Chapter 24 Industry Comes of Age

The Growth of Railroads Land grants made by the federal government allowed the railroads to expand. They benefited by receiving discounted rates, cheap way to subsidize a trans. system Led to growth of large cities Many people felt it was unfair

Transcontinental Railroad Congress commissioned the Union Pacific and Central Pacific Huge subsides were paid (mainly land) Many Irish and Chinese died Completed in 1869 Bound the West to the union, opened up trade to Asia, growth

Railway Improvements 4 more transcont. RR’s were built by the end of the century Steel rails-safer and cheaper Standard gauge of track Air Brakes Pullman Palace Cars Telegraph

Revolution by Railroads #1 factor in the postwar industrialization of America Stimulated all sorts of business Created an enormous domestic market for raw materials and manufactured goods Led to growth in trade, cities, immigration, mining, agriculture and millionaires.

Railroad Corruption Railroad promoters became very powerful Often inflated claims of stock prices- “Stock Watering” Competition was fierce As a result, they formed pools which shared profits in a given area Charged more on other lines to make up the difference

Government Regulation Reluctant to act on business matters In 1887, congress passed the legendary Interstate Commerce Act. Outlawed rebates and pools and required the railroads to openly publish their rates, also forbade unfair discrimination against shippers Set up the ICC First large scale attempt by the government to regulate big business

Cornelius Vanderbilt Began his career in shipping. Rose to prominence and wealth with Staten Is. Ferry. Drove his competition out of business. Sold his business to get into RR Formed “pools” in order to keep prices fixed. Nicknamed, “The Commodore”

Andrew Carnegie From a poor Irish family. Worked as a child for next to nothing. Caught eye of an executive in RR industry and made his way up. Found out about Pullman and made a killing. Moved into steel and used vertical integration.

JP Morgan Born as a well-to-do youth who studied abroad. As a young banker, he took chances and always turned a profit. Became “the” financier of the U.S. He had to bail out the U.S. economy on two occasions. He formed some of the largest trusts in America.

John D. Rockefeller The richest of the rich. Founded Standard Oil and supplied most of the world. Used horizontal integration to buy out all of his competition. Also used some vertical practices. Practiced the social gospel.

Industry and Women Women began making strides in the workplace as secretaries and operators. They also married later in life and had fewer children. Why? Mainly because her wage was needed to help support the family. Women earned less money than did men.

Labor Little could be done by the individual to improve working life. Large companies were indifferent to the plight of the working class. The Company Store made a better life less likely. Strikes were attempted, but largely unsuccessful. Why????

Labor Unions The Knights of Labor was the first large union in America. It represented both skilled and unskilled labor. They wanted sweeping changes not only at work, but in society. They attracted socialists and anarchists – Haymarket Square

Labor Unions AF of L took up where K of L left off. They did not represent unskilled. They were an umbrella union in that individuals could not join. Fought for better wages and shorter hours. Fairly successful because of organization, $, and support.