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1865-1900 Unit 7 AP US History The Railroad, Industrial Revolution, Monopoly Corporations, and Labor Unrest
Completing the Transcontinental Railroad • As the Civil War ended it became an initiative to link the nation east to west. (California Gold) • The federal government gave land grants and loans to private companies to build the railroad. • Building out of Omaha, Nebraska and heading west was the Union Pacific Railroad. • Employed mostly Irish • Building out of the boom town of Sacramento, California and heading east was the Central Pacific Railroad. • Employed mostly Chinese • Both companies met in Ogden, Utah in 1869.
Influences of the Railroad • Railroads take over as major economic business. • Economic Growth • Stimulated the growth of mining of natural resources and farming. • Created a national economy where raw materials from the west were shipped and made into consumer goods in the northeast. • Boomtowns • Deforestation of northern woodlands • Time management: 4 time zones to monitor schedules to avoid crashes • The millionaire class
Railroading Corruption • Railroad stock promoters exaggerate the values of railroads and sold stocks for more than they were worth. (“Stock Watering”) • This drove up prices on rates in order for RR managers to meet their obligations. • Free passes given to journalists and politicians. • “The Pool”: agreement between RR companies to divide business of an area and share the profits. • Rebates and kickbacks for assurance of use of their rail by large corporations. • Charge more for a short haul than a long haul. • Small farmers/businesses suffered the most.
Taking a Stand… • Farmers began to protest the practices by these monopolistic RR companies. • Congress passes the Commerce Act of 1887 • Prohibits rebates and pools • RR must publish their rates openly • Forbade discrimination against shippers • Outlawed charging more for short haul • Created the Interstate Commerce Commission to enforce the legislation • This was the first time that the federal government stepped in to regulate a private business.
The Railroad influences an Industrial Revolution… • What caused the United States to undergo a Revolution? • Investors and loans from foreign capitalists • Innovations in transportation • Abundance of natural resources • Coal, oil, iron, steel, copper, bauxite, zinc • Mass production methods • New inventions and innovations
Rise of “Corporations” • A type of business organization where shareholders invest money into the business. • Characterized by ‘limited liability’ where shareholders cannot lose more money than what they invested. • Impact on raising taxes on these institutions on you and me.
Light bulb • Invented in 1876 by Thomas Edison. • Prior to the light bulb, lighting in homes came by way of gas lighting. • Electricity heats a thin strip called a filament until it is hot enough to glow.
Telephone • Invented by Alexander Graham Bell • March, 1879 • Bell beat Elisha Gray in attaining credit for the patent by only 2 hours! • First installed telephone was in Connecticut in 1877. • First conversation was between Bell and his assistant in the next room. • “Hello Girls”
Assembly line manufacturing • Introduced by Henry Ford in 1908. • This allowed the manufacturing of vehicles less expensive which allowed more average Americans to purchase them. • In 1908, the first car (Model T) could be purchased for $825.00
Airplane • Introduced by the Wright Brothers on Dec. 17th, 1903. • The world’s first power driven airplane in Kitty Hawk, NC. • The plane was run off of a 12 horse power engine.
Bessemer Steel Process • Invented by Henry Bessemer • Produced steel at a faster, less expensive rate, while needing less workers. • Also used to purify the iron, used to make steel, by oxidation. (Air being blown through the molten iron).
Industrial Leaders • Andrew Carnegie • Steel Manufacturing • Used on RR • Used the Bessemer steel process • Makes steel faster, more efficient. • Vertical Integration • Combining into one organization all phases of manufacturing from mining to marketing
Industrial Leaders • Oil • John D. Rockefeller • Horizontal integration • Allying with competitors to monopolize a market. This came to be known as a trust • Standard Oil Company 1870 • Kerosene first major product • Invention of Automobile creates higher demand for his oil
Industrial Leaders • Finance and Banking • J.P. Morgan • Buys out Carnegie steel for 400 million $. • 1901: launches the United States Steel Corporation; worth 1.4 billion $. • America’s first billion dollar corporation.
Industrial Leaders • Railroads • Cornelius Vanderbilt • Greatly influences the building of the Transcontinental Railroad. • Replaces old iron tracks with steel which was more safe and could hold heavier loads. • Made a standard for width of track for more uniformity among connecting rails.
Breaking the “Trust” • People tired of paying the high prices for goods from the million dollar corporations begin to protest. • Congress passes the Sherman Anti-trust Act of 1890. • Forbade companies to join together to monopolize a market. • Law proved to be ineffective, corporate lawyers found numerous loopholes. • Ex. Sirius-XM satellite radio.
Impacts of the Industrial Revolution on the Nation • Increased wealth of the nation • Increased standard of living (luxuries, free time) • Cities boomed • Population, immigration, wage labor • Decline in agriculture • More government regulation in private business (anti-trust) • Concept of time (time zones) • Roles of women • Typewriter • Telephone • Wage laborers marry and begin life later. • Class divisions: laborer vs. bosses • Wage labor issues • Job security, working hours, corrupt bosses • Participation in global markets • Influenced creation of labor union
Labor Unions • Knights of Labor • 1869 • Secret society with passwords, handshakes until 1881 • Invited membership from skilled, unskilled, men, women, whites, and even blacks. • Fought for economic and social reform, safety and health codes, and the 8 hour work day.
Labor Unions continued… • American Federation of Labor • 1886 • Samuel Gompers • Skilled workers: carpenters, bricklayers • Association of self-governing unions • Fought for social reform, against socialism, higher wages, less hours, and improved working conditions. • Used “walk-outs” and boycotts
Haymarket Square Strike • May 4, 1886 • Chicago, ILL • Started out as a strike for workers. • A bomb was thrown at police and gunfire rang out killing 8 police and numerous civilians. • Four anarchists were put to death, a fifth committed suicide in prison. • Knights of Labor accused of being an anarchist union.
Homestead Strike • June of 1892 • Homestead, PA • Strike between Carnegie Steel Company and the steel workers labor union AA. • Striking against working conditions, pay, safety regulations. • Violence between striking workers and the Pinkertons, a security agency.
Gains from Strikes • Limited Working hours • Regulated Working Conditions • Consistent and higher pay