Chapter 24Chapter 24

““Industry Comes of Age” Industry Comes of Age”

RailroadsRailroads

After the Civil War, railroad production After the Civil War, railroad production grew enormously, from 35,000 mi. of track grew enormously, from 35,000 mi. of track laid in 1865 to a whopping 192,556 mi. of laid in 1865 to a whopping 192,556 mi. of track laid in 1900 track laid in 1900

Congress gave land to railroad companies Congress gave land to railroad companies totally 155,504,994 acres totally 155,504,994 acres

Federal Land grants to RRsFederal Land grants to RRs

Transcontinental RailroadTranscontinental Railroad

Congress commissioned the Union Pacific Railroad to begin Congress commissioned the Union Pacific Railroad to begin westward from Omaha, Nebraska, to gold-rich California.westward from Omaha, Nebraska, to gold-rich California.

– The company received huge sums of money and land to build its The company received huge sums of money and land to build its tracks, but corruption also plagued it, as the insiders of the Credit tracks, but corruption also plagued it, as the insiders of the Credit Mobilier reaped $23 million in profits Mobilier reaped $23 million in profits

In California, the Central Pacific Railroad was in charge of In California, the Central Pacific Railroad was in charge of extending the railroad westward, an it was backed by the Big extending the railroad westward, an it was backed by the Big Four: including Leland Stanford, the ex-governor of California who Four: including Leland Stanford, the ex-governor of California who had useful political connections, and Collis P. Huntington, a adept had useful political connections, and Collis P. Huntington, a adept lobbyist.lobbyist.

– Used many Chinese as laborUsed many Chinese as laborIn 1869, the transcontinental rail line was completed near Ogden, In 1869, the transcontinental rail line was completed near Ogden, Utah; in all, the Union Pacific built 1086 mi. of track, compared to Utah; in all, the Union Pacific built 1086 mi. of track, compared to 689 mi. by the Central Pacific 689 mi. by the Central Pacific

Promontory Point UtahPromontory Point Utah

Improvements of RRsImprovements of RRs

Steel RailsSteel Rails

Westinghouse Air brakesWestinghouse Air brakes

Pullman Palace CarsPullman Palace Cars

Standard timeStandard time

Standard gaugeStandard gauge

Pullman Palace CarPullman Palace Car

Time ZonesTime Zones

Corruption and the RRsCorruption and the RRs

Credit Mobilier ScandalCredit Mobilier ScandalBribesBribesOverchargingOverchargingMonopoliesMonopoliesPoolsPoolsKickbacksKickbacksTrustsTrustsHorizontal IntegrationHorizontal IntegrationInterlocking DirectoriesInterlocking Directories

Farmers UniteFarmers Unite

Patrons of Husbandry (Grange) - formed by farmers to Patrons of Husbandry (Grange) - formed by farmers to combat corruption, and to stop the railroad monopoly combat corruption, and to stop the railroad monopoly – Wabash Wabash case – Setback for farmers when the Supreme Court case – Setback for farmers when the Supreme Court

ruled that states could not regulate ruled that states could not regulate interinterstate commerce state commerce

Interstate Commerce Act - passed in 1887, banned Interstate Commerce Act - passed in 1887, banned rebates and pools and required the railroads to publish rebates and pools and required the railroads to publish their rates openly and also forbade unfair discrimination their rates openly and also forbade unfair discrimination against shippers and banned charging more for a short against shippers and banned charging more for a short haul than for a long one haul than for a long one

Marin California GrangeMarin California Grange

Reasons Why U.S. Became #1 largest Reasons Why U.S. Became #1 largest Manufacturer in the WorldManufacturer in the World

1.1. $$$$$ - Liquid capital$$$$$ - Liquid capital

2.2. Fully exploited natural resources (like Fully exploited natural resources (like coal, oil, and iron)coal, oil, and iron)

3.3. Massive immigration made labor cheap Massive immigration made labor cheap

4.4. American ingenuity played a vital role, as American ingenuity played a vital role, as such inventions like mass production such inventions like mass production

Telephone – Alexander Graham Bell – 1876Telephone – Alexander Graham Bell – 1876

Invention Factory – Thomas EdisonInvention Factory – Thomas Edison

Andrew CarnegieAndrew Carnegie

Immigrated to the U.S. from Scotland in 1835 at age 12Immigrated to the U.S. from Scotland in 1835 at age 12Used Vertical integration to build Carnegie steel into a Used Vertical integration to build Carnegie steel into a huge corporation.huge corporation.Combined into one organization all phases of Combined into one organization all phases of manufacturing from one mining to marketing.manufacturing from one mining to marketing.Bessemer Process – Cheap way to make steel. Burning Bessemer Process – Cheap way to make steel. Burning of impurities in iron ore to make steelof impurities in iron ore to make steelLater sold Carnegie Steel to JP Morgan for $400 million.Later sold Carnegie Steel to JP Morgan for $400 million."Gospel of Wealth"Gospel of Wealth". In the article Carnegie argued that it ". In the article Carnegie argued that it was the duty of rich men and women to use their wealth was the duty of rich men and women to use their wealth to benefit the welfare of the community. He wrote that a to benefit the welfare of the community. He wrote that a "man who dies rich dies disgraced". "man who dies rich dies disgraced".

