Transcript of The American Pageant Chapter 24 Industry Comes of Age Cover Slide Copyright © Houghton Mifflin...
- Slide 1
- The American Pageant Chapter 24 Industry Comes of Age Cover
Slide Copyright Houghton Mifflin Company. All rights reserved.
Adapted from: Ms. Susan M. Pojer Horace Greeley HS Chappaqua,
NY
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- Essential Question Industrialization increased the standard of
living and the opportunities of most Americans, but at what
cost?
- Slide 3
- The Iron Colt Becomes an Iron Horse After Civil War: railroad
production grew enormously 35,000 mi. of track laid in 1865 to a
whopping 192,556 mi. of track laid in 1900. Congress gave land to
railroad companies 155,504,994 acres. Railroads = value towns where
railroads ran became sprawling cities those skipped by railroads =
ghost towns, towns wanted railroads in them.
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- Spanning the Continent with Rails transcontinental railroad:
Able to be built in North after the South seceded, and in 1862:
Congress commissioned the Union Pacific Railroad to begin westward
from Omaha, Nebraska, to gold-rich California. received huge sums
of money & land to build its tracks corruption also plagued it
(insiders of the Credit Mobilier reaped $23 million in profits)
Irishmen, who might lay as much as 10 miles a day built the
railroad
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- Some Indians attacked while trying to save their land Irish
would fight them, many Indians died during construction.
California, the Central Pacific Railroad extended the railroad
eastward, backed by the Big Four including : Leland Stanford, the
ex-governor of California who had useful political connections,
Collis P. Huntington, an adept lobbyist. Central Pacific used
Chinese workers received same incentives as the Union Pacific had
to drill through the hard rock of the Sierra Nevada. Spanning the
Continent with Rails
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- 1869: transcontinental rail line was completed at Promontory
Point near Ogden, Utah the Union Pacific built 1,086 mi. of track
689 mi. by the Central Pacific. Spanning the Continent with
Rails
- Slide 7
- Binding the Country with Railroad Ties Before 1900, 4 other
transcontinental railroads were built: The Northern Pacific
Railroad stretched from Lake Superior to the Puget Sound (1883) The
Atchison, Topeka, and Santa Fe stretched through the Southwest
deserts (1884) The Southern Pacific (completed in 1884) went from
New Orleans to San Francisco. The Great Northern ran from Duluth to
Seattle and was the creation of James J. Hill, probably the
greatest railroad builder of all.
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- Many pioneers over-invested on land, the banks that supported
railroads often failed & went bankrupt when the land wasnt
worth as much as initially thought. Binding the Country with
Railroad Ties
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- Railroad Consolidation and Mechanization Older eastern
railroads, like the New York Central, headed by Cornelius
Vanderbilt, often financed the successful western railroads.
Advancements in railroads included: the steel rail=stronger &
more enduring than the iron rail the Westinghouse air brake which
increased safety, Pullman Palace Cars which were luxurious
passenger cars telegraphs, double-racking, and block signals.
Nevertheless, train accidents = common as well as death.
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- Revolution by Railways Railroads stitched the nation together,
generated a huge market lots of jobs helped the rapid
industrialization of America stimulated mining and agriculture in
the West brought people & supplies to &from the areas where
such work occurred.
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- Railroads helped people settle in the previously harsh Great
Plains. Due to railroads, the creation of four national time zones
occurred on November 18, 1883, instead of each city having its own
time zone (that was confusing to railroad operators). Railroads
were also the makers of millionaires and the millionaire class.
Revolution by Railways
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- Wrongdoing in Railroading Corruption existed in Railroad
Business Credit Mobilier scandal. Jay Gould: made millions
embezzling stocks from the Erie, Kansas Pacific, the Union Pacific,
and the Texas and Pacific railroad companies. stock watering: cheap
moneymaking in which railroad companies grossly over-inflated the
worth of their stock and sold them at huge profits.
