1. Chapter 24

2. Iron Colt Becomes the Iron Horse
Transcontinental RR
Required gov subsidies because of cost and risk
Congress saw military and postal benefits
35,000 miles in 1865
200,000 in 1900

3. How did the gov. help the RR? Money loans Land grants:
RR could use land grants for collateral to banks
Gov Benefitted:
Preferential rates
Land grants= new taxes to give cash to the RR
Cleveland opened land for settlements and made some enemies
Towns lived and died by RR

4. Spanning the continent
Union Pacific RR
1100 miles going west from Omaha in 1862
Irish provided work
Dangerous

5. Central Pacific RR Built 690 miles east from Sacramento
Chinese supplied work force
Leland Stanford

6. Building the Country with RR
Met in Ogden Utah: 1869
Building the Country with RR
Southern Pacific 1884
Atchison Topeka and Santa Fe 1884
Northern Pacific 1883
Great Northern 1896
Too many RRs cause of Panic of 1873

7. Binding the country with Ties
New Transcontinental Railroads started some good, some bad
James J. Hill
Built Great Northern
Importance of Civic Duty and prosperity of others would aid his
Aided farmers by free transport, gave out bulls and instructions
Rare in world of corruption
Binding the country with Ties

8. RR Consolidation and Mechanization
Cornelius Vanderbilt
Connected to RR more then anyone
Superior service at lower rate
Built NY Central

9. Cornelius [“Commodore”] Vanderbilt
Can’t I do what I want with my money?

10. What improvements aided RR?(still part of last one)
Steel
Standard gauge 1886
Air brake 1869
Pullman car
In employed by RR
20,000 injured
2000 killed

11. Use page 535-6 Rev by RR to complete a graphic organizer

12. Revolution by RR Made millionaires
Opened new markets for manufactured goods
Enabled raw materials
Created a demand for steel
Stimulated mining and agriculture
Enabled large cities to develop
Stimulated immigration
Created a national market
Encouraged specialization
Fostered independence
Made millionaires
Revolution by RR

13. What additional impact did the RR have
Effected environment
Time (zones)
Destroyed Indians

14. Wrongdoing in RR Stock Watering Pools Rebates and Kickbacks
RR exaggerated the assets and sold more stock then available
Pools
Divide business
Rebates and Kickbacks
Low rates for long haul
Free passes for large shippers
Building competing lines

15. Jay Gould Controlled U P RR Notorious for stock watering
Most hated man in country
Notorious for stock watering
Boasted he cold hire half the working force and kill the rest

16. Gov Bridles Iron Horse Why so slow to respond?
Belief in enterprise and competition
Devotion to progress
Pockets full

17. SC response to RR (gov bridles)
Most early demand from reform came from Grange within states
Then Federal
1886 Wabash
States could not regulate Interstate Commerce
Fed gov would have to intervene

18. ICA Fed responds ICA of 1887 Created ICC Need put forth by Cleveland
Prohibited Rebates and Pools
Required RR to publish rates
Forbid long haul short haul differences
Created ICC
ICA

19. ICC No real way to enforce Issue orders but had to wait for courts
First attempt
First regulatory commission

20. Miracles of Mechanization
US jumps from 4th to 1st in production. How?
Civil war made fortunes
Resources
Abundance of labor
American Ingenuity
Expansion of RR

21. Best examples of Ingenuity
Bell
Gave women a job because men could not stop swearing
Edison
Electric light bulb 1879

22. The Ediphone or Dictaphone

23. The Phonograph (1877)

24. Alexander Graham Bell
Telephone (1876)

25. Trust Titan Emerges Robber Barons or Captains of Industry Carnegie
Steel
Napoleon of smokestacks
Donated 350 million
J.P. Morgan
Wall street banker
400 million for US steel!
Were they good or bad?

26. The ‘Robber Barons’ of the Past

27. The ‘Bosses’ of the Senate

28. Trust
Large industrial combinations integrated vertically or horizontally
Stock was held by single board of directors
Monopolized markets

29. Integration Vertical vs. Horizontal
Vertical is all phases of manufacturing and distribution
Horizontal: all competing companies together in same corp

30. New Type of Business Entities
Trust:
Horizontal Integration  John D Rockefeller
Vertical Integration:
Gustavus Swift  Meat-packing
Andrew Carnegie  U. S. Steel

31. Interlocking Directorate
Organized by Morgan
Directors of Morgan's bank served as directors of other companies

32. Holding Company
A holding company is a company or firm that owns other companies' outstanding stock.
does not produce goods or services itself.
reduction of risk for the owners
allows ownership and control of a number of different companies.

33. Supremacy of Steel US making more than any other country
Bessemer process, improved on Kelly’s Fools Steel
US had resources, labor and know how to produce fast

34. Carnegie and other sultans
Steel first billion dollar industry(Bessemer)
Profit in 88 was 2 m m
1901 sold to Morgan for 500m

35. Rockefeller grows an American Beauty Rose
Oil Industry
Titusville 1859
First major product was Kerosene
Auto put need for oil high

36. Rockefeller Pious and parsimonious Founded standard oil
Business tactics:
Law of nature
Good points:
Good product, cheap price
Aristocracy disappearing

37. Gospel of Wealth “The Lord gave me this wealth”
The rich had nothing but contempt for the poor
Sumner says that The Lord has picked Millionaires
Rv. Conwell says “if you are poor, you did it”
Support in the Const?
Corporations like people so protected by 14th amendment

38. Gov. tackles the Trust Gov. finally picks it up
1890 Sherman Anti Trust Act
Forbid monopolies
distinction between good and bad
Used against labor
More monopolies formed then ever

39. South in Age of Industry
Slow to change
Duke brought cigarette rolling machine
Lower taxes cheap labor
No union
North abused South
Textile Mills had some success
Exploited workers but best way to make money

40. Impact of Rev. on America
Women: Out of home looking for work
Increased class divisions
Nation of wage earners
More involved in world
Started to become concerned with rights
See need for unions

41. In Unions there is Strength
Factory work changing
Labor is most perishable of commodities
Workers problems
Immigration glutted labor market
Individual wage earners could not fight corporation
Industry had money to fight unions
Gov and courts favor business
Yellow dog, lockouts, blacklists
Public opposition to labor

42. National Labor Limps Along
National Labor union
Skilled and unskilled
600,000
8 hr day, (Won in gov)
gov. ownership of rr and banks

43. Unhorsing Knights of Labor
1869
Secret society first
No bankers, gamblers, lawyers
Powderly
Include all “American”workers
Not political
Economic and social reform
Brought down by Haymarket, even though not them

44. Haymarket
1886
Anarchists bomb
Condemned as guilty by association
8 arrested
5 sent to death !
Labor increased support for Greenback party because workers saw rr and forces subverting Democracy
By 1900 public starting supporting workers

45. The AF of L Fore AFL 1886 Independent unions
Better wages, hours, closed shops
Skilled only
Longest lasting and biggest impact