1. Industry Comes of Age 1865-1900 Chapter 24

2. A. Intro Why are the best people not president? Answer: There was a lot more money to be made as an entrepreneur U.S. economy booming by 1900

4. A. The Railroad Age RR’s expand dramatically after Civil War Mostly due to gov’t land grants (155.5 Million acres) RR co.’s would then sell leftover land to people Cities competed for RR to pass through 1 st Transcontenintal RR built by Union Pacific and Central Pacific RR’s paid in gov’t subsidies Met in Promontory Summit, Utah in 1869 Connected CA. to the east By 1893, 5 Trans. Cont. RR’s existd

5. B. RR’s Cross the Nation Cornelius Vanderbilt – RR Tycoon – Used steel track instead of iron (safer, cheaper) George Pullman – Tycoon that made Pullman Palace Cars Effects of RRs: RR’s decreased cost of goods (cheaper to ship) Increased pop. In cities, due to large amounts of food shipping Building RR’s also ravaged countryside of resources (trees, etc) Land to standardized time Made Millionaires

6. C. Corruption and RR Reform RR Speculation rampant RR co.’s charged heavy rates for the poor RR managers bribed congressmen The country at the mercy of RR tycoons Gov’t attitude was laissez-faire, so didn’t do anything about it Congress passed the Interstate Commerce Act in 1887 – *1 st gov’t attempt at regulation* – Forbade rebates and made RR Co.s provide public records – Created the Interstate Commerce Commission which oversaw co.s – Did not clean up corruption, but got businesses to compete fairly

7. D. American Ingenuity 1894, the U.S. #1 among industrial nations Reasons – Natural resources fully exploited (coal, oil, iron) – Massive immigration (Irish, Chinese, etc.) – New inventions (refrigerated RR Car, electric railways) – Telephone created by Alexander Graham Bell – Thomas Edison created phonographs, motion pictures, and improved light builbs

8. E. The Rise of Trusts Tycoons Dominated American economy Andrew Carnegie-steel John D. Rockefeller-Oil J.P. Morgan-Banker All found clever ways to defeat competition Vertical Integration – Taking over industries that supply your business Horizontal Integration – Taking over competitors – Forming Monopolies – Also formed trusts

9. F. Captains of Industry vs. Robber Barons 1850s, Henry Bessimer creates Bessimer Process Used in building RR’s, bridges, taller skyscrapers, etc. By 1900, Carnegie’s U.S. Steel producing 25% of nation’s steel $40 million a year in profit Carnegie eventually sold business to Morgan for $400 million Carnegie dedicated later life to philanthropy (donated over $350 million)

10. Pennsylvania, 1859, first big oil strike Oil made Kerosene for lamps Made obsolete by Edison light bulbs Oil became valuable due to automobiles by 1900 John D. Rockefeller organized Standard Oil in 1870 1877, Rockefeller own 95% of all oil companies in U.S. (Horizontal integration)

11. G. Gospel of Wealth Many industrialists believed in Social Darwinism – The wealthy are rich, because they are strong – Survival of the fittest Some tycoons like Carnegie argued that it was the duty of the wealthy to be morally responsible w/ money

12. H. The Gov’t Steps In Congress passed the Sherman Anti-trust Act in 1890 – Forbade business combos that restricted trade – Did not distuinguish btwn good and bad trusts Minimal punishments and loopholes But, The gov’t was now beginning to get involved

13. I. The South Tenant Farming and share cropping 1880s, James Buchanan Duke became a tobacco tycoon (machine-made cigarettes) RRs preferential to Northern industrial goods, so South left out South had some success with Northern-owned cotton mills Employed the poorest people in the south (women, children, blacks) Some liked the mills b/c 1 st time to escape farming

14. J. Daily Life in Industrial America America fundamentally changed Jefferson’s ideals of the yeoman farmer fading Americans = wage-earners Factory life difficult – Long hours, little pay, harsh conditions, fired at a moment’s notice Women working in factories, changing ideals – Gibson Girl Women always paid less than men Workers largely have little to no rights

15. K. Labor Unions 1900, 10% of population controlled 90% of U.S. Wealth Companies hired European immigrants b/c cheaper wages Corporations controlled gov’t and could order strikers to stop Owners could force workers to sign yellow-dog contracts National Labor Union 1866 – Attracted skilled, unskilled, and farmers – Excluded Chinese, women, and many blacks – Wanted an 8-hour workday

16. The Knights of Labor – Terrence V. Powderly – Diverse – Allowed women and blacks to join – health and safety codes in the workplace – 8-hour workday – The KOL ultimately hurt by Haymarket Riot in Chicago

17. American Federation of Labor 1886 – Samuel Gompers – A federation unions – only skilled craftsmen, no blacks or women By 1900, Americans largely recognized workers right to organize and collectively bargain Vast # of employers continued to fight unions