The Gospel of The Gospel of Wealth:Wealth:

Religion in the Era of Religion in the Era of IndustrializationIndustrialization

The Gospel of The Gospel of Wealth:Wealth:

Religion in the Era of Religion in the Era of IndustrializationIndustrialization

Russell H. ConwellRussell H. Conwell

$ Wealth no longer Wealth no longer looked upon as looked upon as bad.bad.

$ Viewed as a sign of Viewed as a sign of God’s approval.God’s approval.

$ Christian duty to Christian duty to accumulate wealth.accumulate wealth.

$ Should not help the Should not help the poor.poor.

$ Wealth no longer Wealth no longer looked upon as looked upon as bad.bad.

$ Viewed as a sign of Viewed as a sign of God’s approval.God’s approval.

$ Christian duty to Christian duty to accumulate wealth.accumulate wealth.

$ Should not help the Should not help the poor.poor.

““On Wealth”On Wealth”““On Wealth”On Wealth”

Andrew CarnegieAndrew Carnegie

$ The Anglo-Saxon race The Anglo-Saxon race is superior.is superior.

$ ““Gospel of WealthGospel of Wealth” ” (1901).(1901).

$ Inequality is Inequality is inevitable and good.inevitable and good.

$ Wealthy should act as Wealthy should act as “trustees” for their “trustees” for their “poorer brethren.”“poorer brethren.”

$ The Anglo-Saxon race The Anglo-Saxon race is superior.is superior.

$ ““Gospel of WealthGospel of Wealth” ” (1901).(1901).

$ Inequality is Inequality is inevitable and good.inevitable and good.

$ Wealthy should act as Wealthy should act as “trustees” for their “trustees” for their “poorer brethren.”“poorer brethren.”

Andrew CarnegieAndrew Carnegie

Carnegie the PhilanthropistCarnegie the Philanthropist

Carnegie set up a trust fund "for the improvement of Carnegie set up a trust fund "for the improvement of mankind." This included the building of 3,000 public mankind." This included the building of 3,000 public libraries, the Carnegie Institute of Pittsburgh, the libraries, the Carnegie Institute of Pittsburgh, the Carnegie Institute of Technology and the Carnegie Carnegie Institute of Technology and the Carnegie Institution of Washington for research into the natural Institution of Washington for research into the natural and physical sciences. Carnegie also established the and physical sciences. Carnegie also established the Endowment for International Peace in an effort to Endowment for International Peace in an effort to prevent future wars. prevent future wars.

By the time Andrew Carnegie died in August, 1919, he By the time Andrew Carnegie died in August, 1919, he had given away $350,000,000. A further $125 million had given away $350,000,000. A further $125 million was placed with the Carnegie Corporation to carry on his was placed with the Carnegie Corporation to carry on his good works good works

John D. RockefellerJohn D. Rockefeller

Master of “horizontal integration,” and a giant Master of “horizontal integration,” and a giant among bankers, simply allied with competitors among bankers, simply allied with competitors to monopolize a given market.to monopolize a given market.

He used this method to form Standard Oil and He used this method to form Standard Oil and control the oil industry by forcing weaker control the oil industry by forcing weaker competitors to go bankrupt competitors to go bankrupt

Rockefeller also placed his own men on the Rockefeller also placed his own men on the boards of directors of other rival competitors, a boards of directors of other rival competitors, a process called “interlocking directorates process called “interlocking directorates

RockefellerRockefeller

Standard OilStandard Oil

Oil (kerosene) was used mostly for light at Oil (kerosene) was used mostly for light at nightnightHowever, by 1885, 250,000 of Edison’s electric However, by 1885, 250,000 of Edison’s electric light bulbs were in use, and the electric light bulbs were in use, and the electric industry soon rendered kerosene obsolete, just industry soon rendered kerosene obsolete, just as kerosene had made whale oil obsolete.as kerosene had made whale oil obsolete.Oil, however, had its profits from the gasoline-Oil, however, had its profits from the gasoline-burning internal combustion engine burning internal combustion engine John D. Rockefeller, ruthless and merciless, John D. Rockefeller, ruthless and merciless, organized the Standard Oil Company of Ohio organized the Standard Oil Company of Ohio in 1882in 1882

Standard Oil in Coalinga, CAStandard Oil in Coalinga, CA

J.P. MorganJ.P. Morgan

In 1891 Morgan arranged the merger of In 1891 Morgan arranged the merger of Edison General Electric and Thompson-Edison General Electric and Thompson-Houson Electric Company to form General Houson Electric Company to form General Electric, which then became the country's Electric, which then became the country's main electrical-equipment manufacturing main electrical-equipment manufacturing company. company.

