1. Industry Comes Of Age
Pageant Chapter 24

2. The United States

3. 1a. Railroad Expansion
1865
The Civil War is over; Reconstruction has started
Now that the war is over, the United States resumes industrial and economic growth
The railroad industry would become huge after the war
Transcontinental RR – the U.S. undertook the massive project of building a RR that connected the eastern and western parts of the country
The government began giving away massive amounts of land to RR companies – added up together, it was bigger than the state of Texas
Why?
Benefit to gov’t – the corporations that got the land in turn gave the gov’t low rates for postal service and military use
Need for subsidy – Railroads made the land much more valuable than it was without them

4. 1b. Railroad Expansion
The first transcontinental RR was through the connecting of the Union Pacific and the Central Pacific Railroads in Connecting the east and west, It was the first of five. There was also:
*The Northern Pacific – connected the Great Lakes to the Pacific
*The Atchison, Topeka, and Santa Fe – started in Kansas, stretched through the southwest and ended at the Pacific.
*The Southern Pacific – stretched from New Orleans to San Francisco, CA
A fifth, the Great Northern RR, stretched from Minnesota to Seattle, Washington; set up by James J. Hill.
The RR industry created very lucrative business opportunities
Cornelius Vanderbilt – consolidated New York Central RRs in the east and midwest under his ownership
Travel increased; four time zones were created in 1883, dictated by the position of the sun

5. Transcontinental RR

6. Transcontinental RRs – 1880s

7. 1b. Railroad Expansion
The expansion of RRs changed the United States dramatically:
1) Industrial expansion – exploded
2) Agriculture - Farmers could ship their goods longer distances
3) Cities - grew along the RRs
4) Immigration - Immigrants were attracted to the new opportunities
5) Great Plains – became flourishing farmland
6) Wealth concentration – the RR industry made millionaires

8. 1c. Railroad Expansion
Where there is lots of money – there’s corruption
Jay Gould; William H. Vanderbilt; set up monopolies in the RR industry
They pulled all kinds of tricks; such as feeding the cows they shipped with salt, then giving them water to bloat the animals before weighing them in for sale
Bribed judges and politicians; they were above the law and had no concern for the public
These “Robber Barons” basically had the power of monarchs
The government finally tries to limit their power with the Interstate Commerce Act in 1887
RRs had to publish their shipping rates openly
The Interstate Commerce Act is what is called a “red-letter law”: A law that tries to regulate business in the U.S. for the interest of society at large.

9. 2. Industrialization
Four factors came together at the end of the 1800s that caused the industrial boom in the United States.
1) Liquid capital – was in abundance; it’s basically “cash”, or anything that can be spent or invested immediately
2) Natural resources – coal, oil, and iron fueled industry 3) Labor – was plenty thanks to immigration
4) Innovations – light bulb, telephone, typewriter, cash register

10. 3a., b. Titans and Trusts
Andrew Carnegie – dominated the steel industry
John D. Rockefeller – dominated the oil industry
They used tactics to take over these industries called horizontal integration and vertical integration
Vertical integration – owning an industry at every stage of its manufacturing to create a monopoly - Carnegie
Horizontal integration – allying with other business owners to create a monopoly – Rockefeller
In his later years, Carnegie would sell his company to another business giant, forming US Steel, with J.P. Morgan.
Rockefeller, would consolidate the oil industry which would prove vital once the internal-combustion engine was invented that would power the automobile

11. Andrew Carnegie

12. John D. Rockefeller

13. J.P. Morgan

14. 3c. Titans and Trusts
How did these billionaires justify the wealth of the few and the poverty of the masses?
Darwin’s “survival of the fittest” theories supported what the wealthy believed to be natural selection

15. 3d. Titans and Trusts
After the 1887 Interstate Commerce Act, the government continues its attempts to control corporate excess
The Sherman Anti-Trust Act of 1890.
It still wasn’t effective
It’s impossible to enforce free enterprise and free investment in a FREE society

16. 4. Impact of Industrialization
How did industrialization impact the “New” South after the Civil War?
Plantations were replaced with sharecropping and tenant farming, where farmers worked for a share of the crop or lived on the land they farmed.
In the 1900s, the South is still lagging behind industrially
How was American life overall affected by the Age of Industry?
1) Women were propelled from the home and into the labor force
2) Goodbye self sufficient farmer. Hello wage earner.
3) The U.S. would enter the world of foreign trade

17. 5a. Workers and Unions
The changes brought on by the postwar Industrial Revolution led to a major gap between the rich and poor
Business owners hired and fired workers at will
Soon, workers would unite to limit this power – labor unions
The Knights of Labor, organized in 1869, made huge strides under the leadership of Terence V. Powderly
Their efforts led to the 8 hour work day
Union strikes and protests at times would lead to hysteria
Chicago – the Haymarket Square episode – May 4th, 1886
Labor protests became violent – anarchists mixed in with the laborers and someone threw dynamite into the crowd of laborers and police who were trying to restore order, killing and injuring several dozen people
The laborers were mistakenly associated with the anarchists who threw the bomb; so the Knights lost power and influence after that.

18. 5b. Workers and Unions
The American Federation of Labor – organized in 1886 and led by Samuel Gompers
Sought better wages, working hours, and conditions
Unions that were a part of the AFL used strikes frequently to get demands met - this is known as collective bargaining.

19. The Mid-Term Will cover chapters 1-22 90 Questions Multiple Choice
No essay – HUZZAH!
Study your Unit 1-4 exam review sheets
I don’t have a review sheet for Unit 5 – lo siento
if you lost your original exam review sheets