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The period between 1865 and 1900 saw remarkable industrial growth in the United States, influenced by railroads, political corruption, and key figures like Carnegie and Rockefeller. The completion of the transcontinental railroad in 1869 revolutionized transportation and commerce, leading to significant land grants and financing for industrial development. Despite incredible wealth generated by industrialists, workers faced poor conditions, prompting the rise of labor unions, such as the American Federation of Labor and the American Railway Union. This era shaped the American economy and society profoundly.
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Unit 9 Industrialism(1865-1900)
Post Reconstruction Politics(1876-1896) • Characterized by: • Political corruption led by “bosses” • Need for reform • Constant debates over tariffs • Weak / nonexistent leadership
The railroad 1804 1890s
Railroad facts May 10, 1869: Transcontinental railroad completed… By 1890: • Almost 200,000 miles of track • Major companies developed: • Union Pacific; Credit Mobilier; Central Pacific • Numerous government actions taken: • Millions of acres given in land grants and financial loans for development • Created the Interstate Commerce Commission
Railroads begin industrialism How did railroads impact the following? • Steel…
Railroads begin industrialism How did railroads impact the following? • Lumber
Railroads begin industrialism How did railroads impact the following? • Raw materials and agricultural goods
Railroads begin industrialism Railroads impact on… • Communication: • Travel: • Business: • Politics: • American living:
Other inventions of Industrialism • (1876) Bell’s telephone
Other inventions of Industrialism • (1879) Edison’s light bulb
Other inventions of Industrialism • (1903) Wright brother’s airplane
Captains of Industry or Villains? You decide?
Andrew Carnegie (1835-1919) • Scottish immigrant; found Carnegie steel in 1889 • Secret to Success: • Always looked for new techniques to improve products • Hire the best employees • Vertical integration: • buy out suppliers • Horizontal consolidation: • buy out competition • Sold the company to Morgan for 480 million
1870: Founded the Standard Oil Company 1890: Controlled 90% of the oil business Offered lower prices to drive out competition Raised prices after competition quit 1911: Forced to break up the company because it was a monopoly Worth 1.4 billion in 1937… 190 billion today John D. Rockefeller (1839-1937)
Forming trusts • Carnegie , Rockefeller and Morgan all for either trusts or monopolies to control industries
Captains of Industry or Villains? • Many believed in the Gospel of wealth • Many became philanthropists • Carnegie over 350 million • Rockefeller over 500 million • Many believed that the poor were just lazy and weren’t working hard enough • Many made millions at the expense of the poor You decide?
1890: Congress passed the Sherman Antitrust Act Any attempt to interfere with free trade by forming a trust would be illegal Made monopolies illegal Difficult to enforce…trust was to vague Sherman Anti-Trust Act
Industrialism and the workers • Poor working conditions…16 hour shifts & little pay • Treated like slaves • Forced to sign yellow dog contracts • Rebellious workers were put on black lists • Dangerous machines that caused injury or death • Toxic materials caused many diseases • Women & children were excellent employees
Rise of Unions 1870s-1890s: • Fewer than 1% of the workforce is a union worker • Wages do not support standards of living
Rise of Unions Remaining: $116 $34 $153 The Gilder Lehrman Institute. Modules on American History http://www.gilderlehrman.org/teachers/module_pop_resource.php?module_id=342&resource_id=690 Screen clipping taken: 2/7/2011, 4:22 PM
Rise of Unions 1886: • Samuel Gompers helps to form the American Federation of Labor (AFL) 1894 • Eugene V. Debs helps to create the American Railway Union (ARU) 1903 • Teamsters formed as a craft union dedicated to delivery drivers What causes people to unionize?
Labor Unions in the United States | Economic History Services http://eh.net/encyclopedia/article/friedman.unions.us Screen clipping taken: 2/7/2011, 4:15 PM
Impact of Unions • Unions fight for better wages and working conditions • Employees look upon employers as the enemy • Use strikes to achieve goals • Achieve: • a shorter work day • Restrictions on child labor • Minimum wage laws • Better working conditions The Gilder Lehrman Institute. Modules on American History http://www.gilderlehrman.org/teachers/module_pop_resource.php?module_id=342&resource_id=689 Screen clipping taken: 2/7/2011, 4:32 PM Were they successful?