Baltimore Polytechnic Institute January 31, 2011 A.P. U.S. History Mr. Green

Objectives: Explain how the transcontinental railroad network provided the basis for an integrated national market and the great post– Civil War industrial transformation. Identify the abuses in the railroad industry and discuss how these led to the first efforts at industrial regulation by the federal government. Describe how the economy came to be dominated by giant trusts, such as those headed by Carnegie and Rockefeller in the steel and oil industries, and the growing class conflict it precipitated. Describe how new technological inventions fueled new industries and why American manufacturers increasingly turned toward the mass production of standardized goods. AP Focus Enormous immigration, mass production, and the presence of low-skill jobs drive down workers’ wages. A catalyst for postwar industrial and economic expansion is the railroad industry, which not only facilitates trade, commerce, and transportation, but also makes locomotive production a major industry. The government plays a major role in the industry’s development and importance by providing the companies with millions of acres of free land—a giveaway, some say.

CHAPTER THEMES America accomplished heavy industrialization in the post–Civil War era. Spurred by the transcontinental rail network, business grew and consolidated into giant corporate trusts, as epitomized by the oil and steel industries. Industrialization radically transformed the practices of labor and the condition of the American working people. But despite frequent industrial strife and the efforts of various reformers and unions, workers failed to develop effective labor organizations to match the corporate forms of business.

Focus Questions Chapter 24-Due February 1, no exceptions

Foreign investment Labor Trade Technology How did these factors contribute to America’s economic transformation by 1900? ,000 miles of track in U.S., most east of Mississippi ,556 miles of track in U.S. most west of Mississippi

Transcontinental railroad building costly and risky Corporations asked for government subsidies military/postal road argument Congress gave 155,504,994 acres away Western states gave an additional 49 million acres away Cleveland stopped practice of withholding all land from other users Government gained cheap postal rates and cheap rates for transporting military traffic Avoided new taxes Increased property values

Transcontinental railroad debate moved forward after secession Initiated in 1862 to bolster the union and connect the west Union Pacific Railroad-West from Omaha, NE Many Irishmen laid track, fought with Native Americans Central Pacific Railroad-East from California fought with the Sierra Nevada mountains. Completed in 1869 near Ogden Utah

4 more transcontinental railroads completed before 1900 without federal government loans All received generous land grants except the Great Northern Many laid track “from nowhere to nothing” Many bankruptcies, mergers, or reorganizations

Cornelius Vanderbilt New York Central Steel Rail Standard track gauge Westinghouse Air brake Pullman Palace Cars Many tragedies despite safety devices

1. United the United States 2. Biggest business 3. Employed the most people 4. Took 20% of total investment dollars from domestic and foreign 5. Spurred economic growth post Civil War 6. Largest source of orders for young steel industry 7. Stimulated mining/farming in the West 8. City growth/immigration 9. Ecological impact 10. Standard 11. Maker of millionaires

Stock watering- Inflating the value of a corporation to sell its stocks and bonds Heads of the railroads began to work together and “pool” resources Some long hauls were less expensive than short hauls Small farmers paid the price

Depression of the 1870’s “railroaded” farmers into bankruptcy Wabash v. Illinois-states cannot regulate interstate commerce, only the federal government can regulate Congress passed the Interstate Commerce Act of 1887 Not effective in revolutionizing, only keeping stability

Foreign investors put the money into the hands of the private borrower Innovations in transportation-coal, iron, oil Mesabi Range-Chicago-Cleveland Mass-production methods 440,000 patents issued between 1860 and 1890 Bell and Edison

Vertical integration-combining into 1 organization all phases of manufacturing Justified on the grounds of efficiency and quality Horizontal integration-Trust developed by Rockefeller to control competitors Interlocking directorates-J.P. Morgan placed his people in the businesses he bailed out

5 Question Quiz

 Continue Reading Chapter 24  Prepare for 10 question reading check on Chapter 24 on Thursday