CHAPTER 17CHAPTER 17

An Economy Transformed:

The Rise of Big Business,

1877 - 1887

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Railroads and a “Locomotive People”Railroads and a “Locomotive People” Federal and state aid and a standard gauge

contribute to national rail network Railroads become first big business and

stimulate economy Trunk and feeder lines

Rail tycoons and politics mix Cornelius Vanderbilt, Collis Huntington and Jay Gould

Regulation is debated Munn v. Illinois

Interstate Commerce Act establishes first national commission

The Railroad Network

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Railroad Expansion, 1870-1890

Time Zones Established by the Railroads, 1883

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Big Business ArrivesBig Business Arrives

John D. Rockefeller of Standard Oil By the 1870s, controlled 90% of U.S. oil refining Horizontal integration “Holding company”

Andrew Carnegie and Carnegie Steel Bessemer process Vertical integration

Pace of inventions quickens Alexander Graham Bell Thomas Alva Edison

Mechanized labor becomes more tedious

Andrew Carnegie

Edison Listening to Stenograph

Big Business ArrivesBig Business Arrives (cont.’d)(cont.’d)

Unionization is attempted Knights of Labor opens doors to more workers

Haymarket Affair

American Federation of Labor lasts longer Samuel Gompers

Social Darwinism, or “survival of the fittest,” enjoys brief heyday in business Herbert Spencer Horatio Alger Henry George Lester Frank Ward

The Changing WestThe Changing West

Indian Resistance sporadic by end of 1800s Battle of Little Big Horn Chief Joseph Geronimo

Dawes Severalty Act of 1887 Mining draws many to West Cattle ranching transforms Great Plains Homestead Act of 1862

Desert Lands Act (1877) Timber and Stone Act (1878)

Western territories become states

Mining and Cattle

Frontiers, 1870s

Railroad Land Grants

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The New South?The New South? Redeemers in South celebrate end of

Reconstruction and attempt to rebuild region Sharecropping allows agriculture to continue

in South but benefits few Southerners feel as if treated like colonies of

North Quasi-slavery keeps blacks “in place” with

restrictive laws Civil Rights Act of 1875

Booker T. Washington Tuskegee Institute of Alabama

Life and Culture During the 1880sLife and Culture During the 1880s

Americans work hard and eat well when possible John Pemberton

Electricity changes American lifestyle Leisure time increases and becomes varied

P.T. Barnum and Buffalo Bill National League founded 1876

Political America, 1877-1887Political America, 1877-1887

Politics becomes form of entertainment Rutherford B. Hayes James Garfield Chester A Arthur

Pendleton Act brings civil service reform Grover Cleveland

Election of 1884

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Discussion QuestionsDiscussion Questions What was the Interstate Commerce Act? What

aspects of American society had changed to make such legislation necessary?

What role did business tycoons like Rockefeller and Carnegie play in the industrialization of America?

What benefits did industrial growth bring to the United States? Did these benefits apply to the entire nation?

Compare the administrations of Chester Arthur to Grover Cleveland. What were their successes and failures?