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- Railroad owners: abused the public bribed judges and
legislatures, employed arm-twisting lobbyists elected their own to
political office, gave rebates which helped the wealthy but not the
poor used free passes to gain favor in the press. Wrongdoing in
Railroading
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- railroad giants began the first of what would be called trusts
at that time they were called pools. pool (AKA, a cartel) = group
of supposed competitors who agree to work together, usually to set
prices. Wrongdoing in Railroading
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- Government Bridles the Iron Horse Background: People were aware
of such injustice, but were slow to combat it. Grange was formed by
farmers to combat such corruption Some states stop the railroad
monopoly They were stopped by the Supreme Court with the Wabash
case ruled that states could not regulate interstate commerce, such
as trains.
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- Interstate Commerce Act (1887) banned rebates & pools
required the railroads to publish their rates openly (so as not to
cheat customers), forbade unfair discrimination against shippers
banned charging more for a short haul than for a long one. set up
the Interstate Commerce Commission (ICC) to enforce this.
Government Bridles the Iron Horse
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- Interstate Commerce Act (1887) cont.. not a victory against
corporate wealth, Richard Olney a shrewd corporate lawyer, noted
that they could use the act to their advantage, Did = 1 st attempt
by Congress to regulate businesses for societys interest.
Government Bridles the Iron Horse
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- Miracles of Mechanization 1860, the U.S. = 4th largest
manufacturer in the world by 1894, it was #1, why? Now-abundant
liquid capital. Fully exploited natural resources (like coal, oil,
and iron, the iron came from the Minnesota-Lake Superior region
which yielded the rich iron deposits of the Mesabi Range).
- Slide 19
- Massive immigration made labor cheap. American ingenuity played
a vital role, as such inventions like: mass production (from Eli
Whitney) were being refined and perfected. Popular inventions
included: the cash register the stock ticker, the typewriter the
refrigerator car the electric dynamo The electric railway, which
displaced animal-drawn cars. Miracles of Mechanization
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- Thomas Alva Edison Wizard of Menlo Park
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- The Light Bulb
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- The Phonograph (1877)
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- The Ediphone or Dictaphone
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- The Motion Picture Camera
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- Alexander Graham Bell Telephone (1876)
- Slide 26
- The Trust Titan Emerges Industry giants used various ways to
eliminate competition and maximize profits: Andrew Carnegie used a
method called vertical integration: meant that he bought out &
controlled all aspects of an industry Ex:,he mined the iron,
transported it, refined it, and turned it into steel, controlling
all parts of the process
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- The Trust Titan Emerges John D. Rockefeller = master of
horizontal integration simply allied with or bought out competitors
to monopolize a given market used this method to form Standard Oil
& control the oil industry by forcing weaker competitors to go
bankrupt.
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- New Type of Business Entities
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- Standard Oil Co.
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- J.P. Morgan (banker) placed his own men on the boards of
directors of other rival competitors why? gain influence there
reduce competition, a process called interlocking directorates. The
Trust Titan Emerges
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- New Financial Businessman The Broker: J. Pierpont Morgan The
Broker: J. Pierpont Morgan
- Slide 32
- The Supremacy of Steel During Civil War: steel = very scarce
& expensive by 1900, Americans produced as much steel as
England & Germany combined. Due to an invention that made
steel- making cheaper & much more effective: the Bessemer
process named after an English inventor even though an American,
William Kelly, had discovered it first
- Slide 33
- Bessemer Process: Cold air blown on red-hot iron burned carbon
deposits and purified it. America was one of the few nations that
had a lot of coal for fuel, iron for smelting, & other
essential ingredients for steel making quickly became #1. The
Supremacy of Steel
- Slide 34
- Iron & Steel Production
- Slide 35
- Carnegie & Other Sultans of Steel Andrew Carnegie: started
off as a poor boy in a bad job by working hard, assuming
responsibility, & charming influential people, he worked his
way up to wealth. started in the Pittsburgh area Didnt like trusts
by 1900, he was producing 1/4 of the nations Bessemer steel, &
getting $25 million a year.
- Slide 36
- J. Pierpont Morgan: already made a fortune in the banking
industry & in Wall Street ready to step into the steel tubing
industry Carnegie threatened to ruin him after some tense
negotiation, Morgan bought Carnegies entire business at $400
million (this was before income tax) Carnegie, fearing ridicule for
possessing so much money, spent the rest of his life donating $350
million of it to charity, pensions, & libraries. Carnegie &
Other Sultans of Steel
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- Meanwhile, Morgan took Carnegies holdings added others launched
the United States Steel Corporation (1901) the worlds first
billion-dollar corporation (it was capitalized at $1.4 billion).
