Ch.19 Politics and Progress

Why It Matters Essential Questions The construction of railroads through West Texas made settlement by farmers and ranchers possible. The farmers and ranchers became dependent upon railroads for both the goods they bought and the products they sold. Essential Questions How did dependence on railroads cause economic problems and discontent? How did the government and other organizations address this issue? Intro 5

I. Reconstruction Ends The late 1800s was a time of growth and expansion in Texas. Railroads spread Agriculture boomed Industries expanded Many new political issues emerge

The Impact Today Many of the important cities and towns of West Texas were settled along the railroad lines during the late 1800s. The coming on the railroads gave Texas a great economic boost. Intro 6

Houston San Antonio Waco Dallas Fort Worth Laredo What would have happened to these cities if the railroad had not been built through them?

Laredo, Texas in 1892 reflects the growth and development that occurred in many Texas towns during this period. Intro 4

II. Railroads Before 1900, most families traveled by wagons and buggies. A 20 mile trip to town could take most of the day and normally required an overnight stay. Texas encouraged the building of railroads across the state by providing land grants to railroad companies. The Land Grant Law of 1876 authorized 16 sections (10, 240 acres)of land for every mile of track the railroad company laid. During this construction period, the state of Texas gave away more than 32 million acres.

Horse-Drawn Street Car in Texas late 1800s

E. By 1900 a network of railroads totaling some 10,000 miles spread over Texas. F. Journeys that had taken days or weeks now took hours. G. Houston, Dallas, and Fort Worth developed rapidly because they were railroad centers.

What connection do you see between the number of Railroad miles, and the total population of Texas?

Maps & Charts 1

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III. New Industry Grows 1868 - the meat-packing industry began in the city of Victoria 1900 - lumbering was the most important and valuable industry in the state. Timber companies harvested the timber of East Texas. Orange and Beaumont became major sawmill centers. Houston was mostly built by a lumber company owner.

IV. Monopolies Use Unfair Tactics In the late 1800s, large companies that operated in Texas joined together and formed trusts. These trusts: helped to prevent other companies from selling the same product or service reduced or eliminated competition and free trade Could hold a monopoly on a business, which allowed them to pay low prices for materials they bought and charge high prices for the goods they sold = huge profits.

Farmer’s Cycle of Debt Farmers borrowed extra money to buy more land, equipment, seed, and other supplies to produce more crops Producing more, or overproduction, lead to a drop in cotton prices. With lower crop prices and increased debts from land/equipment/seed purchases, many farmers could not get out of the cycle of debt.

V. Farmers Become Trapped by Debt Cotton prices fell during 1875 and remained low through 1900. Overproduction of cotton continued this cycle of debt. Farmers also claimed that railroads charged higher prices to farmers who had no choice than to use the local railroad to ship their goods.

VI. Texans Call for Reforms The Grange Formal name of the Grange = Patrons of Husbandry. The Grange: organization that called for economic changes; set up stores throughout Texas where members could buy supplies more cheaply pressured state legislature to deal with unfair shipping rates charged by railroads. The Grange eventually replaced with more aggressive political organization = Farmers’ Alliance By 1886, the Farmers Alliance had 100,000 members.

VII. New Laws Prohibits Trusts A. 1889 - TX legislature passed antitrust law stopping companies from joining together to fix prices or limit production. B. Main reason for antitrust laws - unfair business practices by railroads. C. The law often has been used to prevent unfair practices.

VIII. Governor Hogg Regulates the Railroads A. In 1891, the legislature created the Texas Railroad Commission, a state agency to regulate railroads operating in Texas. Railroads ceased unfair practices, such as fixing prices and charging more for short hauls than for long hauls. C. Since then, the Railroad Commission has been expanded to regulate other industries, particularly the oil industry.

IX. About Governor James S. Hogg He was the first native-born Texan to become Governor; He helped write one of the first antitrust laws in Texas (and the U.S.) to protect the public from monopolies; He supported bills to increase education funding; He would not back down from a fight against big business; and Spoke effectively to Texans of their hopes and dreams = “one of our own”.

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