulation Largest free trade market in the world
Patents Issued, by Decade, 1850 1899
Miracles of Mechanization Alexander Graham Bell Thomas Edison Telephone Lightbulb, motion picture, phonograph Edison sought to make electricity AFFORDABLE
The Trust Titan Emerges Business like Andrew Carnegie and John D. Rockefeller sought ways to eliminate competition and dominate industries Carnegie and vertical integration All phases of manufacturing united (Mining to marketing) Eliminates the middle man
The Trust Titan Emerges Rockefeller and horizontal integration Allying with competition to create a monopoly Standard Oil Company and the trust Rockefeller comes to dominate the world petroleum market Inspired many imitators
The Supremacy of Steel Steel industry dominates American manufacturing, economy Why? The Bessemer Process Makes it easier and cheaper to produce steel Abundant labor force Natural resources
Carnegie and Other Sultans of Steel Andrew Carnegie Comes to dominate the steel industry Carnegie and the Gospel of Wealth J.P. Morgan
Rockefeller and Oil Kerosene Made obsolete by the lightbulb Invention of the lightbulb revives the oil industry John D. Rockefeller comes to dominate the oil industry Standard Oil
Rockefeller and Oil By 1877, Rockefeller controlled 95% of all oil refineries in the country Rockefeller used spies, extortion, etc. The new rich
The Gospel of Wealth Sources of wealth Divinely chosen??? Survival of the fittest??? Social Darwinism Rich contempt for the poor Work harder!!!
Sherman Anti-Trust Act (1890) Federal legislation that sought to limit cartels, monopolies, and trusts Ineffective due to legal loopholes Used to restrain labor unions While ineffective early, the Sherman Anti-Trust Act and Interstate Commerce Act set a precedent Which was?
The South in the Age of Industry Industrialization in the North has little effect on the South Remains largely rural New South Textile mills begin to appear in larger #s Lower pay Poor conditions
Impact of the New Industrial Revolution Country becomes more wealthy Free enterprise gives way to govt. intervention New opportunities for women; less pay Rise in standard of living Decline of farms; rise of industry Growing gap between rich and poor Increased need for workers Urban centers and immigration Beginning of American foreign trade / empire???
In Unions There is Strength Dehumanization of workers Large labor pool = decreased wages What does this do to workers? Individuals were powerless against corporations The worker needs the job more than the boss needs the worker
In Unions There is Strength If workers tried to stand up (strikes) against their bosses, the odds were really stacked against them You re fired! Scabs Court injunctions Yellow dog contracts Federal or state troops Blacklisting of workers Public disdain for strikes
Labor Limps Along Unions became much more numerous, active after the Civil War National Labor Union (1866) Skilled / unskilled workers, farmers Wanted 8 hour workday, arbitration of labor disputes Economic depression of 1870s hurts NLU Great Railroad Strike of 1877
The Knights of Labor Founded by Philadelphia tailor Uriah Stephens Started in 1869 Opened to skilled and unskilled workers, women, and blacks Platform: Creation of Bureau of Labor Statistics 8 hour day Equal pay for equal work by men and women
The Knights of Labor One big union Called for sweeping political and social reform 1879 Terence Powderly replaces Stephens Haymarket Square incident turns the public against the Knight of Labor
Haymarket 1 May 1886 National demonstration for 8 hour workday 3 May 1886 Police break up fight between strikers and scabs in Chicago
Haymarket Union leaders call for strike on May 4; anarchists join in Bomb kills 7 officers, riot ensues 8 anarchists tried for conspiracy; 4 executed
Haymarket Public outrage, not evidence, leads to convictions Importance: Public begins to associate unions with violence and radicalism
American Federation of Labor (AFL) Federation - the act of uniting in a league. AFL was a federation of national organizations, each of which retained some power Skilled workers Formed in 1886 Led by Samuel Gompers
Relied on economic pressure (strikes and boycotts) to achieve goals American Federation of Labor Union focused on workers wages, hours, and working conditions closed shops Bread and butter unionism
AFL Tactics Collective bargaining Workers negotiate AS A GROUP with employer. As a group, workers had much more power Pressed for a closed shop (only union members hired)