American Industrial Growth and Westward expansion

1. SSUSH11 American Industrial Growth and Westward expansion

2. Railroads and the West • Following the Civil War, the US continued to expand and become more industrialized. • Railroads helped during this process by granting farmers, ranchers, and other settlers access to eastern markets and resources. • In 1862 Congress coordinated an effort among railroad companies to build a transcontinental railroad. They passed the Pacific Railway Act to ensure that this happened. • Union Pacific and Central Pacific railroads joined their tracks at Promontory, Utah in 1869 to create the first cross-country rail line.

3. Pacific Railway Act • This granted both the Central Pacific and Union Pacific railway companies the right to lay track. • The Central Pacific would lay track eastward from the Pacific Ocean. • The Union Pacific would lay track westward from Omaha, Nebraska. • The railroads were granted federal land to sell as an incentive to lay the track. • In return the companies had to transport goods at a discount price for the federal government.

4. Chinese Immigration and the Chinese Exclusion Act • About 15,000 Chinese were hired to build the Central Pacific railroad. • After the railroad was completed, the Chinese posted a threat to the limited number of jobs in the West even though they were not citizens. • In 1879 the California state constitution was rewritten to place restrictions on the hiring of workers from Asia. • The Chinese Exclusion Act passed in 1882 effectively stalled the immigration of more Chinese workers.

5. Impact of Railroads • With the expansion of the railroad system, many people abandoned their form of lifestyle to move westward. • Many Irish and Chinese immigrants made up a large portion of the population in the West. • Goods such as cattle and farm products crisscrossed the country. • Those looking to make money fast looked to the railroads. • In 1874 Jay Gould purchased the Union Pacific Railroad. • He soon began buying up smaller railroads, quickly gaining control of the railway lines leading into NY City and Chicago. • Gould and Vanderbilt were among a wealthy group of businessmen called robber barons. • The goal of this group was to eliminate competition and instead create a monopoly, or total control of an industry.

7. Steel Industry and the Bessemer Process • Railroads also contributed to the rise of the steel industry. • In the 1880’s, a man named Henry Bessemer developed a new method for making steel. • This process was known as the Bessemer Process. • Using this process it became very easy to make steel and very cheap. • This led to a faster expansion of the railway system in the US.

8. Impacts of Steel • Thanks to steel buildings could be built taller than ever before. • By building taller buildings in cities such as New York and Chicago, this allowed them to save more room.

11. Leaders of Big Business • John D. Rockefeller consolidated smaller companies he and his associates had owned to create Standard Oil. • Rockefeller also used vertical integration, or the idea that you should own not only all producing companies but also supplying companies. • This was know as the nation’s first Trust, or where several companies unite under one. • Andrew Carnegie had total control of the steel industry. This allowed Carnegie to set price rates for railroads and for materials to build large scale buildings. • At the end of this time period trusts are going to control railroads, sugar, and the meat industries.

12. Carnegie Sells Steel Industry and Government Reaction to Big Business • Andrew Carnegie would eventually ended up selling his steel mills to J.P. Morgan. • Morgan bought them from Carnegie for $500 million dollars, making Carnegie the richest man in the world. • With several businesses controlling much of the US, Congress had to attempt to take control back. • In1887, it passed the Interstate Commerce Act which called for “reasonable and just”, shipping rates. • Congress followed this with the Sherman Anti-trust Act to protect trade and commerce against unlawful restraint and monopoly. • This showed Congress’s desire to limit the growth of monopolies and trusts.

13. Inventions Help Industrialization • One of the most influential inventors during this time was Thomas Edison. • Edison invented the light bulb, the phonograph, and motion picture camera. • Edison’s light bulb transformed how people lived and conducted business. • Before electric light bulbs, people were limited to working only during day hours. • Edison now helped businesses continue at night, and it created more opportunities for socializing.