Carnegie & Other Sultans of Steel
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- Rockefeller Grows an American Beauty Rose by the 1870s:
kerosene, a type of oil = used to light lamps all over the nation.
By 1885, 250,000 of Edisons electric light bulbs were in use
electric industry soon made kerosene obsolete just as kerosene had
made whale oil obsolete.
- Slide 39
- Rockefeller Grows an American Beauty Rose Oil demand was
increasing gasoline-burning internal combustion engine. John D.
Rockefeller = ruthless & merciless organized the Standard Oil
Company of Ohio in 1882 (five years earlier, he had already
controlled 95% of all the oil refineries in the country). crushed
weaker competitors part of the natural process according to him did
produce superior oil at a cheaper price.
- Slide 40
- Other trusts, which also generally made better products at
cheaper prices, emerged, such as the meat industry of Gustavus F.
Swift and Philip Armour. Rockefeller Grows an American Beauty
Rose
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- The Gospel of Wealth Gospel of Wealth. : Many of the newly rich
had worked from poverty to wealth, so? felt that some people in the
world were destined to become rich & then help society with
their money Social Darwinism applied Darwins
survival-of-the-fittest theories to business said the reason a
Carnegie was at the top of the steel industry was that he was most
fit to run such a business.
- Slide 42
- Reverend Russell Conwell of Philadelphia became rich by
delivering his lecture, Acres of Diamonds 1000s of Xs preached that
poor people made themselves poor rich people made themselves rich
everything was because of ones actions only Corporate lawyers used
the 14th Amendment to defend trusts judges agreed, saying that
corporations were legal people and thus entitled to their property,
& plutocracy ruled. The Gospel of Wealth
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- Government Tackles the Trust Evil Sherman Anti-Trust Act (1890)
it forbade combinations (trusts, pools, interlocking directorates,
holding companies) in restraint of trade, without any distinction
between good and bad trusts. Ineffective--couldnt be enforced.
Wasnt enforced until 1914 when those prosecuted for violating the
law were actually punished
- Slide 44
- The South in the Age of Industry South remained agrarian
(despite all the industrial advance) James Buchanan Duke developed
a huge cigarette industry = American Tobacco Company made many
donations to what is now Duke University. Henry W. Grady, editor of
the Atlanta Constitution newspaper urged the South to
industrialize.
- Slide 45
- ***Many northern companies set rates to keep the South from
gaining any competitive edge Ex: including the rich deposits of
iron and coal near Birmingham, Alabama & the textile mills of
the South cheap labor led to the creation of many jobs despite poor
wages, many white Southerners saw employment as a blessing. The
South in the Age of Industry
- Slide 46
- Impact of the New Industrial Revolution standard of living rose
immigrants swarmed to the U.S. early Jeffersonian ideals about the
dominance of agriculture fell.
- Slide 47
- Impact of the New Industrial Revolution Gibson Girl Cultural
icon who represented women who had swarmed to factories encouraged
by recent inventions found new opportunities created by Charles
Dana Gibson became the romantic ideal of the age. young, athletic,
attractive, and outdoorsy (not the stay-at-home mom type).
- Slide 48
- In Unions There Is Strength Background: immigrants were
providing a labor force that would work for low wages & in poor
environments, workers who wanted to improve their conditions
couldnt: bosses could easily hire unemployed to take their
places
- Slide 49
- Corporations weapons against strikers hiring strikebreakers
asking the courts to order strikers to stop striking & if they
continued, to bring in troops. hiring scabs or replacements
lockouts to starve strikers into submission often, workers had to
sign ironclad oaths or yellow dog contracts banned them from
joining unions blacklist employees put on a list and denied
privileges elsewhere. In Unions There Is Strength
- Slide 50
- middle-class response to workers? annoyed by the recurrent
strikes grew deaf to the workers outcry. people like Carnegie &
Rockefeller had battled & worked hard to get to the top, so?
workers could do the same if they really wanted to improve their
situations. In Unions There Is Strength
- Slide 51
- Labor Limps Along Civil War increased the demand for labor
helped labor unions grow. The National Labor Union (1866)
represented a giant boot stride by workers attracted an impressive
total of 600,000 members, but it only lasted 6 years excluded
Chinese & didnt really try to get Blacks & women to join.
worked for the arbitration of industrial disputes Worked for the
8-hour workday Won that for government workers, but the depression
of 1873 knocked it out.