Purchased Carnegie Steel and renamed it Purchased Carnegie Steel and renamed it United States SteelUnited States Steel

J.P. MorganJ.P. Morgan

Sherman Anti-TrustSherman Anti-Trust

The Sherman Anti-Trust Act was designed to The Sherman Anti-Trust Act was designed to combat the rise in industrial combinations, the combat the rise in industrial combinations, the most notorious being the Standard Oil Trust. The most notorious being the Standard Oil Trust. The law declared that: "Every contract combination in law declared that: "Every contract combination in the form of trust or otherwise in restraint of the form of trust or otherwise in restraint of commerce among several states or foreign commerce among several states or foreign nations is hereby illegal." nations is hereby illegal."

More effective against labor unions than against More effective against labor unions than against big businessbig business

Women in 1900Women in 1900

Women, who had swarmed Women, who had swarmed to factories and had been to factories and had been encouraged by recent encouraged by recent inventions, found new inventions, found new opportunities, and the opportunities, and the “Gibson Girl,” created by “Gibson Girl,” created by Charles Dana Gibson, Charles Dana Gibson, became the romantic ideal of became the romantic ideal of the age.the age.However, many women However, many women never achieved this, and never achieved this, and instead toiled in hard work instead toiled in hard work because they had to do so in because they had to do so in order to earn money.order to earn money.

Industrial RevolutionIndustrial Revolution

No more Jeffersonian idealsNo more Jeffersonian idealsNation of wage earnersNation of wage earnersFactory systemFactory systemWith the inflow of immigrants providing a labor force that could work With the inflow of immigrants providing a labor force that could work for low wages and in poor environments, the workers who wanted to for low wages and in poor environments, the workers who wanted to improve their conditions found that they could not, since their improve their conditions found that they could not, since their bosses could easily hire the unemployed to take their place bosses could easily hire the unemployed to take their place Big business could get rid of unruly workers easily and hire new Big business could get rid of unruly workers easily and hire new workersworkers– LockoutLockout– Call in troopsCall in troops– Ironclad oaths Ironclad oaths – BlacklistsBlacklists– Company townsCompany towns

Management vs. Labor

Management vs. Labor

““Tools” of Tools” of ManagementManagement

““Tools” of Tools” of LaborLabor

““scabs”scabs”

P. R. campaignP. R. campaign

PinkertonsPinkertons

lockoutlockout

blacklistingblacklisting

yellow-dog yellow-dog contractscontracts

court injunctionscourt injunctions

boycottsboycotts

sympathy sympathy demonstrationsdemonstrations

informational informational picketingpicketing

closed shopsclosed shops

organized organized strikesstrikes

SweatshopsSweatshops

Labor UnionsLabor Unions

National Labor UnionNational Labor Union

Knights of LaborKnights of Labor

American Federation American Federation of Laborof Labor

Knights of LaborKnights of Labor

Started in 1869Started in 1869““All workers unite”All workers unite”Used arbitrationUsed arbitrationPushed for an eight hour Pushed for an eight hour workdayworkdayLed by Terence V. Led by Terence V. Powderly, the Knights won Powderly, the Knights won a number of strikes for the a number of strikes for the eight-hour day, and when eight-hour day, and when they staged a successful they staged a successful strike against Jay Gould’s strike against Jay Gould’s Wabash Railroad in 1885, Wabash Railroad in 1885, membership mushroomed membership mushroomed to ¾ of a million workers.to ¾ of a million workers.

Goals of the Knights of Labor

Goals of the Knights of Laborù Eight-hour workday.Eight-hour workday.

ù Workers’ cooperatives.Workers’ cooperatives.

ù Worker-owned factories.Worker-owned factories.

ù Abolition of child labor.Abolition of child labor.

ù Increased circulation of greenbacks.Increased circulation of greenbacks.

ù Equal pay for men and women.Equal pay for men and women.

ù Safety codes in the workplace.Safety codes in the workplace.

ù Prohibition of contract foreign labor.Prohibition of contract foreign labor.

Downfall of KnightsDownfall of Knights

Bad Strike recordBad Strike record

Blamed for Haymarket Riot – name Blamed for Haymarket Riot – name became synonymous with anarchistsbecame synonymous with anarchists

Inclusion of skilled and non skilled workers Inclusion of skilled and non skilled workers together did not worktogether did not work

KnightsKnights

American Federation of LaborAmerican Federation of Labor

In 1886, Samuel Gompers founded the In 1886, Samuel Gompers founded the American Federation of Labor American Federation of Labor It consisted of an association of self-governing It consisted of an association of self-governing national unions, each of which kept its national unions, each of which kept its independence, with the AF of L unifying overall independence, with the AF of L unifying overall strategy.strategy.““Bread and Butter Unionism” - All he wanted Bread and Butter Unionism” - All he wanted was “more,” and he sought better wages, was “more,” and he sought better wages, hours, and working conditions.hours, and working conditions.Only skilled workersOnly skilled workers

Samuel GompersSamuel Gompers

Labor Unrest: 1870-1900

Labor Unrest: 1870-1900