THE RAILROAD, INDUSTRIAL REVOLUTION, MONOPOLY

CORPORATIONS, AND LABOR UNREST

1865-1900Unit 7

AP US History

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 ManufacturingUsed on RRUsed 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

BankingJ.P. MorganBuys 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