- Slide 52
- Knights of Labor (1869 ) continued secretly until 1881 similar
to the National Labor Union only barred liquor dealers,
professional gamblers, lawyers, bankers, and stockbrokers
campaigned for economic & social reform. Led by Terence V.
Powderly won a number of strikes for the 8-hour day successful
strike against Jay Goulds Wabash Railroad in 1885 membership
mushroomed to of a million workers. Labor Limps Along
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- Knights of Labor Terence V. Powderly An injury to one is the
concern of all!
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- Knights of Labor Knights of Labor trade card
- Slide 55
- Goals of the Knights of Labor Eight-hour workday. Workers
cooperatives. Worker-owned factories. Abolition of child and prison
labor. Increased circulation of greenbacks. Equal pay for men and
women. Safety codes in the workplace. Prohibition of contract
foreign labor. Abolition of the National Bank.
- Slide 56
- Unhorsing the Knights of Labor Knights became involved in a
number of May Day strikes (1/2 failed) Chicago (Haymarket Square
Bombing) home to about 80,000 Knights (& a few hundred
anarchists that advocated a violent overthrow of the American
government) tensions had been building May 4, 1886, Chicago police
were advancing on a meeting that had been called to protest
brutalities by authorities dynamite bomb was thrown, killing or
injuring several dozen people.
- Slide 57
- Haymarket Square Bombing (cont.) 8 anarchists rounded up no one
could prove that they had any association with the bombing since
they had preached incendiary doctrines, the jury sentenced 5 of
them to death On account of conspiracy gave the other 3 stiff
prison terms.
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- In 1892, John P. Altgeld German-born Democrat is elected
governor of Illinois pardoned the 3 survivors after studying the
case extensively Received violent verbal abuse for that was
defeated during re-election. Result: Haymarket Square Bombing is
associated with the Knights of Labor & anarchists lowered their
popularity & effectiveness membership declined those that
remained fused with other labor unions. Haymarket Square Bombing
(cont.)
- Slide 59
- Haymarket Riot (1886) McCormick Harvesting Machine Co.
- Slide 60
- Haymarket Martyrs
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- Governor John Peter Altgeld
- Slide 62
- The AF of L to the Fore Samuel Gompers : founded the American
Federation of Labor (1886) an association of self-governing
national unions, each of which kept its independence the AF of L =
unifying overall strategy. Gompers demanded a fairer share for
labor. He simply wanted more, : sought better wages, hours, &
working conditions.
- Slide 63
- The American Federation of Labor: 1886 Samuel Gompers
- Slide 64
- How the AF of L Would Help the Workers Catered to the skilled
worker. Represented workers in matters of national legislation.
Maintained a national strike fund. Evangelized the cause of
unionism. Prevented disputes among the many craft unions. Mediated
disputes between management and labor. Pushed for closed
shops.
- Slide 65
- The AF of L established itself on solid but narrow foundations
tried to speak for all workers, but didnt quite do that It was
composed of skilled laborers Let unskilled laborers fend for
themselves Critics called it the labor trust. The AF of L to the
Fore
- Slide 66
- The stats: 1881-1900: there were over 23,000 strikes involving
6,610,000 workers total loss to both employers & employees of
about $450 million. Greatest weakness of labor unions? only
embraced a small minority3%of all workers The AF of L to the
Fore
- Slide 67
- By 1900: public began to concede the rights of workers They got
some or most of what they wanted. 1894, Labor Day = legal holiday
few owners realized that losing $ to fight labor strikes = useless
though most owners still dogmatically fought labor unions. Age of
big business had dawned Age of big labor was still some ways away
The AF of L to the Fore